Coastal Bend Bays and Estuaries Program

Request for Proposals

Project Title: Educational Fieldtrips to Area Facilities

Project Number: 0907

Proposal Due Date: August 30, 2009

Notification of Award: September 15, 2009

The Coastal Bend Bays and Estuaries Program (CBBEP) is soliciting proposals to further the implementation of the Coastal Bend Bays Plan. Please submit proposals in agreement with the CBBEP Request for Proposals - Instructions.

Background:

Classroom teachers today face the almost overwhelming challenge of helping students progress through the required subject material. Many of the students that are being exposed to scientific concepts for the first time have never really spent much time outdoors or in dedicated environmental education facilities. There is a need to bring classroom concepts alive in the proper setting through educational fieldtrips. Teachers struggle daily to teach environmental concepts to children with "Nature Deficit Disorder." As environmental educators we need to support the "No Child Left Inside" initiative to the best of our ability.

The CBBEP is requesting proposals from local organizations to conduct environmental education learning experiences for students and their teachers. The programs must present a quality environmental learning experience. Funding between $5000 - $10,000 is intended for use providing the education fieldtrips, including costs of associated educational materials and any necessary and reasonable costs associated with transporting teachers and students from the school to the destination. The fieldtrip program must expand on current environmental programs already in existence in your facility.

Goal:

The goal of the CBBEP is to plant seeds of appreciation and a passion for a new generation of naturalists, biologists, and nature lovers to protect and preserve the Coastal Bend through educating school children about preserving our environment and protecting our animal and plant life.

Proposals submitted in response to this request must specifically adhere to the following:

* Must be a well established environmental education provider

* Educational Opportunity must expand on existing program

* Must partner with the CBBEP in the vision to educate children about the environment

* Must target primary-middle school age children within our 12 county outreach area (list number of students expected per trip)

* Facilities must be located within the CBBEP 12 county outreach area

* Must use funding in the 2009 - 2010 school year

Proposal instructions can be obtained from the CBBEP website: www.cbbep.org or by contacting Lari Jo W. Johnston, Environmental Educator, at (361) 885-6207 or via email at ljjohnston@cbbep.org

Proposals that are incomplete, unclear, or fail to comply with the requirements of the CBBEP's Request for Proposals Instructions may be rejected.

Visit our website - www.cbbep.org

TRD-200902981

Ray Allen

Executive Director

Coastal Bend Bays and Estuaries Program

Filed: July 21, 2009

Certification of the Average Taxable Price of Gas and Oil - May 2009

The Comptroller of Public Accounts, administering agency for the collection of the Crude Oil Production Tax, has determined that the average taxable price of crude oil for reporting period May 2009, as required by Tax Code, §202.058, is $37.81 per barrel for the three-month period beginning on February 1, 2009, and ending April 30, 2009. Therefore, pursuant to Tax Code, §202.058, crude oil produced during the month of May 2009, from a qualified Low-Producing Oil Lease, is not eligible for exemption from the crude oil production tax imposed by Tax Code, Chapter 202.

The Comptroller of Public Accounts, administering agency for the collection of the Natural Gas Production Tax, has determined that the average taxable price of gas for reporting period May 2009, as required by Tax Code, §201.059, is $3.22 per mcf for the three-month period beginning on February 1, 2009, and ending April 30, 2009. Therefore, pursuant to Tax Code, §201.059, gas produced during the month of May 2009, from a qualified Low-Producing Gas Well, is eligible for 25% credit on the natural gas production tax imposed by Tax Code, Chapter 201.

Inquiries should be directed to Bryant K. Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711-3528.

TRD-200902945

Martin Cherry

General Counsel

Comptroller of Public Accounts

Filed: July 20, 2009

Notice of Rate Ceilings

The Consumer Credit Commissioner of Texas has ascertained the following rate ceilings by use of the formulas and methods described in §§303.003, 303.009, and 304.003, Texas Finance Code.

The weekly ceiling as prescribed by §303.003 and §303.009 for the period of 07/27/09 - 08/02/09 is 18% for Consumer¹ /Agricultural/Commercial²/credit through $250,000.

The weekly ceiling as prescribed by §303.003 and §303.009 for the period of 07/27/09 - 08/02/09 is 18% for Commercial over $250,000.

The judgment ceiling as prescribed by §304.003 for the period of 08/01/09 - 08/31/09 is 5.00% for Consumer/Agricultural/Commercial/credit through $250,000.

The judgment ceiling as prescribed by §304.003 for the period of 08/01/09 - 08/31/09 is 5.00% for Commercial over $250,000.

¹Credit for personal, family or household use.

²Credit for business, commercial, investment or other similar purpose.

TRD-200902973

Leslie L. Pettijohn

Commissioner

Office of Consumer Credit Commissioner

Filed: July 21, 2009

Applications to Expand Field of Membership

Notice is given that the following applications have been filed with the Credit Union Department (Department) and are under consideration:

An application was received from EDS Credit Union (#1), Plano, Texas to expand its field of membership. The proposal would permit persons who live, work, worship, or attend school within a ten-mile radius of the following credit union location: 1 First American Way, Westlake, TX 76262, to be eligible for membership in the credit union.

An application was received from EDS Credit Union (#2), Plano, Texas to expand its field of membership. The proposal would remove exclusionary language associated with the merger of First American Federal Credit Union (FAFCU), Santa Ana, CA, from the field of membership of EDS Credit Union.

An application was received from EDS Credit Union (#3), Plano, Texas to expand its field of membership. The proposal would permit persons who live, work, worship, or attend school within a ten-mile radius of the following credit union location: 1 First American Way, Santa Ana, CA 92707, to be eligible for membership in the credit union.

An application was received from EDS Credit Union (#4), Plano, Texas to expand its field of membership. The proposal would permit persons who live, work, worship, or are located in Cumberland County, Pennsylvania, to be eligible for membership in the credit union.

An application was received from EDS Credit Union (#5), Plano, Texas to expand its field of membership. The proposal would permit persons who live, work, worship, or attend school within a ten-mile radius of the following credit union location: 46910 Community Plaza, Sterling, VA 20164, to be eligible for membership in the credit union.

Comments or a request for a meeting by any interested party relating to an application must be submitted in writing within 30 days from the date of this publication. Credit unions that wish to comment on any application must also complete a Notice of Protest form. The form may be obtained by contacting the Department at (512) 837-9236 or downloading the form at http://www.tcud.state.tx.us/applications.html. Any written comments must provide all information that the interested party wishes the Department to consider in evaluating the application. All information received will be weighed during consideration of the merits of an application. Comments or a request for a meeting should be addressed to the Texas Credit Union Department, 914 East Anderson Lane, Austin, Texas 78752-1699.

TRD-200903009

Harold E. Feeney

Commissioner

Credit Union Department

Filed: July 22, 2009

Correction of Error

The Texas Education Agency (TEA) adopted amendments to 19 TAC Chapter 100 concerning open-enrollment charter schools in the June 19, 2009, issue of the Texas Register (34 TexReg 4119). Because the amendments were adopted without changes, the rules were not republished in the adoption notice. However, the text that TEA submitted for §100.1022 and §100.1031 had errors that were incorporated into the Texas Administrative Code on-line.

The correct language has been restored to the Texas Administrative Code and is now available on the Secretary of State's web site.

TRD-200903034

Agreed Orders

The Texas Commission on Environmental Quality (TCEQ or commission) staff is providing an opportunity for written public comment on the listed Agreed Orders (AOs) in accordance with Texas Water Code (the Code), §7.075. Section 7.075 requires that before the commission may approve the AOs, the commission shall allow the public an opportunity to submit written comments on the proposed AOs. Section 7.075 requires that notice of the proposed orders and the opportunity to comment must be published in the Texas Register no later than the 30th day before the date on which the public comment period closes, which in this case is August 31, 2009 . Section 7.075 also requires that the commission promptly consider any written comments received and that the commission may withdraw or withhold approval of an AO if a comment discloses facts or considerations that indicate that consent is inappropriate, improper, inadequate, or inconsistent with the requirements of the statutes and rules within the commission's jurisdiction or the commission's orders and permits issued in accordance with the commission's regulatory authority. Additional notice of changes to a proposed AO is not required to be published if those changes are made in response to written comments.

A copy of each proposed AO is available for public inspection at both the commission's central office, located at 12100 Park 35 Circle, Building C, 1st Floor, Austin, Texas 78753, (512) 239-2545 and at the applicable regional office listed as follows. Written comments about an AO should be sent to the enforcement coordinator designated for each AO at the commission's central office at P.O. Box 13087, Austin, Texas 78711-3087 and must be received by 5:00 p.m. on August 31, 2009. Written comments may also be sent by facsimile machine to the enforcement coordinator at (512) 239-2550. The commission enforcement coordinators are available to discuss the AOs and/or the comment procedure at the listed phone numbers; however, §7.075 provides that comments on the AOs shall be submitted to the commission in writing.

(1) COMPANY: Jeffrey H. Jeong dba A J All Seasons 1; DOCKET NUMBER: 2009-0608-PST-E; IDENTIFIER: RN102714599; LOCATION: Houston, Harris County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULE VIOLATED: 30 Texas Administrative Code (TAC) §334.50(d)(4)(A)(ii)(II) and the Code, §26.3475(c)(1), by failing to perform an automatic test for substance loss that can detect a release which equals or exceeds a rate of 0.2 gallon per hour; PENALTY: $3,850; ENFORCEMENT COORDINATOR: Elvia Maske, (512) 239-0789; REGIONAL OFFICE: 5425 Polk Avenue, Suite H, Houston, Texas 77023-1452, (713) 767-3500.

(2) COMPANY: Amistad Lago Villa Homeowner's Association, Inc.; DOCKET NUMBER: 2009-0630-PWS-E; IDENTIFIER: RN104711247; LOCATION: Val Verde County; TYPE OF FACILITY: public water supply (PWS); RULE VIOLATED: 30 TAC §290.41(c)(1)(F), by failing to secure a sanitary control easement; 30 TAC §290.41(c)(3)(N), by failing to provide a flow measuring device; 30 TAC §290.44(d)(4), by failing to provide accurate metering devices at each residential, commercial, or industrial service connection; 30 TAC §290.46(j), by failing to complete a customer service inspection certificate prior to providing continuous water service to new construction or any existing service; 30 TAC §290.46(s)(2)(C)(i), by failing to verify the accuracy of manual disinfectant residual analyzers in the chlorine residual test kit; and 30 TAC §290.46(f), by failing to keep on file and make available for commission review water system records; PENALTY: $2,622; ENFORCEMENT COORDINATOR: Yuliya Dunaway, (210) 490-3096; REGIONAL OFFICE: 707 East Calton Road, Suite 304, Laredo, Texas 78041-3887, (956) 791-6611.

(3) COMPANY: Leslie G. Perry dba Bilt Rite Portable Buildings; DOCKET NUMBER: 2009-0226-MLM-E; IDENTIFIER: RN105660179 and RN105662720; LOCATION: Orange, Orange County; TYPE OF FACILITY: industrial solid waste disposal site and manufacturing operation; RULE VIOLATED: 30 TAC §111.201 and §335.4 and Texas Health and Safety Code (THSC), §382.085(b), by failing to comply with the general prohibition on outdoor burning and by failing to prevent the unauthorized disposal of industrial solid waste; and 30 TAC §335.62, by failing to conduct hazardous waste determinations and classifications of waste streams generated at Site 2; PENALTY: $2,649; ENFORCEMENT COORDINATOR: Ross Fife, (512) 239-2541; REGIONAL OFFICE: 3870 Eastex Freeway, Beaumont, Texas 77703-1830, (409) 898-3838.

(4) COMPANY: Citgo Refining and Chemicals Company L.P.; DOCKET NUMBER: 2009-0622-AIR-E; IDENTIFIER: RN102555166; LOCATION: Corpus Christi, Nueces County; TYPE OF FACILITY: petroleum refinery; RULE VIOLATED: 30 TAC §101.20(1) and §116.115(c), Air Permit Number 46640, Special Condition (SC) Number 1, and THSC, §382.085(b), by failing to prevent unauthorized emissions; PENALTY: $4,800; ENFORCEMENT COORDINATOR: Rebecca Johnson, (361) 825-3100; REGIONAL OFFICE: 6300 Ocean Drive, Suite 1200, Corpus Christi, Texas 78412-5839, (361) 825-3100.

(5) COMPANY: CLARA, INC. dba Clara's Store & Bakery; DOCKET NUMBER: 2009-0539-PST-E; IDENTIFIER: RN101497071; LOCATION: Smithville, Bastrop County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULE VIOLATED: 30 TAC §334.50(b)(1)(A) and the Code, §26.3475(c)(1), by failing to monitor underground storage tanks (USTs) for releases; 30 TAC §334.8(c)(5)(C), by failing to ensure that a legible tag, label, or marking with tank number is permanently applied upon or affixed to either the top of the fill tube or to a nonremovable point in the immediate area of the fill tube for each regulated UST; 30 TAC §115.222(3) and THSC, §382.085(b), by failing to comply with vapor control requirements for emission limitation anywhere in the liquid transfer or vapor balance system; and 30 TAC §115.222(6) and THSC, §382.085(b), by failing to ensure that each vapor balance system vent line is equipped with a pressure-vacuum relief value set to open at a pressure of no more than eight ounces per square inch; PENALTY: $4,275; ENFORCEMENT COORDINATOR: Elvia Maske, (512) 239-0789; REGIONAL OFFICE: 2800 South IH 35, Suite 100, Austin, Texas 78704-5700, (512) 339-2929.

(6) COMPANY: Dal-Tile Corporation; DOCKET NUMBER: 2009-0559-PST-E; IDENTIFIER: RN100216779; LOCATION: Dallas, Dallas County; TYPE OF FACILITY: ceramic tile manufacturing plant; RULE VIOLATED: 30 TAC §115.245(2) and THSC, §382.085(b), by failing to verify proper operation of the Stage II equipment; PENALTY: $2,527; ENFORCEMENT COORDINATOR: Rajesh Acharya, (512) 239-0577; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas 76118-6951, (817) 588-5800.

(7) COMPANY: DEWAN ENTERPRISES, INC. dba Marium Food Store; DOCKET NUMBER: 2009-0581-PST-E; IDENTIFIER: RN102347812; LOCATION: Fort Worth, Tarrant County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULE VIOLATED: 30 TAC §115.245(2) and THSC, §382.085(b), by failing to verify proper operation of the Stage II equipment; PENALTY: $3,080; ENFORCEMENT COORDINATOR: Mike Pace, (817) 588-5800; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas 76118-6951, (817) 588-5800.

(8) COMPANY: DCP Midstream, LP; DOCKET NUMBER: 2009-0636-AIR-E; IDENTIFIER: RN100211366; LOCATION: Howard County; TYPE OF FACILITY: natural gas compressor station; RULE VIOLATED: 30 TAC §101.201(a)(1)(B) and THSC, §382.085(b), by failing to submit an initial emissions event notification; and 30 TAC §101.201(c) and THSC, §382.085(b), by failing to submit a final emissions event report within two weeks after the end of the emissions event; PENALTY: $1,500; ENFORCEMENT COORDINATOR: Suzanne Walrath, (512) 239-2134; REGIONAL OFFICE: 3300 North A Street, Building 4-107, Midland, Texas 79705-5406, (432) 570-1359.

(9) COMPANY: ExxonMobil Oil Corporation; DOCKET NUMBER: 2009-0568-AIR-E; IDENTIFIER: RN102450756; LOCATION: Beaumont, Jefferson County; TYPE OF FACILITY: petroleum refinery; RULE VIOLATED: 30 TAC §§101.20(3), 116.115(c), and 122.143(4), Federal Operating Permit (FOP) Numbers O-01870 and O-02039, SC Numbers 12 and 13, Air Permit Numbers 19566/PSD-TX-768M1, PSD-TX-932, and 49138, SC Number 1, and THSC, §382.085(b), by failing to prevent unauthorized emissions; PENALTY: $20,000; Supplemental Environmental Project (SEP) offset amount of $8,000 applied to Texas Association of Resource Conservation and Development Areas, Inc. (RC&D) - Clean School Buses; ENFORCEMENT COORDINATOR: Raymond Marlow, (409) 898-3838; REGIONAL OFFICE: 3870 Eastex Freeway, Beaumont, Texas 77703-1830, (409) 898-3838.

(10) COMPANY: Elias Farah and Mansour Ghaith dba Henderson Deli; DOCKET NUMBER: 2009-0565-PST-E; IDENTIFIER: RN102323375; LOCATION: Fort Worth, Tarrant County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULE VIOLATED: 30 TAC §115.245(2) and THSC, §382.085(b), by failing to verify proper operation of the Stage II equipment; and 30 TAC §115.242(3) and THSC, §382.085(b), by failing to maintain the Stage II vapor recovery system (VRS); PENALTY: $5,976; ENFORCEMENT COORDINATOR: Steven Lopez, (512) 239-1896; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas 76118-6951, (817) 588-5800.

(11) COMPANY: City of Huxley; DOCKET NUMBER: 2009-0493-PWS-E; IDENTIFIER: RN101193803; LOCATION: Shelbyville, Shelby County; TYPE OF FACILITY: PWS; RULE VIOLATED: 30 TAC §290.113(f)(4), TCEQ Agreed Order Docket Number 2004-0932-PWS-E, Ordering Provision Number 3, and THSC, §341.0315(c), by failing to comply with the maximum contaminant level (MCL) for total trihalomethanes; and 30 TAC §290.113(f)(5), TCEQ Agreed Order Docket Number 2004-0932-PWS-E, Ordering Provision Number 3, and THSC, §341.0315(c), by failing to comply with the MCL for haloacetic acid; PENALTY: $2,745; SEP offset amount of $2,745 applied to RC&D - Water or Wastewater Treatment Assistance; ENFORCEMENT COORDINATOR: Andrea Linson-Mgbeoduru, (512) 239-1482; REGIONAL OFFICE: 3870 Eastex Freeway, Beaumont, Texas 77703-1830, (409) 898-3838.

(12) COMPANY: MAREDIA, INC. dba Convenient Food Mart 4; DOCKET NUMBER: 2009-0420-PST-E; IDENTIFIER: RN102345550; LOCATION: Navasota, Grimes County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULE VIOLATED: 30 TAC §334.7(d)(3), by failing to provide an amended UST registration; 30 TAC §334.8(c)(4)(A)(vii) and (5)(B)(ii), by failing to timely renew a previously issued UST delivery certificate by submitting a properly completed UST registration and self-certification form; 30 TAC §334.8(c)(5)(A)(i) and the Code, §26.3467(a), by failing to make available to a common carrier a valid, current TCEQ delivery certificate; 30 TAC §334.50(b)(1)(A) and the Code, §26.3475(c)(1), by failing to ensure that all USTs are monitored in a manner which will detect a release; 30 TAC §334.50(b)(2)(A) and the Code, §26.3475(a), by failing to provide release detection for the piping associated with the USTs; 30 TAC §334.50(b)(2)(A)(i)(III) and the Code, §26.3475(a), by failing to test the line leak detectors at least once per year for performance and operational reliability; 30 TAC §334.8(c)(5)(C), by failing to ensure that a legible tag, label, or marking with the tank number is permanently applied upon or affixed to either the top of the fill tube or to a nonremovable point in the immediate area of the fill tube for each regulated UST; 30 TAC §334.42(i), by failing to inspect all sumps including the dispenser sumps, manways, overspill containers, or catchment basins associated with the UST system; 30 TAC §334.46(g)(1)(G) and (H), by failing to ensure that all monitoring wells and observation wells are properly capped, labeled, and secured or locked to prevent unauthorized access, tampering, accidental depositing of unauthorized substances, and designed to divert surface runoff away from the well; 30 TAC §334.45(e)(2)(D), by failing to equip all fill pipes with a removable or permanent factory-constructed drop tube extending to within 12 inches of the tank bottom; and 30 TAC §334.10(b), by failing to maintain the required UST records and make them immediately available for inspection; PENALTY: $19,701; ENFORCEMENT COORDINATOR: Judy Kluge, (817) 588-5800; REGIONAL OFFICE: 6801 Sanger Avenue, Suite 2500, Waco, Texas 76710-7826, (254) 751-0335.

(13) COMPANY: Marie Braden dba Nana's Kitchen; DOCKET NUMBER: 2009-0596-PWS-E; IDENTIFIER: RN101283109; LOCATION: Tow, Llano County; TYPE OF FACILITY: restaurant with a PWS; RULE VIOLATED: 30 TAC §290.46(f)(3)(B)(iii), by failing to provide facility disinfection records to commission personnel at the time of the investigation; 30 TAC §290.42(e)(3), by failing to install disinfection equipment so that continuous and effective disinfection can be secured under all conditions; 30 TAC §290.43(c)(6), by failing to maintain all potable water storage tanks and associated appurtenances in a watertight condition; and 30 TAC §290.45(d)(2)(B)(v) and THSC, §341.0315(c), by failing to provide a minimum pressure tank capacity of 220 gallons; PENALTY: $562; ENFORCEMENT COORDINATOR: Amanda Henry, (713) 767-3500; REGIONAL OFFICE: 2800 South IH 35, Suite 100, Austin, Texas 78704-5700, (512) 339-2929.

(14) COMPANY: NEW K & T QUICK STOP, INC. dba K & H Food Store; DOCKET NUMBER: 2009-0578-PST-E; IDENTIFIER: RN101570570; LOCATION: Fort Worth, Tarrant County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULE VIOLATED: 30 TAC §334.49(a)(2), by failing to ensure that a cathodic protection system is designed, installed, operated, and maintained in a manner that will ensure that corrosion protection will be continuously provided to all metal components of the UST system; 30 TAC §334.49(c)(2)(C) and the Code, §26.3475(d), by failing to inspect the impressed current cathodic protection system at least once every 60 days to ensure that the rectifier and other system components are functioning as designed; 30 TAC §334.49(c)(4) and the Code, §26.3475(d), by failing to perform an operability test on a cathodic protection system; 30 TAC §334.50(b)(1)(A) and the Code, §26.3475(c)(1), by failing to ensure that all USTs are monitored in a manner which will detect a release; 30 TAC §334.50(d)(1)(B)(ii) and the Code, §26.3475(c)(1), by failing to conduct reconciliation of detailed inventory control records; 30 TAC §334.50(d)(1)(B)(iii)(I) and the Code, §26.3475(c)(1), by failing to record inventory volume measurement for regulated substance inputs, withdrawals, and the amount still remaining in the tank each operating day; 30 TAC §334.48(c), by failing to conduct effective manual or automatic inventory control procedures for all USTs; and 30 TAC §334.74(1), by failing to conduct UST system tests to determine whether a leak exists in that portion of the tank that routinely contains product, the attached delivery piping, or both; PENALTY: $10,416; ENFORCEMENT COORDINATOR: Judy Kluge, (817) 588-5800; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas 76118-6951, (817) 588-5800.

(15) COMPANY: NMAD ENTERPRISES, INC. dba Savannah Food & Deli; DOCKET NUMBER: 2009-0513-PST-E; IDENTIFIER: RN101774040; LOCATION: Port Arthur, Jefferson County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULE VIOLATED: 30 TAC §334.10(b), by failing to maintain the required UST records and make them immediately available; 30 TAC §334.49(a) and the Code, §26.3475(d), by failing to provide corrosion protection to all underground components of an UST system; 30 TAC §334.48(c), by failing to conduct effective manual or automatic inventory control procedures for all USTs; 30 TAC §334.50(d)(1)(B)(ii) and the Code, §26.3475(c)(1), by failing to provide proper release detection for the UST system by failing to conduct reconciliation of detailed inventory control records at least once each month; 30 TAC §334.50(d)(1)(B)(iii)(I) and the Code, §26.3475(c)(1), by failing to record inventory volume measurement for regulated substance inputs, withdrawals, and the amount still remaining in the tank each operating day; 30 TAC §115.246(7)(A) and THSC, §382.085(b), by failing to maintain Stage II records at the station and make them immediately available for review; 30 TAC §115.248(1) and THSC, §382.085(b), by failing to ensure that at least one station representative received training in the operation and maintenance of the Stage II VRS and each current employee receives in-house Stage II vapor recovery training; 30 TAC §115.245(2) and THSC, §382.085(b), by failing to verify proper operation of the Stage II equipment and vapor space manifolding and dynamic back pressure; and 30 TAC §334.8(c)(5)(C), by failing to ensure that a legible tag, label, or marking with the tank number is permanently applied upon or affixed to either the top of the fill tube or to a nonremovable point in the immediate area of the fill tube for each regulated UST; PENALTY: $15,784; ENFORCEMENT COORDINATOR: Judy Kluge, (817) 588-5800; REGIONAL OFFICE: 3870 Eastex Freeway, Beaumont, Texas 77703-1830, (409) 898-3838.

(16) COMPANY: Scenic Point Northview, Inc.; DOCKET NUMBER: 2009-0527-MWD-E; IDENTIFIER: RN101917458; LOCATION: Palo Pinto County; TYPE OF FACILITY: wastewater treatment; RULE VIOLATED: 30 TAC §305.125(1), Texas Pollutant Discharge Elimination System (TPDES) Permit Number WQ0014173001, Interim Effluent Limitations and Monitoring Requirements Number 2, and the Code, §26.121(a), by failing to comply with permitted effluent limitations for total residual chlorine; PENALTY: $19,760; ENFORCEMENT COORDINATOR: Carlie Konkol, (361) 825-3100; REGIONAL OFFICE: 2309 Gravel Drive, Fort Worth, Texas 76118-6951, (817) 588-5800.

(17) COMPANY: Shareef I Enterprises, Inc. dba Beach Citgo; DOCKET NUMBER: 2009-0483-PST-E; IDENTIFIER: RN100532001; LOCATION: Galveston, Galveston County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULE VIOLATED: 30 TAC §115.245(2) and THSC, §382.085(b), by failing to verify proper operation of the Stage II equipment; PENALTY: $3,071; ENFORCEMENT COORDINATOR: Mike Pace, (817) 588-5800; REGIONAL OFFICE: 5425 Polk Avenue, Suite H, Houston, Texas 77023-1452, (713) 767-3500.

(18) COMPANY: Thomas M. Skelton and Phillis A. Skelton; DOCKET NUMBER: 2009-0508-EAQ-E; IDENTIFIER: RN105688295; LOCATION: Georgetown, Williamson County; TYPE OF FACILITY: commercial construction project site; RULE VIOLATED: 30 TAC §213.4(a), by failing to obtain approval of a Water Pollution Abatement Plan prior to beginning a regulated activity over the Edwards Aquifer Recharge Zone; PENALTY: $3,000; ENFORCEMENT COORDINATOR: Samuel Short, (512) 239-5363; REGIONAL OFFICE: 2800 South IH 35, Suite 100, Austin, Texas 78704-5700, (512) 339-2929.

(19) COMPANY: Sunoco, Inc. (R&M); DOCKET NUMBER: 2009-0188-AIR-E; IDENTIFIER: RN102888328; LOCATION: LaPorte, Harris County; TYPE OF FACILITY: chemical manufacturing plant; RULE VIOLATED: 30 TAC §101.10(b)(2) and §122.143(4), FOP Number O-01424, Special Terms and Conditions (STC) Number 2.E., and THSC, §382.085(b), by failing to report accurate actual volatile organic compound (VOC) emissions; 30 TAC §115.126(3) and THSC, §382.085(b), by failing to maintain records sufficient to demonstrate that the B Line Finishing and Shipping System vents comply with the exemption limit; 30 TAC §115.726(b), (g)(2), (h)(2), and (i) and THSC, §382.085(b), by failing to comply with recordkeeping requirements; 30 TAC §101.393(b) and THSC, §382.085(b), by failing to hold a quantity of highly reactive (HR) VOC allowances in its HRVOC Emissions Cap and Trade Program compliance account; 30 TAC §101.20(2) and §113.890, New Source Review (NSR) Permit Number 5572B, SC Number 4, 40 Code of Federal Regulations §§63.2450(a), 63.2455(b), and 63.2520(a) and (d), 63.2525(a) and (b), 63.4(a)(1), and 63.10(b), and THSC, §382.085(b), by failing to comply with the requirement to designate the B Line Finishing and Shipping System vents as group one and group two vents; 30 TAC §116.115(b) and (c) and §122.143(4), NSR Permit Number 5572B, SC Number 1, FOP Number O-01424, General Terms and Conditions (GTC) and STC Number 9, and THSC, §382.085(b), by failing to comply with permitted emissions limits; and 30 TAC §122.132(a) and (e) and THSC, §382.085(b), by failing to include applicability provisions in a FOP; PENALTY: $157,315; ENFORCEMENT COORDINATOR: Terry Murphy, (512) 239-5025; REGIONAL OFFICE: 5425 Polk Avenue, Suite H, Houston, Texas 77023-1452, (713) 767-3500.

(20) COMPANY: Targa Midstream Services Limited Partnership; DOCKET NUMBER: 2009-0377-AIR-E; IDENTIFIER: RN100222900; LOCATION: Mont Belvieu, Chambers County; TYPE OF FACILITY: natural gas fractionator; RULE VIOLATED: 30 TAC §116.110(a)(1) and §116.116(a)(1) and THSC, §382.0518(a) and §382.085(b), by failing to route the hydrogen sulfide acid gas stream from the Amine Unit to the north plant flare; 30 TAC §116.115(c) and §122.143(4), NSR Permit Number 56431, SC Number 3D, FOP Number O-00612, STC Number 10, and THSC, §382.085(b), by failing to comply with the permitted limit of 50 pipeline shutdowns from the terminal; and 30 TAC §116.115(c) and §122.143(4), NSR Permit Number 56431, SC Number 4, FOP Number O-00612, STC Number 10, and THSC, §382.085(b), by failing to comply with the permitted limit of 750 tank truck conditioning operations; PENALTY: $65,450; SEP offset amount of $26,180 applied to Barbers Hill Independent School District-Alternative Fueled Vehicle and Equipment Program; ENFORCEMENT COORDINATOR: James Nolan, (512) 239-6634; REGIONAL OFFICE: 5425 Polk Avenue, Suite H, Houston, Texas 77023-1452, (713) 767-3500.

(21) COMPANY: Texas H2O, Inc.; DOCKET NUMBER: 2009-0311-PWS-E; IDENTIFIER: RN101223303; LOCATION: Comal County; TYPE OF FACILITY: PWS; RULE VIOLATED: 30 TAC §290.46(q)(l), by failing to issue a boil water notice; PENALTY: $1,125; ENFORCEMENT COORDINATOR: Tel Croston, (512) 239-5717; REGIONAL OFFICE: 14250 Judson Road, San Antonio, Texas 78233-4480, (210) 490-3096.

(22) COMPANY: TOTAL PETROCHEMICALS USA, INC.; DOCKET NUMBER: 2009-0491-AIR-E; IDENTIFIER: RN102457520; LOCATION: Port Arthur, Jefferson County; TYPE OF FACILITY: petroleum refinery; RULE VIOLATED: 30 TAC §122.143(4) and §122.146(2), FOP Number O-02222, GTC, and THSC, §382.085(b), by failing to submit the annual compliance certification in a timely manner; PENALTY: $9,475; SEP offset amount of $3,790 applied to Port Arthur Alternative Fuel Vehicle and Equipment Program; ENFORCEMENT COORDINATOR: Audra Benoit, (409) 898-3838; REGIONAL OFFICE: 3870 Eastex Freeway, Beaumont, Texas 77703-1830, (409) 898-3838.

(23) COMPANY: V&M Star, a Partnership with General and Limited Partners, LP; DOCKET NUMBER: 2009-0317-IWD-E; IDENTIFIER: RN100215474; LOCATION: Channelview, Harris County; TYPE OF FACILITY: tubular goods end finishing plant with wastewater treatment; RULE VIOLATED: 30 TAC §305.125(1) and TPDES Permit Number WQ0003787000, Effluent Limitations and Monitoring Requirements Number 1, and the Code, §26.121(a), by failing to comply with permit effluent limits for total suspended solids and total copper; PENALTY: $5,670; ENFORCEMENT COORDINATOR: Steve Villatoro, (512) 239-4930; REGIONAL OFFICE: 5425 Polk Avenue, Suite H, Houston, Texas 77023-1452, (713) 767-3500.

(24) COMPANY: ZEBA, INC. dba Snappy Foods 3; DOCKET NUMBER: 2009-0586-PST-E; IDENTIFIER: RN101885887; LOCATION: Ingleside, San Patricio County; TYPE OF FACILITY: convenience store with retail sales of gasoline; RULE VIOLATED: 30 TAC §334.50(b)(1)(A) and the Code, §26.3475(c)(1), by failing to monitor USTs for releases; and 30 TAC §334.7(d)(3), by failing to notify the agency of any change or additional information regarding USTs; PENALTY: $2,625; ENFORCEMENT COORDINATOR: Elvia Maske, (512) 239-0789; REGIONAL OFFICE: 6300 Ocean Drive, Suite 1200, Corpus Christi, Texas 78412-5839, (361) 825-3100.

TRD-200902972

Kathleen C. Decker

Director, Litigation Division

Texas Commission on Environmental Quality

Filed: July 21, 2009

Public Notice

The Texas Health and Human Services Commission announces its intent to submit an amendment to the Texas State Plan for Medical Assistance, under Title XIX of the Social Security Act. The proposed effective date for this amendment is August 1, 2009. This notice amends the original notice published in the July 3, 2009 issue of the Texas Register (34 TexReg 4566) by changing the effective date from September 1, 2009 to August 1, 2009.

The proposed amendment will adjust payment rates for the Day Activity and Health Services (DAHS) program to comply with the new federal minimum wage that will increase by $0.70 from the current $6.55 per hour to $7.25 per hour on July 24, 2009. This change also is a result of the 2010-11 General Appropriations Act (Article II, Health and Human Services, 81st Legislature, Regular Session, 2009), which appropriated general revenue funds for provider rate increases for the DAHS Program. The reimbursement methodology will be modified to indicate that for the period beginning August 1, 2009, DAHS payment rates will be equal to the payment rates in effect July 31, 2009, plus $0.30 per unit of service.

The proposed adjustment of payment rates is estimated to result in additional annual aggregate expenditures of $371,624 for the remainder of federal fiscal year (FFY) 2009 (August 1, 2009, through September 30, 2009), with approximately $255,529 in federal funds and approximately $116,095 in state general revenue. For FFY 2010, the proposed adjustment of payment rates is estimated to result in additional annual aggregate expenditures of $2,236,856, with approximately $1,562,444 in federal funds and approximately $674,412 in state general revenue.

To obtain copies of the proposed amendment or to submit written comments, interested parties may contact Sarah Hambrick by mail at Rate Analysis Department, Texas Health and Human Services Commission, P.O. Box 85200, Mail Code H-400, Austin, Texas 78708-5200; by telephone at (512) 491-1431; by facsimile at (512) 491-1998; or by e-mail at sarah.hambrick@hhsc.state.tx.us. Copies of the proposal will also be made available for public review at the local offices of the Texas Department of Aging and Disability Services.

TRD-200902931

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Filed: July 17, 2009

Licensing Actions for Radioactive Materials

TRD-200902975

Lisa Hernandez

General Counsel

Department of State Health Services

Filed: July 21, 2009

HOME Investment Partnerships Program 2009 Single Family Housing Programs for Persons with Disabilities Notice of Funding Availability

(1) Summary.

(a) The Texas Department of Housing and Community Affairs (Department) announces the availability of approximately $1,763,538 in funding from the HOME Investment Partnerships Program (HOME) allocation for single family housing programs including Homebuyer Assistance (HBA) and Tenant-Based Rental Assistance (TBRA) to assist low-income persons with disabilities.

(b) The availability and use of these funds is subject to the Department's HOME Program Rule at Title 10 Texas Administrative Code (10 TAC) Chapter 53 in effect at the time the application is submitted, the Federal HOME regulations governing the HOME program (24 CFR §92), and Chapter 2306 of the Texas Government Code. Other federal regulations apply, including but not limited to:

(i) 24 CFR Parts 50 and 58 (Environmental Requirements);

(ii) 24 CFR §85.36 and §84.42 (Procurement and Conflict of Interest Regulations); and

(iii) 24 CFR §5(A) (Federal Fair Housing Regulations).

(2) Source of Funds. These funds are made available through the Department's deobligated HOME funds, unallocated 2008 funds, and the 2009 annual HOME allocation reserved for persons with disabilities from the U.S. Department of Housing and Urban Development (HUD). These funds are set-aside for eligible applicants proposing to provide assistance to eligible homebuyers for the acquisition (including downpayment and closing costs) of or acquisition and rehabilitation for accessibility of single family housing and households seeking rental subsidies, including security and utility deposits, through tenant-based rental assistance. Households assisted must be at or below 80% of the Area Median Family Income (AMFI) as defined by HUD, and, in accordance with §2306.111(c)(2) of the Texas Government Code, be composed of at least one household member who meets the definition of a person with a disability, as defined by HUD, who lives in any area of the this state.

(3) Allocation of Funds.

(a) In accordance with §2306.111 of the Texas Government Code, these funds are not subject to the Regional Allocation Formula (RAF).

(b) A total of $1,763,538 in funds is available and is comprised of $1,196,677 in 2009 funds for Single Family Housing Programs for Persons with Disabilities available for use statewide, as published in the 2009 State of Texas Consolidated Plan One-Year Action Plan, $137,202 in unused funds from 2008 NOFAs for Persons with Disabilities available for use statewide, and $429,659 in unused funds which must be used in non-PJ areas.

(c) For the first one-hundred-eighty (180) days of this NOFA or until 5:00 p.m. Tuesday, February 2, 2010, $881,769 of the funds will be available for the HBA Activity and $881,769 will be available for the TBRA Activity. These amounts consist of $666,939 available statewide (including PJs) and $214,830 restricted to non-PJ areas of the state, for each of the Program Activities.

(4) Application Cycle.

(a) In accordance with 10 TAC §53.48(a) this NOFA will be an open application cycle with funds available on a first-come, first-served basis. Applications will be accepted by the Department only from those applicants requesting TBRA funds proposing to assist persons transitioning from an institution where at least 25% of the total households proposed must be targeted to persons transitioning from an institutional setting into a community placement or community setting until all funds have been requested or 5:00 p.m. Friday, October 30, 2009, regardless of method of delivery.

(b) On Monday, November 2, 2009, funds not requested under the first 90-day cycle will be made available to any eligible applicant under each activity specified in this NOFA. Applications will be accepted by the Department on an on-going basis until all funds have been requested or 5:00 p.m. Tuesday, February 2, 2010, regardless of method of delivery.

(c) On Wednesday, February 3, 2010, any remaining funds not requested under either the HBA or TBRA set-aside will be made available to either activity specified in this NOFA. Applications will be accepted by the Department on an on-going basis until all funds have been requested or 5:00 p.m. Friday, May 28, 2010.

(d) Should funds made available under this NOFA become, at any time, oversubscribed or all funds be awarded; the Department may choose to close the NOFA in accordance to 10 TAC §53.48(a)(1).

(5) Rider 5 Provision. Applicants awarded funds may use the state average median family income, adjusted for income level and household size, to determine income eligibility for eligible households living in those counties where the area median family income is lower than the state average median family income. This option is in accordance with the Housing Assistance Rider of the Department's Legislative Appropriation.

(6) Limitation on Funds.

(a) Except for the $429,659 limited for use in non-PJ areas, all funds are eligible for use in any area of the state including in a Participating Jurisdiction (PJ) as described in the 2009 State of Texas Consolidated Plan One-Year Action Plan.

(b) The Department awards HOME funds to eligible entities. The maximum award amount may not exceed $318,000, including administrative costs, for Homebuyer Assistance and $318,000, including administrative costs, for Tenant-Based Rental Assistance. Up to $530,000, including administrative costs may be awarded to Homebuyer Assistance applicants whose Service Area includes multiple counties within a Uniform State Service Region.

(c) An applicant may submit an Application to apply for additional funding as long as the Applicant is 100% committed on their current contract for the same activity.

(d) With the exception of Tenant-Based Rental Assistance, the minimum HOME assistance amount per unit may not be less than $1,000 per HOME assisted unit. The per-unit subsidy may not exceed limits established under §221(d)(3) of the National Housing Act, which are applicable to the area in which the housing is located and as published by HUD. The purchase price of the housing unit plus the value of the rehabilitation or reconstruction, if applicable, must not exceed 95% of the Single Family Mortgage Limits under §203(b) of the National Housing Act.

(e) Each applicant that is awarded HOME funds may also be eligible to receive funding for administrative costs. In accordance with 10 TAC §53.85(a)(1), for Program Activities that are serving Persons with Disabilities, funds for Administrative Costs cannot exceed 6% of the total project costs for the entire Contract term. Administrator must use funds for Administrative costs in accordance with 24 CFR §92.207.

(f) In accordance to 10 TAC §53.72, before the effective date of the HOME Contract, the Contract Administrator may incur and be reimbursed for travel costs, as provided for with Administrative funds, related to mandatory implementation training required by the Department as a condition of receiving a HOME award and Contract.

(7) Eligible and Ineligible Applicants.

(a) Eligible Applicants are Units of General Local Government, Nonprofit Organizations, Public Housing Authorities (PHAs), and for-profit entities.

(b) If an Applicant that is a nonprofit organization is requesting a waiver of the grant application fee, they must do so in the resolution, and must state that the nonprofit organization offers expanded services such as child care, nutrition programs, job training assistance, health services, or human services.

(c) Applicants may be ineligible for funding if they meet any of the criteria listed in 10 TAC §53.42 of the Department's HOME Program Rule. Applicants are encouraged to familiarize themselves with the Department's certification and debarment policies prior to application submission.

(8) Eligible and Prohibited Activities.

(a) Eligible activities include those permissible under the federal HOME Final Rule at 24 CFR §92.205 and the Department's HOME Program Rule at 10 TAC §53.32 for HBA and §53.33 for TBRA.

(b) Prohibited activities include those at 24 CFR §92.214 and 10 TAC §53.37.

(9) Homebuyer Assistance (HBA). Until 5:00 p.m. Tuesday, February 2, 2010, approximately $881,768 of HOME Funds released under this NOFA shall be set-aside for Homebuyer Assistance. This program activity may be used to provide downpayment, closing cost (including soft costs), and rehabilitation assistance to eligible first time homebuyers earning 80% or less of the Area Median Family Income (AMFI) as defined by HUD for the acquisition of affordable single family housing. If needed, rehabilitation assistance must be provided for required accessibility modifications.

(a) Maximum Award. In accordance with 10 TAC §53.47(a)(1), the award amount for HBA shall not exceed $318,000, including administrative costs, per Application. However; up to $530,000, including administrative costs, may be awarded to HBA Applicants whose Service Area includes multiple counties within a Uniform State Service Region. In accordance with 10 TAC §53.85(a)(1), for the Program Activities that are serving Persons with Disabilities, funds for Administrative costs cannot exceed 6% of the total project costs for the entire Contract term.

(b) Form of Assistance.

(i) In accordance with 10 TAC §53.32(e), the maximum amount of assistance is the total of the downpayment and closing cost assistance and soft costs provided to an eligible household. The total amount of downpayment and closing cost assistance is limited to $15,000 per eligible household for Persons with Disabilities. As defined in 10 TAC §53.32(f), the maximum amount of assistance for rehabilitation is the total of the constructions costs and soft costs provided to an eligible household that is also using funds for acquisition and is limited to $20,000. Rehabilitation assistance must be utilized for accessibility modifications to the unit.

(ii) In accordance with 10 TAC §53.32(m), the first lien mortgage must meet the following requirements:

(I) No adjustable rate mortgage loans (ARMs) or interest rate buy-down loans are allowed;

(II) No mortgages with a loan to value equal to or greater than 100% are allowed;

(III) Must not be a subprime mortgage loan as defined in 10 TAC §53.2(92);

(IV) An origination fee and any other fees associated with the mortgage loan may not exceed 2% of the loan amount; and

(V) The debt to income ratio (back-end ratio) may not exceed 45%.

(iii) HBA assistance will be structured as follows:

(I) 0% interest rate;

(II) five (5) or ten (10) year term contingent upon the total amount of assistance and in accordance with the federal affordability requirements at 24 CFR §92.254(a)(4);

(III) 2nd or 3rd lien; and

(IV) Deferred forgivable loan per §(9)(b)(iv) of this NOFA.

(iv) Any forgiveness of the loan occurs upon the anniversary date of the Household's continuous occupancy as its principal residence and continues on an annual pro-rata basis until maturity of the loan. In the event that the housing unit ceases to be the principal residence of the household, the forgiveness of the loan, if applicable, will cease. In the event that the housing unit ceases to be the principal residence of the household, the department has established that the federal recapture requirements defined in 24 CFR §92.254 will be imposed.

(c) Period of Affordability. The federal affordability requirements as defined in 24 CFR §92.254 will be imposed for all activities involving acquisition.

(d) Property Standards. HOME-assisted housing under the HBA Program must meet all applicable State and local housing quality standards and code requirements. In the absence of such standards or code requirements, the housing must meet the Housing Quality Standards (HQS) in 24 CFR §982.401. When HOME funds are used for rehabilitation, the entire unit must be brought into compliance with the applicable property standards, local codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion pursuant to 24 CFR §92.251(a). In the absence of a local code for new construction or rehabilitation, HOME-assisted new construction or rehabilitation must meet, as applicable, the International Residential Code, Texas Minimum Construction Standards (TMCS) and be in compliance with the basic access standards in new construction, established by §2306.514 of the Texas Government Code. Additionally, housing that is rehabilitated with funds awarded under this NOFA must meet energy efficiency standards established by §2306.187 of the Texas Government Code, and energy standards as verified by RESCHECK, in accordance with the Final Rule.

(e) Contract Terms. In accordance with 10 TAC §53.73(a)(2), the contract term for the HBA Program Activity shall not exceed twenty-four (24) months and performance under the contract will be evaluated according to the following benchmarks:

(i) Six (6) months, exempt administrative and environmental clearance must be complete for at least one Household to be assisted;

(ii) Twelve (12) months, environmental clearance must be complete for at least 50% of the Households to be assisted, 50% of funds must be committed, 25% of funds drawn, and 25% of match supplied;

(iii) Eighteen (18) months, environmental clearance must be complete for at least 75% of the Households to be assisted, 75% of funds must be committed, 50% of funds drawn, and 50% of match requirement supplied; and

(iv) Twenty-four (24) months, 100% of funds must be committed, 100% of funds drawn, and 100% of matched supplied.

(f) Application Threshold Requirements. The following threshold criteria listed in this subsection and in §(9)(g) of this NOFA are mandatory requirements at the time of application submission, unless specifically indicated otherwise, and will be included in the written agreement if funds are awarded.

(i) Cash Reserve. Each awarded applicant will be required to expend funds according to program guidelines and request funds from the Department for eligible expenses. Applicants must evidence the ability to administer the program and commit cash reserves of at least $80,000 to facilitate administration of the program during the Department's disbursement process. Cash reserves are not permanently invested in the project but are used for short term deficits that are reimbursed by program funds. Evidence of this commitment and the amount of the commitment must be included in the Applicant's resolution and budget. Applicants must submit:

(I) Financial statements indicating adequate local unrestricted cash or cash equivalents to utilize as cash reserves and a letter from the Applicant's bank(s) or financial institution(s) indicating that current account balances are sufficient; or

(II)Evidence of an available line of credit or equivalent of at least $80,000; or

(III) The CPA Opinion letter from the most recent audit and a statement from the CPA that indicates based on past experience with grant programs and past audits, the applicant has in place the best practices and financial capacity necessary in order to effectively administer a HOME Program grant.

(ii) Resolution. All applications submitted must include an original resolution signed and dated within the six (6) months preceding the application submission date from the Applicant's direct governing body which includes:

(I) Authorization of the submission of the Application;

(II) Commitment and amount of cash reserves for use during the contract period; source of funds for match obligation and match dollar amount;

(III) Name and title of the person authorized to represent the organization; and

(IV) Signature authority to execute a contract.

(iii) Description of Demand. All applicants must submit a narrative that describes in detail the demand evidenced for the proposed number of units to be assisted in the proposed service area which includes:

(I) Third Party source data (i.e. Census data);

(II) Calculations (i.e. amounts to be spent/contributed locally per project); and

(III) Assumptions.

(iv) Homebuyer Counseling. Applicants must evidence that a minimum of eight (8) hours of homebuyer counseling to all eligible participants will be provided by a certified homebuyer counselor. This evidence must include:

(I) Documentation describing the level of homebuyer counseling proposed, including post purchase counseling;

(II) Applicant must state who will provide the homebuyer counseling;

(III) A copy of the curriculum; and

(IV) A copy of the proposed written agreement with the service provider (if the applicant is not providing the service).

(v) Plan for Identifying Accessibility needs of the Homebuyer. Applicant must submit a plan that clearly describes the process and expertise to be used in determining the accessibility needs of the homebuyer. The plan should include resumes of qualified/experienced staff or proposed agreement with a qualified/experienced third party company or agency.

(g) Threshold Score. In addition to the threshold requirements under §(9)(f) of this NOFA, the application must meet the minimum threshold score of 12. This score is tallied using points from the following categories:

(i) Affordable Housing Needs Score. Points range from zero to seven, as published by the Department. (Maximum 7 points);

(ii) Income Targeting. In order to meet its annual goal of assisting very low to extremely low income families, the Department incentivizes application points for income targeting of households assisted. PWD Table 1 (HBA Point Incentives for Income Targeting) will be used to determine income targeting requirements and associated points, as follows: (Maximum 10 points);

PWD Table 1 (.pdf)

(iii) Experience Providing Services to Persons with Disabilities. Applicants must have at least five (5) or more years providing services specifically targeting the needs of persons with disabilities as evidenced by previous contracts with funding entities for these services. To satisfy the requirement for this category, applicant may provide evidence of a partnership with an entity or organization that meets the requirement. (Maximum 5 points); and

(iv) Experience Providing Homebuyer Assistance Service. Applying entity must have at least two (2) years experience providing homebuyer assistance services as evidenced by current or previous contracts with funding entities for these services. To satisfy the requirement for this category, applicant may provide evidence of a partnership with an entity or organization that meets this requirement. (Maximum 5 points).

(10) Tenant-Based Rental Assistance (TBRA). Until 5:00 p.m. Tuesday, February 2, 2010, approximately $881,768 of HOME Funds released under this NOFA shall be set-aside for Tenant-Based Rental Assistance to provide eligible households rental subsidies, including security and utility deposits, to tenants earning 80% or less of the Area Median Family Income (AMFI) as defined by HUD. In accordance with 24 CFR §92.216, not less than 90% of the households assisted with respect to TBRA or rental units, must have incomes at or below 60% of the AMFI, as defined by HUD. Funds requested and awarded under this section must meet the requirements of this section.

(a) Maximum Award. In accordance with 10 TAC §53.47(a)(1) the maximum award amount for TBRA shall not exceed $318,000, including administrative costs, per Application. In accordance with 10 TAC §53.85(a)(1), for the TBRA program activity, funds for administrative costs cannot exceed 6% of the total project funds for the entire Contract term.

(b) Form of Assistance.

(i) Through the TBRA program, rental subsidy and security and utility deposit assistance is provided to tenants as a grant, in accordance with written tenant selection policies, for a period not to exceed twenty-four (24) months, which shall include among its objectives the securing of a permanent source of affordable housing on or before the expiration of the rental subsidy. Security deposits and utility deposits may be provided in conjunction with rental assistance. A security deposit cannot exceed two (2) months rent for the unit.

(ii) As per 10 TAC §53.33, the Household must comply with the following initial eligibility requirements:

(I) Participate in an approved self-sufficiency program;

(II) Maintain principal residency in the rental unit for which the subsidy is being provided;

(III) Be an income eligible household; reside in a rental unit that is located within the Administrator's Service Area; and

(IV) Meet all other Program eligibility requirements as required by the Department.

(iii) As defined in 10 TAC §53.33(d) the rental standard must not exceed HUD's "Fair Market Rent for the Housing Choice Voucher Program."

(c) Period of Affordability. There is no period of affordability for TBRA projects.

(d) Property Standards. As defined in 10 TAC §53.33(e), rental units must be inspected prior to occupancy, inspected annually, and must comply with Housing Quality Standards established by HUD in 24 CFR §982.401.

(e) Contract Terms. In accordance with 10 TAC §53.73(a)(3), the contract term for the TBRA Program shall not exceed thirty-six (36) months. Individual household assistance is limited to twenty-four (24) months and performance under the contract will be evaluated according to the following benchmarks:

(i) Six (6) months, exempt administrative environmental clearance must be complete and application intake complete for 30% for Households to be assisted;

(ii) Nine (9) months, application intake complete for 75% for Households to be assisted;

(iii) Twelve (12) months, 100% of funds must be committed to Households to be assisted and 25% of funds drawn;

(iv) Eighteen (18) months, 100% of funds already committed and 35% of funds drawn;

(v) Twenty-four (24) months, 100% of funds already committed and 50% of funds drawn; and

(vi) Thirty-six (36) months, 100% of funds already committed and 100% of funds drawn.

(f) Application Threshold Requirements. The following threshold criteria listed in this subsection and in §10(g) of this NOFA are mandatory requirements at the time of application submission unless specifically indicated otherwise and will be included in the written agreement, if awarded funds:

(i) Cash Reserve. Each awarded applicant will be required to expend funds according to program guidelines and request funds from the Department for eligible expenses. Every Applicant must evidence the ability to administer the program and commit adequate cash reserves of at least one (1) month of rent for the number of households proposed to serve as stated in the application to facilitate administration of the program during the Department's disbursement process. Cash reserves are not permanently invested in the project but are used for short term deficits that are reimbursed by program funds. Applicants must submit:

(I) Financial statements indicating adequate local unrestricted cash or cash equivalents to utilize as cash reserves and a letter from the Applicant's bank(s) or financial institution(s) indicating that current account balances are sufficient; or

(II) Evidence of an available line of credit for the total amount of cash reserves required; or

(III) The CPA Opinion letter from the most recent audit and a statement from the CPA that indicates based on past experience with grant programs and past audits, the applicant has in place the best practices and financial capacity necessary in order to effectively administer a HOME Program grant.

(ii) Resolution. All applications submitted must include an original resolution signed and dated within the six (6) months preceding the application submission date from the Applicant's direct governing body which includes:

(I) Authorization of the submission of the Application;

(II) Commitment and amount of cash reserves for use during the contract period;

(III) Name and title of the person authorized to represent the organization; and

(IV) Signature authority to execute a contract.

(iii) Description of Demand. All applicants must submit a narrative that describes in detail the demand evidenced for the proposed number of units to be assisted in the proposed service area which includes:

(I) Source data (i.e. Census data/availability of rental units);

(II) Calculations (i.e. amounts to be spent/contributed locally per project); and

(III) Assumptions.

(iv) TBRA Self Sufficiency Program. Applicants must submit a proposed detailed Self Sufficiency Plan, and must:

(I) Describe the process for the transition of households to permanent housing by the end of the twenty-four (24) month rental assistance contract;

(II) Include documentation describing the necessary components for the overall plan proposed for transition of potential tenants;

(III) Detail, like a case management plan, the needs of the tenant, how these needs will be addressed including any agreements with service providers who shall assist the tenant at meeting these needs, and a proposed timeframe for completing those activities;

(IV) Include a sample household budget which will utilize existing sources of income such as employment, disability payments and other types of support that details how the assisted household will afford to be self-sufficient by the end of the twenty-four (24) month rental assistance;

(V) If additional income is required to attain self-sufficiency, include a plan for attaining the required education or training, or a job search plan;

(VI) Include specific housing goals that will be completed on or before the end of the twenty-four (24) month assistance period, including:

(A) Finding permanently subsidized housing;

(B) Acquiring affordable market housing; or

(C) Other permanent housing solutions.

(VII) Include the required steps, such as:

(A) Completion of an application for affordable housing;

(B) Approximate waiting time to acquire the type of housing desired; and

(C) The cost of the housing to the tenant.

(g) Threshold Score. The application must meet the minimum threshold score of 10. This score is tallied using points from the following categories:

(i) Affordable Housing Needs Score. Points range from zero to seven, as published by the Department. (Maximum 7 points).

(ii) Income Targeting. In order to meet its annual goal of assisting very low to extremely low income families, the Department incentivizes application points for income targeting of households assisted. (Maximum 20 points). PWD Table 2 (Point Incentives for Income Targeting (TBRA)) will be used to determine income targeting requirements and associated points; as follows.

PWD Table 2 (.pdf)

(11) Review Process.

(a) Pursuant to 10 TAC §53.48(a), each application will be handled on a first-come, first-served basis as further described in this section. Each application will be assigned a received date based on the date and time it is physically received by the Division. Each application will be reviewed on its own merits as applicable. Applications will be reviewed for applicant and activity eligibility, and threshold criteria as described in this NOFA. Applications proceeding in a timely fashion through a phase will take priority over applications that may have an earlier received date but that did not complete a phase of review in a timely manner.

(b) The Department will ensure review of materials for eligibility and threshold criteria, and requirements of the NOFA and Application Submission Procedures Manual (ASPM), and will issue a notice of any Administrative Deficiencies within forty-five (45) days of the received date. Applicants who are able to resolve their Administrative Deficiencies within five (5) business days will continue the review process. Applications with Administrative Deficiencies not cured within five (5) business days will be terminated and must reapply for consideration of funds. Applications that have completed this phase will be reviewed for recommendation to the Board by the Executive Award and Review Advisory Committee (EARAC).

(c) Because Applications are processed in the order they are received by the Department, it is possible that the Department will award all available HOME funds before an Application has been completely reviewed. If, on the date an Application is received by the Department, no funds are available under this NOFA, the Applicant will be notified that no funds exist under the NOFA and the Application will not be processed.

(d) An applicant will be ineligible if they meet any of the criteria in 10 TAC §53.42 and will be terminated without being processed as an Administrative Deficiency.

(e) The Department may decline to consider any Application if the proposed activities do not, in the Department's sole determination, represent a prudent use of the Department's funds. The Department is not obligated to proceed with any action pertaining to any Applications that are received, and may decide it is in the Department's best interest to refrain from pursuing any selection process. The Department reserves the right to negotiate individual elements of any Application.

(f) All Applicants will be processed through the Department's Application Evaluation System, which includes a previous award and past performance evaluation. Poor past performance may disqualify an Applicant for a funding recommendation, or the recommendation may include conditions.

(g) Funding recommendations of eligible Applicants will be presented to the Department's Governing Board of Directors based on eligibility. Recommendations are limited by the total amount of funds available under this NOFA and the maximum award amount.

(h) In accordance with §2306.082 of the Texas Government Code and 10 TAC §53.6, it is the Department's policy to encourage the use of appropriate alternative dispute resolution procedures (ADR) under the Governmental Dispute Resolution Act, Chapter 2009, of the Texas Government Code, to assist in resolving disputes under the Department's jurisdiction. As described in Chapter 154, Civil Practices and Remedies Code, ADR procedures include mediation. Except as prohibited by the Department's ex parte communications policy, the Department encourages informal communications between Department staff and Applicants, and other interested persons, to exchange information and informally resolve disputes. The Department also has administrative appeals processes to fairly and expeditiously resolve disputes. If at anytime an Applicant or other person would like to engage the Department in an ADR procedure, the person may send a proposal to the Department's Dispute Resolution Coordinator. For additional information on the Department's ADR Policy, see the Department's General Administrative Rule on ADR at 10 TAC §1.17.

(i) An Applicant may appeal decisions made by staff in accordance with 10 TAC §1.7.

(12) Application Submission.

(a) All applications submitted under this NOFA must be received on or before 5:00 p.m. Friday, May 28, 2010, regardless of method of delivery.

(b) The Department will accept applications from 8 a.m. to 5 p.m. each business day, excluding federal and state holidays, from the date this NOFA is published on the Department's web site until the deadline. Questions regarding this NOFA should be addressed to:

HOME Division

221 E. 11th Street

Austin, Texas 78701

E-mail: HOME@tdhca.state.tx.us

(c) All applications must be submitted, and provide all documentation, as described in this NOFA and associated application materials.

(d) Applicants must submit one complete original printed copy of all Application materials and one complete scanned copy on a disc of the Application materials as detailed in the Application Submission Procedures Manual (ASPM). All scanned copies must be scanned in accordance with the guidance provided in the ASPM.

(e) All Application materials including manuals, NOFA, program guidelines, and all applicable HOME rules, will be available on the Department's website at www.tdhca.state.tx.us. Applications will be required to adhere to the HOME Rule and threshold requirements in effect at the time of the Application submission. Applications must be on forms provided by the Department, and cannot be altered or modified and must be in final form before submitting them to the Department.

(f) Applicants are required to remit a non-refundable Application fee payable to the Texas Department of Housing and Community Affairs in the amount of $30 per Application. Payment must be in the form of a check, cashier's check or money order. Do not send cash. Pursuant to §2306.147(b) of the Texas Government Code, the Department will waive Application fees for nonprofit organizations that offer expanded services such as child care, nutrition programs, job training assistance, health services, or human services. These organizations must include proof of their exempt status and a description of their supportive services in lieu of the Application fee. The Application fee is not an allowable or reimbursable cost under the HOME Program.

(g) This NOFA does not include text of the various applicable regulatory provisions that may be important to the HOME Program. For proper completion of the application, the Department strongly encourages potential applicants to review the State and Federal regulations, and contact the HOME Division for guidance and assistance.

(h) Application Workshop. The Department will conduct application workshops in locations throughout the State which provide an overview of the HOME Program Activities eligible under this NOFA and also provide Application preparation and submission requirements, evaluation criteria, and state and federal program information.

(i) Audit Requirements. An applicant is not eligible to apply for funds or any other assistance from the Department unless a past audit or Audit Certification Form has been submitted to the Department in a satisfactory format on or before the application deadline, per 10 TAC §1.3(b). This is a threshold requirement outlined in the application, therefore applications that have outstanding past audits will be disqualified. Staff will not recommend applications for funding to the Department's Governing Board unless all unresolved audit findings, questions or disallowed costs are resolved per 10 TAC §1.3(c).

Applications must be sent via overnight delivery to:

Texas Department of Housing and Community Affairs

HOME Division

221 East 11th Street

Austin, TX 78701-2410

Or via the U.S. Postal Service to:

Texas Department of Housing and Community Affairs

HOME Division

Post Office Box 13941

Austin, TX 78711-3941

TRD-200903032

Michael Gerber

Executive Director

Texas Department of Housing and Community Affairs

Filed: July 22, 2009

Table 1: (.pdf)

(c) Form of Assistance.

(i) Assistance will be provided to an eligible household in the form of a zero percent interest, deferred forgivable or repayable loan and in accordance with 10 TAC §53.31;

(ii) The maximum amount of assistance is the total of construction costs and soft costs provided to an eligible household. The total construction costs are limited as follows:

(I) For Rehabilitation that is Reconstruction. The lesser of $73.00 per square foot or $80,000, if the Reconstruction includes actual costs for an aerobic septic system and/or demolition. If the Reconstruction includes costs for an aerobic septic system and/or demolition, the total construction costs cannot exceed $73.00 per square foot exclusive of the aerobic septic system and demolition costs; and

(II) For Rehabilitation that is not Reconstruction - $30,000.

(iii) The maximum amount eligible for project soft costs is defined in 10 TAC §53.85;

(iv) All loans to assisted homeowners must be evidenced by loan documents provided by the Department. Each loan to an assisted homeowner for rehabilitation must be payable to the Department. Each loan for reconstruction or rehabilitation shall be evidenced by a construction loan agreement, note, deed of trust, mechanic's lien note, and mechanic's lien contract secured by the property and must be fully executed before any construction activities commence;

(v) If at any time prior to the full loan period there occurs a resale of the property, a refinance of any superior lien, or if the unit ceases to be the assisted Household's principal residence, the remaining loan balance shall become due and payable; and

(vi) If applicable, forgiveness of the loan balance is calculated based on a pro-rata annual share of the loan term. The anniversary date of the loan shall constitute completion of the year. Any partial year shall not be waived. The amount due will be based on the pro-rata share number of years of the remaining loan term.

(d) Affordability Requirements. Households assisted under the OCC Program must comply with the affordability requirements defined in 10 TAC §53.31(j) - (m) and 24 CFR §92.254, as applicable.

(e) Site and Construction Restrictions.

(i) Pursuant to 24 CFR §92.251 Housing that is rehabilitated or constructed with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion.

(ii) If a home is reconstructed, the applicant must ensure compliance with the universal design features in new construction, established by §2306.514 of the Texas Government Code, required for any applicant utilizing federal or state funds administered by TDHCA in the construction of single family homes. In the absence of a local code, HOME-assisted new construction or rehabilitation must meet the International Residential Code, Texas Minimum Construction Standards (TMCS) and be in compliance with the basic access standards in new construction, established by §2306.514 of the Texas Government Code.

(iii) Housing that is rehabilitated with funds awarded under this NOFA must meet all applicable energy efficiency standards established by §2306.187 of the Texas Government Code, and International Energy Conservation Code for energy standards as verified by RESCHECK tm.

(f) Contract Term. Per 10 TAC §53.73(a)(1), the contract term for OCC Program Activity shall not exceed twenty-four (24) months and performance under the contract will be evaluated according to the following benchmarks:

(i) Six (6) months, exempt administrative and broad review environmental clearance must be complete, and if not tiering, the first Household to be assisted must be environmentally cleared;

(ii) Eight (8) months, Authority to Use Grant Funds must be fully executed and all Households to be assisted must be environmentally cleared;

(iii) Twelve (12) months, 100% of funds must be committed to Households to be assisted;

(iv) Eighteen (18) months, 100% of Household's Loans must be closed, if applicable;

(v) Twenty-two (22) months, 100% of construction must be complete for all Households to be assisted; and

(vi) Twenty-four (24) months, 100% funds drawn and 100% of match requirement supplied.

(g) Application Threshold Requirements. Threshold criteria under this subsection and §(10)(h) of this NOFA are mandatory requirements at the time of application submission, unless specifically indicated otherwise, and will be included in the written agreement if funds are awarded.

(i) Cash Reserve. Each awarded applicant will be required to expend funds according to program guidelines and request funds from the Department for eligible expenses. Applicants must evidence the ability to administer the program and commit cash reserves of at least $120,000 to facilitate administration of the program during the Department's disbursement process. Cash reserves are not permanently invested in the project but are used for short term deficits that are reimbursed by program funds. Evidence of this commitment and the amount of the commitment must be included in the Applicant's resolution and budget. Applicants must submit:

(I) Financial statements indicating adequate local unrestricted cash or cash equivalents to utilize as cash reserves and a letter from the Applicant's bank(s) or financial institution(s) indicating that current account balances are sufficient; or

(II) Evidence of an available line of credit or equivalent of at least $120,000; or

(III) The CPA Opinion letter from the most recent audit and a statement from the CPA that indicates based on past experience with grant programs and past audits, the applicant has in place the best practices and financial capacity necessary in order to effectively administer a HOME Program grant.

(ii) Resolution. All applications submitted must include an original resolution signed and dated within the six (6) months preceding the application submission date from the Applicant's direct governing body which includes:

(I) Authorization of the submission of the Application;

(II) Commitment and amount of cash reserves for use during the contract period;

(III) Source of funds for match obligation and match dollar amount;

(IV) Name and title of the person authorized to represent the organization; and

(V) Signature authority to execute a contract.

(iii) Description of Demand. All applicants must submit a narrative that describes in detail the demand evidenced for the proposed number of units to be assisted in the proposed service area which includes:

(I) Third Party source data (i.e. Census data);

(II) Calculations (i.e. amounts to be spent/contributed locally per project); and

(III) Assumptions.

(iv) Match. The Department will recognize eligible forms of matching contributions made from nonfederal resources, per 24 CFR §92.218. Table 2 (OCC Housing Program Required Community Match Contribution) will be used to determine the amount of match required to meet threshold, as follows:

Table 2 (.pdf)

(h) Threshold Score. In addition to the threshold requirements under §(10)(g) of this NOFA, the application must meet the minimum threshold score of 15. This score is tallied using points from the following categories:

(i) Affordable Housing Needs Score. Points range from zero to seven as published by the Department. Maximum 7 points;

(ii) Additional Eligible Match. In addition to the threshold match requirement in §(10)(g)(iv) of this NOFA, the Applicant can receive points for each percentage of additional match. Table 3 (OCC Housing Program Additional Community Match Contributions) will be used to determine points awarded under this paragraph, as follows:

Table 3 (.pdf)

(iii) Income Targeting. In order to meet its annual goal of assisting very low to extremely low-income families, the Department incentivizes application points for income targeting of households assisted. Maximum 20 points. Table 4 (OCC Point Incentives for Income Targeting) will be used to determine income targeting requirements and associated points, as follows:

Table 4 (.pdf)

(11) Homebuyer Assistance (HBA).

Approximately $3,888,595 of HOME Funds released under this NOFA shall be used to administer a Homebuyer Assistance Program, providing downpayment and closing cost assistance (including soft costs) to eligible first time homebuyers earning 80% or less of the Area Median Family Income (AMFI) as defined by HUD for the acquisition of affordable single family housing.

(a) Maximum Award. In accordance with 10 TAC §53.47(a)(1), the award amount for HBA shall not exceed $312,000, including administrative costs, per Application. However; up to $520,000, including administrative costs, may be awarded to HBA Applicants whose Service Area includes multiple counties within a Uniform State Service Region. In accordance with 10 TAC §53.85(a)(1), for the HBA Program Activities, funds for Administrative costs cannot exceed 4% of the total project costs for the entire Contract term.

(b) Allocation Formula. Funds requested and awarded under §(11) of this NOFA and submitted in accordance with §(4)(a) of this NOFA are subject to the following Regional Allocation as shown in Table 5 (HBA Regional, Rural, and Urban Funding Amounts) as follows:

Table 5 (.pdf)

(c) Form of Assistance.

(i) In accordance with §53.32(e), the maximum amount of assistance is the total of the downpayment and closing cost assistance and soft costs provided to an eligible household. The total amount of downpayment and closing cost assistance is limited to $20,000 per eligible homebuyer.

(ii) In accordance with 10 TAC §53.32(m), the first lien mortgage must meet the following requirements:

(I) No adjustable rate mortgage loans (ARMs) or interest rate buy-down loans are allowed;

(II) No mortgages with a loan to value equal to or greater than 100% are allowed;

(III) Must not be a subprime mortgage loan as defined in 10 TAC §53.2(92);

(IV) An origination fee and any other fees associated with the mortgage loan may not exceed 2% of the loan amount; and

(V) The debt to income ratio (back-end ratio) may not exceed 45%.

(iii) HBA assistance will be structured as follows:

(I) Zero percent interest rate;

(II) Five (5) or ten (10) year term contingent upon the total amount of assistance and in accordance with the federal affordability requirements at 24 CFR §92.254(a)(4);

(III) 2nd or 3rd lien; and

(IV) Deferred forgivable loan per §(11)(c)( iv) of this NOFA.

(iv) Any forgiveness of the loan occurs upon the anniversary date of the Household's continuous occupancy as its principal residence and continues on an annual pro-rata basis until maturity of the loan. In the event that the housing unit ceases to be the principal residence of the household, the forgiveness of the loan, if applicable, will cease. In the event that the housing unit ceases to be the principal residence of the household, the department has established that the federal recapture requirements defined in 24 CFR §92.254 will be imposed.

(d) Period of Affordability. The federal affordability requirements as defined in 24 CFR §92.254 will be imposed for all activities involving acquisition.

(e) Property Standards. HOME-assisted housing under the HBA Program must meet all applicable state and local housing quality standards and code requirements. In the absence of such standards or code requirements, the housing must meet the Housing Quality Standards (HQS) in 24 CFR §982.401.

(f) Contract Terms. In accordance with 10 TAC §53.73(a)(2), the contract term for the HBA Program Activity shall not exceed twenty-four (24) months and performance under the contract will be evaluated according to the following benchmarks:

(i) Six (6) months, exempt administrative and environmental clearance must be complete for at least one Household to be assisted;

(ii) Twelve (12) months, environmental clearance must be complete for at least 50% of the Households to be assisted, 50% of funds must be committed, 25% of funds drawn, and 25% of match supplied;

(iii) Eighteen (18) months, environmental clearance must be complete for at least 75% of the Households to be assisted, 75% of funds must be committed, 50% of funds drawn, and 50% of match requirement supplied; and

(iv) Twenty-four (24) months, 100% of funds must be committed, 100% of funds drawn, and 100% of matched supplied.

(g) Application Threshold Requirements. The following threshold criteria listed in this subsection and in subsection (h) of this NOFA are mandatory requirements at the time of application submission, unless specifically indicated otherwise, and will be included in the written agreement if funds are awarded.

(i) Cash Reserve. Each awarded applicant will be required to expend funds according to program guidelines and request funds from the Department for eligible expenses. Applicants must evidence the ability to administer the program and commit cash reserves of at least $80,000 to facilitate administration of the program during the Department's disbursement process. Cash reserves are not permanently invested in the project but are used for short term deficits that are reimbursed by program funds. Evidence of this commitment and the amount of the commitment must be included in the Applicant's resolution and budget. Applicants must submit:

(I) Financial statements indicating adequate local unrestricted cash or cash equivalents to utilize as cash reserves and a letter from the Applicant's bank(s) or financial institution(s) indicating that current account balances are sufficient; or

(II) Evidence of an available line of credit or equivalent of at least $80,000; or

(III) The CPA Opinion letter from the most recent audit and a statement from the CPA that indicates based on past experience with grant programs and past audits, the applicant has in place the best practices and financial capacity necessary in order to effectively administer a HOME Program grant.

(ii) Resolution. All applications submitted must include an original resolution signed and dated within the six (6) months preceding the application submission date from the Applicant's direct governing body which includes:

(I) Authorization of the submission of the Application;

(II) Commitment and amount of cash reserves for use during the contract period; source of funds for match obligation and match dollar amount;

(III) Name and title of the person authorized to represent the organization; and

(IV) Signature authority to execute a contract.

(iii) Description of Demand. All applicants must submit a narrative that describes in detail the demand evidenced for the proposed number of units to be assisted in the proposed service area which includes:

(I) Third Party source data (i.e. Census data);

(II) Calculations (i.e. amounts to be spent/contributed locally per project); and

(III) Assumptions.

(iv) Match. Per 24 CFR §92.218, the Department will recognize eligible forms of matching contributions made from nonfederal resources. Match must equal at least 5% of the total project cost requested.

(v) Homebuyer Counseling. Applicants must evidence that a minimum of eight (8) hours of homebuyer counseling to all eligible participants will be provided by a certified homebuyer counselor. This evidence must include:

(I) Documentation describing the level of homebuyer counseling proposed, including post purchase counseling;

(II) Applicant must state who will provide the homebuyer counseling;

(III) A copy of the curriculum; and

(IV) A copy of the proposed written agreement with the service provider (if the applicant is not providing the service).

(h) Threshold Score. In addition to the threshold requirements under §(11)(g) of this NOFA, the application must meet the minimum threshold score of 10. This score is tallied using points from the following categories:

(i) Affordable Housing Needs Score. Points range from zero to seven, as published by the Department. (Maximum 7 points);

(ii) Additional Match. Each full percentage point beyond the required 5% of total project cost that is contributed in eligible local match will result in an additional 5 points. (Maximum 10 points); and

(iii) Income Targeting. In order to meet its annual goal of assisting very low to extremely low income families, the Department incentivizes application points for income targeting of households assisted. Table 6 (HBA Point Incentives for Income Targeting) will be used to determine income targeting requirements and associated points, as follows: (Maximum 10 points).

Table 6 (.pdf)

(12) Tenant-Based Rental Assistance (TBRA).

Approximately $3,888,595 of HOME funds released under this NOFA shall be used to administer a Tenant-Based Rental Assistance Program to provide eligible households rental subsidies, including security and utility deposits, to tenants earning 80% or less of the Area Median Family Income (AMFI) as defined by HUD. In accordance with 24 CFR §92.216, not less than 90% of the households assisted with respect to TBRA or rental units, must have incomes at or below 60% of the AMFI, as defined by HUD. Funds requested and awarded under this section must meet the requirements of this section.

(a) Maximum Award. In accordance with 10 TAC §53.47(a)(1) the maximum award amount for TBRA shall not exceed $336,000, including administrative costs, per Application. In accordance with 10 TAC §53.85(a)(1), for the TBRA program activity, funds for administrative costs cannot exceed 4% of the total project funds per year of the Contract term.

(b) Allocation Formula. Funds requested and awarded under §(12) of this NOFA and submitted in accordance with §(4)(a) of this NOFA are subject to the Regional Allocation as shown in Table 7 (HBA Regional, Rural, and Urban Funding Amounts), as follows:

Table 7 (.pdf)

(c) Form of Assistance.

(i) Through the TBRA program, rental subsidy and security and utility deposit assistance is provided to tenants as a grant, in accordance with written tenant selection policies, for a period not to exceed twenty-four (24) months, which shall include among its objectives the securing of a permanent source of affordable housing on or before the expiration of the rental subsidy. Security deposits and utility deposits may be provided in conjunction with rental assistance. A security deposit cannot exceed two (2) months rent for the unit.

(ii) As per 10 TAC §53.33, the Household must comply with the following initial eligibility requirements:

(I) Participate in an approved self-sufficiency program;

(II) Maintain principal residency in the rental unit for which the subsidy is being provided;

(III) Be an income eligible household; reside in a rental unit that is located within the Administrator's Service Area; and

(IV) Meet all other Program eligibility requirements as required by the Department.

(iii) As defined in 10 TAC §53.33(d) the rental standard must not exceed HUD's "Fair Market Rent for the Housing Choice Voucher Program."

(d) Period of Affordability. There is no period of affordability for TBRA projects.

(e) Property Standards. As defined in 10 TAC §53.33(e), rental units must be inspected prior to occupancy and must comply with Housing Quality Standards established by HUD in 24 CFR §982.401.

(f) Contract Terms. In accordance with 10 TAC §53.73(a)(3), the contract term for the TBRA Program shall not exceed thirty-six (36) months. Individual household assistance is limited to twenty-four (24) months and performance under the contract will be evaluated according to the following benchmarks:

(i) Six (6) months, exempt administrative environmental clearance must be complete and application intake complete for 30% for Households to be assisted;

(ii) Nine (9) months, application intake complete for 75% for Households to be assisted;

(iii) Twelve (12) months, 100% of funds must be committed to Households to be assisted and 25% of funds drawn;

(iv) Eighteen (18) months, 100% of funds already committed and 35% of funds drawn;

(v) Twenty-four (24) months, 100% of funds already committed and 50% of funds drawn; and

(vi) Thirty-six (36) months, 100% of funds already committed and 100% of funds drawn.

(g) Application Threshold Requirements. The following threshold criteria listed in this subsection and in subsection (h) of this NOFA are mandatory requirements at the time of application submission unless specifically indicated otherwise and will be included in the written agreement, if awarded funds:

(i) Cash Reserve. Each awarded applicant will be required to expend funds according to program guidelines and request funds from the Department for eligible expenses. Every Applicant must evidence the ability to administer the program and commit adequate cash reserves of at least one (1) month of rent for the number of households proposed to serve as stated in the application to facilitate administration of the program during the Department's disbursement process. Cash reserves are not permanently invested in the project but are used for short term deficits that are reimbursed by program funds. Applicants must submit:

(I) Current financial statements indicating adequate local unrestricted cash or cash equivalents to utilize as cash reserves and a letter from the Applicant's bank(s) or financial institution(s) indicating that current account balances are sufficient; or

(II) Evidence of an available line of credit for the total amount of cash reserves required; or

(III) The CPA Opinion letter from the most recent audit and a statement from the CPA that indicates based on past experience with grant programs and past audits, the applicant has in place the best practices and financial capacity necessary in order to effectively administer a HOME Program grant.

(ii) Resolution. All applications submitted must include an original resolution signed and dated within the six (6) months preceding the application submission date from the Applicant's direct governing body which includes:

(I) Authorization of the submission of the Application;

(II) Commitment and amount of cash reserves for use during the contract period;

(III) Name and title of the person authorized to represent the organization; and

(IV) Signature authority to execute a contract.

(iii) Description of Demand. All applicants must submit a narrative that describes in detail the demand evidenced for the proposed number of units to be assisted in the proposed service area which includes:

(I) Source data (i.e. Census data/availability of rental units);

(II) Calculations (i.e. amounts to be spent/contributed locally per project); and

(III) Assumptions.

(iv) Match. There is no match requirement for TBRA Program activity.

(v) TBRA Self Sufficiency Program. Applicants must submit a proposed detailed Self Sufficiency Plan, and must:

(I) Describe the process for the transition of households to permanent housing by the end of the twenty-four (24) month rental assistance contract;

(II) Include documentation describing the necessary components for the overall plan proposed for transition of potential tenants;

(III) Detail, like a case management plan, the needs of the tenant, how these needs will be addressed including any agreements with service providers who shall assist the tenant at meeting these needs, and a proposed timeframe for completing those activities;

(IV) Include a sample household budget which will utilize existing sources of income such as employment, disability payments and other types of support that details how the assisted household will afford to be self-sufficient by the end of the twenty-four (24) month rental assistance;

(V) If additional income is required to attain self-sufficiency, include a plan for attaining the required education or training, or a job search plan;

(VI) Include specific housing goals that will be completed on or before the end of the twenty-four (24) month assistance period, including:

(A) Finding permanently subsidized housing;

(B) Acquiring affordable market housing; or

(C) Other permanent housing solutions.

(VII) Include the required steps, such as:

(A) Completion of an application for affordable housing;

(B) Approximate waiting time to acquire the type of housing desired; and

(C) The cost of the housing to the tenant.

(h) Threshold Score. The application must meet the minimum threshold score of 15. This score is tallied using points from the following categories:

(i) Affordable Housing Needs Score. Points range from zero to seven, as published by the Department. (Maximum 7 points).

(ii) Income Targeting. In order to meet its annual goal of assisting very low to extremely low income families, the Department incentivizes application points for income targeting of households assisted. (Maximum 20 points). Table 8 (Point Incentives for Income Targeting (TBRA)) will be used to determine income targeting requirements and associated points; as follows.

Table 8 (.pdf)

(13) Review Process.

(a) Pursuant to 10 TAC §53.48(a), each application will be handled on a first-come, first-served basis as further described in this section. Each application will be assigned a received date based on the date and time it is physically received by the Division. Each application will be reviewed on its own merits as applicable. Applications will be reviewed for applicant and activity eligibility, and threshold criteria as described in this NOFA. Applications proceeding in a timely fashion through a phase will take priority over applications that may have an earlier received date but that did not complete a phase of review in a timely manner.

(b) The Department will ensure review of materials for eligibility and threshold criteria, and requirements of the NOFA and Application Submission Procedures Manual (ASPM), and will issue a notice of any Administrative Deficiencies within forty-five (45) days of the received date. Applicants who are able to resolve their Administrative Deficiencies within five (5) business days will continue the review process. Applications with Administrative Deficiencies not cured within five (5) business days will be terminated and must reapply for consideration of funds. Applications that have completed this phase will be reviewed for recommendation to the Board by the Executive Award and Review Advisory Committee (EARAC).

(c) Because Applications are processed in the order they are received by the Department, it is possible that the Department will award all available HOME funds before an Application has been completely reviewed. If, on the date an Application is received by the Department, no funds are available under this NOFA, the Applicant will be notified that no funds exist under the NOFA and the Application will not be processed.

(d) An applicant will be ineligible if they meet any of the criteria in 10 TAC §53.42 and will be terminated without being processed as an Administrative Deficiency.

(e) The Department may decline to consider any Application if the proposed activities do not, in the Department's sole determination, represent a prudent use of the Department's funds. The Department is not obligated to proceed with any action pertaining to any Applications that are received, and may decide it is in the Department's best interest to refrain from pursuing any selection process. The Department reserves the right to negotiate individual elements of any Application.

(f) All Applicants will be processed through the Department's Application Evaluation System, which includes a previous award and past performance evaluation. Poor past performance may disqualify an Applicant for a funding recommendation, or the recommendation may include conditions.

(g) Funding recommendations of eligible Applicants will be presented to the Department's Governing Board of Directors based on eligibility. Recommendations are limited by the total amount of funds available under this NOFA and the maximum award amount.

(h) In accordance with §2306.082 of the Texas Government Code and 10 TAC §53.6, it is the Department's policy to encourage the use of appropriate alternative dispute resolution procedures ("ADR") under the Governmental Dispute Resolution Act, Chapter 2009 of the Texas Government Code, to assist in resolving disputes under the Department's jurisdiction. As described in Chapter 154 of the Civil Practices and Remedies Code, ADR procedures include mediation. Except as prohibited by the Department's ex parte communications policy, the Department encourages informal communications between Department staff and Applicants, and other interested persons, to exchange information and informally resolve disputes. The Department also has administrative appeals processes to fairly and expeditiously resolve disputes. If at anytime an Applicant or other person would like to engage the Department in an ADR procedure, the person may send a proposal to the Department's Dispute Resolution Coordinator. For additional information on the Department's ADR Policy, see the Department's General Administrative Rule on ADR at 10 TAC §1.17.

(i) An Applicant may appeal decisions made by staff in accordance with 10 TAC §1.7.

(14) Application Submission.

(a) All applications submitted under this NOFA must be received on or before 5:00 p.m. Thursday, April 30, 2010, regardless of method of delivery.

(b) The Department will accept applications from 8 a.m. to 5 p.m. each business day, excluding federal and state holidays, from the date this NOFA is published on the Department's web site until the deadline. Questions regarding this NOFA should be addressed to:

HOME Division

221 E. 11th Street

Austin, Texas 78701

E-mail: HOME@tdhca.state.tx.us

(c) All applications must be submitted, and provide all documentation, as described in this NOFA and associated application materials.

(d) Applicants must submit one complete original printed copy of all Application materials and one complete scanned copy on a disc of the Application materials as detailed in the Application Submission Procedures Manual (ASPM). All scanned copies must be scanned in accordance with the guidance provided in the ASPM.

(e) All Application materials including manuals, NOFA, program guidelines, and all applicable HOME rules, will be available on the Department's website at www.tdhca.state.tx.us. Applications will be required to adhere to the HOME Rule and threshold requirements in effect at the time of the Application submission. Applications must be on forms provided by the Department, and cannot be altered or modified and must be in final form before submitting them to the Department.

(f) Applicants are required to remit a non-refundable Application fee payable to the Texas Department of Housing and Community Affairs in the amount of $30 per Application. Payment must be in the form of a check, cashier's check or money order. Do not send cash. Pursuant to §2306.147(b) of the Texas Government Code, the Department will waive Application fees for nonprofit organizations that offer expanded services such as child care, nutrition programs, job training assistance, health services, or human services. These organizations must include proof of their exempt status and a description of their supportive services in lieu of the Application fee. The Application fee is not an allowable or reimbursable cost under the HOME Program.

(g) This NOFA does not include text of the various applicable regulatory provisions that may be important to the HOME Program. For proper completion of the application, the Department strongly encourages potential applicants to review the state and federal regulations, and contact the HOME Division for guidance and assistance.

(h) Application Workshop. The Department will conduct application workshops in locations throughout the state which provide an overview of the HOME Program Activities eligible under this NOFA and also provide Application preparation and submission requirements, evaluation criteria, and state and federal program information.

(i) Audit Requirements. An applicant is not eligible to apply for funds or any other assistance from the Department unless a past audit or Audit Certification Form has been submitted to the Department in a satisfactory format on or before the application deadline, per 10 TAC §1.3(b). This is a threshold requirement outlined in the application, therefore applications that have outstanding past audits will be disqualified. Staff will not recommend applications for funding to the Department's Governing Board unless all unresolved audit findings, questions or disallowed costs are resolved per 10 TAC §1.3(c).

Applications must be sent via overnight delivery to:

Texas Department of Housing and Community Affairs

HOME Division

221 East 11th Street

Austin, TX 78701-2410

Or via the U.S. Postal Service to:

Texas Department of Housing and Community Affairs

HOME Division

Post Office Box 13941

Austin, TX 78711-3941

TRD-200903033

Michael Gerber

Executive Director

Texas Department of Housing and Community Affairs

Filed: July 22, 2009

Table 1: Regional Allocation (.pdf)

(d) Funds made available under this NOFA and not requested under §(2)(c) of this NOFA shall be available only to applications proposing activities located entirely within a Colonia until October 30, 2009. After this date funds will be available statewide except for within areas served by other Participating Jurisdictions in accordance with §(3)(c) of this NOFA. In accordance with 10 TAC §53.2(20), "Colonia" in §(2)(c) of this NOFA means a geographic area that is located in a county some part of which is within 150 miles of the international border of this state, that consists of 11 or more dwellings that are located in close proximity to each other in an area that may be described as a community or neighborhood, and that:

(i) Has a majority population composed of individuals and families of low income and very low income, based on the federal Office of Management and Budget poverty index, and meets the qualifications of an economically distressed area under §17.921, Texas Water Code; or

(ii) Has the physical and economic characteristics of a colonia, as determined by the Department.

(e) The Department awards HOME funds, typically as a loan, to eligible recipients for the provision of housing for low, very low and extremely low-income individuals and families, pursuant to 10 TAC §53.41. Award amounts are limited to no more than $1 million per application and per CHDO.

(f) Each CHDO that is awarded HOME funds may also be eligible to receive a grant for CHDO Operating Expenses, which are defined in 24 CFR §92.208 as including salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; and equipment, materials, and supplies. Applicants will be required to submit organizational operating budgets, audits and other financial and non-financial materials detailed in the HOME application. The award amount for CHDO Operating Expenses shall not exceed $50,000 in accordance with 10 TAC §53.47(a)(4). Awards for operating expenses will be drawn over a two (2) year period of time. The Department reserves the right to limit an Applicant to receive not more than one award of CHDO Operating Expenses during the same fiscal year and to further limit the award of CHDO Operating Expenses.

(3) Eligible and Prohibited Activities.

(a) Eligible activities will include those permissible under the federal HOME Rule at 24 CFR §92.205 and §92.254 and at 10 TAC §53.35 and §53.50, which involve the construction of affordable developments.

(b) Prohibited activities include those under federal HOME rules at 24 CFR §92.214 and 10 TAC §53.37.

(c) Development funds will not be eligible for use in a Participating Jurisdiction (PJ). Any HOME funds available for serving households in a PJ will only be made available under a separate NOFA for Persons with Disabilities as described in the State of Texas Consolidated Plan One-Year Action Plan.

(d) A portion of funds for single-family development are set-aside for eligible CHDOs and may be used for pre-development costs, land acquisition, lot development, onsite infrastructure, construction, and down payment assistance to qualified homebuyers. Onsite infrastructure includes costs for individual service lines, approved septic installation, sidewalks, curbs and site improvements. Examples of excluded infrastructure costs are water, sewer, electrical, main or transfer lines, streets and other improvements that serve the whole community.

(e) CHDO Applicants must be the developer, Contract Administrator, and construction loan borrower for the proposed development. Partnerships between CHDOs and other developers may be allowable provided the CHDO remains actively engaged and is the primary contact and any other developer partner or affiliate/related party to the partner does not also have current ownership of the property to be used for development. The Applicant must demonstrate compliance with this requirement if requested by the Department.

(f) Applicants may be ineligible for funding if they meet any of the criteria listed in 10 TAC §53.42 of the Department's HOME rule, and ineligibility with any requirements under 10 TAC §49.5 excluding subsections (5) - (8). Applicants are encouraged to familiarize themselves with the Department's certification and debarment policies prior to application submission.

(4) Documenting Sources of Funds.

Applicants will be required to submit documentation on all financial resources to be used in the development that may be considered match to the Department's federal HOME requirements. Applicants must provide firm commitments as defined in accordance with the Federal HOME rules at 24 CFR §92.218 and the Department's Match Guide and will be provided with the appropriate forms and instructions on how to report eligible match as applicable.

(5) Affordability Requirements.

The affordability period for each newly-developed unit is based on the amount of HOME funds invested pursuant to 24 CFR §92.254. In the event that the housing unit is sold, the Department will recapture the shared net proceeds available based on the requirements of 24 CFR §92.254 and the housing unit must be sold for an amount not less than the current appraised value as then appraised by the appropriate governmental authority unless the balance on the Loan will be paid at closing.

(6) Site and Development Restrictions.

(a) Pursuant to 24 CFR §92.251, single family new construction housing that is constructed with HOME funds must meet all applicable local building codes (plus any amendments) and building and zoning ordinances in effect at the time of project completion. In the absence of a locally adopted building code for new construction, HOME-assisted new construction must meet the building code and version (plus any amendment) that is adopted by the county seat in which the development is located. Home-assisted new construction located in counties that have not adopted building codes must meet the 2000 International Residential Code (IRC) applicable to non-electrical aspects of residential construction, and for electrical aspects of residential construction, the 1999 National Electrical Code (NEC). Developments in unincorporated areas and counties without code enforcement procedures must have construction inspections performed as required by the Texas Residential Construction Commission (TRCC).

(b) Accessibility requirements of §2306.514, Texas Government Code apply to all newly-developed units. To the extent that a prospective buyer of a unit requests specific accessible modifications in addition to those required under §2306.514, the special modification must meet the accessibility requirements at 24 CFR Part 8, which implements §504 of the Rehabilitation Act of 1973 (29 U.S.C. §794) and the technical design requirements of the Uniform Federal Accessibility Standards (UFAS). All applications intended to serve persons with disabilities must adhere to the Department's Integrated Housing Rule at 10 TAC §1.15.

(c) Newly-constructed homes must also meet energy standards as verified by RESCHECK™ certification and the energy conservation sections of the 2003 International Residential Code (IRC) and the 2003 International Energy Conservation Code, if applicable, as required by Chapter 388 of the Texas Health and Safety Code, as applicable. Housing assisted with HOME funds must have passed an environmental review in accordance with 24 CFR Part 58. Single Family Accessibility Standards must also be met when applicable.

(d) Housing that is constructed with HOME funds within the Designated Catastrophe Area (Texas first tier coastal counties and certain areas located in Harris County east of HWY 146) must meet the stricter of either the locally adopted building code (plus any amendment) or the 2006 International Residential Code (IRC) with Texas Revisions. At the completion of construction all developments must be certified for windstorm insurability by a physical engineer licensed and registered in Texas. Note that an engineer's design and an engineer's during-construction inspections will be necessary to receive the windstorm certification.

(7) Public Notifications.

The Department will notify all persons and organizations regarding the proposed development as required by 10 TAC §53.8 within fourteen (14) Days of Application receipt. In order to meet this requirement, the Applicant must request a list of Neighborhood Organizations on record with the county and state whose boundaries include the proposed Development Site from local elected officials as follows:

(a) Not later than fourteen (14) days prior to submission of the Application, the Applicant must e-mail, fax or mail with registered receipt a completed "Neighborhood Organization Request" letter as provided in the Application to the local elected official for the city and county where the Development is proposed to be located. If the Development is located in an Area that has district based local elected officials, or both at-large and district based local elected officials, the request must be made to the city council member or county commissioner representing that district; if the Development is located an Area that has only at-large local elected officials, the request must be made to the mayor or county judge for the jurisdiction. If the Development is not located within a city or is located in the Extra Territorial Jurisdiction (ETJ) of a city, the county local elected official must be contacted. In the event that local elected officials refer the Applicant to another source, the Applicant must request Neighborhood Organizations from that source in the same format;

(b) If no reply letter is received from the local elected officials by seven (7) days prior to the submission of the Application, then the Applicant must certify to that fact in the "Application Notification Certification Form" provided in the Application;

(c) The Applicant must list all Neighborhood Organizations on record with the county or state whose boundaries include the proposed Development Site as outlined by the local elected officials, or that the Applicant has knowledge of as of the submission of the Application, in the "Application Notification Certification Form" provided in the Application.

(8) Application and Threshold Criteria.

The following Threshold Criteria listed in this section are mandatory requirements at the time of Application submission unless specifically indicated otherwise:

(a) Uniform Application. Completion and submission of the entire uniform application applicable to the program and any other supplemental documentation that may be required by the Department.

(b) Unit Amenities. A certification that each home will have all of the following amenities:

(i) Wired with RG-6 COAX or better and CAT3 phone cable or better to each bedroom and living room;

(ii) Blinds or window coverings for all windows;

(iii) Disposal and Energy-Star or equivalently rated dishwasher;

(iv) Oven/Range;

(v) Exhaust/vent fans (vented to the outside) in bathrooms;

(vi) Energy-Star or equivalently rated lighting in all rooms, which may include compact florescent bulbs. The living room and each bedroom must contain at least one ceiling lighting fixture and wiring must be capable of supporting ceiling fans; and

(vii) Paved off-street parking for each unit to accommodate at least one mid-sized car and access to on-street parking for a second car.

(c) Unit Sizes. A certification that each home will meet the minimum applicable unit size as provided in the following clauses of this subsection:

(i) No unit shall contain less than two bedrooms. Each unit must contain complete physical facilities and fixtures for living, sleeping, eating, cooking, and sanitation;

(ii) Each bedroom must be no less than 100 square feet; have a length or width no less than 8 feet; be self contained with a door; have at least one window that provides exterior access; and have at least one closet that is not less than 2 feet deep and 3 feet wide and high enough to contain at least 5 feet of hanging space;

(iii) No less than 800 total net square feet for a two bedroom home;

(iv) No less than 1000 total net square feet for a three bedroom and two bathroom home; and

(v) No less than 1200 total net square feet for a four bedroom and two bathroom home.

(d) Design Items. All of the architectural drawings identified in this subsection must contain an accurate and legible scale or dimensions (full size construction quality plans are not required.)

(i) A site plan for each lot or set of contiguous lots with the unit and paved parking area reflected (the actual unit reflected on a particular lot may change based on the home buyer's final selection of one of the units provided under §(2) of this NOFA);

(ii) A floor plan and front exterior elevation for each proposed unit which reflects the exterior building composition. Unit plans should be consistent with other documentation in the application; and

(iii) A FEMA Issued Flood Map that includes that location of the subject site or sites. An Applicant must identify the location of each site on the Flood Map(s).

(e) Households Served. All units must be constructed for households at or below 60% of AMI and households at or below 60% of AMI are eligible to receive 100% of the purchase price (less ineligible costs) in the form of a 0% interest first lien mortgage amortized over thirty (30) years and up to $15,000 in down payment assistance structured as a deferred forgivable second lien.

(f) Unit Cost Limits. Each unit must meet the following requirements:

(i) The total hard construction cost does not exceed $73.00 per square foot;

(ii) The total development cost and purchase price do not exceed the 95% of the Single Family Mortgage Limits under §203(b) of the National Housing Act as required in 24 CFR §92.252(a)(2);

(iii) The sales price may not exceed the per square foot valuation documented in the appraisal.

(g) Financing Documentation. All Applicants must provide evidence of the estimated development costs and sources of financing as described in the following paragraphs of this subsection.

(i) A written narrative describing the financing plan for the units including the funding sources for the construction of the units. Bona fide commitment letters or term sheets for all sources of construction financing must be provided. If other sources of down payment assistance are proposed, commitment letters evidencing these sources must be provided;

(ii) The "Development Cost Schedule" provided in the application. This schedule must be completed with the estimated mix of units and the Department may place restrictions on the funding based upon this mix in order to ensure that the approved funding is sufficient to complete the total number of proposed units;

(iii) An "Affordability Analysis" for each unit based upon the proposed down payment assistance and estimated permanent mortgage terms;

(h) Evidence of Property Control. All Applicants are required to document control of each lot that is proposed to be used under this program, as follows:

(i) A recorded warranty deed with corresponding executed settlement statement; or

(ii) A contract or option for the purchase of the proposed lots that is valid for at least one hundred-twenty (120) days from the date of application submission.

(iii) The appraisal required in §(8)(n)(i) of this NOFA must also include the "as vacant" value of at least one of the proposed lots if one of the following is true:

(I) The Applicant has an Identity of Interest with the seller or current owner of the property; or

(II) Any of the proposed property is part of a newly developed or under-development subdivision in which at least three other third-party sales cannot be evidenced.

(iv) If any lot proposed for use in the program is already owned by the person(s) that will own the completed home, the current owner must sign a certification indicating that they understand that ownership of the lot will be relinquished during the period that construction and development occurs.

(v) The purchase price of any lot in which the current owner has an Identity of Interest with the Applicant cannot exceed the lesser of the following:

(I) The original third-party acquisition cost plus verifiable costs of owning, holding, or improving the property since the date of original acquisition; and

(II) The appraised value of the lot or comparable lot as reflected in the required appraisal.

(vi) Evidence that the property is zoned for the proposed use.

(i) Evidence of Adequate Utilities. The Applicant must provide letters from local utility providers, on company letterhead, confirming each site has access to the following services: water and wastewater, sewer, electricity, garbage disposal and natural gas, if applicable.

(j) Development Team. The Applicant must provide essential contact information and Tax Identification Numbers (TINs) each organization participating in the activities identified in the application. The Applicant and owners of the Applicant must also provide documentation of any previous participation with the Department's programs.

(k) Financial Capacity. If the Department's loan(s) amount to more than 50% of the total development cost, the Application will include:

(i) A letter from a third party CPA verifying the capacity of the owner or developer to provide at least 10% of the total development cost as a short term loan for development; and

(ii) A letter from the developer's or owner's bank(s) confirming funds amounting to 10% of the total development cost are available; or

(iii) Evidence of a line of credit or equivalent source of credit equal to at least 10% of the total development cost from a financial institution that is available for use during the proposed development activities.

(l) Resolution. A resolution from the Applicant's direct governing body authorizing the submission of the application and designating a person or persons authorized to executed legal documents on the Applicant's behalf.

(m) Colonia Evidence. If submitted under §(2)(d) of this NOFA, a map and any other documentation required in the Application to evidence that the proposed development meets the definition in §(2)(d)(i) of this NOFA regarding location of development entirely within a Colonia.

(n) Third Party Reports. The following third party reports must be submitted with the application unless specifically indicated otherwise.

(i) Appraisal report. An "as complete" Appraisal for at least one unit that is:

(I) Prepared by a qualified Third Party;

(II) Dated not more than six (6) months from the date that the application is submitted; and

(III)Prepared in accordance with the Uniform Standards of Professional Appraisal Practice and 10 TAC §1.34, as applicable. Appraisal requirements identified in 10 TAC §1.34 that are generally only applicable for income producing property must not be met.

(ii) Phase I Environmental Site Assessment. If any unit(s) is/are proposed to be located on currently unimproved property (without infrastructure), a Phase 1 Environmental Site Assessment is required and must meet be:

(I) Prepared by a qualified Third Party;

(II) Dated not more than twelve (12) months from the date that the application is submitted; and

(III) Prepared in accordance with 10 TAC §1.35 of the Real Estate Analysis Rules and Guidelines.

(o) Application Certifications. All Applicants may be required to certify to compliance with the following:

(i) Affirmative Marketing (24 CFR §92.351);

(ii) Davis-Bacon Act (24 CFR §92.354);

(iii) Environmental standards (24 CFR Parts 50 & 58);

(iv) Uniform Relocation Act (49 CFR Part 24); and

(v) Lead Safe Housing Rule (24 CFR Part 35).

(vi) Other certifications may be required as specifically stated in the ASPM current at the time of Application.

(vii) Audit Certification. An Applicant is not eligible to apply for funds or any other assistance from the Department unless audits are current at the time of Application or the Audit Certification Form has been submitted to the Department in a satisfactory format on or before the Application deadline for funds or other assistance per 10 TAC §1.3(b).

(viii) Per 10 TAC §53.44(c) all entities receiving funds of $25,000 or more must be registered in the federal Central Contractor Registration (CCR) and have a current Data Universal Numbering System (DUNS) number.

(p) CHDO Certification. Requirements under this subsection must only be met for Applications considered for an award of funds from the CHDO Set-Aside. CHDO Certification will be awarded in accordance with the rules and procedures as set forth in the HOME rules at 10 TAC §53.50, Community Housing Development Organization (CHDO) Certification. CHDO Certification Applications must meet the requirements of 10 TAC §53.50 at the time of Application submission. Additionally, the following apply:

(i) CHDO Applicants must be the Sponsor, Owner or Developer of the proposed Development. Applicants who apply through a Limited Partnership will be required to provide evidence, at the time of CHDO certification and commitment, that the CHDO Applicant is the Managing General Partner of the partnership and has effective control (decision making authority) over the development of the property, pursuant to 24 CFR §92.300.

(ii) A separate Application process is required for CHDO Certification. Review and approval of the CHDO Certification occurs during the threshold review process, however Applicants will not receive a formal certification until the award of the HOME funds has been approved by the Department's Board.

(iii) A new Application for CHDO certification must be submitted to the Department with each new Application for HOME Development funds. The CHDO Application package will be available with all other Application materials on the Department's website.

(9) Review Process.

(a) Pursuant to 10 TAC §53.48, each application will be handled on a first-come, first-served basis as further described in this section. Each application will be assigned a Received Date based on the date and time it is physically received by the Division. Then each application will be reviewed on its own merits in three review phases, as applicable. Applications will continue to be prioritized for funding based on their Received Date unless they do not proceed into the next phase(s) of review. Applications proceeding in a timely fashion through a phase will take priority over applications that may have an earlier Received Date but that did not timely complete a phase of review. Applications will be reviewed for Applicant and Activity Eligibility, Threshold Criteria, and Financial Feasibility as described in this NOFA.

(i) Phase One will begin as of the Received Date and will include a review of eligibility and threshold criteria and all Application requirements. The Department will ensure review of materials required under the NOFA and Application Submission Procedures Manual (ASPM) and will issue a notice of any Administrative Deficiencies for threshold criteria and eligibility within forty-five (45) days of the Received Date. Applicants who are able to resolve their Administrative Deficiencies within five (5) business days will be forwarded into Phase Two, if applicable. Applications with Administrative Deficiencies not cured within five (5) business days, will be terminated and must reapply for consideration of funds.

(ii) Phase Two will include a comprehensive review for financial feasibility. Financial feasibility reviews will be conducted by the Real Estate Analysis (REA) Division consistent with 10 TAC §1.32. REA will create an underwriting report identifying staff's recommended Loan terms, the Loan or Grant amount and any conditions to be placed on the Development. The Department will issue a notice of any Administrative Deficiencies within forty-five (45) days of the date the Application enters Phase Two. Applicants who are able to resolve their Administrative Deficiencies within five (5) business days will be forwarded into Phase Three, if applicable. Applications with Administrative Deficiencies not satisfied within five (5) business days, will be terminated and must reapply for consideration of funds. Applications that have completed this Phase and do not require additional review in Phase Three will be considered for placement on the next available Board meeting agenda.

(iii) Phase Three will only entail the review of the CHDO Certification Application. The Department will ensure review of these materials and issue notice of any Administrative Deficiencies on the CHDO Certification Application within thirty (30) days of the Application enters Phase Three. Applicants who are able to resolve their Administrative Deficiencies within five (5) business days will be forwarded into the final review phase of the Application process. Applications with Administrative Deficiencies not cured within five (5) business days, will be terminated and must reapply for consideration of funds. Only upon satisfaction of all Administrative Deficiencies will the Application be forwarded to the final phase of the Application process. Upon completion of the applicable final review phase, the Application will be considered for placement on the next available Board meeting agenda.

(iv) Because Applications are processed in the order they are received by the Department, it is possible that the Department will expend all available HOME funds before an Application has completed all phases of its review. In the case that all HOME funds are committed before an Application has completed all phases of the review process, the Department will notify the applicant that their application will remain active for ninety (90) days in its current phase. If new HOME funds become available, Applications will continue onward with their review without losing their Received Date priority. If HOME funds do not become available within ninety (90) days of the notification, the Applicant will be notified that their Application is no longer under consideration. The Applicant must reapply to be considered for future funding. If on the date an Application is received by the Department, no funds are available under this NOFA, the Applicant will be notified that no funds exist under the NOFA and the Application will not be processed.

(b) Pursuant to 10 TAC §53.42 if a submitted Application has an entire Volume of the application missing; has excessive omissions of documentation from the Threshold Criteria or Uniform Application documentation; or is so unclear, disjointed or incomplete that a thorough review cannot reasonably be performed by the Department, as determined by the Department, will be terminated with notice and rights to appeal but without being processed as an Administrative Deficiency. To the extent that a review was unable to be performed, specific reasons for the Department's determination of ineligibility will be included in the termination letter to the Applicant.

(c) A site visit will be conducted as part of the HOME Program development feasibility review. Applicants must receive recommendation for approval from the Department to be considered for HOME funding by the Board.

(d) The Department may decline to consider any Application if the proposed activities do not, in the Department's sole determination, represent a prudent use of the Department's funds. The Department is not obligated to proceed with any action pertaining to any Applications which are received, and may decide it is in the Department's best interest to refrain from pursuing any selection process. The Department strives, through its loan terms, to securitize its funding while ensuring the financial feasibility of a Development. The Department reserves the right to negotiate individual elements of any Application.

(e) In accordance with §2306.082, Texas Government Code and 10 TAC §53.6, it is the Department's policy to encourage the use of appropriate alternative dispute resolution procedures ("ADR") under the Governmental Dispute Resolution Act, Chapter 2009, Texas Government Code, to assist in resolving disputes under the Department's jurisdiction. As described in Chapter 154, Civil Practices and Remedies Code, ADR procedures include mediation. Except as prohibited by the Department's ex parte communications policy, the Department encourages informal communications between Department staff and Applicants, and other interested persons, to exchange information and informally resolve disputes. The Department also has administrative appeals processes to fairly and expeditiously resolve disputes. If at anytime an Applicant or other person would like to engage the Department in an ADR procedure, the person may send a proposal to the Department's Dispute Resolution Coordinator. For additional information on the Department's ADR Policy, see the Department's General Administrative Rule on ADR at 10 TAC §1.17.

(f) An Applicant may appeal decisions made by staff in accordance with 10 TAC §1.7.

(10) Administration.

(a) All Applicants receiving an award under this NOFA will be required to enter into a contract with the Department and will be subject to the contract requirements in 10 TAC Chapter 53, Subchapters F and G. Additionally, Applicants are encouraged to request the Department's Manual for guidance on administration of awards and contracts made under this NOFA. This manual will also be posted to the Department's website (www.tdhca.state.tx.us/home-division/manuals-rules.htm).

(b) Financing structure. There are two separate loan closing processes in the Department's Single-Family Development Program, as follows:

(i) Construction Loan(s). The first closing is on the Lot Acquisition and Interim Construction (LAIC) Loan for both the lot purchase and construction costs. The LAIC loan (from the Department to the Applicant/Contract Administrator) will equal the total development cost of the property, excluding the developer fee and any conventional construction financing, as applicable. The following clauses must be met prior to this closing:

(I) A qualified homebuyer must be identified for each home included in the closing and a sales contract must be executed with the homebuyer;

(II) Executed construction agreement between the contractor and the Contract Administrator; and

(III) All necessary and customary pre-closing due diligence identified by the Department.

(ii) The construction loan may be for the construction of one or multiple homes provided that all other paragraphs of this subsection will be met.

(iii) Developer fee or profit will be equal to the lesser of the amount approved by the Department's Governing Board, 15% of the total development costs less the fee itself and all other costs identified in 10 TAC §1.32(e)(7)(C), or the difference between the sales price and the construction financing attributed to a home and is paid at closing on the permanent homebuyer mortgage.

(iv) Homebuyer Mortgage and Down Payment Assistance. The second closing is on the loan between the Department and homebuyer, who will be identified and qualified by the Contract Administrator to purchase the home. To ensure that the home is affordable, the Department will enter into one and/or two loans with the homebuyer depending on the family's income and use of a conventional mortgage. The loans will be structured as follows:

(I) The First Lien Loan will be a thirty (30) year amortizing loan with total estimated housing payment (including principal, interest, property taxes, and insurance) shall be no less than 25% and no greater than 30% of the homebuyer's gross income. Should the estimated housing payment be less than 25%, the Department shall reduce the amount of downpayment assistance and/or charge an interest rate to the homebuyer such that the total estimated housing payment is no less than 25% of the homebuyer's gross income. In no instance shall the interest rate charged to the homebuyer exceed 5% or the current "unassisted" rate available through the Department's Texas First Time Homebuyer Program, whichever is greater. The Department shall use to the income certification described in §(10)(c)(i) of this NOFA to make this determination, which may be adjusted only if the income certification described in §(10)(c)(ii) of this NOFA reflects a material decrease in gross income.

(II) The Down Payment Assistance would be a fifteen (15) year deferred forgivable second lien that makes up the difference between the amount of the first lien loan and the purchase price. For example, for a $92,000 home and a qualified homebuyer with a monthly payment of $225, the first lien loan will be $81,000 ($225 x 360 payments) at 0% interest. The second lien loan in this example would be $11,000 ($92,000 - $81,000) as a deferred forgivable. If a prospective homebuyer for the same home can afford a payment of $300 per month they will not have a second lien loan. In this example, their income is enough to payoff a first lien loan of zero percent interest over thirty (30) years.

(v) Applicants may collect an escrow fee of no more than $500 as a homebuyer's commitment. All of the fee will be credited to the homebuyer at closing against ineligible closing costs and the first housing payments. All other closing costs shall be paid by the Applicant and the funds awarded under this NOFA may be used to pay such reasonable and customary closing costs. The Applicant should include these costs in the Development Cost Schedule, as applicable.

(c) Homebuyer qualifications. Eligible homebuyers will be qualified based on gross household, verification of consistent income, satisfactory completion of a certified homebuyer counseling program, and a certification that all recurring debt payments (including expected principal, taxes, and insurance (PITI) to own the home) are less than or equal to 45% of the homebuyer's gross income. The applicant will certify homeowner eligibility twice, as follows:

(i) Prior to executing a sales contract and development of the home in accordance with 24 CFR Part 92; and

(ii) Prior to closing the homebuyer's loan. The purpose of this second certification is to ensure that the homeowner's income and debt load have not changed during construction of the home such that the homebuyer's ability service the repayable debt is significantly adversely impacted.

(d) If a homebuyer should become ineligible or otherwise cease participation and a new buyer is not located within ninety (90) days of the end of the construction period, all additional funding closings and draws on the award will cease and the Department will require the Applicant to repay any outstanding construction debt in full.

(e) Draws. Consistent with HOME Program regulations, funding draws will be made on a reimbursement basis as completion occurs. The Applicant must provide a progress inspection from a third-party inspector, photos, lien waivers from the contractor and subcontractors (or a down-date endorsement), an itemization of actual costs incurred for each interim construction draw and in accordance with all applicable provisions of 10 TAC Chapter 53.

(f) Performance benchmarks. The Contract term will not exceed thirty-two (32) months. Performance under the contract will be based on the following benchmarks:

(i) Six (6) months, environmental clearance must be complete for 25% of the units;

(ii) Eight (8) months, lot acquisition and interim construction loans must be closed for 25% of the units;

(iii) Fourteen (14) months, construction must be completed for 25% of the units; environmental clearance must be complete for 50% of the units;

(iv) Sixteen (16) months, lot acquisition and interim construction loans must be closed for 50% of the units;

(v) Twenty-two (22) months, construction must be completed for 50% of the units; environmental clearance must be complete for 100% of the units;

(vi) Twenty-four (24) months, lot acquisition and interim construction loans must be closed for 100% of the units;

(vii) Thirty (30) months, construction must be completed for 100% of the units; and

(viii) Thirty-two (32) months, 100% of funds must be drawn.

(11) Application Submission.

(a) All applications submitted under this NOFA must be received on or before 5:00 p.m. on January 29, 2010. The Department will accept applications from 8 a.m. to 5 p.m. each business day, excluding federal and state holidays from the date this NOFA is published on the Department's web site until the deadline. For questions regarding this NOFA please contact Cameron Dorsey at 512-475-2669 or via e-mail at cameron.dorsey@tdhca.state.tx.us.

(b) Applicants must submit the Application materials as detailed in the Final ASPM in effect at the time the application is submitted. All scanned copies must be scanned in accordance with the guidance provided in the Final ASPM in effect at the time the application is submitted.

(c) The application consists of several parts as further described in the Final ASPM. A complete application for each proposed development must be submitted in an electronic PDF format on a recordable compact disc (CD-R). Incomplete applications or improperly compiled applications will not be accepted. Applicants must submit the application materials as detailed in the Final ASPM in effect at the time the application is submitted.

(d) Third party reports - If all applicable third party reports are not received at the time of application submission, the Application will be terminated.

(e) All Application materials including manuals, NOFA, program guidelines, and all applicable HOME rules, will be available on the Department's website at www.tdhca.state.tx.us. Applications will be required to adhere to the HOME Rule and threshold requirements in effect at the time of the Application submission. Applications must be on forms provided by the Department, and cannot be altered or modified and must be in final form before submitting them to the Department.

(f) Applicants are required to remit a non-refundable Application fee payable to the Texas Department of Housing and Community Affairs in the amount of $300.00 per Application. Payment must be in the form of a check, cashier's check or money order. Do not send cash. Section 2306.147(b) of the Texas Government Code requires the Department to waive Application fees for nonprofit organizations that offer expanded services such as child care, nutrition programs, job training assistance, health services, or human services. These organizations must include proof of their exempt status and a description of their supportive services in lieu of the Application fee. The Application fee is not a reimbursable cost under the HOME Program.

(g) Application Workshops. The Department will present several one-day HOME Program application workshops to provide an overview of the Single-Family Development Program, application preparation and submission, evaluation criteria, and information about the major federal and state requirements that would impact the development. The workshop schedule and registration will be posted on the Department's website at www.tdhca.state.tx.us/home-division/sf-home/index.htm.

(h) Applications must be sent via overnight delivery to:

HOME Division

Texas Department of Housing and Community Affairs

Attn: Barbara Skinner

221 East 11th Street

Austin, TX 78701-2410

or via the U.S. Postal Service to:

HOME Division

Texas Department of Housing and Community Affairs

Attn: Barbara Skinner

Post Office Box 13941

Austin, TX 78711-3941

NOTE: This NOFA does not include the text of the various applicable regulatory provisions that may be important to the particular HOME CHDO Program. For proper completion of the application, the Department strongly encourages potential applicants to review all applicable state and federal regulations.

TRD-200903030

Michael Gerber

Executive Director

Texas Department of Housing and Community Affairs

Filed: July 22, 2009

Table 1 and Table 2 (.pdf)

(c) Any funds not requested in an Application received by 5:00 p.m. August 31, 2009, will collapse into an open Application cycle with funding available statewide and not subject to the RAF. Applications for funds under the Persons with Disabilities Set-Aside are not subject to the Regional Allocation formula and are available statewide. Applicants are encouraged to review the Application process cited above and described herein. Applications that do not meet minimum threshold and financial feasibility will not be considered for funding. Based on the availability of funds, Applications for the statewide open Application cycle will be accepted until 5:00 p.m. April 30, 2010. The Department awards HOME funds, typically as a loan, to eligible recipients for the provision of housing for low, very low and extremely low-income individuals and families, pursuant to 10 TAC §53.41. Project funds awards are limited to no more than $3,000,000 per Application except for Applications receiving funds from the Persons with Disabilities set-aside as provided in §(2)(a)(iii) of this NOFA.

(d) Each CHDO that is awarded HOME funds may also be eligible to receive a grant for CHDO Operating Expenses. Applicants will be required to submit organizational operating budgets, audits and other financial and non-financial materials detailed in the HOME Application. The award amount for CHDO Operating Expenses shall not exceed $50,000. Awards for operating expenses will be drawn over a two (2) year period of time. The Department reserves the right to limit an Applicant to receive not more than one award of CHDO Operating Expenses during the same fiscal year and to further limit the award of CHDO Operating Expenses.

(e) Developments involving rehabilitation must establish that the rehabilitation will substantially improve the condition of the housing and will involve at least $15,000 per unit in direct hard costs, unless the property is also being financed by the United States Department of Agriculture's Rural Development program. When HOME funds are used for a rehabilitation development the entire unit must be brought up to the applicable property standards, pursuant to 24 CFR §92.251(a)(1).

(3) Eligible and Prohibited Activities.

(a) Eligible activities will include those permissible under the federal HOME Rule at 24 CFR §92.205, and at 10 TAC §53.34 and §53.50, which involve only the acquisition, rehabilitation or construction of affordable rental developments.

(b) Prohibited activities include those under federal HOME rules at 24 CFR §92.214 and 10 TAC §53.37.

(c) Rental development funds will not be eligible for use in a Participating Jurisdiction (PJ) except for Applications receiving funds under the Persons with Disabilities set-aside.

(d) Refinancing of federally financed properties or use of HOME funds for properties constructed within five (5) years of the submission of an Application for assistance will not be permissible.

(4) Eligible and Ineligible Applicants.

(a) The Department provides HOME funding to qualified nonprofit organizations, for-profit entities, sole proprietors, public housing authorities and units of general local government.

(b) Applicants will be ineligible for funding if they meet any of the criteria listed in 10 TAC §53.42 or as provided in 10 TAC §49.5(a) excluding subsections (5) - (8). Applicants are encouraged to familiarize themselves with the Department's certification and debarment policies prior to Application submission.

(5) Matching Funds. Applicants will be required to submit documentation on all financial resources to be used in the development that may be considered match to the Department's federal HOME requirements. Applicants must provide firm commitments as defined in accordance with the federal HOME rules at 24 CFR §92.218 and the Department's Match Guide and will be provided with the appropriate forms and instructions on how to report eligible match.

(6) Affordability Requirements.

(a) Applicants should be aware that there are minimum affordability standards necessary for HOME assisted rental developments. Unless further restricted, initial occupancy income restrictions require that at least 90% of the units are affordable to persons below 60% AMFI and that 20% of the units are affordable to person below 50% AMFI. Over the remaining affordability period at least 20% of HOME assisted units should be affordable to persons earning 50% or less than the AMFI, all remaining units must be affordable to persons earning 80% or less than the AMFI.

(b) Each development will have a two-tier affordability term to be structured as follows:

(i) The first tier will entail the federally required affordability term. For new construction or acquisition of new housing, this term is twenty (20) years. For rehabilitation or acquisition of existing housing, the term is five (5) years if the HOME investment is less than $15,000 per unit; ten (10) years if the HOME investment is $15,000 to $40,000 per unit; and fifteen (15) years if the HOME investment is greater than $40,000 per unit. This first tier is subject to all federal laws and regulations regarding HOME requirements, recapture, net proceeds and affordability.

(ii) The second tier of affordability is the additional number of years required to bring the total term of affordability up to thirty (30) years or the term of the loan agreement. For example, the second tier of affordability on a ten (10) year federal affordability term is twenty (20) additional years. The second tier, or remaining term, is subject only to state regulations and affordability requirements.

(c) All Applicants will be required to enter into a contract with the Department and properties will be restricted under a Land Use Restriction Agreement (LURA), or other such instrument as determined by the Department for these terms. Among other restrictions, the LURA may require the owner of the property to continue to accept subsidies which may be offered by the federal government, prohibit the owner from exercising an option to prepay a federally insured loan, impose tenant income-based occupancy and rental restrictions, or impose any of these and other restrictions as deemed necessary at the sole discretion of the Department in order to preserve the property as affordable housing on a case-by-case basis.

(d) Applications receiving funds from the Persons with Disabilities set-aside will be required to designate all HOME units as "fixed HOME units" as provided in 24 CFR §92.252(j). All other Applications are required to designate all HOME units as "floating HOME units" as provided in 24 CFR §92.252(j).

(7) Site and Development Restrictions.

(a) Pursuant to 24 CFR §92.251, housing that is constructed or rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion. In the absence of a local code for new construction or rehabilitation, HOME-assisted new construction or rehabilitation must meet, as applicable, one of three model codes: Uniform Building Code (ICBO), National Building Code (BOCA), Standard (Southern) Building Code (SBCCI); or the Council of American Building Officials (CABO) one or two family code; or the Minimum Property Standards (MPS) in 24 CFR §200.925 or §200.926. To avoid duplicative inspections when Federal Housing Administration (FHA) financing is involved in a HOME-assisted property, a participating jurisdiction may rely on a Minimum Property Standards (MPS) inspection performed by a qualified person. Newly constructed housing must meet the current edition of the Model Energy Code published by the Council of American Building Officials.

(b) All other HOME-assisted housing (e.g., acquisition) must meet all applicable state and local housing quality standards and code requirements and if there are no such standards or code requirements, the housing must meet the housing quality standards in 24 CFR §982.401. When HOME funds are used for a rehabilitation development the entire unit must be brought up to the applicable property standards, pursuant to 24 CFR §92.251(a) (1). All multifamily rehabilitation developments are subject to a Uniform Physical Conditions Standards inspection. All deficiencies identified in that inspection must be corrected before final retainage is released.

(c) Housing developments must meet the accessibility requirements at 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. §794). Multifamily housing developments must meet the design and construction requirements at 10 TAC, Chapter 60, Subchapter B (10 TAC §§60.201 - 211). Covered multifamily dwellings, as defined at 24 CFR §100.201 as well as common use facilities in developments with covered dwellings must meet the design and construction requirements at 24 CFR §100.205, which implement the Fair Housing Act (42 U.S.C. §§3601 - 3619) and the design and construction requirements of the Fair Housing Act Design Manual. Additionally, pursuant to the 2009 Qualified Allocation Plan (QAP), 10 TAC §49.9(h)(4)(H), Developments involving New Construction (excluding New Construction of nonresidential buildings) where some Units are two-stories and are normally exempt from Fair Housing accessibility requirements, a minimum of 20% of each Unit type (i.e. one bedroom, two bedroom, three bedroom) must provide an accessible entry level and all common-use facilities in compliance with the design and construction requirements of the Fair Housing Act Design Manual, and include a minimum of one bedroom and one bathroom or powder room at the entry level. A compliance certification will be required after the Development is completed from an inspector, architect, or accessibility specialist. Any Developments designed as single family structures must also satisfy the requirements of §2306.514 of the Texas Government Code.

(d) All Applications will be required to meet Section 8 Housing Quality Standards detailed under 24 CFR §982.401 of the Texas Minimum Construction Standards, as well as the Fair Housing Accessibility Standards and §504 of the Rehabilitation Act of 1973 as reflected in §(7)(c) of this NOFA. Developments must also meet all local building codes or standards that may apply. If the development is located within a jurisdiction that does not have building codes, developments must meet the most current International Building Code.

(e) For funds being used for Rental Housing Developments, the Recipient must establish a reserve account consistent with §2306.186 of the Texas Government Code, and as further described in 10 TAC §1.37, pursuant to 10 TAC §53.45(c).

(f) 10 TAC §49.6 of the Qualified Allocation Plan and Rules apply, except for subsections (d), (f), (g), (h), and (k).

(g) Developments involving new construction will be limited to 252 Units. These maximum Unit limitations also apply to those Developments which involve a combination of rehabilitation and new construction. Developments that consist solely of acquisition/rehabilitation or rehabilitation only may exceed the maximum Unit restrictions. The minimum number of units shall be 4 units, pursuant to 10 TAC §53.45(b).

(8) Public Notification Requirements. Evidence in the form of a certification of all of the notifications described in the subsections of this section is required. Such notices must be prepared in accordance with the "Public Notifications" certification provided in the Application.

(a) Neighborhood Organizations Request. Evidence in the form of a certification that the Applicant met the requirements and deadlines identified in the clauses of this subsection and proof thereof is required. Notifications must not be older than three (3) months prior to the date the Application is submitted. The Applicant must request a list of Neighborhood Organizations on record with the county and state whose boundaries include the proposed Development Site from local elected officials as follows:

(i) Not later than fourteen (14) days prior to submission of the Application, the Applicant must e-mail, fax or mail with registered receipt a completed "Neighborhood Organization Request" letter as provided in the Application materials to the local elected official for the city and county where the Development is proposed to be located. If the Development is located in an Area that has district based local elected officials, or both at-large and district based local elected officials, the request must be made to the city council member or county commissioner representing that district; if the Development is located an Area that has only at-large local elected officials, the request must be made to the mayor or county judge for the jurisdiction. If the Development is not located within a city or is located in the Extra Territorial Jurisdiction (ETJ) of a city, the county local elected official must be contacted. In the event that local elected officials refer the Applicant to another source, the Applicant must request Neighborhood Organizations from that source in the same format;

(ii) If no reply letter is received from the local elected officials by seven (7) days prior to the submission of the Application, then the Applicant must certify to that fact in the "Application Notification Certification Form" provided in the Application materials;

(iii) The Applicant must list all Neighborhood Organizations on record with the county or state whose boundaries include the proposed Development Site as outlined by the local elected officials, or that the Applicant has knowledge of as of the submission of the Application, in the "Application Notification Certification Form" provided in the Application.

(b) Written Notification. Not later than the date the Application is submitted, Applicants are required to provide written notification by e-mail, fax or mail with registered receipt return or similar tracking mechanism in the format required in the "Application Notification Template" provided in the Application materials to each of the following persons or entities. Failure to provide written notifications not later that the date the Application is submitted, at a minimum, will cause an Application to be terminated. Applicants must provide notifications to:

(i) Neighborhood Organizations on record with the state or county whose boundaries include the proposed Development Site as identified in §(8)(a) of this NOFA;

(ii) Superintendent of the school district containing the Development;

(iii) Presiding officer of the board of trustees of the school district containing the Development;

(iv) Mayor of the Governing Body of any municipality containing the Development;

(v) All elected members of the Governing Body of any municipality containing the Development;

(vi) Presiding officer of the Governing Body of the county containing the Development;

(vii) All elected members of the Governing Body of the county containing the Development;

(viii) State senator of the district containing the Development; and

(ix) State representative of the district containing the Development.

(c) Each such notice must include, at a minimum, all of the following:

(i) The Applicant's name, address, individual contact name and phone number;

(ii) The Development name, address, city and county;

(iii) A statement informing the entity or individual being notified that the Applicant is submitting a request for HOME funds with the Texas Department of Housing and Community Affairs;

(iv) Statement of whether the Development proposes New Construction, reconstruction, Adaptive Reuse or Rehabilitation;

(v) The type of Development being proposed (single family homes, duplex, apartments, townhomes, high-rise etc.) and population being served (family, Intergenerational Housing or elderly);

(vi) The approximate total number of Units and approximate total number of low-income Units;

(vii) The approximate percentage of Units serving each level of AMGI (e.g. 20% at 50% of AMGI, etc.) and the approximate percentage of Units that are market rate;

(viii) The number of Units and proposed rents (less utility allowances) for the low-income Units and the number of Units and the proposed rents for any market rate Units. Rents to be provided are those that are effective at the time of the Application, which are subject to change as annual changes in the area median income occur;

(ix) The expected completion date if funds are awarded; and

(x) Any other information required in the ASPM or 10 TAC §49.9(h)(8) of the Qualified Allocation Plan and Rules (QAP).

(d) Signage on Property or Alternative. A Public Notification Sign shall be installed on the Development Site prior to the date the Application is submitted unless prohibited by local ordinance or code. Scattered site Developments must install a sign on each non-contiguous Development Site. Evidence submitted with the Application must include photographs of the site with the installed sign. The sign must be at least 4 feet by 8 feet in size and located within 20 feet of, and facing, the main road adjacent to the site. The sign shall be continuously maintained on the site until the day that the Board takes final action on the Application for the Development. The information and lettering on the sign must meet the minimum requirements identified in the Application materials. In areas where the Public Notification Sign is prohibited by local ordinance or code, an alternative to installing a Public Notification Sign and at the same required time, the Applicant shall, mail written notification to those addresses described in either §(8)(d)(i) or (ii) of this NOFA. This written notification must include the information otherwise required for the sign as provided in the Application materials. The Application must include a map of the proposed Development Site and mark the distance required by §(8)(d)(i) or (ii) of this NOFA, up to 1,000 feet, showing street names and addresses; a list of all addresses the notice was mailed to; an exact copy of the notice that was mailed; and a certification that the notice was mailed through the U.S. Postal Service and stating the date of mailing. If the Public Notification Sign is prohibited by local ordinance or code, evidence of the applicable ordinance or code must be submitted in the Application.

(i) All addresses required for notification by local zoning notification requirements. For example, if the local zoning notification requirement is notification to all those addresses within 200 feet, then that would be the distance used for this purpose; or

(ii) For Developments located in communities that do not have zoning, communities that do not require a zoning notification or those located outside of a municipality, all addresses located within 1,000 feet of any part of the proposed Development Site.

(e) If any of the Units in the Development are occupied at the time of Application, then the Applicant must certify that it has notified each tenant at the Development of all the information otherwise required on the sign, including the Department's public hearing schedule for comment on submitted Applications, if applicable.

(9) Threshold Criteria. The following Threshold Criteria listed in this section are mandatory requirements at the time of Application submission unless specifically indicated otherwise.

(a) Uniform Requirements. All the Threshold requirements in 10 TAC §49.9(h) of the Qualified Allocation Plan and Rules (QAP) in effect at the time of Application submission are requirements except as provided herein. For the purposes of receiving funds under this NOFA, the definition of Application Acceptance Period in the QAP shall be the date that the Application is submitted. For the purposes of receiving funds under this NOFA, the following subsections of 10 TAC §49.9(h) are not required:

(i) Section 49.9(h)(4)(J) regarding General Contractor requirements for tax credit Applications;

(ii) Section 49.9(h)(11) regarding nonprofit set-aside requirements for tax credit Applications;

(iii) Section 49.9(h)(12) regarding acquisition tax credits;

(iv) Section 49.9(h)(14)(G) regarding third-party report deadlines for tax credit Applications; and

(v) Section 49.9(h)(15) regarding self scoring for competitive cycle tax credit Applications.

(b) Unit Restrictions. Housing units subsidized by HOME funds must be affordable to low, very-low or extremely low-income persons. Mixed Income rental developments may only receive funds for units that meet the HOME program affordability standards. Additionally, each Application must meet the following requirements:

(i) All Applications intended to serve persons with disabilities must adhere to the Department's Integrated Housing Rule at 10 TAC §1.15.

(ii) To encourage the inclusion of families and individuals with the highest need for affordable housing, Applicants must target a minimum of 5% of the total units for individuals or families earning 30% or less of area medium income for the development site. Additionally, 20% of the total units proposed must be HOME units. Developments with existing and continuing USDA 515 program loans and rental assistance or project-based Section 8 are exempt from these minimum target requirements.

(iii) All units targeting Extremely Low Income households at 30% or 40% of area median income must also restrict rents at comparable levels using the Housing Tax Credit program rents calculated annually by the Department and available on the Department's website (www.tdhca.state.tx.us). These additional restrictions will limit the tenant paid portion of the rent and any applicable utility allowance but will not limit the amount of any rental assistance unless required by federal law.

(iv) Applications requesting funds under the Persons with Disabilities Set-Aside are exempt from §(9)(b)(ii) of this NOFA, but must restrict 5% of the HOME units set-aside for persons with disabilities at 30% of AMI and 100% of the HOME units set aside for persons with disabilities at 50% of AMI.

(c) Loan Terms. All project funds awarded to eligible Applications under this NOFA will be structured as a loan(s), will be supported by documents required by 10 TAC §53.80, and will meet the following requirements at the time of Application and as underwritten:

(i) The interest rate may be as low as 0% and may be adjusted by the Real Estate Analysis division in accordance with 10 TAC §1.32(d)(4);

(ii) The Loan term will be no less than fifteen (15) years and no greater than forty (40) years and the amortization period will be no less than twenty (20) years and no greater than forty (40) years;

(iii) The Loan(s) will be structured with a regular payment due monthly based on the amortization period. Loan(s) will not be structured with contingent payments except as allowable for Applications meeting §(2)(c)(vi) of this NOFA or for Applications with first lien debt that is insured by HUD or the Federal Housing Administration (FHA) or for Applications with other lenders with which the Department has a Memorandum of Agreement permitting such contingent payment debt structures. All contingent payment loans must also meet the minimum debt coverage ratio requirements in the Real Estate Analysis Rules and Guidelines described in 10 TAC §1.32, including being underwritten at a minimum DCR of 1.15 inclusive of the funds requested under this NOFA;

(iv) The lien position of the Department's loan(s) shall generally be based on the amount of the Department's loan(s) in relation to the other sources of debt. However, the Department may require a superior position to sources that are greater than the Department's funds if the lender is a related party to any member of the development team or if the other source of debt is structured with a contingent payment or without any regular payment;

(v) The Department's loan(s) must close within six (6) months of execution of the contract and each loan shall be structured with an eighteen (18) month development period. An extension to these timeframes may be requested as allowed in 10 TAC §53.74; and

(vi) If the Applicant elects to restrict 10% of all units for households at or below 30% of AMFI and at least 50% of all units for households at or below 50% of AMFI, and those units are not designated to serve very or extremely low-income households through another subsidy source with the exception of developments with existing and continuing USDA 515 program loans and rental assistance or project-based Section 8, the Department may allow up to 50% of the total HOME award to be structured as a deferred forgivable loan with a term equal to the affordability period. Developments layered with Housing Tax Credits are not eligible for this optional election unless the funds are deducted from eligible basis. Applications must still meet the requirements of the Real Estate Analysis (REA) Rules and Guidelines in 10 TAC §1.32.

(d) Leveraging of Other Public or Private Resources. To encourage the involvement of other public agencies and private entities in affordable housing, Applicants must provide a minimum percentage of the total development costs in loans, in-kind contributions, or grants from third-party public or private entities. The maximum award may not exceed 90% of the Total Development Costs (TDC) unless a resolution of support for the development is made by the local unit of government in which the proposed development resides and/or the proposed development is located in an area where the HUD Fair Market Rents are equal to the respective HOME Rent Limit for a one-bedroom unit but will be limited, as shown in Table 3 (Maximum HOME Award as a Percentage of TDC. The remaining percentage of total development cost must be in the form of permanent loans with a maturity of at least twenty (20) years, in-kind contributions or grants from third-party private or public entities. Developments with USDA or other government-sponsored loans that will remain as permanent financing may be used to satisfy this requirement from a public or private entity. Loans or grants from the Department will not satisfy this requirement. The Department's underwriting guidelines in 10 TAC §1.32 will be used which set as a feasibility criterion a 1.15 debt coverage ratio minimum and 1.35 maximum.

Table 3 (.pdf)

(e) Funding Limits. In addition to the limits per Application described in §(2)(a)(ii) and §(2)(b) of this NOFA, Applicant awards will be limited as follows:

(i) The Department will determine the maximum amount of HOME funds or minimum number of HOME units by pro-rating the total HOME eligible development costs of the project in accordance with 24 CFR §92.205(d). The total HOME funds as a percentage of total HOME eligible development costs may not exceed the total HOME restricted units as a percentage of the total units (For example: total HOME funds/total HOME eligible cost may not exceed total HOME units/total units). Applicants are encouraged to review "HOME eligible costs" in the HOME Final Rule, 24 CFR §§92.205 and 92.206;

(ii) The total HOME funding may not exceed the per-unit dollar limitations established under §221(d)(3) of the National Housing Act (12 U.S.C. §17151(d)(3)), which are applicable to the area in which the development is located, and as published by HUD; and

(iii) Funds awarded under this NOFA shall meet all other subsidy and funding limits required in the HOME Rule at 24 CFR Part 92.

(f) Financial Capacity. If the Department's loan(s) amount to more than 50% of the total development cost, except for developments also financed through the USDA-515 program, the Application will include:

(i) A letter from a third party CPA verifying the capacity of the owner or developer to provide at least 10% of the total development cost as a short term loan for development; and

(ii) A letter from the developer's or owner's bank(s) confirming funds amounting to 10% of the total development cost are available; or

(iii) Evidence of a line of credit or equivalent tool equal to at least 10% of the total development cost from a financial institution that is available for use during the proposed development activities.

(g) Affirmative Marketing. Documentation of compliance with the Affirmative Marketing requirements in the Fair Housing Act and the Department's Compliance Rules at 10 TAC §60.112(d). Applicants will be required to use HUD Form 935.2a to meet these requirements.

(h) Site and Neighborhood. For Applications proposing new construction, documentation sufficient to meet the Site and Neighborhood Standards required in 24 CFR §92.202 and as required in the Final Application and Submission Procedures Manual (ASPM).

(i) Application Certifications. All Applicants will be required to certify to compliance with the following:

(i) Davis-Bacon Act (24 CFR §92.354);

(ii) Environmental standards (24 CFR Parts 50 and 58);

(iii) Uniform Relocation Act (49 CFR Part 24); and

(iv) Lead Safe Housing Rule (24 CFR Part 35).

(v) Other certifications may be required as specifically stated in the ASPM current at the time of Application.

(vi) Audit Certification. An Applicant is not eligible to apply for funds or any other assistance from the Department unless audits are current at the time of Application or the Audit Certification Form has been submitted to the Department in a satisfactory format on or before the Application deadline for funds or other assistance per 10 TAC §1.3(b).

(vii) In accordance with 10 TAC §53.44(c), all entities receiving funds of $25,000 or more must be registered in the federal Central Contractor Registration (CCR) and have a current Data Universal Numbering System (DUNS) number.

(j) CHDO Certification. Requirements under this subsection must only be met for Applications considered for an award of funds from the CHDO Set-Aside. CHDO Certification will be awarded in accordance with the rules and procedures as set forth by 10 TAC §53.50, Community Housing Development Organization (CHDO) Certification. CHDO Certification Applications must meet the requirements of 10 TAC §53.50 at the time of Application submission. Additionally, the following apply:

(i) CHDO Applicants must be the Sponsor, Owner or Developer of the proposed Development. Applicants who apply through a Limited Partnership will be required to provide evidence, at the time of CHDO certification and commitment, that the CHDO Applicant is the Managing General Partner of the partnership and has effective control (decision making authority) over the development and management of the property, pursuant to 24 CFR §92.300;

(ii) A separate Application process is required for CHDO Certification and to meet the CHDO set-aside requirements. Review and approval of the CHDO Certification occurs during the threshold review process, however Applicants will not receive a formal certification until the award of the HOME funds has been approved by the Department's Board; and

(iii) A new Application for CHDO certification must be submitted to the Department with each new Application for HOME Development funds under the CHDO set aside. The CHDO Application package will be available with all other Application materials on the Department's website.

(10) Review Process.

(a) Pursuant to 10 TAC §53.48, each Application will be handled on a first-come, first-served basis as further described in this section. Each Application will be assigned a Received Date based on the date and time it is physically received by the Division. Then each Application will be reviewed on its own merits in three review phases, as applicable. Applications will continue to be prioritized for funding based on their Received Date unless they do not proceed into the next phase(s) of review. Applications proceeding in a timely fashion through a phase will take priority over Applications that may have an earlier Received Date but that did not timely complete a phase of review. Applications will be reviewed for Applicant and Activity Eligibility, Threshold Criteria, and Financial Feasibility as described in this NOFA.

(i) Phase One will begin as of the Received Date and will include a review of eligibility and threshold criteria and all Application requirements. The Department will ensure review of materials required under the NOFA and ASPM and will issue a notice of any Administrative Deficiencies for threshold criteria and eligibility within forty-five (45) days of the Received Date. Applicants who are able to resolve their Administrative Deficiencies within five (5) business days will be forwarded into Phase Two, if applicable. Applications with Administrative Deficiencies not cured within five (5) business days, will be terminated and must reapply for consideration of funds.

(ii) Phase Two will include a comprehensive review for financial feasibility. Financial feasibility reviews will be conducted by the Real Estate Analysis (REA) Division consistent with 10 TAC §1.32. REA will create an underwriting report identifying staff's recommended Loan terms, the Loan amount and any conditions to be placed on the Development. The Department will issue a notice of any Administrative Deficiencies within forty-five (45) days of the date the Application enters Phase Two. Applicants who are able to resolve their Administrative Deficiencies within five (5) business days will be forwarded into Phase Three, if applicable. Applications with Administrative Deficiencies not satisfied within five (5) business days, will be terminated and must reapply for consideration of funds. Applications that have completed this Phase and do not require additional review in Phase Three will be considered for placement on the next available Board meeting agenda.

(iii) Phase Three will only entail the review of the CHDO Certification Application, if applicable. The Department will ensure review of these materials and issue notice of any Administrative Deficiencies on the CHDO Certification Application within thirty (30) days of the Application enters Phase Three. Applicants who are able to resolve their Administrative Deficiencies within five (5) business days will be forwarded into the final review phase of the Application process. Applications with Administrative Deficiencies not cured within five (5) business days, will be terminated and must reapply for consideration of funds or must elect to withdraw from the CHDO Set-Aside and withdraw the CHDO Certification Application. Only upon satisfaction of all Administrative Deficiencies will the Application be forwarded to the final phase of the Application process. Upon completion of the applicable final review phase, the Application will be considered for placement on the next available Board meeting agenda.

(b) Because Applications are processed in the order they are received by the Department, it is possible that the Department will expend all available HOME funds before an Application has completed all phases of its review. In the case that all HOME funds are committed before an Application has completed all phases of the review process, the Department will notify the Applicant that their Application will remain active for ninety (90) days in its current phase. If new HOME funds become available, Applications will continue onward with their review without losing their Received Date priority. If HOME funds do not become available within ninety (90) days of the notification, the Applicant will be notified that their Application is no longer under consideration. The Applicant must reapply to be considered for future funding. If on the date an Application is received by the Department, no funds are available under this NOFA, the Applicant will be notified that no funds exist under the NOFA and the Application will not be processed.

(c) Pursuant to the QAP and 10 TAC §53.42, if a submitted Application has an entire Volume of the Application missing; has excessive omissions of documentation from the Threshold Criteria or Uniform Application documentation; or is so unclear, disjointed or incomplete that a thorough review cannot reasonably be performed by the Department, as determined by the Department, the Application will be terminated with notice and rights to appeal but without being processed as an Administrative Deficiency. To the extent that a review was unable to be performed, specific reasons for the Department's determination of ineligibility will be included in the termination letter to the Applicant.

(d) A site visit may be conducted as part of the HOME Program development feasibility review. Applicants must receive recommendation for approval from the Department to be considered for HOME funding by the Board.

(e) The Department may decline to consider any Application if the proposed activities do not, in the Department's sole determination, represent a prudent use of the Department's funds. The Department is not obligated to proceed with any action pertaining to any Applications which are received, and may decide it is in the Department's best interest to refrain from pursuing any selection process. The Department strives, through its loan terms, to securitize its funding while ensuring the financial feasibility of a Development. The Department reserves the right to negotiate individual elements of any Application.

(f) In accordance with §2306.082 of the Texas Government Code and 10 TAC §53.6, it is the Department's policy to encourage the use of appropriate Alternative Dispute Resolution procedures (ADR) under the Governmental Dispute Resolution Act, Chapter 2009 of the Texas Government Code, to assist in resolving disputes under the Department's jurisdiction. As described in Chapter 154 of the Civil Practices and Remedies Code, ADR procedures include mediation. Except as prohibited by the Department's ex parte communications policy, the Department encourages informal communications between Department staff and Applicants, and other interested persons, to exchange information and informally resolve disputes. The Department also has administrative appeals processes to fairly and expeditiously resolve disputes. If at anytime an Applicant or other person would like to engage the Department in an ADR procedure, the person may send a proposal to the Department's Dispute Resolution Coordinator. For additional information on the Department's ADR Policy, see the Department's General Administrative Rule on ADR at 10 TAC §1.17.

(g) An Applicant may appeal decisions made by staff in accordance with 10 TAC §1.7.

(11) Administration.

(a) All Applicants receiving an award under this NOFA will be required to enter into a contract with the Department and will be subject to the contract requirements in 10 TAC Chapter 53; Subchapters F and G. Additionally, Applicants are encouraged to review the Department's Rental Housing Development Manual for guidance on administration of rental housing development awards and contracts (www.tdhca.state.tx.us/home-division/manuals-rules.htm).

(b) When Department funds have a first lien position and funds are used for new construction and/or rehabilitation, assurance of completion of the development in the form of payment and performance bonds in the full amount of the construction contract will be required or equivalent guarantee in the sole determination of the Department. Such assurance of completion will run to the Department as obligee and must be documented prior to closing. Applications also utilizing the USDA 515 program are exempt from this requirement but must meet the alternative requirements set forth by USDA.

(12) Tie Breaker Factors. In the event that two or more Applications receive the same priority based upon the provisions of §10 of this NOFA in any given Set-Aside category and are both practicable and economically feasible, the Department will utilize the factors in this section, in the order they are presented, to determine which Development will receive a preference in consideration for an awarded of funds.

(a) Applications involving any Rehabilitation or Reconstruction of existing Units will win this first tier tie breaker over Applications involving solely New Construction or Adaptive Reuse.

(b) The Application with the least amount of HOME funds per HOME restricted unit will win this second tier tie breaker.

(13) Application Submission.

(a) All Applications submitted under this NOFA must be received on or before 5:00 p.m. on April 30, 2010. The Department will accept Applications from 8 a.m. to 5 p.m. each business day, excluding federal and state holidays from the date this NOFA is published on the Department's web site until the deadline. For questions regarding this NOFA please contact Cameron Dorsey at 512-475-2669 or via e-mail at cameron.dorsey@tdhca.state.tx.us.

(b) If an Application is submitted to the Department that requests funds from two separate housing finance programs, the Application will be handled in accordance with the guidelines for each housing program. The Applicant is responsible for adhering to the deadlines and requirements of both programs.

(c) All Applications must be submitted, and provide all documentation, as described in this NOFA and associated Application materials.

(d) Applicants must submit the Application materials as detailed in the Final ASPM in effect at the time the Application is submitted. All scanned copies must be scanned in accordance with the guidance provided in the Final ASPM in effect at the time the Application is submitted.

(e) The Application consists of several parts as described in the Final ASPM. A complete Application for each proposed development must be submitted in an electronic PDF format on a recordable compact disc (CD-R). Incomplete Applications or improperly compiled Applications will not be accepted. Applicants must submit the Application materials as detailed in the Final ASPM in effect at the time the Application is submitted.

(f) Third Party Reports. If all applicable third party reports are not received at the time of Application submission, the Application will be terminated.

(g) If a development has an existing Housing Tax Credit allocation or HOME contract with the Department and construction on the development has not begun, an abbreviated Application for a HOME award or for an increase in the existing HOME award can be submitted under this NOFA. If additional funds are sought, such an Application may also request that the terms for the additional HOME funds also apply for the funds in an existing HOME Contract. The entire amount of HOME funds received from the Department may not exceed the maximum award per development as reflected in this NOFA for the respective set-aside. An Application qualifying for the abbreviated Application process may be considered by staff to have already met the threshold requirements in §(8) and §(9)(a) of this NOFA without additional review unless staff determines additional documentation is required in accordance with §(13)(h) of this NOFA.

(h) The requirements of the abbreviated Application will be reflected in the Application Submission Procedures Manuel (ASPM). In addition to the Application requirements in the ASPM, staff may use discretion to determine if additional information that is typically required in the full Application (including third party reports) is necessary or prudent in order to review for compliance with state or federal rules or due to changes in the market since last reviewed by the Department. Full Application and an amendment may be required for any Application that includes changes to the previous Board approved Application beyond those that are directly related to the development costs, financing structure or additional HOME program related requirements or that affect an existing allocation of Housing Tax Credits.

(i) All Application materials including manuals, NOFA, program guidelines, and all applicable HOME rules, will be available on the Department's website at www.tdhca.state.tx.us. Applications will be required to adhere to the HOME Rule and threshold requirements in effect at the time of the Application submission. Applications must be on forms provided by the Department, and cannot be altered or modified and must be in final form before submitting them to the Department.

(j) Applicants are required to remit a non-refundable Application fee payable to the Texas Department of Housing and Community Affairs in the amount of $500.00 per Application. Payment must be in the form of a check, cashier's check or money order. Do not send cash. Section 2306.147(b) of the Texas Government Code requires the Department to waive Application fees for nonprofit organizations that offer expanded services such as child care, nutrition programs, job training assistance, health services, or human services. These organizations must include proof of their exempt status and a description of their supportive services in lieu of the Application fee. An Application fee is not required for Applications submitted pursuant to §(13)(g) of this NOFA and that have an existing HOME Contract with the Department. The Application fee is not a reimbursable cost under the HOME Program.

(k) Applications must be sent via overnight delivery to:

HOME Division

Texas Department of Housing and Community Affairs

Attn: Barbara Skinner

221 East 11th Street

Austin, TX 78701-2410

or via the U.S. Postal Service to:

HOME Division

Texas Department of Housing and Community Affairs

Attn: Barbara Skinner

Post Office Box 13941

Austin, TX 78711-3941

NOTE: This NOFA does not include the text of the various applicable regulatory provisions that may be important to the particular HOME Rental Housing Development Program. For proper completion of the Application, the Department strongly encourages potential Applicants to review all applicable state and federal regulations.

TRD-200903031

Michael Gerber

Executive Director

Texas Department of Housing and Community Affairs

Filed: July 22, 2009

Company Licensing

Application for admission to the State of Texas by ESSENT GUARANTY, INC., a foreign fire and casualty company. The home office is in Radnor, Pennsylvania.

Application for incorporation in the State of Texas by BLUEBONNET INSURANCE OF TEXAS, a domestic fire and casualty company. The home office is in Huntsville, Texas.

Any objections must be filed with the Texas Department of Insurance, within twenty (20) calendar days from the date of the Texas Register publication, addressed to the attention of Godwin Ohaechesi, 333 Guadalupe Street, M/C 305-2C, Austin, Texas 78701.

TRD-200902900

Gene C. Jarmon

General Counsel and Chief Clerk

Texas Department of Insurance

Filed: July 15, 2009

Instant Game Number 1213 "The Money Game"

1.0 Name and Style of Game.

A. The name of Instant Game No. 1213 is "THE MONEY GAME". The play style is "key symbol match with doubler".

1.1 Price of Instant Ticket.

A. Tickets for Instant Game No. 1213 shall be $1.00 per ticket.

1.2 Definitions in Instant Game No. 1213.

A. Display Printing - That area of the instant game ticket outside of the area where the Overprint and Play Symbols appear.

B. Latex Overprint - The removable scratch-off covering over the Play Symbols on the front of the ticket.

C. Play Symbol - The printed data under the latex on the front of the instant ticket that is used to determine eligibility for a prize. Each Play Symbol is printed in Symbol font in black ink in positive except for dual-image games. The possible black play symbols are: $1.00, $2.00, $4.00, $5.00, $10.00, $20.00, $50.00, $100, $1,000 and DOLLAR BILL SYMBOL.

D. Play Symbol Caption - The printed material appearing below each Play Symbol which explains the Play Symbol. One caption appears under each Play Symbol and is printed in caption font in black ink in positive. The Play Symbol Caption which corresponds with and verifies each Play Symbol is as follows:

Figure 1: GAME NO. 1213 - 1.2D

E. Serial Number - A unique 14 (fourteen) digit number appearing under the latex scratch-off covering on the front of the ticket. There will be a four (4)-digit "security number" which will be individually boxed and randomly placed within the number. The remaining ten (10) digits of the Serial Number are the Validation Number. The Serial Number is positioned beneath the bottom row of play data in the scratched-off play area. The Serial Number is for validation purposes and cannot be used to play the game. The format will be: 00000000000000.

F. Low-Tier Prize - A prize of $1.00, $2.00, $4.00, $5.00, $10.00 or $20.00.

G. Mid-Tier Prize - A prize of $50.00 and $100.

H. High-Tier Prize - A prize of $1,000.

I. Bar Code - A 24 (twenty-four) character interleaved two (2) of five (5) bar code which will include a four (4) digit game ID, the seven (7) digit pack number, the three (3) digit ticket number and the ten (10) digit Validation Number. The bar code appears on the back of the ticket.

J. Pack-Ticket Number - A 14 (fourteen) digit number consisting of the four (4) digit game number (1213), a seven (7) digit pack number, and a three (3) digit ticket number. Ticket numbers start with 001 and end with 150 within each pack. The format will be: 1213-0000001-001.

K. Pack - A pack of "THE MONEY GAME" Instant Game tickets contains 150 tickets, packed in plastic shrink-wrapping and fanfolded in pages of five (5). Tickets 001 to 005 will be on the top page; tickets 006 to 010 on the next page; etc.; and tickets 146 to 150 will be on the last page with backs exposed.

L. Non-Winning Ticket - A ticket which is not programmed to be a winning ticket or a ticket that does not meet all of the requirements of these Game Procedures, the State Lottery Act (Texas Government Code, Chapter 466), and applicable rules adopted by the Texas Lottery pursuant to the State Lottery Act and referenced in 16 TAC Chapter 401.

M. Ticket or Instant Game Ticket, or Instant Ticket - A Texas Lottery "THE MONEY GAME" Instant Game No. 1213 ticket.

2.0 Determination of Prize Winners. The determination of prize winners is subject to the general ticket validation requirements set forth in Texas Lottery Rule 401.302, Instant Game Rules, these Game Procedures, and the requirements set out on the back of each instant ticket. A prize winner in the "THE MONEY GAME" Instant Game is determined once the latex on the ticket is scratched off to expose 5 (five) Play Symbols. The player scratches all four CORNER AMOUNTS and the CENTER AMOUNT play symbols. If a player matches any CORNER AMOUNT play symbol to the CENTER AMOUNT play symbol, the player wins that AMOUNT. If the player reveals a "DOLLAR BILL" play symbol, the player wins DOUBLE the CENTER AMOUNT instantly! No portion of the display printing nor any extraneous matter whatsoever shall be usable or playable as a part of the Instant Game.

2.1 Instant Ticket Validation Requirements.

A. To be a valid Instant Game ticket, all of the following requirements must be met:

1. Exactly 5 (five) Play Symbols must appear under the latex overprint on the front portion of the ticket;

2. Each of the Play Symbols must have a Play Symbol Caption underneath, unless specified, and each Play Symbol must agree with its Play Symbol Caption;

3. Each of the Play Symbols must be present in its entirety and be fully legible;

4. Each of the Play Symbols must be printed in black ink except for dual image games;

5. The ticket shall be intact;

6. The Serial Number, Retailer Validation Code and Pack-Ticket Number must be present in their entirety and be fully legible;

7. The Serial Number must correspond, using the Texas Lottery's codes, to the Play Symbols on the ticket;

8. The ticket must not have a hole punched through it, be mutilated, altered, unreadable, reconstituted or tampered with in any manner;

9. The ticket must not be counterfeit in whole or in part;

10. The ticket must have been issued by the Texas Lottery in an authorized manner;

11. The ticket must not have been stolen, nor appear on any list of omitted tickets or non-activated tickets on file at the Texas Lottery;

12. The Play Symbols, Serial Number, Retailer Validation Code and Pack-Ticket Number must be right side up and not reversed in any manner;

13. The ticket must be complete and not miscut, and have exactly 5 (five) Play Symbols under the latex overprint on the front portion of the ticket, exactly one Serial Number, exactly one Retailer Validation Code, and exactly one Pack-Ticket Number on the ticket;

14. The Serial Number of an apparent winning ticket shall correspond with the Texas Lottery's Serial Numbers for winning tickets, and a ticket with that Serial Number shall not have been paid previously;

15. The ticket must not be blank or partially blank, misregistered, defective or printed or produced in error;

16. Each of the 5 (five) Play Symbols must be exactly one of those described in Section 1.2.C of these Game Procedures;

17. Each of the 5 (five) Play Symbols on the ticket must be printed in the Symbol font and must correspond precisely to the artwork on file at the Texas Lottery; the ticket Serial Numbers must be printed in the Serial font and must correspond precisely to the artwork on file at the Texas Lottery; and the Pack-Ticket Number must be printed in the Pack-Ticket Number font and must correspond precisely to the artwork on file at the Texas Lottery;

18. The display printing on the ticket must be regular in every respect and correspond precisely to the artwork on file at the Texas Lottery; and

19. The ticket must have been received by the Texas Lottery by applicable deadlines.

B. The ticket must pass all additional validation tests provided for in these Game Procedures, the Texas Lottery's Rules governing the award of prizes of the amount to be validated, and any confidential validation and security tests of the Texas Lottery.

C. Any Instant Game ticket not passing all of the validation requirements is void and ineligible for any prize and shall not be paid. However, the Executive Director may, solely at the Executive Director's discretion, refund the retail sales price of the ticket. In the event a defective ticket is purchased, the only responsibility or liability of the Texas Lottery shall be to replace the defective ticket with another unplayed ticket in that Instant Game (or a ticket of equivalent sales price from any other current Instant Lottery game) or refund the retail sales price of the ticket, solely at the Executive Director's discretion.

2.2 Programmed Game Parameters.

A. Consecutive non-winning tickets in a pack will not have identical play data, spot for spot.

B. No matching non-winning CORNER AMOUNT play symbols on a ticket.

C. The "DOLLAR BILL" (doubler) play symbol will only appear on winning tickets as dictated by the prize structure.

D. The top prize will appear on every ticket unless otherwise restricted by the prize structure.

2.3 Procedure for Claiming Prizes.

A. To claim a "THE MONEY GAME" Instant Game prize of $1.00, $2.00, $4.00, $5.00, $10.00, $20.00, $50.00 or $100, a claimant shall sign the back of the ticket in the space designated on the ticket and present the winning ticket to any Texas Lottery Retailer. The Texas Lottery Retailer shall verify the claim and, if valid, and upon presentation of proper identification, if appropriate, make payment of the amount due the claimant and physically void the ticket; provided that the Texas Lottery Retailer may, but is not required to pay a $50.00 or $100 ticket. In the event the Texas Lottery Retailer cannot verify the claim, the Texas Lottery Retailer shall provide the claimant with a claim form and instruct the claimant on how to file a claim with the Texas Lottery. If the claim is validated by the Texas Lottery, a check shall be forwarded to the claimant in the amount due. In the event the claim is not validated, the claim shall be denied and the claimant shall be notified promptly. A claimant may also claim any of the above prizes under the procedure described in Section 2.3.B and Section 2.3.C of these Game Procedures.

B. To claim a "THE MONEY GAME" Instant Game prize of $1,000, the claimant must sign the winning ticket and present it at one of the Texas Lottery's Claim Centers. If the claim is validated by the Texas Lottery, payment will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification. When paying a prize of $600 or more, the Texas Lottery shall file the appropriate income reporting form with the Internal Revenue Service (IRS) and shall withhold federal income tax at a rate set by the IRS if required. In the event that the claim is not validated by the Texas Lottery, the claim shall be denied and the claimant shall be notified promptly.

C. As an alternative method of claiming a "THE MONEY GAME" Instant Game prize, the claimant must sign the winning ticket, thoroughly complete a claim form, and mail both to: Texas Lottery Commission, Post Office Box 16600, Austin, Texas 78761-6600. The risk of sending a ticket remains with the claimant. In the event that the claim is not validated by the Texas Lottery, the claim shall be denied and the claimant shall be notified promptly.

D. Prior to payment by the Texas Lottery of any prize, the Texas Lottery shall deduct a sufficient amount from the winnings of a person who has been finally determined to be:

1. delinquent in the payment of a tax or other money collected by the Comptroller, the Texas Workforce Commission, or Texas Alcoholic Beverage Commission;

2. delinquent in making child support payments administered or collected by the Attorney General;

3. delinquent in reimbursing the Texas Health and Human Services Commission for a benefit granted in error under the food stamp program or the program of financial assistance under Chapter 31, Human Resources Code;

4. in default on a loan made under Chapter 52, Education Code; or

5. in default on a loan guaranteed under Chapter 57, Education Code.

E. If a person is indebted or owes delinquent taxes to the State, other than those specified in the preceding paragraph, the winnings of a person shall be withheld until the debt or taxes are paid.

2.4 Allowance for Delay of Payment. The Texas Lottery may delay payment of the prize pending a final determination by the Executive Director, under any of the following circumstances:

A. if a dispute occurs, or it appears likely that a dispute may occur, regarding the prize;

B. if there is any question regarding the identity of the claimant;

C. if there is any question regarding the validity of the ticket presented for payment; or

D. if the claim is subject to any deduction from the payment otherwise due, as described in Section 2.3.D of these Game Procedures. No liability for interest for any delay shall accrue to the benefit of the claimant pending payment of the claim.

2.5 Payment of Prizes to Persons Under 18. If a person under the age of 18 years is entitled to a cash prize of less than $600 from the "THE MONEY GAME" Instant Game, the Texas Lottery shall deliver to an adult member of the minor's family or the minor's guardian a check or warrant in the amount of the prize payable to the order of the minor.

2.6 If a person under the age of 18 years is entitled to a cash prize of more than $600 from the "THE MONEY GAME" Instant Game, the Texas Lottery shall deposit the amount of the prize in a custodial bank account, with an adult member of the minor's family or the minor's guardian serving as custodian for the minor.

2.7 Instant Ticket Claim Period. All Instant Game prizes must be claimed within 180 days following the end of the Instant Game or within the applicable time period for certain eligible military personnel as set forth in Texas Government Code §466.408. Any prize not claimed within that period, and in the manner specified in these Game Procedures and on the back of each ticket, shall be forfeited.

2.8 Disclaimer. The number of prizes in a game is approximate based on the number of tickets ordered. The number of actual prizes available in a game may vary based on number of tickets manufactured, testing, distribution, sales and number of prizes claimed. An Instant Game ticket may continue to be sold even when all the top prizes have been claimed.

3.0 Instant Ticket Ownership.

A. Until such time as a signature is placed upon the back portion of an Instant Game ticket in the space designated, a ticket shall be owned by the physical possessor of said ticket. When a signature is placed on the back of the ticket in the space designated, the player whose signature appears in that area shall be the owner of the ticket and shall be entitled to any prize attributable thereto. Notwithstanding any name or names submitted on a claim form, the Executive Director shall make payment to the player whose signature appears on the back of the ticket in the space designated. If more than one name appears on the back of the ticket, the Executive Director will require that one of those players whose name appears thereon be designated by such players to receive payment.

B. The Texas Lottery shall not be responsible for lost or stolen Instant Game tickets and shall not be required to pay on a lost or stolen Instant Game ticket.

4.0 Number and Value of Instant Prizes. There will be approximately 9,120,000 tickets in the Instant Game No. 1213. The approximate number and value of prizes in the game are as follows:

Figure 2: GAME NO. 1213 - 4.0

A. The actual number of tickets in the game may be increased or decreased at the sole discretion of the Texas Lottery Commission.

5.0 End of the Instant Game. The Executive Director may, at any time, announce a closing date (end date) for the Instant Game No. 1213 without advance notice, at which point no further tickets in that game may be sold.

6.0 Governing Law. In purchasing an Instant Game ticket, the player agrees to comply with, and abide by, these Game Procedures for Instant Game No. 1213, the State Lottery Act (Texas Government Code, Chapter 466), applicable rules adopted by the Texas Lottery pursuant to the State Lottery Act and referenced in 16 TAC Chapter 401, and all final decisions of the Executive Director.

TRD-200902979

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Filed: July 21, 2009

Figure 1: GAME NO. 1263 - 1.2D

E. Serial Number - A unique 14 (fourteen) digit number appearing under the latex scratch-off covering on the front of the ticket. There will be a four (4)-digit "security number" which will be individually boxed and randomly placed within the number. The remaining ten (10) digits of the Serial Number are the Validation Number. The Serial Number is positioned beneath the bottom row of play data in the scratched-off play area. The Serial Number is for validation purposes and cannot be used to play the game. The format will be: 00000000000000.

F. Low-Tier Prize - A prize of $3.00, $5.00, $10.00 or $20.00.

G. Mid-Tier Prize - A prize of $100 or $500.

H. High-Tier Prize - A prize of $5,000 or $35,000.

I. Bar Code - A 24 (twenty-four) character interleaved two (2) of five (5) bar code which will include a four (4) digit game ID, the seven (7) digit pack number, the three (3) digit ticket number and the ten (10) digit Validation Number. The bar code appears on the back of the ticket.

J. Pack-Ticket Number - A 14 (fourteen) digit number consisting of the four (4) digit game number (1263), a seven (7) digit pack number, and a three (3) digit ticket number. Ticket numbers start with 001 and end with 125 within each pack. The format will be: 1263-0000001-001.

K. Pack - A pack of "BONUS WORD CROSSWORD" Instant Game tickets contain 125 tickets, which are packed in plastic shrink-wrapping and fanfolded in pages of one (1). Ticket 001 will be shown on the front of the pack; the back of ticket 125 will be revealed on the back of the pack. Every other book will reverse i.e., reverse order will be: the back of ticket 001 will be shown on the front of the pack and the front of ticket 125 will be shown on the back of the pack. All packs will be tightly shrink-wrapped. There will be no breaks between the tickets in a pack.

L. Non-Winning Ticket - A ticket which is not programmed to be a winning ticket or a ticket that does not meet all of the requirements of these Game Procedures, the State Lottery Act (Texas Government Code, Chapter 466), and applicable rules adopted by the Texas Lottery pursuant to the State Lottery Act and referenced in 16 TAC Chapter 401.

M. Ticket or Instant Game Ticket, or Instant Ticket - A Texas Lottery "BONUS CASHWORD" Instant Game No. 1263 ticket.

2.0 Determination of Prize Winners. The determination of prize winners is subject to the general ticket validation requirements set forth in Texas Lottery Rule 401.302, Instant Game Rules, these Game Procedures, and the requirements set out on the back of each instant ticket. A prize winner in the "BONUS WORD CROSSWORD" Instant Game is determined once the latex on the ticket is scratched off to expose 145 (one hundred forty-five) possible play symbols. The player must scratch off the YOUR LETTERS and BONUS play area. The player must use the YOUR LETTERS to form words in the BONUS WORD CROSSWORD puzzle and the player wins the amount shown in the PRIZE LEGEND. The player must use the YOUR LETTERS to form the BONUS WORD and if complete, the player wins the BONUS PRIZE. There will be only one prize per ticket. Letters combined to form a complete "word" must be revealed in an unbroken horizontal (left to right) sequence or vertical (top to bottom) sequence of letters within the BONUS WORD CROSSWORD puzzle. Letters combined to form a comple "word" must be revealed in an unbroken horizontal (left to right) sequence within the BONUS WORD area. Only letters within the BONUS WORD CROSSWORD puzzle and BONUS WORD play areas that are matched with the YOUR LETTERS can be used to form a complete "word". Words within a word are not eligible for a prize. For example, all the YOUR LETTERS play symbols "S, T, O, N, E" must be revealed for this to count as one complete "word". TON, ONE or any other portion of the sequence of STONE would not count as a complete "word". A complete "word" must contain at least three letters. No portion of the display printing nor any extraneous matter whatsoever shall be usable or playable as a part of the Instant Game.

2.1 Instant Ticket Validation Requirements.

A. To be a valid Instant Game ticket, all of the following requirements must be met:

1. One hundred forty-five (145) possible Play Symbols must appear under the latex overprint on the front portion of the ticket;

2. Each of the Play Symbols must have a Play Symbol Caption underneath, and each Play Symbol must agree with its Play Symbol Caption;

3. Each of the Play Symbols must be present in its entirety and be fully legible;

4. Each of the Play Symbols must be printed in black ink;

5. The ticket shall be intact;

6. The Serial Number, Retailer Validation Code and Pack-Ticket Number must be present in their entirety and be fully legible;

7. The Serial Number must correspond, using the Texas Lottery's codes, to the Play Symbols on the ticket;

8. The ticket must not have a hole punched through it, be mutilated, altered, unreadable, reconstituted or tampered with in any manner;

9. The ticket must not be counterfeit in whole or in part;

10. The ticket must have been issued by the Texas Lottery in an authorized manner;

11. The ticket must not have been stolen, nor appear on any list of omitted tickets or non-activated tickets on file at the Texas Lottery;

12. The Play Symbols, Serial Number, Retailer Validation Code and Pack-Ticket Number must be right side up and not reversed in any manner;

13. The ticket must be complete and not miscut, and have 145 (one hundred forty-five) possible Play Symbols under the latex overprint on the front portion of the ticket, exactly one Serial Number, exactly one Retailer Validation Code, and exactly one Pack-Ticket Number on the ticket;

14. The Serial Number of an apparent winning ticket shall correspond with the Texas Lottery's Serial Numbers for winning tickets, and a ticket with that Serial Number shall not have been paid previously;

15. The ticket must not be blank or partially blank, misregistered, defective or printed or produced in error;

16. Each of the 145 (one hundred forty-five) possible Play Symbols must be exactly one of those described in Section 1.2.C of these Game Procedures.

17. Each of the 145 (one hundred forty-five) possible Play Symbols on the ticket must be printed in the Symbol font and must correspond precisely to the artwork on file at the Texas Lottery; the ticket Serial Numbers must be printed in the Serial font and must correspond precisely to the artwork on file at the Texas Lottery; and the Pack-Ticket Number must be printed in the Pack-Ticket Number font and must correspond precisely to the artwork on file at the Texas Lottery;

18. The display printing on the ticket must be regular in every respect and correspond precisely to the artwork on file at the Texas Lottery; and

19. The ticket must have been received by the Texas Lottery by applicable deadlines.

B. The ticket must pass all additional validation tests provided for in these Game Procedures, the Texas Lottery's Rules governing the award of prizes of the amount to be validated, and any confidential validation and security tests of the Texas Lottery.

C. Any Instant Game ticket not passing all of the validation requirements is void and ineligible for any prize and shall not be paid. However, the Executive Director may, solely at the Executive Director's discretion, refund the retail sales price of the ticket. In the event a defective ticket is purchased, the only responsibility or liability of the Texas Lottery shall be to replace the defective ticket with another unplayed ticket in that Instant Game (or a ticket of equivalent sales price from any other current Instant Lottery game) or refund the retail sales price of the ticket, solely at the Executive Director's discretion.

2.2 Programmed Game Parameters.

A. Consecutive non-winning tickets in a pack will not have identical play data, spot for spot.

B. Each grid will contain exactly the same amount of letters.

C. Each grid will contain exactly the same amount of words.

D. No duplicate words on a ticket.

E. All words used will be from the TEXAS APPROVED WORD LIST CASHWORD/CROSSWORD v.1.0.

F. All words will contain a minimum of 3 letters.

G. All words will contain a maximum of 9 letters.

H. No duplicate YOUR LETTERS play symbols.

I. There will be a minimum of 3 vowels (A, E, I, O and U) in the YOUR LETTERS play area

J. A minimum of 15 YOUR LETTERS play symbols will match at least one letter in the crossword grid or the BONUS WORD.

K. The presence or absence of any letter or combination of letters in the YOUR LETTERS play area will not be indicative of a winning or non-winning ticket.

L. No consonant play symbol will appear more than 9 times in the crossword grid and no vowel will appear more than 14 times in the crossword grid.

M. On non-winning tickets, each crossword grid will have at least 2 completed words.

N. When the BONUS WORD is completed as a winner, there will never be more than one completed word in the crossword grid.

O. Each non-winning ticket will have at least 5 near wins (word with all but one letter matched).

P. Words from the TEXAS REJECTED WORD LIST v.2.0 will not appear horizontally, diagonally or vertically in the YOUR LETTERS area.

2.3 Procedure for Claiming Prizes.

A. To claim a "BONUS WORD CROSSWORD" Instant Game prize of $3.00, $5.00, $10.00, $20.00, $100 or $500, a claimant shall sign the back of the ticket in the space designated on the ticket and present the winning ticket to any Texas Lottery Retailer. The Texas Lottery Retailer shall verify the claim and, if valid, and upon presentation of proper identification, if appropriate, make payment of the amount due the claimant and physically void the ticket; provided that the Texas Lottery Retailer may, but is not required to, pay a $100 or $500 ticket. In the event the Texas Lottery Retailer cannot verify the claim, the Texas Lottery Retailer shall provide the claimant with a claim form and instruct the claimant on how to file a claim with the Texas Lottery. If the claim is validated by the Texas Lottery, a check shall be forwarded to the claimant in the amount due. In the event the claim is not validated, the claim shall be denied and the claimant shall be notified promptly. A claimant may also claim any of the above prizes under the procedure described in Section 2.3.B and 2.3.C of these Game Procedures.

B. To claim a "BONUS WORD CROSSWORD" Instant Game prize of $5,000 or $35,000, the claimant must sign the winning ticket and present it at one of the Texas Lottery's Claim Centers. If the claim is validated by the Texas Lottery, payment will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification. When paying a prize of $600 or more, the Texas Lottery shall file the appropriate income reporting form with the Internal Revenue Service (IRS) and shall withhold federal income tax at a rate set by the IRS if required. In the event that the claim is not validated by the Texas Lottery, the claim shall be denied and the claimant shall be notified promptly.

C. As an alternative method of claiming a "BONUS WORD CROSSWORD" Instant Game prize, the claimant must sign the winning ticket, thoroughly complete a claim form, and mail both to: Texas Lottery Commission, Post Office Box 16600, Austin, Texas 78761-6600. The risk of sending a ticket remains with the claimant. In the event that the claim is not validated by the Texas Lottery, the claim shall be denied and the claimant shall be notified promptly.

D. Prior to payment by the Texas Lottery of any prize, the Texas Lottery shall deduct a sufficient amount from the winnings of a person who has been finally determined to be:

1. delinquent in the payment of a tax or other money collected by the Comptroller, the Texas Workforce Commission, or Texas Alcoholic Beverage Commission;

2. delinquent in making child support payments administered or collected by the Attorney General; or

3. delinquent in reimbursing the Texas Health and Human Services Commission for a benefit granted in error under the food stamp program or the program of financial assistance under Chapter 31, Human Resources Code;

4. in default on a loan made under Chapter 52, Education Code; or

5. in default on a loan guaranteed under Chapter 57, Education Code

E. If a person is indebted or owes delinquent taxes to the State, other than those specified in the preceding paragraph, the winnings of a person shall be withheld until the debt or taxes are paid.

2.4 Allowance for Delay of Payment. The Texas Lottery may delay payment of the prize pending a final determination by the Executive Director, under any of the following circumstances:

A. if a dispute occurs, or it appears likely that a dispute may occur, regarding the prize;

B. if there is any question regarding the identity of the claimant;

C. if there is any question regarding the validity of the ticket presented for payment; or

D. if the claim is subject to any deduction from the payment otherwise due, as described in Section 2.3.D of these Game Procedures. No liability for interest for any delay shall accrue to the benefit of the claimant pending payment of the claim.

2.5 Payment of Prizes to Persons Under 18. If a person under the age of 18 years is entitled to a cash prize of less than $600 from the "BONUS WORD CROSSWORD" Instant Game, the Texas Lottery shall deliver to an adult member of the minor's family or the minor's guardian a check or warrant in the amount of the prize payable to the order of the minor.

2.6 If a person under the age of 18 years is entitled to a cash prize of more than $600 from the "BONUS WORD CROSSWORD" Instant Game, the Texas Lottery shall deposit the amount of the prize in a custodial bank account, with an adult member of the minor's family or the minor's guardian serving as custodian for the minor.

2.7 Instant Ticket Claim Period. All Instant Game prizes must be claimed within 180 days following the end of the Instant Game or within the applicable time period for certain eligible military personnel as set forth in Texas Government Code §466.408. Any prize not claimed within that period, and in the manner specified in these Game Procedures and on the back of each ticket, shall be forfeited.

2.8 Disclaimer. The number of prizes in a game is approximate based on the number of tickets ordered. The number of actual prizes available in a game may vary based on number of tickets manufactured, testing, distribution, sales and number of prizes claimed. An Instant Game ticket may continue to be sold even when all the top prizes have been claimed.

3.0 Instant Ticket Ownership.

A. Until such time as a signature is placed upon the back portion of an Instant Game ticket in the space designated therefor, a ticket shall be owned by the physical possessor of said ticket. When a signature is placed on the back of the ticket in the space designated therefor, the player whose signature appears in that area shall be the owner of the ticket and shall be entitled to any prize attributable thereto. Notwithstanding any name or names submitted on a claim form, the Executive Director shall make payment to the player whose signature appears on the back of the ticket in the space designated therefore. If more than one name appears on the back of the ticket, the Executive Director will require that one of those players whose name appears thereon be designated by such players to receive payment.

B. The Texas Lottery shall not be responsible for lost or stolen Instant Game tickets and shall not be required to pay on a lost or stolen Instant Game ticket.

4.0 Number and Value of Instant Prizes. There will be approximately 15,000,000 tickets in the Instant Game No. 1263. The approximate number and value of prizes in the game are as follows:

Figure 2: GAME NO. 1263 - 4.0

A. The actual number of tickets in the game may be increased or decreased at the sole discretion of the Texas Lottery.

5.0 End of the Instant Game. The Executive Director may, at any time, announce a closing date (end date) for the Instant Game No. 1263 without advance notice, at which point no further tickets in that game may be sold.

6.0 Governing Law. In purchasing an Instant Game ticket, the player agrees to comply with, and abide by, these Game Procedures for Instant Game No. 1263, the State Lottery Act (Texas Government Code, Chapter 466), applicable rules adopted by the Texas Lottery pursuant to the State Lottery Act and referenced in 16 TAC Chapter 401, and all final decisions of the Executive Director.

TRD-200902980

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Filed: July 21, 2009

Pre-Solicitation Notice

Design and Master Planning Services for Galveston Island State Park Redevelopment

Revised 21 July 2009

This Pre-Solicitation Notice is for information purposes only.

This is not a request for submission of proposals or qualifications. RESPONSES OR OTHER INQUIRIES ARE NOT APPROPRIATE AT THIS TIME.

The Infrastructure Division of the Texas Parks and Wildlife Department (TPWD) intends to issue a Request for Qualifications (RFQ) for Professional Design and Master Planning Services for Redevelopment of appropriate infrastructure facilities within Galveston Island State Park, Galveston County, Texas on August 25, 2009.

Detailed information about the requirements and selection process will be provided in the RFQ. The purpose of this Pre-Solicitation Notice is to inform qualified entities interested in providing these services that the release of the RFQ is imminent.

Upon issuance of the RFQ on August 25, 2009, all solicitation information will be available electronically on TPWD's website: http://www.tpwd.state.tx.us/business/bidops/current_bid_opportunities/construction and on the Electronic State Business Daily website at http://esbd.cpa.state.tx.us.

Hard copy documents relating to the August solicitation for Professional Design and Master Planning Services will also be available at no charge by calling (512) 389-4442 or by emailing a request to contracting@tpwd.state.tx.us.

Solicitation Background

Galveston Island State Park was destroyed by Hurricane Ike in September 2008. In an effort to restore the park for public use, TPWD has been allocated funds from the recent legislative session for the redevelopment of Galveston Island State Park to include the development of a Master Plan which will direct the overall programming and location of all park facilities. Although funds for completion of construction services have not been appropriated at this time, it is TPWD's intention upon appropriation of construction funding to incorporate a multi-phased construction approach, including an initial phase of construction which will allow park visitors daily recreational use of appropriate amenities within the Park's infrastructure. The completed phase of the construction project will restore Galveston Island State Park to a fully functional park with overnight camping capabilities.

The goal of the solicitation is to award a Professional Design Services contract to the most qualified firm to provide design and master planning services for the subject project in accordance with Government Code, Chapter 2254.

TRD-200902996

Ann Bright

General Counsel

Texas Parks and Wildlife Department

Filed: July 21, 2009

Announcement of Application for Amendment to a State-Issued Certificate of Franchise Authority

The Public Utility Commission of Texas received an application on July 17, 2009, for an amendment to a state-issued certificate of franchise authority (CFA), pursuant to §§66.001 - 66.016 of the Public Utility Regulatory Act (PURA).

Project Title and Number: Application of Northland Cable Properties, Inc. for an Amendment to its State-Issued Certificate of Franchise Authority, Project Number 37250 before the Public Utility Commission of Texas.

The requested amendment is to expand the service area footprint to include the city limits of Patton Village, Texas.

Information on the application may be obtained by contacting the Public Utility Commission of Texas by mail at P.O. Box 13326, Austin, Texas 78711-3326, or by phone at (512) 936-7120 or toll free at 1-888-782-8477. Hearing and speech-impaired individuals with text telephone (TTY) may contact the commission at (512) 936-7136 or toll free at (800) 735-2989. All inquiries should reference Project Number 37250.

TRD-200903017

Adriana A. Gonzales

Rules Coordinator

Public Utility Commission of Texas

Filed: July 22, 2009

Notice of Intent - State Highway Loop 1604 Transportation Improvements, Bexar County, Texas

Pursuant to 43 TAC §2.5(e)(2), the Texas Department of Transportation (department), in cooperation with the Alamo Regional Mobility Authority (ARMA) and the Federal Highway Administration, is issuing this notice to advise the public that an Environmental Impact Statement (EIS) will be prepared for a proposed transportation project, Loop 1604 from Farm-to-Market (FM) 1957 to Interstate Highway 35 (I-35) North in Bexar County, a distance of approximately 32.35 miles. The current Loop 1604 facility consists of a four-lane divided, partial access-controlled roadway from FM 1957 to State Highway (SH) 16 and a four-lane expressway with full access-controlled through travel lanes and parallel partially access-controlled lanes that interface among the through travel lanes, local land use, and connecting roadways from SH 16 to I-35 North. Growth, development, and traffic congestion continue to increase along Loop 1604 from FM 1957 to I-35 North. The project is needed as Loop 1604 does not currently meet present and future growth, development, and traffic demands creating inefficiencies in facility safety, mobility, and operation. The purpose of the project, as currently defined, is to improve safety within the Loop 1604 corridor, enhance mobility and operational efficiency, and to deliver and implement the benefits in an expeditious manner.

The EIS will evaluate potential impacts from construction and operation of the project, including, but not limited to, the following: impacts or potential displacements to residents and businesses; detours; air and noise impacts from construction equipment, and operation of the project; water quality impacts from the construction area and from roadway storm water runoff; impacts to waters of the United States; impacts to historic and archeological resources; impacts to floodplains and irrigation canals; impacts to socio-economic resources (including environmental justice and limited English proficiency populations); indirect impacts; cumulative impacts; land use; vegetation; wildlife; and aesthetic and visual resources. The project crosses the Edwards Aquifer recharge zone and designated habitat for federally listed endangered or threatened species.

The ARMA will consider several alternatives intended to satisfy the identified need and purpose. The alternatives will include the no-build alternative, Transportation System Management/Transportation Demand Management, mass transit, and roadway build alternatives. The roadway build alternatives may range from a two-lane road to a six-lane road, may include limited access and non-limited access (arterial) designs, and toll and non-toll lanes.

The project may require the following approvals by the federal government: Section 106 (National Historic Preservation Act), Section 401/404 (Clean Water Act), and Section 7 (Endangered Species Act). The actual approvals required may change after the ARMA completes field surveys and selects the alignment for the project.

A scoping meeting is an opportunity for participating agencies, cooperating agencies, and the public to be involved in defining the need and purpose for the proposed project, to assist in determining the range of alternatives for consideration in the draft EIS, and to comment on methodologies to evaluate alternatives. The ARMA will publish a notice indicating when and where scoping meetings will be held. The notice will be published in newspapers of general circulation in the project area at least 30 days prior to the meetings, and again approximately 10 days prior to the meetings.

The ARMA will complete the procedures for public participation and the department will complete coordination with other agencies as described in one or both the National Environmental Policy Act and state law. In addition to any scoping meetings, the ARMA will hold a series of meetings to solicit public comment during the environmental review process. They will be held during appropriate phases of the project development process. Public notices will be given stating the date, time, and location of the meeting or hearing and will be published in English as well as Spanish. Provision will be made for those with special communication needs, including translation if requested. The ARMA will also send correspondence to federal, state, and local agencies, and to organizations and individuals who have previously expressed or are known to have an interest in the project, which will describe the proposed project and solicit comments. The ARMA invites comments and suggestions from all interested parties to ensure that the full range of issues related to the proposed project are identified and addressed. Comments or questions should be directed to the ARMA at the address set forth below.

The department currently anticipates that the draft EIS will be completed by December of 2010.

Agency Contact: Comments or questions concerning this proposed action and the EIS should be sent to Lisa Adelman, Legal Counsel to the Alamo RMA, 1222 N. Main Avenue, Suite 1000, San Antonio, Texas 78212, (210) 495-5499 or Dianna F. Noble, P.E., Director, Environmental Affairs Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701, (512) 416-2734.

TRD-200902966

Joanne Wright

Deputy General Counsel

Texas Department of Transportation

Filed: July 20, 2009