PART 1. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
CHAPTER 3. COLONIA SELF-HELP CENTER PROGRAM
(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Department of Housing and Community Affairs or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin, Texas.)
The Texas Department of Housing and Community Affairs (the Department) proposes the repeal of 10 TAC Chapter 3, §§3.1 - 3.18, concerning the Colonia Self Help Center Program. The proposed repeal will allow the Department to make changes to the existing rule to ensure compliance with all statutory requirements, formalize existing policy and guidelines and include revisions of necessary policy and administrative changes to further enhance operations.
Mr. Michael Gerber, Executive Director, has determined that for the first five-year period the repealed section is in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the repealed section as proposed.
Mr. Gerber has also determined that for each year of the first five years the repealed sections are in effect the public benefit anticipated as a result of enforcing the repealed sections will be enhanced compliance with all statutory requirements, formalized policy and guidelines contained, and further enhanced operations of the Colonia Self Help Center program. There will be no effect on small businesses or persons. There is no anticipated economic cost to persons who are required to comply with the repealed sections as proposed.
The public comment period will be held June 5, 2009 to July 8, 2009 to receive input on this repeal. Written comments may be submitted to Texas Department of Housing and Community Affairs, 2009 Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, by e-mail to the following address: tdhcarulecomments@tdhca.state.tx.us, or by fax to (512) 469.9606. ALL COMMENTS MUST BE RECEIVED BY July 8, 2009.
The repeals are proposed pursuant to the authority of the Texas Government Code, Chapter 2306, which provides the Department the authority to adopt rules governing the administration of the Department and its programs.
The repealed sections affect no other code, article or statute.
§3.1.Purpose and Services.
§3.2.Definitions.
§3.3.Colonia Self-Help Centers Establishment.
§3.4.Colonia Self-Help Centers Designation.
§3.5.Colonia Residents Advisory Committee.
§3.6.Duties of the Colonia Residents Advisory Committee.
§3.7.Operation of Colonia Self-Help Center.
§3.8.Department Liaison to Colonia Self-help Centers.
§3.9.Colonia Self-Help Center Set-Aside Fund.
§3.10.Allocation of Colonia Self-Help Center Funds.
§3.11.Distribution of Funds and Proposal Requirements.
§3.12.Colonia Self-Help Center Process of Awards.
§3.13.Threshold Selection Criteria.
§3.14.Expenditure Threshold Requirements.
§3.15.Contract Delivery Administration.
§3.16.Manufactured Homes Installed in Colonias.
§3.17.Suspension.
§3.18.Sanction/Deobligation.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on May 22, 2009.
TRD-200902011
Michael Gerber
Executive Director
Texas Department of Housing and Community Affairs
Earliest possible date of adoption: July 5, 2009
For further information, please call: (512) 475-3916
The Texas Department of Housing and Community Affairs (the Department) proposes new 10 TAC Chapter 3, §§3.1 - 3.8, concerning the Colonia Self Help Center Program. The purpose of the new sections is to consolidate, clarify and simplify the rules formerly contained in Chapter 3. Contemporaneous with the proposal of the new rules, the Department is proposing the repeal of the existing Colonia Self Help Center Program rules in current 10 TAC Chapter 3.
Mr. Michael Gerber, Executive Director, has determined that for the first five year period the new sections are in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the new sections as proposed.
Mr. Gerber has also determined that for each year of the first five years the new sections are in effect the public benefit anticipated as a result of enforcing the new sections will be more clarity and certainty in the requirements of the individual community affairs programs. There will be no effect on small businesses or persons. There is no anticipated economic cost to persons who are required to comply with the new sections as proposed.
The public comment period will be held June 5, 2009 to July 8, 2009 to receive input on these rules. Written comments may be submitted to Texas Department of Housing and Community Affairs, 2009 Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, by e-mail to the following address: tdhcarulecomments@tdhca.state.tx.us, or by fax to (512) 469-9606. ALL COMMENTS MUST BE RECEIVED BY July 8, 2009.
The new sections are proposed pursuant to the authority of the Texas Government Code, Chapter 2306 which provides the Department with the authority to adopt rules governing the administration of the Department and its programs.
No other statutes, articles, or codes are affected by the proposed new sections.
§3.1.Purpose and Services.
(a) The purpose of this chapter is to establish the requirements governing Colonia Self-Help Centers, created pursuant to Subchapter Z of Chapter 2306 of the Texas Government Code and its funding including the use and administration of all funds provided to the Texas Department of Housing and Community Affairs by the legislature of the annual Texas Community Development Block Grant allocation from the United States Department of Housing and Urban Development. Colonia Self-Help Centers are designed to assist individuals and families of low-income and very low-income to finance, refinance, construct, improve, or maintain a safe, suitable home in the colonias' designated service area or in another area the Department has determined is suitable.
(b) A Colonia Self-Help Center shall set a goal to improve the living conditions of residents in the colonias designated by the Department according to §2306.583 of the Texas Government Code, within a four (4) year period after a Contract is awarded.
(c) A Colonia Self-Help Center may serve individuals and families of low-income and very low-income by:
(1) providing assistance in obtaining loans or grants to build, rehabilitate, repair or reconstruct a home;
(2) teaching construction skills necessary to repair or build a home;
(3) providing model home plans;
(4) operating a program to rent or provide tools for home construction and improvement for the benefit of property owners in colonias who are building or repairing a residence or installing necessary residential infrastructure;
(5) helping to obtain, construct, access, or improve the service and utility infrastructure designed to service residences in a colonia, including potable water, wastewater disposal, drainage, streets, and utilities;
(6) surveying or platting residential property that an individual purchased without the benefit of a legal survey, plat, or record;
(7) providing credit and debt counseling related to home purchase and finance;
(8) applying for grants and loans to provide housing and other needed community improvements;
(9) providing other services that the Colonia Self-Help Center, with the approval of the Department, determines are necessary to assist colonia residents in improving their physical living conditions, including help in obtaining suitable alternative housing outside of a colonia's area;
(10) providing assistance in obtaining loans or grants to enable an individual or a family to acquire fee simple title to property that originally was purchased under a contract for a deed, contract for sale, or other executory contract;
(11) providing access to computers, the internet and computer training pursuant to the General Appropriations Act; and
(12) providing monthly programs to educate individuals and families on their rights and responsibilities as property owners.
(d) Through a Colonia Self-Help Center, a colonia resident may apply for any direct loan or grant program operated by the Department.
(e) Ineligible activities. Any type of activity not allowed by the Federal Housing and Community Development Act of 1974, (42 U.S.C. §§5301, et seq.) is ineligible for funding.
(f) A Colonia Self-Help Center may not provide grants, financing, or mortgage loan services to purchase, build, rehabilitate, or finance construction or improvements to a home in a colonia if water service and suitable wastewater disposal are not available.
(g) For a manufactured home to be approved for installation and use as a dwelling in a colonia:
(1) the home must be a HUD-code manufactured home, as defined by §1201.003, Texas Occupations Code and in accordance to §2306.591 of the Texas Government Code;
(2) the home must be habitable, as described by §1201.453 of the Texas Occupations Code; and
(3) ownership of the home must be properly recorded with the manufactured housing division of the department.
(h) An owner of a manufactured home is not eligible to participate in a grant loan program offered by the department, including the single-family mortgage revenue bond program under §2306.142 of the Texas Government Code unless the owner complies with this section.
§3.2.Definitions.
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Common definitions used under the Community Development Block Grant (CDBG) are incorporated herein by reference.
(1) Applicant--A unit of general local government who is preparing to submit or has submitted a Proposal for Colonia Self-Help Center funds.
(2) Beneficiary--A person or family benefiting from the activities of a Self-Help Center Contract.
(3) Board--The governing board of the Texas Department of Housing and Community Affairs.
(4) C-RAC--Colonia Residents Advisory Committee. Advises the Department's Governing Board and evaluate the needs of colonia residents, review programs that are proposed or operated through the Colonia Self-Help Centers and activities that may be undertaken through the Colonia Self-Help Centers to better serve the needs of colonia residents.
(5) Colonia--A geographic area located in a county some part of which is within one hundred-fifty (150) miles of the international border of this state that consists of eleven (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: 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, and has the physical and economic characteristics of a colonia, as determined by the Department.
(6) Colonia Self-Help Center Provider--An organization with which the Contractor has an executed Contract to administer Colonia Self-Help Center activities.
(7) Community Action Agency--A political subdivision, combination of political subdivisions, or nonprofit organization that qualifies as an eligible entity under 42 U.S.C. §9902.
(8) Community Development Block Grant (CDBG) nonentitlement area funds--Funds awarded to the State of Texas pursuant to the Housing and Community Development Act of l974, Title I, as amended, (42 U.S.C §§5301, et seq.) and the regulations promulgated thereunder in 24 C.F.R Part 570.
(9) Contract--A written agreement including all amendments thereto, executed by the Department and Contractor.
(10) Contract Budget--An exhibit in the Contract which specifies in detail the Contract funds by budget category, which is used in the drawdown processes. The budget also includes all other funds involved that are necessary to complete the performance statement specifics of the Contract.
(11) Contractor--A Unit of General Local Government with which the Department has executed a Contract.
(12) Department--The Texas Department of Housing and Community Affairs.
(13) HUD--The United States Department of Housing and Urban Development.
(14) Implementation Manual--A set of guidelines designed to be an implementation tool for the Contractor and Colonia Self-Help Center Providers that have been awarded Community Development Block Grant Funds and allows the Contractor to search for terms, regulations, procedures, forms and attachments.
(15) Income Eligible Families (includes both Low and Very low-income families)--
(A) Low-income families--families whose annual incomes do not exceed 80% of the median income of the area as determined by HUD and published by the Department, with adjustments for family size; and
(B) Very low-income families--families whose annual incomes do not exceed 60% of the median family income for the area, as determined by HUD and published by the Department, with adjustments for family size.
(16) Needs assessment--A demographic and characteristics study of the colonias residing in the target area and the housing needs that the Colonia Self-Help Center is designed to address, using qualitative and quantitative information and other source documentation that is required as a part of a Proposal.
(17) Nonentitlement area--An area which is not a metropolitan city or part of an urban county as defined in 42 U.S.C. §5302.
(18) Nonprofit organization--A public or private organization that:
(A) Is organized under state or local laws;
(B) Has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual;
(C) Has a current tax exemption ruling from the Internal Revenue Service (IRS) under §501(c)(3), a charitable, nonprofit corporation, or §501(c)(4), a community or civic organization, of the Internal Revenue Code of 1986, as amended, as evidenced by a certificate from the IRS that is dated 1986 or later. The exemption ruling or classification as a subordinate of a central organization nonprofit under the Internal Revenue Code, as evidenced by a current group exemption letter, that is dated 1986 or later, from the IRS, must be effective throughout the length of the Contract.
(19) ORCA--The Office of Rural Community Affairs.
(20) Performance Statement--An Exhibit in the Contract which specifies in detail the scope of work to be performed.
(21) Proposal--A written request for Colonia Self-Help funds in the format required by the Department.
(22) Self-Help--Housing programs which allow low and very low income families to build or rehabilitate their homes through their own labor or volunteers.
(23) Unit of General Local Government (UGLG)--A city, town, county, or other general purpose political subdivision of the state; a consortium of such subdivisions recognized by HUD in accordance with 24 CFR §92.101 and any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the jurisdiction. A county is considered a unit of general local government under the Colonia Self-Help Center Program.
§3.3.Colonia Self-Help Centers Establishment.
(a) Pursuant to §2306.582 of the Texas Government Code, the Department has established Colonia Self-Help Centers in El Paso, Hidalgo, Starr, Webb, Cameron (also serves Willacy), Maverick and Val Verde Counties.
(b) The Department shall designate:
(1) appropriate staff in the Department to act as liaison to the Colonia Self-Help Centers to assist the centers in obtaining funding to enable the centers to carry out the center's programs;
(2) five (5) colonias in each service area to receive concentrated attention from the Colonia Self-Help Centers in consultation with the Colonia Resident Advisory Committee and the appropriate unit of local government; and
(3) a geographic area for the services provided by each Colonia Self-Help Center.
(c) The Department shall make a reasonable effort to secure:
(1) contributions, services, facilities, or operating support from the county commissioner's court of the county in which a Colonia Self-Help Centers is located which it serves to support the operation of that Colonia Self-Help Center; and
(2) an adequate level of funding to provide each Colonia Self-Help Center with funds for low interest mortgage financing, grants for self-help programs, revolving loan fund for septic tanks, a tool lending program, and other activities the Department determines are necessary.
(d) The El Paso Colonia Self-Help Center shall establish a technology center to provide internet access to colonia residents pursuant to the General Appropriations Act.
§3.4.Allocation and the Colonia Self Help Center Proposal Requirements.
(a) The Department distributes Colonia Self-Help Center funds to Unit of General Local Governments (UGLG) from the 2.5% set-aside of the annual Community Development Block Grant (CDBG) allocation to the State of Texas.
(b) The Department shall allocate no more than $1.2 million per Colonia Self-Help Center award except as provided by §3.6(i)(2) of this chapter (relating to Colonia Self Help Center Contract Operation and Implementation). If there are insufficient funds available from any specific program year to fund a proposal fully, the awarded Contractor may accept the amount available at that time and wait for the remaining funds to be committed upon the Department's receipt of the CDBG set-aside allocation from the next program year.
(c) With a baseline award beginning at $700,000, the Department will add an additional $100,000 for each expenditure threshold, as defined in §3.8 of this chapter (relating to Expenditure Thresholds and Closeout Requirements) (6-month, 18-month, 30-month, and 42-month), met on the previous Self Help Center Contract, and an additional $100,000 for an accepted proposal submitted by the deadline. If a Contractor can demonstrate that any violation of an Expenditure Threshold was beyond the control of the Contractor, it may request of the Board that an individual violation be waived for the purpose of future funding. The Board, in its discretion and within the limits of federal and state law, may waive any one or more of the expenditure threshold requirements if the Board finds the waiver is appropriate to fulfill the purposes or policies, of the Texas Government Code, or for good cause, as determined by the Board.
(d) The Contractor shall submit its proposal no later than three (3) months before the expiration of its current Contract, or when 90% of the funds under the current Contract have been expended, which ever comes first. If this requirement is not met, the Department will apply the options outlined in subsection (c) of this section and may result in delayed funding.
(e) Proposal reviews are conducted on a first-come first-serve basis until all Self Help Center funds for the current program year and deobligated Self Help Center funds are committed. Each complete proposal will be assigned a "received date" based on the date and time it is received by the Department.
(f) In order to be accepted, each proposal must include the following:
(1) Evidence of the submission of the Contractor's current annual single audit;
(2) A comprehensive needs assessment not older than three (3) years, for each of the five (5) colonias identified to receive concentrated attention from that center;
(3) A description of the five colonias to be served. Information should present an accurate picture of the areas to be served to include the number of houses, the number of platted and unplatted lots, water and wastewater services, utilities, housing conditions and number of residents;
(4) A boundary map for each of the five colonias;
(5) A description of the scope of work. Based on the results obtained by the needs assessments, the Contractor shall develop a scope of work for each colonia based on the activities as listed in §3.1(c) of this chapter (relating to Purpose and Services). In order to provide these services, the Contractor may be required to leverage funds, coordinate with financial institutions, prepare grant applications and coordinate with their contracted partners;
(6) A description of the method of implementation. For each colonia to be served by the Colonia Self Help Center, the Contractor shall describe the services and activities to be delivered. The Proposal must identify:
(A) The percentage and scope of work that will be performed using self-help methodologies;
(B) The estimated percentage or services that will be contracted to the Colonia Self Help Center Provider; and
(C) The activities that the Contractor will be administering.
(7) Evidence that the contracted Colonia Self-Help Center provider selected by the Contractor has the capacity to administer and manage financial resources and provided documentation and auditable programmatic compliance, as evidenced by previous experience in any of the following:
(A) implementation of a CDBG contract;
(B) affordable housing, including new construction; and housing rehabilitation, reconstruction, small repair; and experience in homebuyer and down payment assistance programs;
(C) grantsmanship, project planning and development in housing and infrastructure, and project management;
(D) home ownership counseling, home loan processing and coordinating with private financial institutions;
(E) property development, including experience in processes related to surveying, platting, and recording of property records;
(F) self-help programs related to housing or infrastructure, including operation of a tool library; and
(G) managing state/federally funded projects or projects funded under private foundations and not have major outstanding monitoring or audit issues.
(8) The proposed Performance Statement. The Contractor must include the number of colonia residents to be assisted from each colonia, the activities to be performed (including all sub-activities under each budget line item), and corresponding budget;
(9) The proposed Contract Budget must address the following:
(A) The Administration line item may not exceed 15% of the total budget;
(B) The Public Service line item may not exceed more than 15% of the total budget;
(C) The proposal must identify at least 15% of the budget that will be allocated for direct Self-Help activities;
(D) The amount of leveraged funding; and
(E) Direct Delivery Costs (soft costs) for all contractual activities cannot exceed 10% of each budget line item. Direct Delivery Costs (soft costs) are costs related to and identified with a specific housing unit or public service other than construction costs. Eligible direct delivery costs include:
(i) preparation of work write-ups, work specifications, and cost estimates;
(ii) architectural, engineering, or professional services required to prepare plans, drawings or specifications directly attributable to a particular housing unit or public service;
(iii) home inspections, inspections for lead-based paint, asbestos, termites, and interim inspections; and
(iv) other costs as approved by the Department's executive director.
(10) Proposed housing guidelines (includes small repair, rehabilitation, reconstruction, new construction and all other housing activities).
(11) Pre-agreement costs request, if applicable.
(12) Evidence of model subdivision rules adopted by the Contractor.
(13) Written policies and procedures for the following, as applicable:
(A) solid waste removal;
(B) construction skill classes;
(C) homeownership classes;
(D) technology access;
(E) homeownership assistance; and/or
(F) tool lending library. All Colonia Self Help Centers are required to operate a tool lending library.
(14) Authorized signatory form and accompanying UGLG resolution and direct deposit authorization.
(15) Unit of General Local Government resolution authorizing the submission of the proposal and appointing the primary signator for all Contract documents.
(16) Acquisition report (even if there is no acquisition activity).
(17) Certification of exemption for HUD funded projects.
(18) Initial disclosure report.
(g) Upon receipt of the Proposal, the Department will perform an initial review to determine whether the Proposal is complete and that each activity meets a national objective as required by §104(b)(3) of the Housing and Community Development Act of 1974 (42 U.S.C. §5304(b)(3)).
(h) The Department may reduce the funding amount requested in the proposal in accordance to subsection (c) of this section. Should this occur, the Department shall notify the appropriate Contractor within ten (10) working days before the proposal is submitted to C-RAC for review, comments and approval. The Department and the Contractor will work together to jointly agree on the performance measures and proposed funding amounts for each activity.
(i) If applicable, the Department shall coordinate with the Texas Water Development Board and ORCA to eliminate delay in water and wastewater hookups.
(j) The Department shall execute a four (4) year Contract with Contractor. No Contract extensions will be allowed. If the Contractor requirements are completed prior to the end of the four (4) year contract period, the Contractor may submit a new proposal.
(k) Decline to Fund. The Department may decline to fund any proposal if the activities do not, in the Department's sole determination, represent a prudent use of Colonia Self Help Center funds. The Department is not obligated to proceed with any action pertaining to any proposal which is received, and may decide it is in the Department's best interest to refrain from pursuing any selection process. The Department through it's executive director or its designee reserves the right to negotiate individual elements of any proposal.
§3.5.Colonia Residents Advisory Committee Duties and Awarding Contracts.
(a) The Board shall appoint not fewer than five persons who are residents of colonias to serve on the Colonia Residents Advisory Committee. The members of the Colonia Residents Advisory Committee shall be selected from lists of candidates submitted to the Department by local nonprofit organizations and the commissioner's court of a county in which a Colonia Self-Help Center is located.
(b) The Colonia Resident Advisory Committee members' terms will expire every four (4) years. Colonia Resident Advisory Committee members may be reappointed by the Board; however, the Board shall review and approve all members at least every four (4) years.
(c) The Board shall appoint one committee member to represent each of the counties in which a Colonia Self-Help Center is located. Each committee member:
(1) must be a resident of a colonia in the county the member represents; and
(2) may not be a board member, contractor, or employee of or have any ownership interest in an entity that is awarded a Contract under this chapter and cannot be in default on any Department obligation.
(3) The Department will conduct a compliance check on all members.
(d) The Department may also select to have an alternate member from the list for each county in the event that the primary member is unable to attend meetings.
(e) The Colonia Resident Advisory Committee shall advise the Board regarding:
(1) the housing needs of colonia residents;
(2) appropriate and effective programs that are proposed or are operated through the Colonia Self-Help Centers; and
(3) activities that might be undertaken through the Colonia Self-Help Centers to serve the needs of colonia residents better.
(f) The Colonia Resident Advisory Committee shall advise the colonia initiatives coordinator as provided by §775.005 of the Texas Government Code.
(g) Awarding Contracts:
(1) Upon reaching an agreement with the Contractor, the Department will set the date for the Colonia Resident Advisory Committee meeting. The Colonia Resident Advisory Committee shall meet before the 30th calendar day preceding the date on which a contract is scheduled to be awarded by the Board for the operation of a Colonia Self-Help Center and may meet at other times.
(2) The Contractor shall be present at the Colonia Resident Advisory Committee if its Proposal is being considered to answer questions that the Colonia Resident Advisory Committee may have.
(3) After the Colonia Resident Advisory Committee makes a recommendation on a proposal, the recommendation will undergo the Department's award process.
(4) The Contractor whose Proposal is being presented to the Board shall be invited to attend the Board Meeting in which the award is an agenda item.
(h) Reimbursement of Colonia Resident Advisory Committee members for their reasonable travel expenses in the manner provided by §3.6(l) of this chapter (relating to Colonia Self Help Center Contract Operation and Implementation) is allowable and shall be paid by the Contractor.
§3.6.Colonia Self Help Center Contract Operation and Implementation.
(a) The Department shall contract with a Unit of General Local Government (UGLG) for the operation of a Colonia Self-Help Center. The UGLG shall subcontract with a local nonprofit organization, local community action agency, or local housing authority that has demonstrated the ability to carry out all or part of the functions of a Colonia Self-Help Center.
(b) Upon award of Colonia Self-Help Center funds by the Board, the Department shall deliver a Contract based on the scope of work to be performed within thirty (30) days of the award date. Any activity funded under the Colonia Self Help Center Program will be governed by a written Contract that identifies the terms and conditions related to the awarded funds. The Contract will not be effective until executed by all parties to the Contract.
(c) Environmental. Contractors are required to complete their environmental reviews in accordance with 24 CFR Part 58 and receive the Authority to Use Grant Funds from the Department before:
(1) Any commitment of Community Development Block Grant (CDBG) funds (i.e., execution of a legally binding agreement and expenditure of CDBG funds) for activities other than those that are specifically exempt from environmental review.
(2) Any commitment of non-CDBG funds associated with the scope of work in the Contract that would have an adverse environmental impact (i.e. demolition, excavating, etc.) or limit the choice of alternatives (i.e. acquisition of real property, rehabilitation of buildings or structures, etc.).
(d) All housing rehabilitation, reconstruction, and new construction contractor/builders, including Self Help Center Provider(s) performing any housing activities, as defined by the Texas Residential Construction Commission, making improvements to or reconstructing an existing home at a cost exceeding $10,000 must be registered with the Texas Residential Construction Commission.
(e) All reconstruction and new construction activities must meet the accessibility requirements pursuant to §2306.514 of the Texas Government Code.
(f) Request for Payments. The Contractor shall submit a properly completed request for reimbursement, as specified by the Department, at a minimum on a quarterly basis; however the Department reserves the right to request more frequent reimbursement requests as it deems appropriate. The Department shall determine the reasonableness of each amount requested and shall not make disbursement of any such payment request until the Department has reviewed and approved such request. Payments under the Contract are contingent upon the Contractor's full and satisfactory performance of its obligations under the Contract.
(1) $2,500 is the minimum amount for a draw to be processed. Exceptions to this rule are as follows:
(A) The draw request exceeds 25% of a budgeted line item but less than $2,500 and the Contractor is requesting funds only for that line item.
(B) The draw request is for the final retainage of a construction contract.
(C) The Contractor received prior approval from the Department.
(D) The request is the final draw.
(2) Draw requests will be reviewed to comply with all applicable laws, rules and regulations. The Contractor is responsible for maintaining a complete record of all costs incurred in carrying out the activities of the Contract.
(3) Draw requests for all housing activities will only be reimbursed upon satisfactory completion of types of activities (i.e., all plumbing completed, entire roof is completed, etc.), consistent with the work write-up and subsequent construction contract.
(4) The Contractor will be the principal contact responsible for reporting to the Department and submitting draw requests.
(g) Reporting. The Contractor shall submit to the Department reports on the operation and performance of the Contract on forms as prescribed by the Department. Quarterly Reports shall be due no later than the twentieth (20th) calendar day of the month after the end of each calendar quarter. The Contractor shall maintain and submit to the Department up-to-date accomplishments in quarterly reports identifying quantity and cumulative data including the expended funds, activities completed and total number of Beneficiaries.
(h) Inspections. At a minimum, inspections will be required for all housing rehabilitation (initial and final), small home repair (initial only), reconstruction (initial and final) and new construction (final only) activities and must be inspected by a professional inspector licensed by the Texas Real Estate Commission, a professional engineer licensed by the Texas Board of Engineering, an architect registered with the Texas Board of Architectural Examiners, or a third-party inspector registered with the Texas Residential Construction Commission to perform home inspections.
(1) The final inspections for housing rehabilitation must ensure that the construction on the house is complete, that the home is safe and that it meets at a minimum, Colonia Housing Standards. A copy of the final inspection report must be given to the homeowner.
(2) The final inspections for reconstruction and new construction must ensure that the construction on the home is complete, that the home is safe, and that it meets, at a minimum, International Residential Code (IRC). IRC is a comprehensive residential code which establishes minimum construction requirements with plumbing, mechanical, energy, and electrical provisions. A copy of the final inspection report must be given to the homeowner.
(3) The initial inspections for small home repair will identify and prioritize areas in need of repair. Only the area being repaired under the small home repair activity must meet, at a minimum, Colonia Housing Standards. A copy of the initial inspection report must be given to the homeowner.
(4) Homes receiving only first-time water connections are not required to meet Colonia Housing Standards or have a third-party inspection.
(5) The Department will only reimburse for two inspection reports for housing rehabilitation and reconstruction, and one inspection report for new construction and small home repair.
(6) The Contractor must ensure and verify that each construction contractor performing activities in the amount of $10,000 or more under the Contract is registered and maintains good standing with the Texas Residential Construction Commission.
(7) The Contractor must ensure and verify that each housing unit being rehabilitated in the amount of $10,000 or more under the Contract is registered with the Texas Residential Construction Commission.
(i) Amendments. Any alterations, additions, or deletions to the terms of the Contract shall be submitted in writing to the Department. Reduced Beneficiaries or activities, due to extenuating or unforeseeable circumstances, may be allowed as approved by the Department. The Department's executive director or its designee, may authorize, execute, and deliver amendments to any Contract:
(1) Contract Time Extensions beyond the four (4) year contract period will not be allowed for Self-Help Center contracts.
(2) The Department, at its discretion and in coordination with a Contractor, may increase a contract budget amount and the number of activities and beneficiaries based on the availability of Self Help Center funds, the exemplary performance in the implementation of a Contractor's current contract, and the time available in the four (4) year contract period. Upon Board approval, the cap on the maximum contract amount may be exceeded if the terms of this paragraph are met by a Contractor.
(j) If the Contractor fails to meet a Contract requirement the awarded funds related to the lack of performance may be entirely or partially deobligated at the Department's sole discretion.
(k) Waiver. The Board, in its discretion and within the limits of federal and state law, may waive any one or more of the requirements of this chapter if the Board finds that waiver is appropriate to fulfill the purposes or policies, Chapter 2306 of the Texas Government Code, or for good cause, as determined by the Board.
(l) Travel. Costs incurred by Colonia Self Help Center employees and officers for travel, including costs of lodging, other subsistence, and incidental expenses, shall be considered reasonable and allowable only to the extent such costs do no exceed charges normally allowed by the State Comptroller's Travel Allowance Guide.
§3.7.Administrative Thresholds.
Administrative draw request. Administrative draw requests are funded out of the portion of the Contract Budget specified for administrative cost (Administration Line Item of the Contract Budget.) These costs are not directly associated with an activity. The administration line item will be disbursed as follows:
(1) Threshold 1. The initial administrative draw request allows up to 10% of the administration line item to be drawn down prior to the start of any project activity included in the Performance Statement of the Contract (provided that all pre-draw requirements, as described in the Contract, for administration have been met). Subsequent administrative funds will be reimbursed in proportion to the percentage of the work that has been completed as identified in paragraphs (2) - (8) of this section.
(2) Threshold 2. Allows up to an additional 15% (25% of the total) of the administration line item to be drawn down after a start of project activity has been demonstrated. For the purposes of this threshold, if Davis-Bacon labor standards are required for a given program activity, "start of project activity" is evidenced by the submission of a start of construction form. If labor standards are not required on a given project activity that has commenced (and for which reimbursement is being sought), the submission of a drawdown request that includes sufficient back-up documentation for expenses of non-administrative project activities evidences a start of project activity. Direct delivery/soft costs charges will not constitute a start of project activity.
(3) Threshold 3. Allows up to an additional 25% (50% of the total) of the administration line item to be drawn down after compliance with the eighteen (18) month threshold requirement has been demonstrated as described in §3.8 of this chapter (relating to Expenditure Thresholds and Closeout Requirements).
(4) Threshold 4. Allows up to an additional 25% (75% of the total) of the administration line item to be drawn down after compliance with the thirty (30) month threshold requirement has been demonstrated as described in §3.8 of this chapter.
(5) Threshold 5. Allows up to an additional 15% (90% of the total) of the administration line item to be drawn down after compliance with the forty-two (42) month threshold requirement has been demonstrated as described in §3.8 of this chapter.
(6) Threshold 6. Allows an additional 5% (95% of the total) of the administration line item to be drawn down upon receipt of all required close-out documentation.
(7) Threshold 7. Allows the final 5% (100% of the total), less any administrative funds reserved for audit costs as noted on the Project Completion Report of the administration line item to be drawn down following receipt of the programmatic close-out letter issued by the Department.
(8) Threshold 8. Any funds reserved for audit costs will be released upon completion and submission of an acceptable audit. Only the portion of audit expenses reasonably attributable to the Contract are eligible.
§3.8.Expenditure Thresholds and Closeout Requirements.
(a) Contractors must meet the following expenditure threshold requirements:
(1) Six-Month Threshold. An Environmental Assessment that meets the requirements outlined in the environmental clearance requirements of the Contract must be submitted to the Department within six (6) months from the start date of the Contract;
(2) Eighteen-Month Threshold. To meet this requirement the Contractor must have expended and submitted for reimbursement to the Department at least 30% of the total Colonia Self Help Center funds awarded within eighteen (18) months from the start date of the Contract;
(3) Thirty-Month Threshold. To meet this requirement the Contractor must have expended and submitted for reimbursement to the Department at least 60% of the total Colonia Self-Help Center funds awarded within thirty (30) months from the start date of the Contract; and
(4) Forty-two-Month Threshold. To meet this requirement the Contractor must have expended and submitted for reimbursement to the Department at least 90% of the total Colonia Self-Help Center funds awarded within forty-two (42) months from the start date of the Contract.
(b) For purposes of meeting a threshold, "expended and submitted" means that a draw request was received by the Department, is complete, and all costs needed to meet a threshold are adequately supported. The Department will not be liable for a threshold violation if a draw request is not received by the threshold date.
(c) The final draw request and complete closeout documents must be submitted no later than sixty (60) days after the Contract end date. If closeout documents are late, the remaining Contract balance may be subject to deobligation as the Department's liability for such costs will have expired. If a Contractor has reserved funds in the project completion report for a final draw request, the Contractor has ninety (90) days after the Contract end date to submit the final draw request, with the exception of audit costs which may be reimbursed upon submission of the final single audit.
(d) If these thresholds are not met, the Department will apply its Administration Rules, Title 10, Part 1, Chapter 1, Texas Administrative Code.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on May 22, 2009.
TRD-200902012
Michael Gerber
Executive Director
Texas Department of Housing and Community Affairs
Earliest possible date of adoption: July 5, 2009
For further information, please call: (512) 475-3916
SUBCHAPTER A. GENERAL PROVISIONS
The Texas Department of Housing and Community Affairs (Department) proposes amendments to 10 TAC Chapter 5, Subchapter A, §5.3 and §5.20. The proposed amendments make changes to the existing rules in response to grant guidance for implementing the American Recovery and Reinvestment Act (ARRA), the Department held four public input sessions and a public hearing in order to draft a recommendation for the Board. During the input sessions and the public hearing, staff was asked to increase the eligibility criteria for the Community Services Block Grant (CSBG) Program, the Comprehensive Energy Assistance Program (CEAP), and the Weatherization Assistance Program (WAP). The amendments to the rule increase the eligibility of all three programs from 125% to 200% of Federal poverty level which allows assistance to a broader applicant pool.
Mr. Michael Gerber, Executive Director, has determined that for the first five-year period the amended sections are in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the amended section as proposed.
Mr. Gerber has also determined that for each year of the first five-years the amended sections are in effect the public benefit anticipated as a result of enforcing the amended section will be an increase in the eligible clients to be served by the programs. There will be no effect on small businesses or persons. There is no anticipated economic cost to persons who are required to comply with the amended sections as proposed.
The public comment period will be held June 5, 2009 to July 8, 2009 to receive input on these amendments. Written comments may be submitted to Texas Department of Housing and Community Affairs, 2009 Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, by e-mail to the following address: tdhcarulecomments@tdhca.state.tx.us, or by fax to (512) 469.9606. ALL COMMENTS MUST BE RECEIVED BY July 8, 2009.
The amended sections are proposed pursuant to the authority of the Texas Government Code, Chapter 2306, which provide the Department the authority to adopt rules governing the administration of the Department and its programs.
No other code, article or statute is affected by the amended sections.
§5.3.Definitions.
(a) (No change.)
(b) The following words and terms in this chapter shall have the following meaning unless the context clearly indicates otherwise.
(1) - (31) (No change.)
(32) Low Income--Income in relation to family size which:
(A) For CEAP, WAP, and CSBG is at or below 200% [125%
] of the Federal Income guidelines;
(B) - (D) (No change.)
(33) - (69) (No change.)
§5.20.Determining Income Eligibility.
(a) (No change.)
(b) The subrecipients shall establish the client eligibility
level at or below 200% [125%] of the federal
poverty level in effect at the time the client makes an application
for services.
(c) - (d) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on May 22, 2009.
TRD-200902008
Michael Gerber
Executive Director
Texas Department of Housing and Community Affairs
Earliest possible date of adoption: July 5, 2009
For further information, please call: (512) 475-3916
The Texas Department of Housing and Community Affairs (Department) proposes amendments to 10 TAC Chapter 5, Subchapter B, §5.203. The proposed amendment makes a change to the existing rules in response to grant guidance for implementing the American Recovery and Reinvestment Act (ARRA), the Department held four public input sessions and a public hearing in order to draft a recommendation for the Board. During the input sessions and the public hearing, staff was asked to increase the eligibility criteria for the Community Services Block Grant (CSBG) Program, the Comprehensive Energy Assistance Program (CEAP), and the Weatherization Assistance Program (WAP). The amendment to the rule increases the eligibility of all three programs from 125% to 200% of Federal poverty level which allows assistance to a broader applicant pool.
Mr. Michael Gerber, Executive Director, has determined that for the first five-year period the amended section is in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the amended section as proposed.
Mr. Gerber has also determined that for each year of the first five-years the amended section is in effect the public benefit anticipated as a result of enforcing the amended section will be an increase in the eligible clients to be served by the programs. There will be no effect on small businesses or persons. There is no anticipated economic cost to persons who are required to comply with the amended section as proposed.
The public comment period will be held June 5, 2009 to July 8, 2009 to receive input on this amendment. Written comments may be submitted to Texas Department of Housing and Community Affairs, 2009 Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, by e-mail to the following address: tdhcarulecomments@tdhca.state.tx.us, or by fax to (512) 469.9606. ALL COMMENTS MUST BE RECEIVED BY July 8, 2009.
The amended section is proposed pursuant to the authority of the Texas Government Code, Chapter 2306, which provide the Department the authority to adopt rules governing the administration of the Department and its programs.
No other code, article or statute is affected by the amended section.
§5.203.Distribution of CSBG Funds.
(a) The CSBG Act requires that no less than 90% of
the state's allocation be allocated to eligible entities. The Department
currently utilizes a multi-factor fund distribution formula to equitably
provide CSBG funds throughout the state's 254 counties to the CSBG
eligible entities. The formula incorporates the most current decennial
U.S. Census figures at or below 200% [125%]
of poverty; a $50,000 base; a $150,000 floor (the minimum funding
level); a 98% weighted factor for poverty population; and, a 2% weighted
factor for the inverse ratio of population density.
(1) - (4) (No change.)
(b) - (c) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on May 22, 2009.
TRD-200902009
Michael Gerber
Executive Director
Texas Department of Housing and Community Affairs
Earliest possible date of adoption: July 5, 2009
For further information, please call: (512) 475-3916
The Texas Department of Housing and Community Affairs (Department) proposes amendments to 10 TAC Chapter 5, Subchapter D, §5.407 and §5.422. The proposed amendments make changes to the existing rules in response to grant guidance for implementing the American Recovery and Reinvestment Act (ARRA), the Department held four public input sessions and a public hearing in order to draft a recommendation for the Board. During the input sessions and the public hearing, staff was asked to increase the eligibility criteria for the Community Services Block Grant (CSBG) Program, the Comprehensive Energy Assistance Program (CEAP), and the Weatherization Assistance Program (WAP). The amendments to the rule increase the eligibility of all three programs from 125% to 200% of Federal poverty level which allows assistance to a broader applicant pool.
Mr. Michael Gerber, Executive Director, has determined that for the first five-year period the amended sections are in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the amended section as proposed.
Mr. Gerber has also determined that for each year of the first five-years the amended sections are in effect the public benefit anticipated as a result of enforcing the amended sections will be an increase in the eligible clients to be served by the programs. There will be no effect on small businesses or persons. There is no anticipated economic cost to persons who are required to comply with the amended sections as proposed.
The public comment period will be held June 5, 2009 to July 8, 2009 to receive input on these amendments. Written comments may be submitted to Texas Department of Housing and Community Affairs, 2009 Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, by e-mail to the following address: tdhcarulecomments@tdhca.state.tx.us, or by fax to (512) 469.9606. ALL COMMENTS MUST BE RECEIVED BY July 8, 2009.
The amended sections are proposed pursuant to the authority of the Texas Government Code, Chapter 2306, which provide the Department the authority to adopt rules governing the administration of the Department and its programs.
No other code, article or statute is affected by the amended sections.
§5.407.Subrecipient Requirements for Establishing Priority for Eligible Households and Client Eligibility Criteria.
(a) The subrecipients shall set the client income eligibility
level at or below 200% [125%] of the federal
poverty level in effect at the time the client makes an application
for services.
(b) - (j) (No change.)
§5.422.General Assistance and Benefit Levels.
(a) (No change.)
(b) CEAP provides assistance to targeted beneficiaries
being households with low incomes at or below 200% [125%]
of the Federal Poverty Level, with priority given to the elderly,
persons with disabilities, families with young children; households
with the highest energy costs or needs in relation to income, and
households with high energy consumption.
(c) (No change.)
(d) Sliding scale benefit for all CEAP components:
(1) (No change.)
(2) Energy assistance benefit determinations will use the following sliding scale (Except Heating and Cooling System Replacement, Repair and/or Retrofit Component):
(A) - (B) (No change.)
(C) Households with Incomes of 76% to at or below 200% [125%
] of Federal Poverty Guidelines may receive
an amount needed to address their energy payment shortfall not to exceed $1,000.
(D) (No change.)
(e) - (h) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on May 22, 2009.
TRD-200902010
Michael Gerber
Executive Director
Texas Department of Housing and Community Affairs
Earliest possible date of adoption: July 5, 2009
For further information, please call: (512) 475-3916