TITLE community-development

Part I. Texas Department of Housing and Community Affairs

Chapter 5. Community Services Program

The Texas Department of Housing and Community Affairs (TDHCA) proposes amendments to the following Sections of Chapter 5 issued under the Texas Government Code, Chapter 2306, concerning the Community Services Block Grant Program (CSBG) and the Emergency Nutrition Temporary Emergency Relief Program (ENTERP): §§5.1; 5.101-5.106; 5.108-5.114; 5.116-5.121. The amendments are being proposed to change the references to the State Agency currently administering the program and to establish the standards and procedures by which TDHCA will administer CSBG and ENTERP as well as comply with Section 167, Article IX, of the General Appropriations Act.

Sam Guzman, Director of the Administration and Community Affairs Division of TDHCA, has determined that for the period that the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Guzman also has determined that for the period that the sections are in effect, the public benefit as a result of enforcing the sections will be the equitable allocation ENTERP funds to eligible units of general local government and eligible private, nonprofit organizations in Texas. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Comments on the proposal may be submitted to Anne Paddock (apaddock@tdhca.state.tx.us), Deputy General Counsel, Texas Department of Housing and Community Affairs, 507 Sabine, P.O. Box 13941, Austin, Texas 78711-3941.

Subchapter A. Community Services Block Grant

10 TAC §5.1

The amendment is proposed under Texas Government Code, Chapter 2306, and Section 167, Article IX, of the General Appropriations Act.

Texas Administrative Code, is affected by the proposed amendments.

§5.1.Assurances for the Community Services Block Grant Program

(a)

Purpose. This Section establishes a variation from the standard assurances of the Uniform Grant Management Standards (UGMS) [ Uniform Grant and Contract Management Standards (UGCMS) ] adopted by the Office of the Governor in 1 TAC §§5.141 et seq.

(b)

(No change.)

(c)

Variations. Each recipient of CSBG funds assures and certifies that it will comply with the standard assurances of UGMS [ UGCMS ] and the following nonstandard assurances.

(1)

In the case of community action agency or non profit private organization, the recipient's board of directors will be constituted so as to assure that one-third of the directors are elected public officials, currently holding office, or their designated representatives, at least one-third of the directors are persons chosen in accordance with democratic selections procedures adequate to assure that they are representative of the poor in the area served; and the remainder of the directors are officials or members of business, industry, labor, religious, welfare, education, or other major groups and interests in the community. Additional guidance on this requirement is contained in CSBG Policy Issuance 95-2.2 [ 90-2.1 ] which is adopted herein by reference. A copy of the issuance may be obtained from the Community Services [ Planning and Support ]Section, Texas Department of Housing and Community Affairs, P. O. Box 13941 [ 13166 ], Austin, Texas 78711-3941 [ 78711-3166 ]

[ (2)

For purposes of 5 United States Code, Chapter 15 (the Hatch Act), any nonprofit private organization receiving CSBG funds which has responsibility for planning, developing, and coordinating community antipoverty programs shall be deemed to be a state or local agency. For purposes of clauses (1) and (2) of 5 United States Code §1502(a), any nonprofit private organization receiving assistance under the CSBG program shall be deemed to be a state or local agency. Additional guidance on this requirement is contained in CSBG Issuance 90-8.1 which is adopted herein by reference. A copy of the issuance may be obtained from the Community Services Planning and Support Section, Texas Department of Community Affairs, P. O. Box 13166, Austin, Texas 78711-3166]

(2)

[ (3) ] Recipients may not engage in any activities to provide voters and prospective voter with transportation to the polls or provide similar assistance in connection with an election or any voter registration activity. Private non-profit Community Action Agencies may be designated as non-governmental voter registration sites, pursuant to §7(a)(3)(B)(ii) of the National Voter Registration Act. For more information, see CSBG Policy Issuance #96-11.4.

(3)

[ (4) ] Recipients may not use any CSBG funds for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than low-cost residential weatherization or other energy-related home repairs) of any building or other facility unless a waiver is granted pursuant to 42 United States Code §9909(b).

(d)

Authority. These variations from the standard assurances of UGMS [ UGCMS ] are required by provisions of Chapter 106 of Title 42, United States 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 March 22, 1999.

TRD-9901686

Daisy A. Stiner

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: May 2, 1999

For further information, please call: (512) 475-3726


Subchapter B. Emergency Nutrition Temporary Emergency Relief Program

10 TAC §§5.101-5.106, 5.108-5.114, 5.116-5.121

The amendments are proposed under Texas Government Code, Chapter 2306, and section 167, Article IX, of the General Appropriations Act.

Texas Administrative Code, is affected by the proposed amendments.

§5.101. Program Overview.

(a)

The Emergency Nutrition and Temporary Emergency Relief Program (ENTERP) is a cooperative effort between the Texas Department of Housing and Community Affairs (TDHCA) [ DHS ] and county commissioners courts, other political subdivisions, or private nonprofit organizations to provide relief to needy persons.

(b)

TDHCA [ DHS ] approves only one program for each county. A single allocation to a county may not [ exceed $100,000 nor ] be less than $1,000. Contractors may be required to [ must ] provide local matching funds that amount to 100% [ 50% ] of the contract total.

§5.102.Demonstration of Need.

TDHCA [ DHS ] allocates funds to counties based on the following evidence of their demonstrated needs:

(1)-(3)

(No change.)

§5.103. Contractor Eligibility.

TDHCA [ DHS ] gives each county an opportunity to apply for funds to operate this program in its county. If a county declines to provide services, TDHCA [ DHS ] may accept applications from political subdivisions or private nonprofit organizations. If a county submits an application that does not comply with TDHCA [ DHS ] requirements or fails to respond within 30 days of receiving a request for application, TDHCA [ DHS ] treats the county as if it declined. TDHCA [ DHS ] selects another contractor and informs the county of the choice.

§5.104. Scope of Services.

The contractor determines which of the following services are needed and will be delivered:

(1)-(7)

(No change.)

(8)

other services that are integral but subordinate to the contractor's plan as approved by TDHCA [ DHS ], including medical and transportation services.

§5.105. Application Requirements.

To participate in the program, the contractor must submit a completed application on a form provided by TDHCA [ DHS ]. In the application, the contractor must include:

(1)

minimum personnel practices prescribed by TDHCA [ DHS ];

(2)-(5)

(No change.)

§5.106. Plan of Service.

(a)

In the application, the contractor submits to TDHCA [ DHS ] a plan for providing emergency relief services. This plan includes:

(1)-(3)

(No change)

(4)

a description of how the contractor [ he ] will:

(A)-(D)

(No change.)

(b)

The contractor may revise eligibility criteria for prospective clients. Before implementing the revised criteria, the contractor [ he ] must:

(1)

allow adequate notice and opportunity for public comment; and

(2)

notify the TDHCA [ DHS ] contract manager to obtain TDHCA [ DHS ] approval of the revised criteria.

§5.108. Public Notice and Comment.

The contractor must allow adequate notice and opportunity for public comment. The contractor [ He ] must notify the public before establishing eligibility criteria and the scope, frequency, and duration of benefits the contractor [ he ] proposes to provide under the program. Public comment includes comments from public organizations, private nonprofit organizations, voluntary associations, representatives of low-income people, and other groups that assist the needy.

§5.109. Contractor Requirements for Establishing Client Eligibility.

(a)

The contractor must establish the client eligibility level at no less than 75% of the federal poverty level in effect at the time the plan is submitted to TDHCA [ DHS ]. The eligibility criteria and operating procedures must include:

(1)

client requirements - maximum income levels[ , ] based on family size, at which clients are eligible; need, family assets, residency; procedure to request services; and documentation that a prospective client must give the contractor;

(2)-(3)

(No change.)

(b)

The contractor may revise eligibility criteria for prospective clients. Before implementing the revised criteria, the contractor [ he ] must:

(1)

(No change.)

(2)

notify the TDHCA [ DHS ] contract manager to obtain TDHCA [ DHS ] approval of the revised criteria.

§5.110. Contract Changes.

Any change in terms of the ENTERP contract required by a change in state or federal law or regulation is automatically incorporated and effective on the date designated by such law or regulation. Any change in terms of the ENTERP contract shall be made by an amendment in writing and signed by all parties to the contract. [ Amendments are processed in the same manner as the original contract. ]

§5.111. Contractor Reporting Requirements.

The Monthly Funding/Financial/Performance Report (MFFPR) (TDHCA Forms #129A and #129B) serve as a monthly expenditure report, a request for advance or reimbursement, and a performance report. Contractors providing ENTERP assistance in two or more counties must use additional pages (TDHCA Forms #129-A/2 and #129-B/2). MFFPRs are due to TDHCA no later than the 20th day of the month following the month of actual expenditures reported. A final MFFPR is due to the Department within (60) days after the end of the contract period. For more information see ENTERP Policy Issuance #96-4.3. [ DHS may deny payments or terminate a contract if the contract does not submit departmental reports in the time frames required by DHS. ]

§5.112. Payment

(a)

TDHCA [ DHS ] pays contractors on a grant basis. TDHCA [ DHS ] pays the contractor after the effective date of the contract and may pay the contractor before expenses are incurred under the contract.

(b)

TDHCA [ DHS ] determines the procedures and forms that contractors use to request payment. Contractors must submit all payment requests to TDHCA [ the DHS contract manager ].

(c)

The contractor must maintain accounting and service delivery records to substantiate the expenditure of state funds and required local matching funds and delivery of allowable services to eligible clients. The contractor must maintain separate records for each county the contractor serves. The contractor must make these records available to TDHCA [ DHS ] or its representatives, at reasonable times, for inspection, monitoring, auditing, or evaluation purposes.

(d)

The contractor must submit monthly [ quarterly ] reports, in a format prescribed by TDHCA [ DHS ], on services delivered and expenses incurred under the contract. This report must be received by TDHCA on the 20th of the month following the month on which contractor is reporting, even if no activity occurred during the report month. [ The contractor must submit quarterly reports to the DHS contract manager within 45 days following the end of the quarter. The quarterly reporting periods are: ]

[(1)

September-November ]

[(2)

December-February ]

[(3)

March-May ]

[(4)

June-August.]

(e)

TDHCA [ DHS ], at its option, may deny, suspend, or reduce payment to a contractor who fails to maintain acceptable accounting and service delivery records for current or prior contract periods or who fails to submit acceptable expenditure and service delivery reports for current or prior contract periods. [ The contractor may appeal the DHS decision. ]

(f)

The contractor must return unspent or unmatched state funds to TDHCA [ DHS ] within 30 days of being notified by TDHCA [ DHS ].

§5.113.Records.

(a)

Contractor shall maintain fiscal records and supporting documentation for all ENTERP expenditures in accordance with the Uniform Grant Management Standards, Common Rule, §42.

(b)

All information collected, assembled or maintained by the contractor shall be made available to the public during normal business hours in compliance with the Texas Open Records Act, TEX. GOV'T CODE ANN. Chapter 552.

(c)

Contractor shall give the Department, or its duly authorized representatives, access to and the right to examine and copy, on or off of the premises of contractor, all records pertaining to this contract. Contractor agrees to maintain such records in an accessible location and to include the requirements of this subsection in all subcontracts. [ The contractor must keep all records pertaining to the contract for three years and 90 days after the end of the contract year that he provided services. If an audit is begun during this time, the contractor must keep the records until the audit is completed and any audit exceptions are resolved. The contractor's accounting system must comply with accepted accounting principles established by the American Institute of Certified Public Accountants. ]

§5.114. Audit.

The contractor shall arrange for the performance of an annual financial and compliance audit of ENTERP funds as specified by TDHCA. The contractor must make program information available to TDHCA [ DHS ] at the time and place requested by TDHCA [ DHS ].

§5.116. Contract Termination and Expiration.

(a)

TDHCA [ DHS ] may terminate a contract before the expiration date if:

(1)

TDHCA [ DHS ] and the contractor mutually agree to terminate the contract;

(2)

either TDHCA [ DHS ] or the contractor gives the other party 30 days written notice that the contractor [ he ] intends to terminate the contract;

(3)

(No change.)

(4)

the contractor ceases to operate the program without TDHCA's [ DHS' ] approval; or

(5)

(No change.)

(b)

TDHCA [ DHS ] sends the contractor a written notice when a contract is terminated. The contractor [ He ] has the right to appeal this action within 15 days of receiving the notice.

§5.117. Oil Overcharge Funding Program Overview.

TDHCA [ DHS ] administers the oil overcharge funding according to Emergency Nutrition and Temporary Emergency Relief Program (ENTERP) [ (EN/TERP) ] rules and procedures except when in conflict with oil overcharge funding legislation.

§5.118.Oil Overcharge Funding Scope of Services.

(a)

Contractors under the Oil Overcharge Program must provide money for payment to vendors of energy utility services to prevent the interruption or termination of energy services or to restore that service to low-income persons.

(b)

Oil Overcharge funding must be spent only for energy utility services, defined as payment by voucher for electricity service; natural gas, butane, propane, kerosene, and other heating petroleum products; cord wood and coal; and purchases[ and repair ] of essential [ heating and ] cooling appliances[ ; and blankets or coats for warmth ].

(c)-(d)

(No change.)

§5.119.Oil Overcharge Funding Budget.

(a)

A local unit of government or nonprofit organization receiving funding from the Oil Overcharge Program may be required to [ must ] match the funds with an equal amount of money from other local sources. The contractor must not use funds received from the following sources for local match:

(1)

Oil Overcharge Restitutionary Act;

(2)

funds used to match the regular ENTERP [ EN/TERP ] allocation . [ ; or ]

[ (3)

other state funds.]

[ (b)

Contractors must not use money from federal sources to provide any portion of local matching money unless, after application by the local unit of government or nonprofit organization, the Office of the Governor specifically approves the use.]

(b) [ (c) ]

Contractors may use local government and nonprofit organization funds for the match.

§5.120.Oil Overcharge Contractor Requirements for Establishing Client Eligibility.

Contractors [ must give priority for assistance to persons who have recently become unemployed and who do not qualify for other income assistance programs ] shall use the same criteria included in § 5.109.

§5.121.Oil Overcharge Funding Payment and Reports.

(a)

TDHCA [ DHS ] makes oil overcharge payments to contractors only on a cost reimbursement basis.

(b)

(No change.)

(1)

This report must be submitted to the TDHCA [ DHS ] contract manager by the 20th [ 15th ] day following the last day of the month in which service is provided.

(2)

This report must be submitted each month whether or not payment is requested[ because of DHS reporting, accounting, and tracking requirements ].

(3)

If the required billing and statistical documentation have not been received by the 30th day following the last day of the month in which service is provided, TDHCA [ DHS ] considers this a failure to comply with contract.

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 March 22, 1999.

TRD-9901687

Daisy A. Stiner

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: May 2, 1999

For further information, please call: (512) 475-3726


10 TAC §5.115

(Editor's note: The text of the following section proposed for repeal will not be published. The section 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.)

The Texas Department of Housing and Community Affairs (TDHCA) proposes the repeal of §5.115, concerning Audit Resolution. The section is proposed to be repealed in order to remove unnecessary rules, which apply to a predecessor agency as well as to comply with Section 167, Article IX, of the General Appropriations Act.

Daisy A. Stiner, Executive Director, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Ms. Stiner, Executive Director, has determined that for the first five-year period the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be to permit the adoption of new rules for the Department. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed.

Comments on the proposal may be submitted to Ms. Anne Paddock, Deputy General Counsel, Texas Department of Housing and Community Affairs, P.O. Box 13941, Austin, Texas 78711-3941 or by fax 512/475-3978 within 30 days of this notice.

The repeal is proposed pursuant to the authority of the Texas Government Code, Chapter 2306; and Section 167, Article IX, of the General Appropriations Act.

The Texas Administrative Code is affected by this repeal.

§ 5.115. Audit Resolution.

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 March 22, 1999.

TRD-9901688

Daisy A. Stiner

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: May 2, 1999

For further information, please call: (512) 475-3726