Young v. Martinez
contracts, disaster recovery initiative
contracts, and small towns environment program fund contracts) with a contract
period of 36 months and that has been in effect for at least 36 months prior
to the current program year application deadline, and submit to the Office
a certificate of completion required by the most recent edition of the TCDP
Project Implementation Manual which documents the expenditure of all contract
funds with the exception of any contract funds reserved for audits and other
reserved funds that are pre-approved by TCDP staff. This paragraph does not
apply to disaster relief fund applicants.]
(o) - (q)
(No change.)
(r)
Withdrawal of award.
(1)
Should the applicant fail to substantiate or maintain the
claims and statements made in the application upon which the award is based
within a period ending 90 days after the date of the TCDP's award letter to
the applicant, the award will be immediately withdrawn by the TCDP (excluding
the colonia self-help center awards).
(2)
Should the applicant fail to execute the Office's award
contract (excluding Texas Capital Fund and colonia self-help center contracts)
within 60 days from the date of the letter transmitting the award contract
to the applicant, the award will be withdrawn by the Office.
(s)
Funds recaptured from withdrawn awards.
For an award that is withdrawn from an application, the Office follows different
procedures for the use of those recaptured funds depending on the fund category
where the award is withdrawn.
(1)
Funds recaptured under the community development fund from
the withdrawal of an award made from the first year of the biennial funding
are offered to the next highest ranked applicant from that region that was
not recommended to receive an award from the first year regional allocation.
Funds recaptured under the community development fund from the withdrawal
of an award made from the second year of the biennial funding are offered
to the next highest ranked applicant from that region that was not recommended
to receive full funding (the applicant recommended to receive marginal funding)
from the second year regional allocation. Any funds remaining from the second
year regional allocation after full funding is accepted by the second year
marginal applicant are offered to the next highest ranked applicant from the
region as long as the amount of funds still available exceeds the minimum
community development fund grant amount. Any funds remaining from the second
year regional allocation that are not accepted by an applicant from the region
or that are not offered to an applicant from the region are then subject to
the procedures described in §255.1(l) of this title (relating to General
Provisions).
(2)
Funds recaptured under the planning and capacity building
fund from the withdrawal of an award made from the first year of the biennial
funding are offered to the next highest ranked applicant from that statewide
competition that was not recommended to receive an award from the first year
allocation. Funds recaptured under the planning and capacity building fund
from the withdrawal of an award made from the second year of the biennial
funding are offered to the next highest ranked applicant from that statewide
competition that was not recommended to receive full funding (the applicant
recommended to receive marginal funding) from the second year allocation.
Any funds remaining from the second year allocation after full funding is
accepted by the second year marginal applicant are offered to the next highest
ranked applicant from the statewide competition. Any funds remaining from
the second year allocation that are not accepted by an applicant from the
statewide competition or that are not offered to an applicant from the statewide
competition are then subject to the procedures described in §255.1(l)
of this title (relating to General Provisions).
(3)
Funds recaptured under the housing rehabilitation fund
from the withdrawal of an award made from the first year of the biennial funding
are offered to the next highest ranked applicant from that statewide competition
that was not recommended to receive an award from the first year allocation.
Funds recaptured under the housing rehabilitation fund from the withdrawal
of an award made from the second year of the biennial funding are offered
to the next highest ranked applicant from that statewide competition that
was not recommended to receive full funding (the applicant recommended to
receive marginal funding) from the second year allocation. Any funds remaining
from the second year allocation after full funding is accepted by the second
year marginal applicant are offered to the next highest ranked applicant from
the statewide competition. Any funds remaining from the second year allocation
that are not accepted by an applicant from the statewide competition or that
are not offered to an applicant from the statewide competition are then subject
to the procedures described in §255.1(l) of this title (relating to General
Provisions).
(4)
Funds recaptured under the colonia construction fund from
the withdrawal of an award remain available to potential colonia program fund
applicants during that program year to meet the 10 percent colonia set-aside
requirement.
(5)
Funds recaptured under the colonia planning fund from the
withdrawal of an award remain available to potential colonia program fund
applicants during that program year to meet the 10 percent colonia set-aside
requirement.
(6)
Funds recaptured under the program year allocation for
the colonia economically distressed areas program fund from the withdrawal
of an award remain available to potential colonia economically distressed
areas program fund applicants during that program year. Any funds remaining
from the program year allocation that are not used to fund colonia economically
distressed areas program fund applications within twelve months after the
Office receives the federal letter of credit would remain available to potential
colonia program fund applicants during that program year to meet the 10 percent
colonia set-aside requirement.
(7)
Funds recaptured under the housing infrastructure fund
from the withdrawal of an award are subject to the procedures described in §255.1(l)
of this title (relating to General Provisions).
(8)
Funds recaptured under the program year allocation for
the disaster relief/urgent need fund from the withdrawal of an award are subject
to the procedures described in §255.1(l) of this title (relating to General
Provisions).
(9)
Funds recaptured under the small towns environment program
fund from the withdrawal of an award are subject to the procedures described
in §255.1(l) of this title (relating to General Provisions).
(10)
Funds recaptured under the microenterprise fund from the
withdrawal of an award are subject to the procedures described in §255.1(l)
of this title (relating to General Provisions).
(11)
Funds recaptured under the small business fund from the
withdrawal of an award are subject to the procedures described in §255.1(l)
of this title (relating to General Provisions).
(12)
Funds recaptured under the Texas Capital Fund from the
withdrawal of an award are subject to the procedures described in §255.1(l)
of this title (relating to General Provisions).
§255.5.Disaster Relief Fund.
(a)
General provisions. Assistance under this fund is available
to units of general local government for eligible activities under the Housing
and Community Development Act of 1974, Title I, as amended, for the alleviation
of a disaster situation. To receive assistance under this program category,
the situation to be addressed with TCDP funds must be both unanticipated and
beyond the control of the local government. For example, the collapse of a
municipal water distribution system due to lack of regular maintenance does
not qualify. If the same situation was caused by a tornado or flood, the community
could apply for disaster relief funds. An applicant may not apply for funding
to construct public facilities that did not exist prior to the occurrence
of the disaster.
Starting with the 2004 TCDP program year, TCDP disaster
relief funds will not be provided under the Federal Emergency Management Agency's
Hazard Mitigation Grant Program unless the Office receives satisfactory evidence
that any property to be purchased was not constructed or purchased by the
current owner after the property site location was officially mapped and included
in a designated flood plain area.
Additionally, in disaster relief situations,
the TCDP dollars are to be viewed as gap financing or funds of last resort.
In other words, the community may only apply to the Office for funding of
those activities for which
local funds are not available, i.e., the entity
has less than six months of reserve funds available in its balance as evidenced
by the last available audit as required by state statute, or
assistance
from other sources is not available. Assistance under the disaster relief
fund is provided only if one of the following has occurred:
(1)
The governor has requested a presidential declaration of
a major disaster; or
(2)
The governor has declared a state of disaster or emergency.
(b)
Funding cycle. Funds for disaster relief projects will
be awarded throughout the program year in response to disaster situations.
The application for assistance must be submitted no later than 12 months from
the date of the presidential declaration of a major disaster or governor's
declaration of a state of disaster or emergency.
(c)
Selection procedures. As soon as an area qualifies for
disaster relief assistance, the Office works with the local government, the
governor's office, and the Emergency Management Division of the Texas Department
of Public Safety to determine where TCDP funds can best be utilized. The Office
then works with the unit of local government selected for funding to negotiate
a contract. A unit of general local government cannot receive a disaster relief
grant and an urgent need grant to address problems caused by the same natural
disaster situation. In no instance will a unit of general local government
receive more than one disaster relief grant to address a single occurrence
of a natural disaster.
(d) - (h)
(No change.)
§255.6.Urgent Need Fund.
(a)
General provisions.
Urgent need assistance is contingent
upon the availability of funds for activities that will restore water or sewer
infrastructure whose sudden failure has resulted in either death, illness,
injury, or pose an imminent threat to life or health within the affected applicant's
jurisdiction. The infrastructure failure must not be the result of a lack
of maintenance and must be unforeseeable. An application for urgent need assistance
will not be accepted by the TCDP until discussions between the potential applicant
and representatives of the TCDP, the Texas Commission on Environmental Quality
(TCEQ), and the Texas Water Development Board (TWDB) have taken place. Through
these discussions, a determination shall be made whether the situation meets
TCDP urgent need threshold criteria; whether shared financing is possible;
whether financing for the necessary improvements is, or is not, available
from the TWDB; or that the potential applicant does, or does not, qualify
for TWDB assistance. Based on the availability of such funds, deobligated
funds and/or program income not to exceed $1,000,000 may be made available
for urgent need assistance during the 2004 TCDP program year. If TCDP funds
are made available, a potential applicant that meets these requirements will
be invited to submit an application for urgent need funds.
[
Assistance
under this fund is provided only to eliminate existing water and sewer conditions
which pose a serious and immediate threat to the health or welfare of the
residents of the applicant where other financial resources are not available
to meet such conditions. A unit of general local government that wishes to
receive assistance under this fund must submit an application, as provided
by the Office, to the Office. There is no application deadline. However, an
application for urgent need assistance is not accepted for funding until discussions
between the potential applicant and representatives of the Office and other
state regulatory and funding resource agencies (such as the Texas Commission
on Environmental Quality and the Texas Water Development Board) have occurred
and a determination is made that the potential applicant and the situation
meet urgent need fund threshold criteria. An applicant may not submit an application
under this fund and also under any other TCDP fund category at the same time
if the proposed activity under each application is the same or substantially
similar. An applicant may receive one contract award under this fund in any
one program year. The Office may negotiate the level of funding to be provided
to an applicant and the scope of work to be performed by the applicant.]
(b)
Threshold requirements. In addition to the threshold requirements
set forth in §255.1(h) and §255.1(n) of this title (relating to
General Provisions), each of the following requirements must be satisfied
in order to be eligible for funding under this fund:
(1)
The situation addressed by the applicant
must not be related to a proclaimed state disaster declaration or a federal
disaster declaration.
(2)
The situation addressed by the applicant
must be both unanticipated and beyond the control of the local government.
(3)
The problem being addressed must be of
recent origin. For urgent need assistance, this means that the situation first
occurred or was first discovered no more than 30 days prior to the date that
the potential applicant provides a written request to the TCDP for urgent
need assistance.
(4)
Each applicant for these funds must demonstrate
that local funds or funds from other state or federal sources are not available
to completely address the problem.
(5)
The distribution of these funds will be
coordinated with other state agencies.
(6)
The infrastructure failure cannot have
resulted from a lack of maintenance.
(7)
Urgent need funds cannot be used to restore
infrastructure that has been cited previously for failure to meet minimum
state standards.
(8)
The infrastructure failure cannot have
been caused by operator error.
(9)
The infrastructure requested by the applicant
cannot include back-up or redundant systems.
[(1)
the condition which gives rise to the
application must have occurred or become critical no more than 18 months before
the date the application is received by the Office;]
[(2)
the condition addressed in the application
must have directly resulted in a human fatality within the jurisdiction of
the applicant, or must have directly resulted in illness or injury within
the jurisdiction of the applicant as documented by the applicable state agency,
or poses an imminent threat to human life or health as documented by the applicable
state agency;]
[(3)
the applicant must provide the Office
with evidence that the applicant is unable to finance the proposed activity
with local funds and that no other sources of funding are available;]
[(4)
the conditions addressed in the application
must be unanticipated and beyond the control of the local government and the
conditions, if not addressed, must represent a permanent threat to public
health and safety; and]
[(5)
the applicant must provide matching funds
equal to 20% of the TCDP urgent need fund application request if the applicant
is a city with a population of more than 1,500 persons or if the applicant
is a county and the number of project beneficiaries is more than 1,500 persons;
or the applicant must provide matching funds equal to 10% of the TCDP urgent
need fund application request if the applicant is a city with a population
of equal to or less than 1,500 persons or if the applicant is a county and
the number of project beneficiaries is equal to or less than 1,500 persons.]
(c)
Start of construction. Construction on
an urgent need fund project must begin within ninety (90) days from the start
date of the TCDP contract. The TCDP reserves the right to deobligate the funds
under an urgent need fund contract if the grantee fails to meet this requirement.
(d)
Matching funds. Each applicant for urgent
need funds must provide matching funds. If the applicant's 2000 census population
is equal to or fewer than 1,500 persons, the applicant must provide matching
funds equal to 10 percent of the TCDP funds requested. If the applicant's
2000 census population is over 1,500 persons, the applicant must provide matching
funds equal to 20 percent of the TCDP funds requested. For county applications
where the beneficiaries of the water or sewer improvements are located in
unincorporated areas, the population category for matching funds is based
on the number of project beneficiaries.
§255.9.Colonia Fund.
(a)
General provisions. This fund covers the payment of assessments,
access fees, and capital recovery fees for low and moderate income persons
for eligible water and sewer improvements projects, all other program eligible
activities, eligible planning activities projects, and the establishment of
colonia self-help centers to serve severely distressed unincorporated areas
of counties which meet the definition of a colonia under this fund. A colonia
is defined as: any identifiable unincorporated community that is determined
to be a colonia on the basis of objective criteria, including lack of potable
water supply, lack of adequate sewage systems, and lack of decent, safe, and
sanitary housing; and was in existence as a colonia prior to November 28,
1990. For an eligible county to submit an application on behalf of eligible
colonia areas, the colonia areas must be within 150 miles of the Texas-Mexico
border region, except that any county that is part of a standard metropolitan
statistical area with a population exceeding one million is not eligible under
this fund.
(1)
An applicant may not submit an application under this fund
and also under any other TCDP fund category at the same time if the proposed
activity under each application is the same or substantially similar.
(2)
In addition to the threshold requirements of §255.1(h)
and §255.1(n) of this title (relating to General Provisions), in order
to be eligible to apply for colonia funds, an applicant must document that
at least 51% of the persons who would directly benefit from the implementation
of each activity proposed in the application are of low to moderate income.
(3)
Eligibility for the Office's colonia economically distressed
areas program EDAP fund (colonia EDAP fund) is limited to counties, and nonentitlement
cities located in those counties, that are eligible under the TCDP Colonia
Fund and Texas Water Development Board's EDAP. Eligible colonia EDAP fund
projects shall be located in unincorporated colonias and in eligible cities
that annexed the eligible colonia where improvements are to be made within
five years after the effective date of the annexation, or are in the process
of annexing the colonia where improvements are to be made. A colonia EDAP
fund application cannot be submitted until the construction of the Texas Water
Development Board's Economically Distressed Areas Program financed water or
sewer system begins.
(4)
In accordance with Subchapter Z, Chapter 43, Section 43.905
of the Local Government Code, eligible colonia areas annexed by municipalities
on or after September 1, 1999, remain eligible for five years after the effective
date of the annexation to receive any form of assistance for which the colonia
would be eligible if the annexation had not occurred. A nonentitlement city
located in a county that is eligible under the TCDP Colonia Fund and Texas
Water Development Board's Economically Distressed Areas Program that has annexed
a colonia area is an eligible applicant for the Office's colonia EDAP fund.
However, an application for TCDP colonia construction fund or colonia planning
fund assistance for a colonia area annexed by a municipality on or after September
1, 1999, may only be submitted by the county where the annexed colonia area
is located.
(b)
Eligible activities. The only eligible activities under
the colonia fund are:
(1)
the payment of assessments (including any charge made as
a condition of obtaining access) levied against properties owned and occupied
by persons of low and moderate income to recover the capital cost for a public
water and/or sewer improvement;
(2)
payment of the cost of planning community development (including
water and sewage facilities) and housing activities; costs for the provision
of information and technical assistance to residents of the area in which
the activities are located and to appropriate nonprofit organizations and
public agencies acting on behalf of the residents; and costs for preliminary
surveys and analyses of market needs, preliminary site engineering and architectural
services, site options, applications, mortgage commitments, legal services,
and obtaining construction loans;
(3)
other activities eligible under the Housing and Community
Development Act of 1974, §105, as amended, designed to meet the needs
of residents of colonias;
(4)
the establishment of colonia self-help centers and activities
conducted by colonia self-help centers in accordance with the provisions of
Chapter 2306, Subchapter Z, of the Government Code.
(5)
For the Office's colonia EDAP fund, eligible activities
are limited to those that provide assistance to low and moderate income colonia
residents that cannot afford the costs associated with connections and service
to water or sewer systems funded through the Texas Water Development Board's
Economically Distressed Areas Program. The eligible activities are
water
distribution lines connecting to water lines installed through the Texas Water
Development Board's Economically Distressed Areas Program (when approved by
the TCDP), sewer collection lines connecting to sewer lines installed through
the Texas Water Development Board's Economically Distressed Areas Program
(when approved by the TCDP),
water or sewer connection fees, water or
sewer taps, water meters, water or sewer yard service lines, plumbing improvements
associated with the provision of water or sewer service to an occupied housing
unit, water or sewer house service connections, reasonable associated administrative
costs, and reasonable associated engineering costs.
(c)
Types of applications. Eligible applicants may submit one
application for the colonia construction fund and the colonia planning fund.
Eligible applicants may submit one application for the colonia EDAP fund,
unless the TCDP has an excess amount of colonia EDAP funds available in which
case an eligible applicant could submit more than one application for the
colonia EDAP fund. Eligible planning activities cannot be included in an application
for the colonia construction fund. Two separate fund categories are available
under the colonia planning fund. The colonia area planning fund is available
for eligible planning activities that are targeted to selected colonia areas.
The colonia comprehensive planning fund is available for countywide comprehensive
planning activities that include an assessment and profiles of a county's
colonia areas. Separate competitions are held for the colonia area planning
fund and colonia comprehensive planning fund allocations. A county that has
previously received a colonia comprehensive planning fund grant award from
the Office may not submit another application for colonia comprehensive planning
fund assistance.
For a county to be eligible to submit an application
for the colonia area planning fund, the county must have previously completed
a colonia comprehensive plan that prioritizes problems and colonias for future
action. The colonia or colonias included in the colonia area planning fund
application must be colonias that were included in the colonia comprehensive
plan.
(d)
Funding cycle. The colonia construction fund and the colonia
planning fund are allocated on an annual basis to eligible county applicants
through competitions conducted during the program year. Applications for funding
must be received by the Office by the dates and times specified in the most
recent application guide for each separate colonia fund category. The colonia
self-help centers fund is allocated on an annual basis to counties included
in Subchapter Z, Chapter 2306, §2306.582, Government Code, and/or counties
designated as economically distressed areas under Chapter 17, Water Code.
The colonia EDAP fund is allocated on an annual basis and the funds are distributed
on an as-needed basis.
(e)
Selection procedures.
(1)
On or before the application deadline, each eligible county
may submit one application for the colonia construction fund, for colonia
comprehensive planning, and for colonia area planning. Eligible applicants
for the colonia EDAP fund may submit one application after construction begins
on the water or sewer system financed by the Texas Water Development Board's
Economically Distressed Areas Program. [
Copies of the application must
be provided to the applicant's regional planning commission and the Office.
]
(2)
Upon receipt of an application, the Office staff performs
an initial review to determine whether the application is complete and whether
all proposed activities are eligible for funding. The results of this initial
review are provided to the applicant. If not subject to disqualification,
the applicant may correct any deficiencies identified within ten calendar
days of the date of the staff's notification.
(3)
Each regional review committee may, at its option, review
and comment on a colonia fund proposal from a jurisdiction within its state
planning region. These comments will become part of the application file,
provided such comments are received by the Office prior to scoring of the
applications.
(4)
The Office then scores the colonia construction fund and
colonia planning fund applications to determine rankings. Scores on the selection
factors are derived from standardized data from the Census Bureau, other federal
or state sources, and from information provided by the applicant. For colonia
EDAP fund applications, the Office evaluates information in each application
and other factors before the completion of a final technical review of each
application.
(5)
Following a final technical review, the Office staff makes
funding recommendations to the executive director of the Office.
(6)
The executive director of the Office reviews the final
recommendations and except for awards exceeding $300,000 announces the contract
awards. Awards exceeding $300,000 are submitted to the Executive Committee
for approval.
(7)
Upon announcement of contract awards, the Office staff
works with recipients to execute the contract agreements. While the award
must be based on the information provided in the application, the Office may
negotiate any element of the contract with the recipient as long as the contract
amount is not increased and the level of benefits described in the application
is not decreased. The level of benefits may be negotiated only when the project
is partially funded.
(f)
Selection criteria (colonia construction fund). The following
is an outline of the selection criteria used by the Office for scoring colonia
construction fund applications. Four hundred
twenty
[
forty
] points are available.
(1)
Community distress (total--
40
[
60
]
points). All community distress factor scores are based on the unincorporated
population of the applicant. An applicant that has 125% or more of the average
of all applicants in
the competition
[
its region
] of
the rate on any community distress factor, except per capita income, receives
the maximum number of points available for that factor. An applicant with
less than 125% of the average of all applicants in
the competition
[
its region
] on a factor will receive a proportionate share of the maximum
points available for that factor. An applicant that has 75% or less of the
average of all applicants in
the competition
[
its region
]
on the per capita income factor will receive the maximum number of points
available for that factor.
An applicant with greater than 75% of the
average of all applicants in the competition on the per capita income factor
will receive a proportionate share of the maximum points available for that
factor.
(A)
Percentage of persons living in poverty--15
(B)
Per capita income--15
(C)
Percentage of housing units without complete
plumbing--10
[(C)
Percentage of housing units without public
sewer service--15]
[(D)
Percentage of housing units without public
water service--15]
(2)
Benefit to low and moderate income persons (total--
30
[
50
] points).
A formula is used to determine the
percentage of TCDP funds benefiting low to moderate income persons. The percentage
of low to moderate income persons benefiting from each construction, acquisition,
and engineering activity is multiplied by the TCDP funds requested for each
corresponding construction, acquisition, and engineering activity. Those calculations
determine the amount of TCDP benefiting low to moderate income person for
each of those activities. Then, the funds benefiting low to moderate income
persons for each of those activities are added together and divided by the
TCDP funds requested minus the TCDP funds requested for administration to
determine the percentage of TCDP funds benefiting low to moderate income persons.
Points are then awarded in accordance with the following scale:
[
To determine the percentage of TCDP funds benefitting low to moderate income
persons, the number equal to the percentage of low to moderate income persons
benefitting from the proposed project multiplied by the amount of TCDP funds
requested for construction activities is divided by the total amount of TCDP
funds requested. Points are awarded based on the percentage of TCDP funds
benefitting low to moderate income persons in accordance with the following
scale:
]
(A)
100% to 90% of funds benefitting low to moderate income
persons--
30
[
50
]
(B)
89.99% to 80% of funds benefitting low to moderate income
persons--
25
[
40
]
(C)
79.99% to 70% of funds benefitting low to moderate income
persons--
20
[
25
]
(D)
69.99% to 60% of funds benefitting low to moderate income
persons--
15
[
10
]
(E)
Below 60% of funds benefitting low to moderate income persons--
5
[
0
]
(3)
Project priorities (total--195 points) When necessary,
a weighted average is used to assign scores to applications which include
activities in the different project priority scoring levels. Using as a base
figure the TCDP funds requested minus the TCDP funds requested for engineering
and administration, a percentage of the total TCDP construction dollars for
each activity is calculated. The percentage of the total TCDP construction
dollars for each activity is then multiplied by the appropriate project priorities
point level. The sum of the calculations determines the composite project
priorities score. The different project priority scoring levels are:
(A)
activities (service lines, service connections, and/or
plumbing improvements) providing access to water and/or sewer systems funded
through the Texas Water Development Board Economically Distressed Area program--195
(B)
first time public water service activities
(including yard service lines)--145
(C)
first time public sewer service activities
(including yard service lines)--145
(D)
installation of approved residential on-site
wastewater disposal systems --145
(E)
housing activities--140
(F)
first time water and/or sewer service
through a privately-owned for profit utility--135
(G)
expansion or improvement of existing water
and/or sewer service--110
(H)
street paving and drainage activities--75
(I)
all other eligible activities--20
[(B)
first time public water and/or sewer
service and housing activities--145]
[(C)
first time water and/or sewer service
through a privately-owned for profit utility--135]
[(D)
installation of approved residential
on-site wastewater disposal systems--110]
[(E)
expansion or improvement of existing
water and/or sewer service--95]
[(F)
street paving and drainage activities--75]
[(G)
all other eligible activities--20]
(4)
Matching funds (total--20 points). An
applicant's matching share may consist of one or more of the following contributions:
cash; in-kind services or equipment use; materials or supplies; or land. An
applicant's match is considered only if the contributions are used in the
same target areas for activities directly related to the activities proposed
in its application; if the applicant demonstrates that its matching share
has been specifically designated for use in the activities proposed in its
application; and if the applicant has used an acceptable and reasonable method
of valuation. The population category under which county applications are
scored is dependent upon the project type and the beneficiary population served.
If the project is for activities in the unincorporated area of the county
with a target area of beneficiaries, the population category is based on the
unincorporated residents for the entire county. For county applications addressing
water and sewer improvements in unincorporated areas, the population category
is based on the actual number of beneficiaries to be served by the project
activities. The population category under which multi-jurisdiction applications
are scored is based on the combined populations of the applicants according
to the 2000 Census. Applications that include a housing rehabilitation and/or
affordable new permanent housing activity for low- and moderate-income persons
as a part of a multi-activity application do not have to provide any matching
funds for the housing activity. This exception is for housing activities only.
The TCDP does not consider sewer or water service lines and connections as
housing activities. The TCDP also does not consider on-site wastewater disposal
systems as housing activities. Demolition/clearance and code enforcement,
when done in the same target area in conjunction with a housing rehabilitation
activity, is counted as part of the housing activity. When demolition/clearance
and code enforcement are proposed activities, but are not part of a housing
rehabilitation activity, then the demolition/clearance and code enforcement
are not considered as housing activities. Any additional activities, other
than related housing activities, are scored based on the percentage of match
provided for the additional activities.
(A)
Applicants with populations equal to or less than 1,500
according to the 2000 census:
(i)
match equal to or greater than 5.0% of grant request--20;
(ii)
match at least 2.0% but less than 5.0% of grant request--10;
(iii)
match less than 2.0% of grant request--0.
(B)
Applicants with populations equal to or less than 3,000
but over 1,500 according to the 2000 census:
(i)
match equal to or greater than 10% of grant request--20;
(ii)
match at least 2.5% but less than 10% of grant request--10;
(iii)
match less than 2.5% of grant request--0
(C)
Applicants with populations equal to or less than 5,000
but over 3,000 according to the 2000 census:
(i)
match equal to or greater than 15% of grant request--20;
(ii)
match at least 3.5% but less than 15% of grant request--10;
(iii)
match less than 3.5% of grant request--0.
(D)
Applicants with populations over 5,000 according to the
2000 census:
(i)
match equal to or greater than 20% of grant request--20;
(ii)
match at least 5.0% but less than 20% of grant request--10;
(iii)
match less than 5.0% of grant request--0.
(5)
[
(4)
] Project design (total--135
points). Each application is scored based on how the proposed project resolves
the identified need and the severity of need within the applying jurisdiction.
A more detailed description on the assignment of points under the project
design scoring is included in the application guide for this fund and in paragraph
(6) of this subsection.
Each application is scored by a committee composed
of TCDP staff using the following information submitted in the application:
(A)
the severity of need within the colonia area(s) and how
the proposed project resolves the identified need (additional consideration
is given to water activities addressing impacts from drought conditions);
(B)
the TCDP cost per low to moderate income beneficiary;
(C)
the applicant's past efforts, especially the applicant's
most recent efforts, to address water, sewer, and housing needs in colonia
areas through applications submitted under the TCDP community development
fund or through community development block grant entitlement funds;
(D)
the projected water and/or sewer rates after completion
of the project based on 3,000 gallons, 5,000 gallons, and 10,000 gallons of
usage;
(E)
the ability of the applicant to utilize the grant funds
in a timely manner;
(F)
the availability of grant funds to the applicant for project
financing from other sources;
(G)
the applicant's past performance on prior TCDP contracts;
(H)
whether the applicant, or the service provider, has waived
the payment of water or sewer service assessments, capital recovery fees,
and other access fees for the proposed low and moderate income project beneficiaries;
(I)
whether the applicant's proposed use of TCDP funds is to
provide water or sewer connections/yardlines and/or plumbing improvements
that provide access to water/sewer systems financed through the Texas Water
Development Board Economically Distressed Areas Program;[
and
]
(J)
whether the applicant provides any local matching funds
for project activities
;
[
.
]
(K)
whether the applicant has already met
its basic water and wastewater needs if the application is for activities
other than water or wastewater; and
(L)
whether the project has provided for future
funding necessary to sustain the project.
(6)
Project design scoring guidelines. Project
design scores are assigned by Office staff using guidelines that first consider
the severity of the need for each application activity and how the project
resolves the need described in the application. The severity of need and resolution
of the need determine the maximum project design score that can be assigned
to an application. After the maximum project design score has been established,
points are then deducted from this maximum score through the evaluation of
the other project design evaluation factors until the maximum score and the
point deductions from that maximum score determine the final assigned project
design score. When necessary, a weighted average is used to set the maximum
project design score to applications that include activities in the different
severity of the need/project resolution maximum scoring levels. Using as a
base figure the TCDP funds requested minus the TCDP funds requested for engineering
and administration, a percentage of the total TCDP construction dollars for
each activity is calculated. The percentage of the total TCDP construction
dollars for each activity is then multiplied by the appropriate maximum project
design point level. The sum of the calculations determines the maximum project
design score that the applicant can be assigned before points are deducted
based on the evaluation of the other project design factors.
(A)
Maximum project design score that can
be assigned based on the severity of the need and resolution of the problem.
(i)
Activities providing first-time sewer service to the area--maximum
score 135 points.
(ii)
Activities providing first-time water service to the area--maximum
score 135 points.
(iii)
Installation of approved residential on-site wastewater
disposal systems--maximum score 135 points.
(iv)
Housing rehabilitation and eligible new housing construction--maximum
score 130 points.
(v)
Water activities addressing and resolving water supply
shortage from drought conditions--maximum score 130 points.
(vi)
Water or sewer activities expanding or improving existing
water or sewer system--maximum score 120 points.
(vii)
Street paving activities providing first time surface
pavement to the area--maximum score 100 points.
(viii)
Installation of designed drainage structures providing
first time designed drainage system to the area--maximum score 100 points.
(ix)
Reconstruction of streets with existing surface pavement--maximum
score 90 points.
(x)
Installation of improvements or drainage structures to
a designed drainage system--maximum score 90 points.
(xi)
All other eligible activities--maximum score 80 points.
(B)
TCDP cost per low to moderate income beneficiary.
The total amount of TCDP funds requested by the applicant is divided by the
total number of low to moderate income persons benefitting from the application
activities to determine the TCDP cost per beneficiary.
(i)
Cost per low to moderate income beneficiary is equal to
or less than $2,000. Deduct zero points from the set maximum project design
score.
(ii)
Cost per low to moderate income beneficiary is greater
than $2,000 but equal to or less than $4,000. Deduct 1 point from the set
maximum project design score.
(iii)
Cost per low to moderate income beneficiary is greater
than $4,000 but equal to or less than $6,000. Deduct 2 points from the set
maximum project design score.
(iv)
Cost per low to moderate income beneficiary is greater
than $6,000 but equal to or less than $8,000. Deduct 3 points from the set
maximum project design score.
(v)
Cost per low to moderate income beneficiary is greater
than $8,000 but equal to or less than $10,000. Deduct 4 points from the set
maximum project design score.
(vi)
Cost per low to moderate income beneficiary is greater
than $10,000. Deduct 5 points from the set maximum project design score.
(C)
The applicant's past efforts, especially
the applicant's most recent efforts, to address water, sewer, and housing
needs in colonia areas through applications submitted under the TCDP community
development fund or through community development block grant entitlement
funds.
(i)
The nonentitlement county submitted an application under
the TCDP community development fund 2003/2004 biennial competition that was
not addressing water, sewer, and housing needs in colonia areas. Deduct 3
points from the set maximum project design score.
(ii)
The nonentitlement county submitted an application under
the TCDP community development fund 2001/2002 biennial competition that was
not addressing water, sewer, and housing needs in colonia areas. Deduct 3
points from the set maximum project design score.
(iii)
The entitlement county did not use 2003 CDBG entitlement
funds to address water, sewer, and housing needs in colonia areas. Deduct
3 points from the set maximum project design score.
(iv)
The entitlement county did not use 2002 CDBG entitlement
funds to address water, sewer, and housing needs in colonia areas. Deduct
3 points from the set maximum project design score.
(D)
The projected water and/or sewer rates
after completion of the project based on 3,000 gallons, 5,000 gallons, and
10,000 gallons of usage.
(i)
The projected water and/or sewer rates may be too high
for the application beneficiaries. Deduct 1 point from the set maximum project
design score.
(ii)
The projected water and/or sewer rates are too low to
discourage water conservation by the application beneficiaries. Deduct 1 point
from the set maximum project design score.
(E)
The ability of the applicant to utilize
the grant funds in a timely manner.
(i)
The application includes the acquisition of real property,
easements or rights-of-way. Deduct 1 point from the set maximum project design
score.
(ii)
The application includes matching funds that have not
been secured by the applicant. Deduct 1 point from the set maximum project
design score.
(iii)
The proposed application target area is not located in
an area where a service provider already has the certificate of convenience
and necessity (CCN) needed to provide service to the application beneficiaries.
Deduct 1 point from the set maximum project design score.
(F)
The availability of grant funds to the
applicant for project financing from other sources. Grant funds for any activity
included in the application are available from another source. Deduct 1 point
from the set maximum project design score.
(G)
The applicant's past performance on prior
TCDP contracts. The applicant's score will primarily be based on an assessment
of the applicant's performance on the applicant's two (2) most recent TCDP
contracts that have reached the end of the original contract period stipulated
in the contract. TCDP staff may also assess the applicant's performance on
existing TCDP contracts that have not reached the end of the original contract
period. An applicant that has never received a TCDP grant award does not have
any points deducted from the project design final score.
(i)
The applicant did not complete the previous TCDP contract
activities within the original contract period. Deduct 1 point from the set
maximum project design score for each occurrence (maximum of 2 points deducted
from the set maximum project design score).
(ii)
The applicant did not submit the required close-out documents
for the previous TCDP contracts within the period prescribed for such submission.
Deduct 1 point from the set maximum project design score for each occurrence
(maximum of 2 points deducted from the set maximum project design score).
(iii)
The applicant did not provide a timely response to monitoring
findings on previous TCDP contracts. Deduct 1 point from the set maximum project
design score (maximum of 1 point deducted from the set maximum project design
score).
(iv)
The applicant did not provide a timely response to audit
findings on previous TCDP contracts. Deduct 1 point from the set maximum project
design score (maximum of 1 point deducted from the set maximum project design
score).
(H)
The applicant, or the service provider,
has not waived the payment of water or sewer service assessments, capital
recovery fees, and other access fees for the proposed low and moderate income
project beneficiaries.
(i)
Assessments and fees budgeted in the application are equal
to or less that $100 per low and moderate income household. Deduct 2 points
from the set maximum project design score.
(ii)
Assessments and fees budgeted in the application are greater
than $100 but equal to or less that $200 per low and moderate income household.
Deduct 4 points from the set maximum project design score.
(iii)
Assessments and fees budgeted in the application are
greater than $200 but equal to or less that $300 per low and moderate income
household. Deduct 6 points from the set maximum project design score.
(iv)
Assessments and fees budgeted in the application are greater
than $300 but equal to or less that $500 per low and moderate income household.
Deduct 8 points from the set maximum project design score.
(v)
Assessments and fees budgeted in the application are greater
than $500 per low and moderate income household. Deduct 10 points from the
set maximum project design score.
(I)
Applicant's proposed use of TCDP funds
does not provide water or sewer connections/yardlines and/or plumbing improvements
that provide access to water/sewer systems financed through the Texas Water
Development Board Economically Distressed Areas Program. Deduct 2 points from
the set maximum project design score.
(J)
The application is for activities other
than water or wastewater and the applicant has not already met its basic water
and wastewater needs. Deduct 3 points from the set maximum project design
score.
(K)
The applicant has not documented that
future funding necessary to sustain the project is available. Deduct 3 points
from the set maximum project design score.
(g)
Selection criteria (colonia area planning fund). The following
is an outline of the selection criteria used by the Office for scoring applications
for eligible planning activities under this fund. Three hundred
forty
[
fifty
] points are available.
(1)
Community distress (total--
40
[
60
]
points). All community distress factor scores are based on the unincorporated
population of the applicant.
An applicant that has 125% or more of the
average of all applicants in the competition of the rate on any community
distress factor, except per capita income, receives the maximum number of
points available for that factor. An applicant with less than 125% of the
average of all applicants in the competition on a factor will receive a proportionate
share of the maximum points available for that factor. An applicant that has
75% or less of the average of all applicants in the competition on the per
capita income factor will receive the maximum number of points available for
that factor. An applicant with greater than 75% of the average of all applicants
in the competition on the per capita income factor will receive a proportionate
share of the maximum points available for that factor.
(A)
Percentage of persons living in poverty--15
(B)
Per capita income--15
(C)
Percentage of housing units without complete
plumbing--10
[(C)
Percentage of housing units without public
sewer service--15]
[(D)
Percentage of housing units without public
water service--15]
(2)
Benefit to low and moderate income persons (total--
30
[
40
] points). Points are awarded based on the low and
moderate income percentage for
all of
the [
entire
] colonia
areas where project activities are located according to the following scale:
(A)
100% to 90% of funds benefitting low to moderate income
persons--
30
[
40
]
(B)
89.99% to 80% of funds benefitting low to moderate income
persons--
25
[
30
]
(C)
79.99% to 70% of funds benefitting low to moderate income
persons--20
(D)
69.99% to 60% of funds benefitting low to moderate income
persons--
15
[
10
]
(E)
Below 60% of funds benefitting low to moderate income persons--
5
[
0
]
(3)
Project design (total--250 points). Each application is
scored based on how the proposed planning effort resolves the identified need
and the severity of need within the applying jurisdiction.
A colonia
planning fund application must receive a minimum score for the project design
selection factor of at least 70 percent of the maximum number of points available
under this factor to be considered for funding. A more detailed description
on the assignment of points under the project design scoring is included in
the application guide for this fund.
Each application is scored by [
a committee composed of
] TCDP staff using the following information
submitted in the application:
(A)
the severity of need within the colonia area(s)
(total
- 60 points)
;
(i)
Evidence of severity of need as described
in originally received application (total - 10 points).
(ii)
Primary need within all target area colonia(s)
generally as reported in originally received application (total - 20 points):
(I)
all target area colonia(s) not platted (20 points)
(II)
all target area colonia(s) with no water (20 points)
(III)
all target area colonia(s) with no wastewater (20 points)
(IV)
all or some target area colonia(s) are partially platted
or platted but not recorded (10 points)
(V)
target area colonia(s) partial water (10 points)
(VI)
target area colonia(s) partial sewer (10 points)
(iii)
Population (total - 10 points). The
change in county population from 1990 and 2000 is between:
(I)
greater than 5% but less than or equal to 10% (2 points)
(II)
greater than 10% but less than or equal to 15% (4 points)
(III)
greater than 15% but less than or equal to 20% (6 points)
(IV)
greater than 20% but less than or equal to 25% (8 points)
(V)
greater than 25% (10 points)
(iv)
Needs are clearly identified in original
application by priority through a community needs assessment (total - 5 points).
(v)
Evidence provided in the original application
of strong citizen input or known citizen involvement in addressing need (total
- 5 points).
(vi)
Evidence provided in the original application
of effort to notify special groups to solicit information on severity of need
(total - 5 points).
(vii)
Evidence provided in the original application
that the public hearings to solicit input on needs were performed as described
in the application guide (total - 5 points).
(B)
how clearly the proposed planning effort removes barriers
to the provision of public facilities to the colonia area(s) and results in
a strategy to resolve the identified needs
(total - 60 points)
;
(i)
Proposed planning efforts as described
in the application are clear, concise and reasonable (total - 15 points).
(ii)
Proposed target area is clearly defined
in the application (total - 15 points).
(iii)
Proposed planning efforts as described
in the application match the needs in the target area (total - 15 points).
(iv)
Evidence in the application that the
county is organized to implement the plan or would ensure that the plan is
implemented (total - 15 points).
(C)
the planning activities proposed in the application
(total - 60 points)
;
(i)
The description of planning activity in
the original application:
(I)
Describes eligible activities (total - 6 points).
(II)
Describes understanding of plan process (total - 6 points).
(III)
Addresses identified needs (total - 6 points).
(IV)
Appears to result in solution to problems (total - 6 points).
(V)
Indicates a strategy that can be implemented (total - 6
points).
(ii)
Considering the applicant's probable
capability, the Colonia Questionnaire in the original application indicates
an attempt to control problems and the original submission was complete (total
- 10 points).
(iii)
Applicant has indicated in the application
that a capital improvement programming process is routinely accomplished or
will be developed as part of the planning project (total - 10 points).
(iv)
Applicant's responses to questions in
the originally submitted application appear to indicate that the applicant
will produce a valid Capital Improvements Program that would draw on local
resources and other grant/loan programs (total - 10 points).
(D)
whether each proposed planning activity is conducted on
a colonia-wide basis
(total - 10 points). All proposed activities will
be conducted on a colonia-wide basis (10 points)
;
(E)
the extent to which any previous planning efforts for colonia
areas have been accomplished
(total - 12 points). Applicant was a previous
recipient of Colonia Planning Funds and some implementation of previously
funded activities or special or extenuating circumstances prohibiting implementation
exist. Points will be awarded if applicant is not a previous recipient of
a Colonia Planning Fund award. Points will not be awarded if applicant did
not implement previously funded activities and no special or extenuating circumstances
prohibiting implementation exist
;
(F)
the TCDP cost per low to moderate income beneficiary;
(i)
TCDP cost per low to moderate income beneficiary
(total - 15 points):
(I)
the TCDP cost per low to moderate income beneficiary is
at least 50 percent below the median cost per beneficiary of all eligible
applicants (15 points); or
(II)
the TCDP cost per low to moderate income beneficiary is
at or below the median cost per beneficiary of all eligible applicants (10
points); or
(III)
the TCDP cost per low to moderate income beneficiary
is below 150 percent of the median cost per beneficiary of all eligible applicants
(7 points); or
(IV)
the TCDP cost per low to moderate income beneficiary is
150 percent or greater than the median cost per beneficiary of all eligible
applicants (5 points).
(ii)
Amount requested originally appears to
be reasonable and relates to the described needs with respect to the location
and characteristics of the proposed target area (up to 15 points).
(G)
the availability of grant funds to the applicant for project
financing from other sources
(total - 6 points) The area would be eligible
for funding under the Texas Water Development Board's Economically Distressed
Areas Program (EDAP) or other programs as described in the original application
;
and
[(H)
whether the applicant provides any local
matching funds for project activities; and]
(H)
[
(I)
] the applicant's past performance
on prior TCDP contracts.
An applicant can receive from zero to twelve
(12) points based on the applicant's past performance on previously awarded
TCDP contracts. The applicant's score will be primarily based on our assessment
of the applicant's performance on the applicant's two (2) most recent TCDP
contracts that have reached the end of the original contract period stipulated
in the contract. The TCDP may also assess the applicant's performance on existing
TCDP contracts that have not reached the end of the original contract period.
Applicants that have never received a TCDP grant award will automatically
receive these points. The TCDP will assess the applicant's performance on
TCDP contracts up to the application deadline date. The applicant's performance
after the application deadline date will not be evaluated in this assessment.
The evaluation of an applicant's past performance will include, but is not
necessarily limited to the following:
(i)
The applicant's completion of the previous
contract activities within the original contract period (up to 3 points).
(ii)
The applicant's submission of the required
close-out documents within the period prescribed for such submission (up to
3 points).
(iii)
The applicant's timely response to monitoring
findings on previous TCDP contracts especially any instances when the monitoring
findings included disallowed costs (up to 3 points).
(iv)
The applicant's timely response to audit
findings on previous TCDP contracts (up to 3 points).
(4)
Matching funds (total--20 points). The
population category under which county applications are scored is based on
the actual number of beneficiaries to be served by the colonia planning activities.
(A)
Applicants with populations equal to or less than 1,500
according to the 2000 census:
(i)
match equal to or greater than 5.0% of grant request--20;
(ii)
match at least 2.0% but less than 5.0% of grant request--10;
(iii)
match less than 2.0% of grant request--0.
(B)
Applicants with populations equal to or less than 3,000
but over 1,500 according to the 2000 census:
(i)
match equal to or greater than 10% of grant request--20;
(ii)
match at least 2.5% but less than 10% of grant request--10;
(iii)
match less than 2.5% of grant request--0
(C)
Applicants with populations equal to or less than 5,000
but over 3,000 according to the 2000 census:
(i)
match equal to or greater than 15% of grant request--20;
(ii)
match at least 3.5% but less than 15% of grant request--10;
(iii)
match less than 3.5% of grant request--0.
(D)
Applicants with populations over 5,000 according to the
2000 census:
(i)
match equal to or greater than 20% of grant request--20;
(ii)
match at least 5.0% but less than 20% of grant request--10;
(iii)
match less than 5.0% of grant request--0.
(h)
Selection criteria (colonia comprehensive planning fund).
The following is an outline of the selection criteria used by the Office for
scoring applications for eligible planning activities under this fund. Two
hundred points are available.
(1)
Community distress (total--25 points). All community distress
factor scores are based on the unincorporated population of the applicant.
An applicant that has 125% or more of the average of all applicants in the
competition of the rate on any community distress factor, except per capita
income, receives the maximum number of points available for that factor. An
applicant with less than 125% of the average of all applicants in the competition
on a factor will receive a proportionate share of the maximum points available
for that factor. An applicant that has 75% or less of the average of all applicants
in the competition on the per capita income factor will receive the maximum
number of points available for that factor. An applicant with greater than
75% of the average of all applicants in the competition on the per capita
income factor will receive a proportionate share of the maximum points available
for that factor.
(A)
Percentage of persons living in poverty--15
(B)
Per capita income--10
(2)
Project design (total--175 points).
A colonia planning
fund application must receive a minimum score for the project design selection
factor of at least 70 percent of the maximum number of points available under
this factor to be considered for funding. A more detailed description on the
assignment of points under the project design scoring is included in the application
guide for this fund.
Each application is scored by [
a committee
composed of
] the Office staff using the following information submitted
in the application:
(A)
the severity of need for the comprehensive colonia planning
effort and how effectively the proposed comprehensive planning effort will
result in a useful assessment of colonia populations, locations, infrastructure
conditions, housing conditions, and the development of short-term and long-term
strategies to resolve the identified needs
(total - 140 points)
;
(i)
Evidence of severity of need as described
in originally received application (total - 10 points).
(ii)
Population (total - 10 points). The change
in county population from 1990 and 2000 is between:
(I)
greater than 5% but less than or equal to 10% (2 points).
(II)
greater than 10% but less than or equal to 15% (4 points).
(III)
greater than 15% but less than or equal to 20% (6 points).
(IV)
greater than 20% but less than or equal to 25% (8 points).
(V)
greater than 25% (10 points).
(iii)
the county population in 2000 (total
- 10 points):
(I)
the county population is at least 50 percent below the
median county population of all eligible applicants (10 points).
(II)
the county population is at or below the median county
population of all eligible applicants (7 points).
(III)
the county population is below 150 percent of the median
county population of all eligible applicants (5 points).
(IV)
the county population is 150 percent or greater than the
median county population of all eligible applicants (2 points).
(iv)
Needs are clearly identified in original
application by priority through a community needs assessment (total - 5 points);
(v)
Evidence provided in the original application
of strong citizen input or known citizen involvement in addressing need (total
- 5 points);
(vi)
Evidence provided in the original application
of effort to notify special groups to solicit information on severity of need
(total - 5 points);
(vii)
Evidence provided in the original application
that the public hearings to solicit input on needs were performed as described
in the application guide (total - 5 points);
(viii)
Proposed planning efforts as described
in the application are clear, concise and reasonable (total - 10 points).
(ix)
Proposed planning efforts as described
in the application match the needs in the target area (total - 25 points).
(x)
Evidence in the application that the county
is organized to implement the plan or would ensure that the plan is implemented
(total - 20 points).
(xi)
The description of planning activity
in the original application:
(I)
Describes eligible activities (total - 5 points).
(II)
Describes understanding of plan process (total - 5 points).
(III)
Addresses identified needs (total - 5 points).
(IV)
Appears to result in solution to problems (total - 5 points).
(V)
Indicates a strategy that can be implemented (total - 5
points).
(xii)
Considering the applicant's probable
capability, the Colonia Questionnaire in the original application indicates
an attempt to control problems and the original submission was complete (total
- 10 points).
(B)
the extent to which any previous planning efforts for colonia
areas have been implemented
(total - 10 points). Applicant was a previous
recipient of Colonia Planning Funds and some implementation of previously
funded activities or special or extenuating circumstances prohibiting implementation
exist. Points will be awarded if applicant is not a previous recipient of
a Colonia Planning Fund award. Points will not be awarded if applicant did
not implement previously funded activities and no special or extenuating circumstances
prohibiting implementation existed
;
(C)
whether the applicant provides any local matching funds
for project activities
. (total - 13 points). The population category
under which county applications are scored is based on the actual number of
beneficiaries to be served by the colonia planning activities
; [
and
]
(i)
Applicants with populations equal to or
less than 1,500 according to the 2000 census:
(I)
match equal to or greater than 5.0% of grant request--13;
(II)
match at least 2.0% but less than 5.0% of grant request--7;
(III)
match less than 2.0% of grant request--0.
(ii)
Applicants with populations equal to
or less than 3,000 but over 1,500 according to the 2000 census:
(I)
match equal to or greater than 10% of grant request--13;
(II)
match at least 2.5% but less than 10% of grant request--7;
(III)
match less than 2.5% of grant request--0.
(iii)
Applicants with populations equal to
or less than 5,000 but over 3,000 according to the 2000 census:
(I)
match equal to or greater than 15% of grant request--13;
(II)
match at least 3.5% but less than 15% of grant request--7;
(III)
match less than 3.5% of grant request--0.
(iv)
Applicants with populations over 5,000
according to the 2000 census:
(I)
match equal to or greater than 20% of grant request--13;
(II)
match at least 5.0% but less than 20% of grant request--7;
(III)
match less than 5.0% of grant request-0; and
(D)
the applicant's past performance on previously awarded
TCDP contracts.
An applicant can receive from zero to twelve (12) points
based on the applicant's past performance on previously awarded TCDP contracts.
The applicant's score will be primarily based on our assessment of the applicant's
performance on the applicant's two (2) most recent TCDP contracts that have
reached the end of the original contract period stipulated in the contract.
The TCDP may also assess the applicant's performance on existing TCDP contracts
that have not reached the end of the original contract period. Applicants
that have never received a TCDP grant award will automatically receive these
points. The TCDP will assess the applicant's performance on TCDP contracts
up to the application deadline date. The applicant's performance after the
application deadline date will not be evaluated in this assessment. The evaluation
of an applicant's past performance will include, but is not necessarily limited
to the following:
(i)
The applicant's completion of the previous
contract activities within the original contract period (up to 3 points).
(ii)
The applicant's submission of the required
close-out documents within the period prescribed for such submission (up to
3 points).
(iii)
The applicant's timely response to monitoring
findings on previous TCDP contracts especially any instances when the monitoring
findings included disallowed costs (up to 3 points).
(iv)
The applicant's timely response to audit
findings on previous TCDP contracts (up to 3 points).
(i)
Program guidelines (colonia self-help centers fund). The
colonia self-help centers fund is administered by the Texas Department of
Housing and Community Affairs (TDHCA) under an interagency agreement with
the Office. The following is an outline of the administrative requirements
and eligible activities under this fund.
(1) - (3)
(No change.)
(4)
The purpose of each colonia self-help center is to assist
low income and very low income individuals and families living in colonias
located in the center's designated service area to finance, refinance, construct,
improve or maintain a safe, suitable home in the designated service area or
in another suitable area. Each self-help center may serve low income and very
low income individuals and families by:
(A)
providing assistance in obtaining loans or grants to build
a home;
(B)
teaching construction skills necessary to repair or build
a home;
(C)
providing model home plans;
(D)
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;
(E)
helping to obtain, construct, assess, or improve the service
and utility infrastructure designed to service residences in a colonia, including
potable water, wastewater disposal, drainage, streets and utilities;
(F)
surveying or platting residential property that an individual
purchased without the benefit of a legal survey, plat, or record;
(G)
providing credit and debt counseling related to home purchase
and finance;
(H)
applying for grants and loans to provide housing and other
needed community improvements;
(I)
monthly programs to educate individuals and families on
their rights and responsibilities as property owners;
(J)
providing other eligible services that the self-help center,
with the Office's approval, 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; [
and
]
(K)
providing assistance in obtaining loans or grants to enable
an individual or 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
; and
[
.
]
(L)
providing access to computers, the internet,
and computer training.
(5)
A 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.
(j)
(No change.)
§255.10.Housing Fund.
(a) - (g)
(No change.)
(h)
Selection procedures (housing infrastructure fund).
(1)
Each eligible local government may submit one application
for funding under the housing infrastructure fund. Two copies of the application
must be submitted to the Office and at least one copy of the application must
be submitted to the applicant's state planning region.
(2)
Upon receipt of an application, the Office staff review
the application to determine whether it is complete, if all proposed activities
are program eligible, and if the project is financially feasible. If not subject
to disqualification, the applicant may correct any deficiencies identified
by the Office staff in the timeframe stated in the notification.
(3)
After review by Office staff, each application is evaluated
by a team of reviewers. Reviewer's scores are averaged for a final team score
and applications recommended for funding are forwarded to the executive director
of the Office.
(4)
The executive director of the Office reviews the funding
recommendations for project awards and except for awards exceeding $300,000
announces the contract awards. Awards exceeding $300,000 are submitted to
the Executive Committee for approval.
(5)
Upon announcement of the contract awards, the Office staff
works with recipients to execute the contract agreements. While the award
must be based on the information provided in the application, the Office may
negotiate any element of the contract with the recipient as long as the contract
amount is not increased and the level of benefits described in the application
is not decreased.
(i)
2003 program year selection
[
Selection
] criteria (housing infrastructure fund). The following is an outline
of the selection criteria used by the Office for scoring
2003 program
year
applications under this fund. One hundred seventy points are available.
(1)
Financial feasibility (20 points).
(2)
Market assessment (30 points).
(3)
Affordable housing solutions (30 points).
(4)
Organizational capacity (25 points).
(5)
Program consideration (35 points).
(6)
Project design (10 points).
(7)
Community support (10 points).
(8)
Rural project (10 points). Project is located in a community
with a population of 10,000 persons or less.
(j)
(No change.)
§255.11.Small Towns Environment Program Fund.
(a)
General provisions. This fund is available to eligible
units of general local government to provide financial assistance to cities
and communities that are willing to address water and sewer needs through
self-help methods that are encouraged and supported by the Small Towns Environment
Program
(STEP)
. The self-help method for addressing water and sewer
needs is best utilized by cities and communities recognizing that conventional
water and sewer financing and construction methods cannot provide an affordable
response to the water or sewer needs. By utilizing a city's or community's
own resources (human, material, and financial), the costs for the water or
sewer improvements can be reduced significantly from the retail costs of the
improvements through conventional construction methods. Participants in the
small town environment program fund should attain at least a forty percent
reduction in the costs of the water or sewer project by using self-help in
lieu of conventional financing and construction methods.
(1)
Small towns environment program funds can be used to cover
material costs, certain engineering costs, administrative costs, and other
necessary project costs that are approved by program staff.
(2)
In addition to the threshold requirements of §255.1(h)
and §255.1(n) of this title (relating to General Provisions), in order
to be eligible to apply for small towns environment program funds, an applicant
must document that at least 51% of the persons who would directly benefit
from the implementation of each activity proposed in the application are of
low to moderate income.
(3)
Cities and counties submitting 2003 community development
fund applications that do not include water, sewer, or housing activities
are not eligible to receive a 2003 grant award from this fund. However, the
Office may consider a city's or county's request to transfer funds that are
not financing water, sewer, or housing activities under a 2003 community development
fund grant award to finance water and sewer activities that will be addressed
through self-help methods.
(b)
Eligible activities. For the small towns
environment program fund eligible activities are limited to the following:
(1)
The installation of facilities to provide first-time water
or sewer service.
(2)
The installation of water or sewer system improvements.
(3)
Ancillary repairs related to the installation of water
and sewer systems or improvements.
(4)
The acquisition of real property related to the installation
of water and sewer systems or improvements (easements, rights of way, etc.).
(5)
Sewer or water taps and water meters.
(6)
Water or sewer yard service lines (for low and moderate
income persons).
(7)
Water or sewer house service connections (for low and moderate
income persons).
(8)
Plumbing improvements associated with providing water or
sewer service to a housing unit.
(9)
Water or sewer connection fees (for low and moderate income
persons).
(10)
Equipment for installation of water or sewer if justification
is provided.
(11)
Reasonable associated administrative costs.
(12)
Reasonable associated engineering services costs.
(c)
Ineligible activities. Any activity not
described in subsection (b) of this section is ineligible under this fund
unless the activity is approved by the TCDP. Other ineligible activities are
temporary solutions, such as emergency inter-connects that are not used on
an on-going basis for supply or treatment and back-ups not required by the
regulations of the Texas Commission on Environmental Quality.
(d)
Funding cycle. Applications are accepted
three times a year as long as funds are available. Funds will be divided among
the three application periods. After all projects are ranked, only those that
can be fully funded will be awarded a grant. There will be no marginally funded
grant awards. The TCDP will not accept an application for STEP fund assistance
until TCDP staff and representatives of the potential applicant have evaluated
the self-help process and TCDP staff determine that self-help is a feasible
method for completion of the water or sewer project, the community is committed
to self-help as the means to address the problem, and the community is ready
and has the capacity to begin and complete a self-help project. If it is determined
that the community meets all of the STEP criteria then an invitation to apply
for funds will be extended to the community and the application may be submitted.
(e)
Threshold criteria. The self-help response
to water and sewer needs may not be appropriate in every community. In most
cases, the decision by a community to utilize self-help to obtain needed water
and sewer facilities is based on the community's realization that it cannot
afford even a "no frills" water or sewer system based on the initial construction
costs and the operations/maintenance costs (including debt service costs)
for water or sewer facilities installed through conventional financing and
construction methods. The following are threshold requirements for the STEP
framework: Without all these elements the project may not be considered under
the STEP fund.
(1)
The community receiving benefits from the project must
have one or more sparkplugs (preferably three). Sparkplugs are local leaders
willing to both lead and sustain the effort to complete the project. While
local officials may serve as sparkplugs, at least two of the three sparkplugs
must be residents and not local officials. One of the sparkplugs should have
the skills necessary to maintain the paperwork needed for the project. One
of the sparkplugs should have knowledge or skills necessary to lead the self-help
effort. And one sparkplug can have a combination of these skills or just be
the motivator and problem solver of the group.
(2)
The community receiving benefits from the project should
exhibit a readiness to proceed with the project. The community's readiness
to proceed is based on a strong local perception of the problem and the willingness
to take action to solve the problem. A community's readiness to proceed is
shown when the following conditions exist:
(A)
A strong local perception of the problem exists.
(B)
The community has the perception that local implementation
is the best and maybe only solution to the problem.
(C)
The residents of the community have confidence that they
can adequately complete the project.
(D)
The community has no strong competing priority.
(E)
The local government is supportive of the effort and understands
the urgency.
(F)
There exists a public and private willingness to pay additional
costs if needed such as fees, hook-ups for churches, and other costs.
(G)
Some effort and attention have already been given to local
assessment of the problem.
(H)
There is enthusiastic, capable support for the community
from the county or regional field staff of any regulatory agency involved
with solutions to the problem.
(3)
The community receiving benefits from the project should
have the capacity and manpower with the skills needed to complete the project.
The capacity and skills to complete the project include the following:
(A)
Skilled workers within the community such as an electrician,
plumber, engineer water system operator and persons with experience operating
heavy equipment, and persons with construction skills and pipe laying experience.
(B)
The community has a list of volunteers that includes the
tasks that are assigned to each volunteer.
(C)
The community has equipment that will be needed to complete
the project.
(D)
The community has letters stating support from local businesses
in form of donation of supplies or manpower.
(E)
The community has letter from the water and/or sewer service
provider supporting the project and agreeing to provide service.
(F)
A letter from a Certified Public Accountant documenting
that applying locality has financial and management capacity to compete project.
(4)
The community receiving benefits from the project must
be able to show that by completing the proposed project through self-help
volunteer methods the community can achieve at least a 40% savings off the
retail price of completing the same project through the bid/contract process.
The information provided to the TCDP to document the reduced project cost
through self-help includes the following:
(A)
Two engineering break-outs of cost, one that shows the
retail construction cost and another that shows the self-help cost and demonstrates
the 40% savings.
(B)
Documents containing material prices and pledges of equipment.
(C)
A list of the volunteers by project completion task.
(D)
A determination of appropriate technology for the project
and the feasibility of project through a letter from an engineer.
(f)
Selection procedures.
(1)
On or before each of the three application deadlines, each
eligible applicant may submit one application for the STEP fund. An applicant
may not submit an application under this fund and also under any other TCDP
fund category if the proposed activity under each application is the same
or substantially similar.
(2)
Upon receipt of an application, the Office staff performs
an initial review to determine whether the application is complete and whether
all proposed activities are eligible for funding. The results of this initial
review are provided to the applicant. If not subject to disqualification,
the applicant may correct any deficiencies identified within ten calendar
days of the date of the staff's notification.
(3)
The Office then scores the STEP fund applications to determine
rankings. Scores on the selection factors are assigned from the information
provided by the applicant.
(4)
Following a final technical review, the Office staff makes
funding recommendations to the executive director of the Office.
(5)
The executive director of the Office reviews the final
recommendations and except for awards exceeding $300,000 announces the contract
awards. Awards exceeding $300,000 are submitted to the Executive Committee
for approval.
(6)
Upon announcement of contract awards, the Office staff
works with recipients to execute the contract agreements. While the award
must be based on the information provided in the application, the Office may
negotiate any element of the contract with the recipient as long as the contract
amount is not increased and the level of benefits described in the application
is not decreased. The level of benefits may be negotiated only when the project
is partially funded.
(g)
Selection criteria. The following is an
outline of the selection criteria used by the Office for scoring applications
under the STEP fund. One hundred points are available.
(1)
Project impact (total--60 points). When necessary, a weighted
average is used to assign scores to applications which include activities
in the different project impact scoring levels. Using as a base figure the
TCDP funds requested minus the TCDP funds requested for engineering and administration,
a percentage of the total TCDP construction dollars for each activity will
be calculated. The percentage of the total TCDP construction dollars for each
activity will then be multiplied by the appropriate project impact point level.
The sum of these calculations will determine the composite project impact
score. The different project impact scoring levels are:
(A)
first time water and/or sewer service--60
(B)
water activities addressing drought conditions--60
(C)
activities addressing severe impact to a water system (imminent
loss of well, transmission line, supply impact)--60
(D)
water and/or sewer activities addressing an imminent threat
to health as documented by the Texas Commission of Environmental Quality or
Texas Department of Health--60
(E)
activities addressing documented severe water pressure
problems--50
(F)
replacement of existing water or sewer lines that are not
addressing activities described in subparagraphs (A) through (E) of this paragraph--40
(G)
all other proposed water and sewer projects that are not
addressing activities described in subparagraphs (A) through (F) of this paragraph--30
(2)
Dollar value of volunteer work to total work
(total--10 points). This score will be based on the percentage of the dollar
value of volunteer work to total dollar value of the work performed in the
STEP application based on the following scoring levels:
(A)
80% or more - dollar value of volunteer work to total dollar
value of the work performed--10
(B)
70% to 79.99% - dollar value of volunteer work to total
dollar value of the work performed--7
(C)
60% to 69.99% - dollar value of volunteer work to total
dollar value of the work performed--5
(D)
51% to 59.99% - dollar value of volunteer work to total
dollar value of the work performed--2
(3)
Past participation and performance (total--15 points).
An applicant receives up to 15 points on the following two factors.
(A)
Ten of the 15 points available are awarded to applicants
that do not have a current TCDP STEP grant.
(B)
An applicant can receive from zero to five (5) points based
on the applicant's past performance on previously awarded TCDP contracts.
The applicant's score will be primarily based on our assessment of the applicant's
performance on the applicant's two (2) most recent TCDP contracts that have
reached the end of the original contract period stipulated in the contract.
The TCDP may also assess the applicant's performance on existing TCDP contracts
that have not reached the end of the original contract period. Applicants
that have never received a TCDP grant award will automatically receive these
points. The TCDP will assess the applicant's performance on TCDP contracts
up to the application deadline date. The applicant's performance after the
application deadline date will not be evaluated in this assessment. The evaluation
of an applicant's past performance will include, but is not necessarily limited
to the following:
(i)
The applicant's completion of the previous contract
activities within the original contract period (total--2 points).
(ii)
The applicant's submission of the required
close-out documents within the period prescribed for such submission (total--1
point).
(iii)
The applicant's timely response to monitoring
findings on previous TCDP contracts especially any instances when the monitoring
findings included disallowed costs (total--1 point).
(iv)
The applicant's timely response to audit findings
on previous TCDP contracts (total--1 point).
(4)
Percentage of savings off the retail price (total--10
points). For STEP, the percentage of savings off of the retail price is considered
a form of community match for the project. In STEP, a threshold requirement
is a minimum of 40% savings off the retail price for construction activities.
The population category under which county applications are scored is dependent
upon the project type and the beneficiary population served. If the project
is for beneficiaries for the entire county, the total population of the county
is used. If the project is for activities in the unincorporated area of the
county with a target area of beneficiaries, the population category is based
on the unincorporated residents for the entire county. For county applications
addressing water and sewer improvements in unincorporated areas, the population
category is based on the actual number of beneficiaries to be served by the
project activities. The population category under which multi-jurisdiction
applications are scored is based on the combined populations of the applicants
according to the 2000 Census. An applicant can receive from zero to 10 points
based on the following population levels and savings percentages:
(A)
Communities with populations equal to or less than 1,500
according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--9
(iii)
45% - 49.99% savings--7
(iv)
41% - 44.99% Savings--5
(B)
Communities with populations above 1,500 but equal to or
less than 3,000 according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--8
(iii)
45% - 49.99% savings--6
(iv)
41% - 44.99% Savings--3
(C)
Communities with populations above 3,500 but equal to or
less than 5,000 according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--7
(iii)
45% - 49.99% savings--5
(iv)
41% - 44.99% Savings--2
(D)
Communities with populations above 5,000 but less than
10,000 according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--8
(iii)
45% - 49.99% savings--3
(iv)
41% - 44.99% Savings--1
(E)
Communities with populations that are 10,000 or above 10,000
according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--6
(iii)
45% - 49.99% savings--2
(iv)
41% - 44.99% Savings--0
(5)
Benefit to low/moderate income persons (total--5 points).
Applicants are required to meet the 51 percent low/moderate-income benefit
for each activity as a threshold requirement. Any project where at least 60
percent of the TCDP funds benefit low/moderate-income persons will receive
5 points.
[(b)
Funding cycle. This fund is available
to eligible units of general local government through a direct award basis.
There is no application deadline. However, an application for small towns
environment program fund assistance is not accepted until TCDP staff, representatives
of the potential applicant, and residents from the community needing the financial
assistance have discussed the self-help process and TCDP staff determine that
self-help is a feasible method for completion of the water or sewer project,
the community is committed to self-help as the means to address the problem,
and the community is ready and has the capacity to begin and complete a self-help
project.]
[(c)
Selection procedures. TCDP staff will
provide guidance, assistance, and support to community leaders and residents
willing to use self-help to solve their water and sewer problems. Staff will
determine a community's readiness to begin a self-help project through evaluation
of the following factors:]
[(1)
whether this is a strong local perception of the problem;]
[(2)
community perception that local implementation is the
best and may be the only solution;]
[(3)
whether the community residents have confidence that they
can do it adequately;]
[(4)
whether the community has any other urgent competing priority;]
[(5)
whether local government representatives are supportive
and understand the urgency of the community's needs;]
[(6)
public and private willingness to pay water or sewer service
costs;]
[(7)
whether effort and attention have already been given to
local assessment of the problem; and]
[(8)
whether the community has received any support from the
county or regional field staff of the regulatory agency.]
[(d)
Application review and contract award
procedures.]
[(1)
The Office staff review each application to determine
whether it is complete, if all proposed activities are program eligible, and
if the project is financially feasible. Each application recommended for funding
is forwarded to the executive director of the Office.]
[(2)
The executive director of the Office reviews each funding
recommendation for a project award and except for any award exceeding $300,000
announces the contract award. Any award exceeding $300,000 is submitted to
the Executive Committee for approval.]
[(3)
Upon announcement of a contract award, the Office staff
works with the recipient to execute the contract agreement. While the award
must be based on the information provided in the application, the Office may
negotiate any element of the contract with the recipient as long as the contract
amount is not increased and the level of benefits described in the application
is not decreased.]
§255.12.Microenterprise Fund.
(a)
General provisions. This fund is available on an annual
basis for funding from available program income through an annual statewide
competition. Applications received by the application deadline are eligible
to receive grant awards from available program income. An eligible community
submits the application and must contract with a non-profit organization (economic
development corporation, community development corporation, etc.) for the
purpose of establishing a local loan program that directly assists for-profit
microenterprise businesses. Proceeds from the repayment of the loans will
be retained by the non-profit organization.
(b)
Conditions. A microenterprise is a commercial enterprise
that has five (5) or fewer employees, one (1) or more of whom owns the enterprise.
The microenterprise receiving the loan assistance must commit to creating
or retaining jobs that will not exceed a maximum cost of $25,000 per job.
The jobs created or retained by the microenterprise must principally benefit
low and moderate income persons. The funds cannot be used by the microenterprise
for debt service, refinancing, or payment of the business owner's salaries.
(c)
Eligible activities. The activities eligible under this
fund are:
(1)
Working capital (purchase of raw materials, inventory,
rent, utilities, salaries, and others needed for business operations);
(2)
Machinery and equipment (cars and trucks considered rolling
stock would not be an eligible use of funds); and
(3)
Real estate improvements.
(d)
Selection criteria. The following is an outline of the
selection criteria used by the Office for scoring microenterprise fund applications.
One hundred twenty (120) points are available. Additional information on the
selection criteria may be provided in the application guide.
(1)
Community Distress (total - 50 points). All community distress
factor scores are based on the population of the applicant. For counties,
the population may include the unincorporated county population and the populations
of any cities located in the county participating in the application. An applicant
that has 125% or more of the average of all applicants in the competition
of the rate on any community distress factor, except per capita income, receives
the maximum number of points available for that factor. An applicant with
less than 125% of the average of all applicants in the competition on a factor
will receive a proportionate share of the maximum points available for that
factor. An applicant that has 75% or less of the average of all applicants
in the competition on the per capita income factor will receive the maximum
number of points available for that factor. An applicant with greater than
75% of the average of all applicants in the competition on the per capita
income factor will receive a proportionate share of the maximum points available
for that factor.
(A)
Percentage Of Persons Living In Poverty (total - 15 points).
(B)
Per Capita Income (total - 15 points).
(C)
Population Loss from 1990 to 2000 (total - 10 points).
(D)
Unemployment Rate - (total - 10 points).
(2)
Program Design (total - 50 points).
(A)
Nonprofit Capacity. The score will be based on evidence
in the application of the experience and/or capability of the contracted non-profit
organization to administer a local business lending program, including the
staff of the non-profit who will operate the fund (total - 10 points).
(B)
Overall Program Design. The score will be based on design
of the revolving loan program, including the application and selection process,
credit analysis procedure, collection process, and other procedures necessary
to sustain the long-term viability of the revolving loan fund (total -10 points).
(C)
Technical Assistance and Counseling Services. The score
will be based on the magnitude and scope of the non-profit's proposed technical
assistance and counseling services for microenterprise businesses on operational,
financial, marketing, and other business-related matters (total - 5 points).
(D)
Citizen Involvement. The score will be based on degree
of input on the design of the fund that has been solicited from the citizens
in the region who could benefit from the fund (total - 5 points).
(E)
Business Involvement. The score will be based on degree
of input on the design of the fund from businesses, particularly potential
applicants, in the region who could benefit from the fund. Consideration will
be given for any business involvement in assisting in reviewing applications
or providing technical assistance and counseling services (total - 5 points).
(F)
Potential Applicants. If the application includes a list
of the names of potential business applicants who met the eligibility requirements
(total - 5 points).
(G)
Marketing Plan. The score will be based on the plan submitted
to market the availability of the revolving loan fund to potential microenterprise
businesses in the region to be served (total - 5 points).
(H)
Terms. The score will be based on whether the loan terms
are consistent with the life of the security and risk factors (total - 5 points).
(3)
Leverage Ratio (total - 5 points). Score five (5) points
if matching dollars are greater than or equal to grant dollars received under
this fund based on the following:
(A)
For an applicant with a population in 2000 of less than
5,000 persons, the match is at least equal to 100 percent of the grant.
(B)
For an applicant with a population in 2000 equal to or
greater than 5,000 persons, the match is 125 percent of the grant.
(4)
Previous Participation (total - 10 points).
(A)
If no previous Texas Capital Fund participation - 10 points,
or
(B)
If no open Texas Capital Fund contracts - 5 points.
(5)
Rural Projects (total - 5 points). Score five (5) points
if:
(A)
The applicant is a city with a population in 2000 under
10,000 persons, or
(B)
The applicant is a county with a population in 2000 under
100,000 persons.
§255.13.Small Business Fund.
(a)
General provisions. This fund is available on an annual
basis for funding from available program income through an annual statewide
competition. Applications received by the application deadline are eligible
to receive grant awards from available program income. An eligible community
submits the application for the purpose of supporting for-profit small businesses
through loans meeting a gap financing need. Retention of the proceeds from
the repayment of the loans will meet the same requirements for program income
that apply to Texas Capital Fund contracts.
(b)
Conditions. A small business is a for-profit business with
less than one hundred (100) employees. The small business receiving the loan
assistance must commit to creating or retaining jobs that will not exceed
a maximum cost of $25,000 per job. The jobs created or retained by the small
business must principally benefit low and moderate income persons. The funds
cannot be used by the small business for debt service, refinancing, or payment
of the business principal's salaries.
(c)
Eligible activities. The activities eligible under this
fund are:
(1)
Working capital (purchase of raw materials, inventory,
rent, utilities, salaries, and others needed for business operations);
(2)
Machinery and equipment (cars and trucks considered rolling
stock would not be an eligible use of funds); and
(3)
Real estate improvements.
(d)
Selection criteria. The following is an outline of the
selection criteria used by the Office for scoring small business fund applications.
One hundred twenty five (125) points are available. Additional information
on the selection criteria may be provided in the application guide.
(1)
Community Distress (total - 50 points). All community distress
factor scores are based on the population of the applicant. For counties,
the population may include the unincorporated county population and the populations
of any cities located in the county participating in the application. An applicant
that has 125% or more of the average of all applicants in the competition
of the rate on any community distress factor, except per capita income, receives
the maximum number of points available for that factor. An applicant with
less than 125% of the average of all applicants in the competition on a factor
will receive a proportionate share of the maximum points available for that
factor. An applicant that has 75% or less of the average of all applicants
in the competition on the per capita income factor will receive the maximum
number of points available for that factor. An applicant with greater than
75% of the average of all applicants in the competition on the per capita
income factor will receive a proportionate share of the maximum points available
for that factor.
(A)
Percentage Of Persons Living In Poverty (total - 15 points).
(B)
Per Capita Income (total - 15 points).
(C)
Population Loss from 1990 to 2000 (total - 10 points).
(D)
Unemployment Rate (total - 10 points).
(2)
Jobs (total - 20 points).
(A)
Below $10,000 per job - 20 points,
(B)
Below $15,000 per job - 15 points,
(C)
Below $20,000 per job - 10 points, or
(D)
Below $25,000 per job - 5 points.
(3)
Project Feasibility (total - 30 points). The feasibility
of each project is evaluated and scored based on the financial soundness of
the project. Factors examined include:
(A)
Firm commitments for financial investments. The score will
be based on evidence in the application that financing from other sources,
including owner equity, has been committed in sufficient amounts for the proposed
project (total - 5 points);
(B)
The jobs to be created or retained. The score will be based
on evidence in the application that the type, skill, and wage of the proposed
jobs to be created or retained is appropriate for the overall labor force
in the area such as local employment data, surveys, or local, state or federal
data (total - 5 points);
(C)
The history of the business. The score will be based on
either the success of the business over the last five years or, for new businesses,
the history of the successful start-up period, including a discussion of the
products, facilities, markets, job growth, and financial investments in the
business (total - 3 points);
(D)
The current financial condition of the business (including
a full review of the credit analysis). The score will be based on whether
the business has a sound balance sheet, including debt to equity ratios, and
is currently profitable as demonstrated by recent income statements (total
-5 points);
(E)
Cash flow projections. The score will be based on the detail
and reasonableness of the projected cash flow statements for the proposed
project (total - 5 points);
(F)
The business or marketing plan. The score will be based
on evidence that the business has the capacity to sustain operations beyond
the period of program assistance (total - 5 points); and
(G)
Management. The score will be based on the experience and
capabilities of the business owners and managers (total - 2 points).
(4)
Leverage Ratio (total - 5 Points) A minimum ten percent
(10%) equity injection by the assisted business is required. Score five (5)
points if matching dollars are greater than or equal to grant dollars received
under this fund based on the following:
(A)
For an applicant with a population in 2000 of less than
5,000 persons, the match is at least equal to 100 percent of the grant.
(B)
For an applicant with a population in 2000 equal to or
greater than 5,000 persons, the match is 125 percent of the grant.
(5)
Previous Participation (total - 10 points).
(A)
If no previous Texas Capital Fund participation - 10 points.
(B)
If no open Texas Capital Fund contracts - 5 points.
(6)
Innovative Projects (total - 5 points). Projects that support
a business addressing a community need or economic/population trend would
receive five (5) points.
(7)
Rural Projects (total - 5 points). Score five (5) points
if:
(A)
The applicant is a city with a population in 2000 under
10,000 persons, or
(B)
The applicant is a county with a population in 2000 under
100,000 persons.
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 February 11, 2004.
TRD-200400939
Robt. J. "Sam" Tessen
Executive Director
Office of Rural Community Affairs
Earliest possible date of adoption: March 28, 2004
For further information, please call: (512) 936-6710