10 TAC §255.7
The Office of Rural Community Affairs (Office) proposes amendments
to §255.7, concerning the allocation of Community Development Block Grant
(CDBG) non-entitlement area funds under the Texas Community Development Program
(TCDP).
The amendments are being proposed to establish the standards and procedures
by which the Office and the Texas Department of Agriculture will allocate
and distribute 2005 program funds under the Texas Capital Fund. The amendments
are being proposed to make changes to the application and selection criteria
for the programs available under the Texas Capital Fund.
Charles S. Stone, Executive Director of the Office, has determined that
for the first five-year period the amendments are in effect there will be
no fiscal implications for state or local government as a result of enforcing
or administering the amended section.
Mr. Stone also has determined that for the period that the amendments are
in effect, the public benefit as a result of enforcing the amended section
will be the equitable allocation of CDBG non-entitlement area funds to eligible
units of general local government in Texas. There will be an effect on small
businesses or micro-businesses as two new programs are being proposed to assist
small businesses and micro-businesses. There are no anticipated economic costs
to persons who are required to comply with the amendments as proposed. There
is an anticipated impact on local employment if new jobs are created or retained
under the proposed new microenterprise and small business programs.
Comments on the proposal may be submitted to Jerry Hill, General Counsel,
Office of Rural Community Affairs, P.O. Box 12877, Austin, Texas 78711, telephone:
(512) 936-6701. Comments will be accepted for 30 days following the date of
publication of this proposal in the
Texas Register
.
The amendments are proposed under §487.052 of the Government
Code, which provides the executive committee with the authority to adopt rules
concerning the implementation of the Office's responsibilities.
No other code, article, or statute is affected by the proposed amendments.
§255.7.Texas Capital Fund.
(a)
General Provisions. This fund covers projects which will
result in either an increase in new, permanent employment within a community
or retention of existing permanent employment. Under the main street improvements
and downtown revitalization programs,
[
program,
] projects
must qualify to
[
may also qualify if they
] meet the national
program objective of aiding in the prevention or elimination of slum or blighted
areas.
(1)
(No change.)
(2)
If the project is designed to aid in the prevention or
elimination of slum or blighted areas, then it must meet the area slum or
blight or spot slum or blight criteria and threshold requirements outlined
in the separate main street
or downtown revitalization
program
applications
[
application
].
(3)
(No change.)
(4)
The leverage ratio between all funding sources to the Texas
Capital Fund (TCF) request may not be less than 1:1 for awards of $750,000
or less; and 4:1 for awards of $750,000 to $1,000,000.
The main street
and downtown revitalization programs require a minimum 0.1:1 match.
[
The main street program requires a minimum 0.2:1 match. The downtown revitalization
program requires a minimum 0.1:1 match.
]
(5)
(No change.)
(6)
No financial assistance will be provided to projects involved
in the relocation of any industrial or commercial plant, facility or operation,
from one state to another state, if the relocation is likely to result in
a significant loss of employment in the labor market area from which the relocation
occurs. No assistance will be provided for projects intended to facilitate
the relocation of any industrial or commercial plant, facility or operation
from one unit of general local government within Texas to another unit of
general local government within Texas unless a 10% net gain of jobs will occur
and one [
or more
] of the following requirements has been met prior
to submitting an application for consideration under this section:
(A)
(No change.)
[(B)
Business to relocate out-of state. Business
must provide written documentation between business and out-of-state contact
verifying the business has secured out-of-state location.]
(B)
[
(C)
] Local government notification
with no response. Local government must provide written documentation that
a letter has been mailed (by registered mail) to the local government from
which the business is relocating, notifying it of the relocation. The local
government, upon receipt of the notification, then has 30 days to object to
the relocation, in writing, to the TDA before the TCF application can be considered.
A written objection to a relocation from a local government will prevent the
application from being considered.
(7) - (8)
(No change.)
(9)
The TDA may consider applications in the real estate
and infrastructure improvement programs that provide funding to benefit a
maximum of three (3) businesses.
[
With the exception of the main
street program and the downtown revitalization program, the TDA will only
consider applications that provide funding for one business.
]
(10)
The TDA will consider a project proposed by a city that
is in the city's corporate limits or its extraterritorial jurisdiction, and
will consider a project proposed by a county that is in the unincorporated
area of the county. Counties may not sponsor an application for a business
located in a city, if that business is currently participating in a TCF project
with that city. TDA may consider providing funding for an economic development
project proposed by a city that is outside the city's corporate limits or
extraterritorial jurisdiction, but within the county
or contiguous counties
(not to exceed five (5) miles beyond the city's extra-territorial jurisdiction
that the city is located
in
and will consider a project
proposed by a county that is within an incorporated city, if the applicant
demonstrates that the project is appropriate to meet its needs, if the applicant
has the legal authority to engage in such a project and if at least fifty-one
percent (51%) of the principal beneficiaries reside within the applicant's
jurisdiction.
(11)
A TCF contractor must satisfactorily close out a contract
in support of a specific business, downtown revitalization project, or main
street project in order to be eligible to receive additional funds under the
TCF for the same business, downtown project, or main street city. The contractor
is eligible for an additional TCF award in support of a specific business,
provided that the prerequisite program income choice has been selected, if
the assisted business is not in the designated main street
or downtown
business district
geographic area [
or if the main street project
selected the elimination of slums and blight as its national program objective
] and the assisted business will create or retain jobs to meet the national
program objective.
(12)
(No change.)
(13)
The minimum and maximum award amount that may be requested/awarded
for a project funded under the TCF infrastructure or real estate development
programs, regardless of whether the application is submitted by a single applicant
or jointly by two or more eligible jurisdictions is addressed here. Award
amounts are directly related to the number of jobs to be created/retained
and the level of matching funds in a project. Projects that will result in
a significantly increased level of jobs created/retained and a significant
increase in the matching capital expenditures may be eligible for a higher
award amount, commonly referred to as jumbo awards. TCF monies are not specifically
reserved for projects that could receive the increased maximum award amount,
however, jumbo awards may not exceed $2 million in total awards during the
program year. Additionally, no more than $1 million in jumbo awards will be
approved in any round. The maximum amount for a jumbo award is $1 million
and the minimum award amount is
$750,100
[
$750,001
].
The maximum amount for a normal award is $750,000 and the minimum award amount
is $50,000. These amounts are the maximum funding levels. The program can
fund only the actual, allowable, and reasonable costs of the proposed project,
and may not exceed these amounts. All projects awarded under the TCF program
are subject to final negotiation between TDA and the applicant regarding the
final award amount, but at no time will the award exceed the amount originally
requested in the application.
(14)
(No change.)
(b)
(No change.)
(c)
Application Dates. The TCF (except for the main street
program and the downtown revitalization program) is available
up to four
[
three
] times during the year, on a competitive basis, to
eligible applicants statewide. Applications for the main street program and
the downtown revitalization program are accepted annually. Applications will
not be accepted after 5:00 pm on the final day of submission. The application
deadline dates are included in the program guidelines.
(d)
(No change.)
(e)
Application process for the infrastructure and real estate
programs. The TDA will only accept applications during the months identified
in the program guidelines. Applications are reviewed after they have been
competitively scored. Staff makes recommendation for award to
the TDA
Commissioner. The TDA Commissioner
[
TDA executive director. TDA
executive director
] makes the final decision. The application and selection
procedures consist of the following steps:
(1) - (9)
(No change.)
(f)
Scoring criteria for the infrastructure and real estate
programs. There is a minimum 25-point threshold requirement. Applications
will be reviewed for feasibility in descending order based on the scoring
criteria. There are a total of 100 points possible.
(1)
(No change.)
(2)
Community Need (maximum 60 points). Measures the economic
distress of the applicant community.
(A) - (E)
(No change.)
(F)
Community Income (maximum 10 points). Ten points awarded
to communities that have a low and moderate income level for a 4 person household
that is in the bottom 90% of all county level 4 person low and moderate income
levels
, as provided in Appendix D of the application
.
(3)
Jobs (maximum 20 points).
(A)
Job Impact (maximum 10 points). Awarded by taking the business'
total job commitment, created & retained, and dividing by applicant's
2000 unadjusted population. This equals the job impact ratio. Score 5 points
if this figure exceeds the median job impact ratio for prior years; and score
10 points if this figure exceeds 200% of the ratio. County applicants should
deduct the 2000 census population amounts for all incorporated cities, except
in the case where the county is sponsoring an application for a business that
is or will be located in an incorporated city. In this case the city's population
would be used, rather than the county's.
Community population figures
are net of the population held in adult or juvenile correctional institutions,
as shown in the 2000 census data.
(B)
(No change.)
(4)
(No change.)
(g)
(No change.)
(h)
Application process for the main street program. The application
and selection procedures consist of the following steps:
(1) - (7)
(No change.)
(8)
The contract is drafted and then reviewed by management
and legal prior to two copies being mailed to award recipient. Upon receipt,
[
unless an extension is granted,
] award recipient has 30 days to
review and execute both copies. Once returned to TDA, the contract will be
fully executed by the Commissioner or the Commissioner's designee and then
a single copy is returned to contractor.
(i)
Scoring criteria for the main street program. There is
a minimum 25-point threshold requirement. Applications will be reviewed for
feasibility and placed in descending order based on the scoring criteria.
There is a total of 100 points possible.
(1)
In the event of a tie score,
the following tie breaker
criteria will be used.
[
applications are ranked from the lowest
to the highest based on the current aggregate available balance, from all
existing open TCF contracts. Thus, an applicant that has a TCF project balance
of $250,000 in existing projects would be ranked above one having a balance
of $600,000.
]
(A)
The tying applications are ranked from
lowest to highest based on the applicant's most recently available annual
county poverty rate, as provided in Appendix A of the application. Thus, preference
is given to the applicant with the higher poverty rate.
(B)
If a tie still exists after applying the
first criteria, then applications are ranked from lowest to highest based
on the most recently available, quarterly, city unemployment rate provided
by the Texas Workforce Commission. Thus, preference is then given to the applicant
with the higher unemployment rate.
(2)
Project Feasibility (maximum 70 points). Measures the applicant's
potential for a successful project. Each applicant must submit detailed and
complete support documentation for each category. Compliance with the ten
criteria for Main Street Recognition is required. First year Main Street Cities
must receive prior approval from THC to apply and must submit the Main Street
Criteria for Recognition Survey with the TCF application. The criteria include
the following:
(A)
Broad-based public support for
the proposed project
[
commercial district revitalization
]--(
10
[
5
] points). [
Each letter of support is worth one-half of a point.
To receive any points in this category, the applicant must submit a letter
of support from the County Historical Commission.
] Show letters of support
from the following:
(i)
one (1) letter from the County Historical Commission
(A letter of support from the County Historical Commission is required to
receive any points in this category.)
(ii)
Score 5 points for letters from 50% or more of the
businesses and/or property owners in the designated Main Street program area.
Score 10 points for letters from 75% of the businesses in the designated Main
Street program area.
[
five (5) letters from merchants and/or property
owners in the affected area
]
[(iii)
two (2) letters from civic organizations]
[(iv)
two (2) letters from other local organizations
that are stakeholders]
(B)
Infrastructure Project Plan--(
10
[
5
]
points). Show the city's plan for dealing with an infrastructure project.
Develop a plan for access to local business during the infrastructure project.
Provide public notification to support the project.
[(C)
Identification of goals--(10 points).
Identify long-term downtown infrastructure plan. List in broad terminology
the goals of the project. Indicate in detail how the project is a component
of the overall downtown infrastructure plan. How do the goals of this project
tie into the overall goals of the city's Main Street program.]
(C)
[
(D)
] ADA Compliance Goals--(10 points).
Does the project address ADA accessibility issues. How will ADA issues be
addressed in the project. If project does not address ADA compliance issues,
is the Main Street District in compliance with Federal ADA standards.
If the project does not address ADA compliance, no points will be awarded
for this category. Partial points may be awarded depending upon the degree
in which the project addresses ADA compliance issues.
[(E)
Adequate operating budget--(10 points).
To be successful, a Main Street program must have the financial resources
necessary to carry out its work plan. The size of a program's budget will
change as the program matures and is likely to vary according to regional
economic differences and community economic differences. Please attach a copy
of your operating budget, plus any other funding you have accessed this year.
If your budget information is included with other city departments, please
separate yours from the others. Please also include the Main Street manager's
salary and whether the position is staffed on a full-time or part-time basis.]
(D)
[
(F)
] Historic Preservation Ethic
and Preservation Impact--Main Street's Role--(10 points). Preservation is
a major component of the Texas Historical Commission's Main Street program.
Officially designated cities
[
Cities
] are eligible for the
Texas Capital Fund grant based on their inclusion in the Texas Main Street
program.
Points will be awarded if the applicant has successfully addressed
the criteria as follows: if the applicant successfully addressed the issue
of enhancing historic assets and/or historic preservation goals, up to 5 points
may be awarded. If the applicant has demonstrated that they have a current
historic preservation ordinance, up to 3 points may be awarded based upon
the content of the ordinance. Up to 2 points may be awarded for historic preservation-related
programs or incentives.
The THC mission is "To protect and preserve
the state's historic and prehistoric resources for the use, education, enjoyment
and economic benefit of present and future generations." Therefore, in the
interest of accomplishing our mission, please answer the following:
(i)
Describe how the proposed Texas Capital Fund project
enhances your historic assets or historic preservation goals.
[
Is the community a designated Certified Local Government?
]
(ii)
Does the city have a
current historic
preservation
ordinance?
(iii)
Does the city have
any historic preservation related
programs or incentives?
[
a landmark Commission of a Preservation
Review Board?
]
(iv)
List any building demolitions within your Main Street
project area during the past five years. If you had any building demolitions
in the past five years, what was the age of the buildings that were demolished?
[
Does the city have a Main Street Low Interest Loan Program?
]
[(v)
Does the city have a Main Street Façade
Improvements Grant Program?]
[(vi)
Does the city have an active County
Historical Commission? If so, please provide a copy of the minutes from the
last meeting.]
[(vii)
Does the city have a local marker program?]
[(viii)
Does the city have a National Register
District?]
[(ix)
Does the city have any historical markers?
If so, how many?]
[(x)
Does the city have a recorded Texas historic
landmark? If so, when was the last designation?]
[(xi)
Does the city have Main Street design
guidelines in place?]
[(xii)
Does the city have a downtown survey?]
[(xiii)
Does the city have a current building
survey?]
[(xiv)
Does the city have a preservation master
plan?]
[(xv)
Does the city have a historic driving
or walking tour?]
[(xvi)
Does the city have a Junior Main Street
Board?]
[(xvii)
List and building demolitions during
the past five years. If you had any building demolitions in the past five
years, what was the age of the buildings that were demolished?]
(E)
[
(G)
]
State Enterprise Zone
and Economic Development Consideration--(10 points) Four points will be awarded
if the city has a nominated or active Enterprise Zone project. Three points
will be awarded if the city has the economic development sales tax (4A, 4B
or both). Three points may be awarded for other viable economic development
programs the city offers in order to further realize its full economic development
potential. Please document any other economic development programs and strategies
that your city is engaged in.
[
Project Impact--State Enterprise
Zone--(5 points)
]
(F)
[
(H)
]
Community Size
[
Community Development Potential
]--(10 points).
Score 5 points if
the population of the city is 12,000 or less; score additional 5 points if
the population is less than 4,000, using 2000 census data. City population
figures are net of the population held in adult or juvenile correctional institutions,
as shown by the 2000 census data.
[
In this category scoring members
rank the cities on the following factors:
]
[(i)
economic development need]
[(ii)
potential for economic development]
[(iii)
geographic distribution]
[(iv)
feasibility of proposed Texas Capital
Fund project]
[(v)
community need for the project]
(G)
[
(I)
]
Main Street Program Participation
[
Local Main Street program training
]--(5 points).
Points are awarded on the applicant's continuous participation in the Main
Street program as follows: For every two years of continuous participation
in the Main Street program, the applicant will be awarded 1 point. Points
will only be awarded for every two consecutive years and will not be broken
into half points for increments other than two-year increments. If a city
leaves the Main Street program and then returns at a later date, "continuous
participation" will be calculated from the date that they returned to the
program. Applicants will receive the maximum amount of points if they have
participated in the program for 10 continuous years.
[
Have the
Main Street manager and the Main Street board members completed the minimum
amount of annual training required in your Main Street contract? For this
category the points breakdown is as follows:
]
[(i)
Main Street manager completed training--3
points]
[(ii)
Board completed training--2 points]
(H)
Texas Capital Fund Grant Training--(5
points). Has a city representative attended a Texas Capital Fund Main Street
Improvements grant training workshop? At least one training workshop is held
prior to each application deadline. List the date attended and the location.
If the city is retaining a paid consultant to prepare the application, a city
representative will still be required to attend training in order to receive
the points in the category.
(3)
Applicant (maximum 30 points). There are
three
[
four
] applicant scoring categories each worth 5 to 10 points.
[(A)
Applicant is recognized as a National
Main Street city--(5 points)]
(A)
[
(B)
] Minority Hiring (maximum
10
[
5
] points). Measures applicant's hiring practices. Percentage
of minorities presently employed by the applicant divided by the percentage
of minority residents within the local community.
Score 10 points if
the applicant's minority employment rate is equal to or greater than the applicant's
community minority rate.
[
(In the event that the following conditions
apply: (1) The applicant has seven or fewer non-seasonal, full-time employees;
(2) 5% or more of the applicant's population base is living in group quarters
or institutions--the applicant is assigned the average score on this factor
or the actual score, whichever is higher.)
]
(B)
[
(C)
] Leverage (maximum 10 points).
A
10%
[
20%
] cash match is required for the grant. Additional
points will be given for additional matching funds. 10% additional match equals
5 points. 20% additional match equals 10 points. The additional match can
be cash and in-kind.
(C)
[
(D)
] Main Street
Standing
[
Reinvestment Statistics
] (maximum 10 points).
If the Main Street
program received National Recognition the prior year, 10 points will be awarded.
[
Based on private reinvestment in the Main Street area per capita
per year in the program. One point is given for each $10 of reinvestment per
capita. If over $100 per capita, then the applicant receives the maximum 10
points.
]
(j)
Threshold criteria for the main street program. In order
for its application to be considered, an applicant must meet the requirements
of either paragraph (1) or (2) and paragraph (3) of this subsection.
(1)
The national objective of aiding in the prevention or elimination
of
slum or blight
[
Slum or Blight
] on a spot basis.
To show how this objective will be met, the applicant must:
(A) - (B)
(No change.)
(2)
(No change.)
(3)
Main street designation. The applicant must be designated
by the THC as a Main Street City prior to submitting a TCF application for
main street improvements
and must remain a participating city for the
duration of the award/contract
.
(k)
Application process for the downtown revitalization program.
The TDA will only accept applications during the months identified in the
program guidelines. Applications are reviewed after they have been competitively
scored. Staff makes recommendation for award to TDA
Commissioner or the
Commissioner's designee
[
executive director
]. TDA
Commissioner
[
executive director
] makes the final decision. The application
and selection procedures consist of the following steps:
(1) - (4)
(No change.)
(l)
Scoring criteria for downtown revitalization program. There
are a total of 100 points.
(1)
In the event of a tie score and insufficient funds to approve
all applications, the following tie breaker criteria will be used.
(A)
The tying applications are ranked from lowest to highest
based on
applicant's most recently available annual county poverty rate,
as provided in Appendix A of the application
[
poverty rate stated
on the score sheet
]. Thus, preference is given to the applicant with
the higher poverty rate.
(B)
If a tie still exists after applying the first criteria
then applications are ranked from lowest to highest based on
the most
recently available, quarterly, city unemployment rate provided by the Texas
Workforce Commission
[
unemployment rate stated on the score sheet
]. Thus, preference is then given to the applicant with the higher unemployment
rate.
(2)
Maximum 100 points.
(A)
Unemployment (maximum 10 points). Five points awarded if
the applicant's unemployment rate (for cities, the most recently available
quarterly city rate will be used[
; for counties, the most recently available
quarterly county or census tract rate, for where the business site is located,
whichever is higher, will be used
]) is higher than the state rate, indicating
that the
city
[
community
] is economically below the
state average. Ten points awarded if the applicant's most recently available
quarterly unemployment rate is 1.5% over the state rate.
(B) - (D)
(No change.)
(E)
Community Population (maximum 10 points). Points are awarded
to applying cities with populations of 5,050 or less, using 2000 census data.
Score 5 points if the city is located in a county with a population of 35,000
or less; and score 5 additional points if the population of the city is less
than 5,050.
Community population figures are net of the population held
in adult or juvenile correctional institutions, as shown by the 2000 census
data.
(F)
Community Income (maximum 10 points). Ten points awarded
to communities that have a low and moderate income level for a 4 person household
that is in the bottom 90% of all county level 4 person low and moderate income
levels
, as provided in Appendix D of the application
.
(G)
(No change.)
(H)
Minority Hiring (maximum 10 points). Measures applicant's
hiring practices. Award 5 points if the city's minority employment rate is
equal to or greater than the community minority percentages rate. Award 10
points if the city's minority employment rate is equal to or greater than
125% of the community minority percentage rate
or in cities where the
minority population is 80% or greater, the applicant must employ 95% minorities
.
(I)
(No change.)
(J)
Sidewalks and
[
Sidewalks/
]ADA Compliance
(10 points).
Points awarded if a
[
A
] minimum of 70%
of the requested funds
will
[
must
] be used for
sidewalk and/or ADA compliance activities.
[
sidewalk/ADA compliance.
]
(m)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on March 16, 2005.
TRD-200501178
Charles S. Stone
Executive Director
Office of Rural Community Affairs
Earliest possible date of adoption: May 1, 2005
For further information, please call: (512) 936-6710