A person may request to be added to a mailing list for public notices processed through the Office of the Chief Clerk for air, water, and waste permitting activities at the TCEQ. You may request to be added to: (1) a permanent mailing list for a specific applicant name and permit number; and/or (2) a permanent mailing list for a specific county or counties.

Note that a request to be added to a mailing list for a specific county will result in notification of all permitting matters affecting that particular county.

To be added to a mailing list, send us your name and address, clearly specifying which mailing list(s) to which you wish to be added. Your written request should be sent to the TCEQ, Office of the Chief Clerk, Mail Code 105, P.O. Box 13087, Austin, TX 78711-3087.

Individual members of the public who wish to inquire about the information contained in this notice, or to inquire about other agency permit applications or permitting processes, should call the TCEQ Office of Public Assistance, Toll Free, at 1-800-687-4040.

TRD-200500120

LaDonna Castañuela

Chief Clerk

Texas Commission on Environmental Quality

Filed: January 11, 2005

Notice of Water Quality Applications

The following notices were issued during the period of January 5, 2005 through January 11, 2005.

The following require the applicants to publish notice in the newspaper. The public comment period, requests for public meetings, or requests for a contested case hearing may be submitted to the Office of the Chief Clerk, Mail Code 105, P.O. Box 13087, Austin Texas 78711-3087, WITHIN 30 DAYS OF THE DATE OF NEWSPAPER PUBLICATION OF THIS NOTICE.

529 #35, LTD. has applied for a renewal of TPDES Permit No. 13484-001, which authorizes the discharge of treated domestic wastewater at a daily average flow not to exceed 200,000 gallons per day. The facility is located 6,800 feet west of U.S. Highway 290, 2,900 feet south of Farm-to-Market Road 529 (Spencer Road), north of Fisher Road and east of Addicks Fairbanks Road on U.S. 65 in Harris County, Texas.

CITY OF DILLEY has applied for a renewal of TPDES Permit No. 10404-003, which authorizes the discharge of treated domestic wastewater at a daily average flow not to exceed 800,000 gallons per day. The facility is located approximately 3,000 feet east along Crawford Road from the intersection of White Street and Houston Street in Frio County, Texas.

HORNSBY BEND UTILITY COMPANY, INC. has applied for a renewal of TPDES Permit No. 13138-001, which authorizes the discharge of treated domestic wastewater at a daily average flow not to exceed 900,000 gallons per day. The facility is located approximately 1.3 miles south-southeast of the intersection of Farm-to-Market Road 969 and Hunter Bend Road, and approximately 2.3 miles southeast of the intersection of Farm-to-Market Roads 969 and 973 in Travis County, Texas.

CITY OF LOCKHART AND GUADALUPE-BLANCO RIVER AUTHORITY have applied for a renewal of TPDES Permit No. 10210-001, which authorizes the discharge of treated domestic wastewater at an annual average flow not to exceed 1,100,000 gallons per day. The facility is located at 108 Larremore Street in the City of Lockhart in Caldwell County, Texas.

WHITESTONE HOUSTON LAND, LTD. has applied for a new permit, proposed Texas Pollutant Discharge Elimination System (TPDES) Permit No. WQ0014559001, to authorize the discharge of treated domestic wastewater at a daily average flow not to exceed 900,000 gallons per day. The facility is located approximately 3,800 feet south of the intersection of Roman Forest Boulevard and U. S. Highway 59 in Montgomery County, Texas.

WHITESTONE HOUSTON LAND, LTD., Two Galleria Tower, 13455 Noel Road, Floor 23, Dallas, Texas 75240-6620, has applied for a new permit, proposed Texas Pollutant Discharge Elimination System (TPDES) Permit No. WQ0014560001, to authorize the discharge of treated domestic wastewater at a daily average flow not to exceed 900,000 gallons per day. The facility will be located approximately 4,300 feet south of Roman Forest Boulevard and 8,500 feet east of the intersection of U.S. Highway 59 and Caney Creek in Montgomery County, Texas.

TRD-200500121

LaDonna Castañuela

Chief Clerk

Texas Commission on Environmental Quality

Filed: January 11, 2005

Notice of Water Rights Application

Notice mailed January 6, 2005

APPLICATION NO. 5555B; The Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas, 78744-3291, seeks an amendment to a Water Use Permit pursuant to Texas Water Code 11.122 and Texas Commission on Environmental Quality Rules 30 Texas Administrative Code (TAC) 295.1, et seq. Water Use Permit No. 5555 authorizes the permittee to maintain a 112 acre wetland area with a storage capacity of not to exceed 168 acres-feet of water in Nacogdoches County. The permittee is also authorized to capture the flood flows, in an amount not to exceed 168 acre-feet of water from Moral Creek, Alazan Bayou, and the Angelina River, tributary of the Neches River, Neches River Basin for wetland purposes. An amendment to the permit, designated as Water Use Permit No. 5555A, further authorizes the owner to divert an additional 300 acre-feet of water from Alazan Bayou at a maximum diversion rate of 13.3 cfs (6,000 gpm) to maintain the wetlands. Several priority dates and special conditions apply. Staff supported granting Water Use Permit No. 5555A on a term basis, but the amendment was erroneously issued on a perpetual basis. Pursuant to an upstream contract with the Lower Neches Valley Authority (LNVA), based on LNVA's Certificate of Adjudication No. 06-4411, the Texas Parks and Wildlife Department has applied for an amendment to Water Use Permit No. 5555 for authorization to divert up to 10,000 acre-feet of water from Moral Creek, tributary of Bayou Loco, tributary of the Angelina River, tributary of the Neches River, Neches River Basin for management of wildlife species and associated habitats located in the Alazan Bayou Wildlife Management Area, Nacogdoches County. Water levels will be maintained in the wetlands through the winter months, and all water not consumed will be released back into Moral Creek. Water will be diverted from a point 10.67 miles southwest from the City of Nacogdoches, also being Latitude 31.4895 N, Longitude 94.7469, bearing 132 degrees, 5100 feet from the northwest corner of the Blount Estate Original Survey, Abstract 8555, in Nacogdoches County at a maximum diversion rate of 14.5 cfs (6500 gpm). The Commission will review the application as submitted by the applicant and may or may not grant the application as requested. The application was received on July 1, 2004. Additional fees and information were received on August 13, October 1, and October 25, 2004. The application was accepted for filing and declared administratively complete on November 3, 2004. Written public comments and requests for a public meeting should be submitted to the Office of Chief Clerk, at the address provided in the information section below, within 30 days of the date of newspaper publication of the notice.

INFORMATION SECTION

A public meeting is intended for the taking of public comment, and is not a contested case hearing. A public meeting will be held if the Executive Director determines that there is a significant degree of public interest in an application.

The Executive Director can consider approval of an application unless a written request for a contested case hearing is filed. To request a contested case hearing, you must submit the following: (1) your name (or for a group or association, an official representative), mailing address, daytime phone number, and fax number, if any: (2) applicant's name and permit number; (3) the statement "[I/we] request a contested case hearing;" and (4) a brief and specific description of how you would be affected by the application in a way not common to the general public. You may also submit any proposed conditions to the requested application which would satisfy your concerns. Requests for a contested case hearing must be submitted in writing to the TCEQ Office of the Chief Clerk at the address provided in the information section below.

If a hearing request is filed, the Executive Director will not issue the requested permit and may forward the application and hearing request to the TCEQ Commissioners for their consideration at a scheduled Commission meeting.

Written hearing requests, public comments or requests for a public meeting should be submitted to the Office of the Chief Clerk, MC 105, TCEQ, P.O. Box 13087, Austin, TX 78711-3087. For information concerning the hearing process, please contact the Public Interest Counsel, MC 103, at the same address. For additional information, individual members of the general public may contact the Office of Public Assistance at 1-800-687-4040. General information regarding the TCEQ can be found at our web site at www.tceq.state.tx.us.

TRD-200500119

LaDonna Castañuela

Chief Clerk

Texas Commission on Environmental Quality

Filed: January 11, 2005

Proposal for Decision

The State Office of Administrative Hearings issued a Proposal for Decision and Order to the Texas Commission on Environmental Quality on January 10, 2005, in the matter of the Executive Director of the Texas Commission on Environmental Quality, Petitioner v. Wendell Reeder, Clarksville, Oil & Gas Co., Midway Armadillo Corporation, Harry M. Fox dba H & F Realty, and Feroz Abdul Sattar dba Key Food Truck Stop; SOAH Docket No. 582-01-2912; TCEQ Docket No. 1999-1048-PST-E. The commission will consider the Administrative Law Judge's Proposal for Decision and Order regarding the enforcement action against Wendell Reeder, Clarksville, Oil & Gas Co., Midway Armadillo Corporation, Harry M. Fox dba H & F Realty, and Feroz Abdul Sattar dba Key Food Truck Stop on a date and time to be determined by the Office of the Chief Clerk in Room 201S of Building E, 12100 N. Interstate 35, Austin, Texas. This posting is Notice of Opportunity to Comment on the Proposal for Decision and Order. The comment period will end 30 days from date of this publication. Written public comments should be submitted to the Office of the Chief Clerk, MC-105, TCEQ, P.O. Box 13087, Austin, Texas 78711-3087. If you have any questions or need assistance, please contact Paul Munguía, Office of the Chief Clerk, (512) 239-3300.

TRD-200500123

LaDonna Castañuela

Chief Clerk

Texas Commission on Environmental Quality

Filed: Janurary 11, 2005

Department of State Health Services

Notice of Agreed Order with Apex Geoscience, Inc.

On January 10, 2005, the Radiation Program Officer, Department of State Health Services (department), approved the settlement agreement between the department and Apex Geoscience, Inc. (licensee-L04929) of Tyler. A total administrative penalty in the amount of $4,500 was assessed the licensee for violations of 25 Texas Administrative Code, Chapter 289. Of the total administrative penalty, $2,500 will be probated for a period of one year, and will be forgiven if the registrant complies with additional settlement agreement requirements.

A copy of all relevant material is available, by appointment, for public inspection at the Department of State Health Services, Exchange Building, 8407 Wall Street, Austin, Texas, telephone (512) 834-6688, Monday-Friday, 8:00 a.m. to 5:00 p.m. (except holidays).

TRD-200500126

Cathy Campbell

Director, Legal Services

Department of State Health Services

Filed: January 12, 2005

Notice of Default Order Against Dwayne Lackey, D.D.S.

On January 10, 2005, the Radiation Program Officer, Department of State Health Services (department), signed a Default Order against Dwayne Lackey, D.D.S. (unregistered) of Terrell. A total administrative penalty in the amount of $8,000 was assessed Doctor Lackey for violations of 25 Texas Administrative Code, Chapter 289.

TRD-200500127

Cathy Campbell

Director, Legal Services

Department of State Health Services

Filed: January 12, 2005

Notice of Default Order Against Eastex Veterinary Clinic

On January 10, 2005, the Radiation Program Officer, Department of State Health Services (department), signed a Default Order against Eastex Veterinary Clinic (unregistered) of Beaumont. A total administrative penalty in the amount of $8,000 was assessed the clinic for violations of 25 Texas Administrative Code, Chapter 289.

TRD-200500128

Cathy Campbell

Director, Legal Services

Department of State Health Services

Filed: January 12, 2005

Notice of Default Order Against Heart Institute for C.A.R.E., P.A.

On January 10, 2005, the Radiation Program Officer, Department of State Health Services (department), signed a Default Order against Heart Institute for C.A.R.E., P.A. (registrant - R04712) of Amarillo. A total administrative penalty in the amount of $9,000 was assessed the registrant for violations of 25 Texas Administrative Code, Chapter 289.

TRD-200500129

Cathy Campbell

Director, Legal Services

Department of State Health Services

Filed: January 12, 2005

Notice of Default Order Against Onys Burke Henley, dba Henley Enterprises

On January 10, 2005, the Radiation Program Officer, Department of State Health Services (department), signed a Default Order against Onys Burke Henley, doing business as Henley Enterprises (licensee - L05372) of Waco. A total administrative penalty in the amount of $4,000 was assessed the licensee for violations of 25 Texas Administrative Code, Chapter 289.

TRD-200500130

Cathy Campbell

Director, Legal Services

Department of State Health Services

Filed: January 12, 2005

Notice of Request for Proposals for Zoonosis Control Group's Animal Friendly Grants for the Spay/Neuter Project

INTRODUCTION

The Department of State Health Services (department), Zoonosis Control Group announces a Request for Proposals (RFP) for the sterilization of dogs and cats owned by the public. The RFP will be released on or about February 1, 2005.

PURPOSE

The department's Zoonosis Control Group announces the expected availability of fiscal year 2006 state funds from the sale of Animal Friendly license plates to provide grants for the sterilization of dogs and cats owned by the public at no or minimal cost.

PERIOD OF PROJECT

It is expected that the contract will begin on or about September 1, 2005, and will be made for a twelve-month budget period within a project period of two years.

AVAILABLE FUNDS

Approximately $250,000 is expected to be available to fund multiple contracts. One grant award per project period will be awarded per agency for the sterilization of dogs and/or cats in a minimum amount of $1,000 to a maximum amount of $50,000 per contract period. The specific dollar amount awarded to each applicant depends upon the merit and scope of the proposed project.

ELIGIBLE APPLICANTS

Eligible applicants include: a private or public animal shelter (releasing agency); an organization that is qualified as a charitable organization under Internal Revenue Code, §501(c)(3), that has animal welfare or sterilizing dogs and cats owned by the general public at minimal or no cost as its primary purpose; or a local nonprofit veterinary medical association - an organization setup by and comprised of several volunteer veterinarians in their immediate region for the purpose of presenting continuing education, planning group activities, or discussing issues common to their professional field, and has an established program for sterilizing dogs and cats owned by the general public at minimal or no cost. If an applicant is currently debarred, suspended, or otherwise excluded or ineligible for participation in federal or state assistance programs, the applicant is ineligible to apply for funds under this RFP.

SCHEDULE OF EVENTS

Issuance of the RFP on or about February 1, 2005

Application Deadline on or about March 28, 2005

Award Notification on or about May 11, 2005

Contract Start Date on or about September 1, 2005

TO OBTAIN A COPY OF THE RFP

All agencies that plan to submit an application are requested to submit a Letter of Intent, on their official letterhead, to Pamela Ferguson, Enterprise Contract and Procurement Services Division, Room T-502, Department of State Health Services, 1100 West 49th Street, Austin, Texas 78756-3199. The deadline for submitting Letters of Intent is 2:00 p.m., Central Standard Time, on January 24, 2005. NOTE : Submitting a Letter of Intent does not commit the agency to submitting a proposal.

It is preferred that a request to obtain a copy of the RFP, scheduled for release on or about February 1, 2005, be downloaded from DSHS'S, Zoonosis Control Group's website at www.tdh.state.tx.us/zoonosis/RESPPET/anifriend/anifrien.asp, or the Electronic State Business Daily (ESBD) website at http://esbd.tbpc.state.tx.us. Those organizations without Internet access may obtain a copy of the RFP by contacting their regional Department of State Health Services Zoonosis Control Program.

CONTACT PERSON

All communications concerning the RFP shall be addressed in writing, by fax or by E-mail to Pamela Ferguson, Enterprise Contract and Procurement Services Division, Room T-502, Department of State Health Services, 1100 West 49th Street, Austin, Texas, 78756-3199, Fax: (512) 458-7351, e-mail: pam.ferguson@dshs.state.tx.us.

TRD-200500131

Cathy Campbell

Director, Legal Services

Department of State Health Services

Filed: January 12, 2005

Texas Department of Housing and Community Affairs

Multifamily Housing Revenue Bonds (Langwick Senior Community) Series 2005

Notice is hereby given of a public hearing to be held by the Texas Department of Housing and Community Affairs (the "Issuer") at Calvery Elementary School, 1925 Marvel Drive, Houston, Texas 77032, at 6:00 p.m. on February 7, 2005 with respect to an issue of tax-exempt multifamily residential rental development revenue bonds in an aggregate principal amount not to exceed $13,350,000 and taxable bonds, if necessary, in an amount to be determined, to be issued in one or more series (the "Bonds"), by the Issuer. The proceeds of the Bonds will be loaned to Langwick Seniors, L.P., a limited partnership, or a related person or affiliate thereof (the "Borrower") to finance a portion of the costs of acquiring, constructing and equipping a multifamily housing development (the "Development") described as follows: 248-unit multifamily residential rental development to be located approximately the 900 block of Langwick Drive, Harris County, Texas. The Development initially will be owned by the Borrower.

All interested parties are invited to attend such public hearing to express their views with respect to the Development and the issuance of the Bonds. Questions or requests for additional information may be directed to Robbye Meyer at the Texas Department of Housing and Community Affairs, 507 Sabine, Austin, Texas 78701; (512) 475-2213; and/or robbye.meyer@tdhca.state.tx.us.

Persons who intend to appear at the hearing and express their views are invited to contact Robbye Meyer in writing in advance of the hearing. Any interested persons unable to attend the hearing may submit their views in writing to Robbye Meyer prior to the date scheduled for the hearing. Individuals who require a language interpreter for the hearing should contact Robbye Meyer at least three days prior to the hearing date. Personas que hablan español y requieren un intérprete, favor de llamar a Jorge Reyes al siguiente número (512) 475-4577 por lo menos tres días antes de la junta para hacer los preparativos apropiados.

Individuals who require auxiliary aids in order to attend this meeting should contact Gina Esteves, ADA Responsible Employee, at (512) 475-3943 or Relay Texas at (800) 735-2989 at least two days before the meeting so that appropriate arrangements can be made.

TRD-200500137

Edwina P. Carrington

Executive Director

Texas Department of Housing and Community Affairs

Filed: January 12, 2005

Multifamily Housing Revenue Bonds (Rolling Creek Apartments) Series 2005

Notice is hereby given of a public hearing to be held by the Texas Department of Housing and Community Affairs (the "Issuer") at Bane Elementary School, 5805 Kaiser, Houston, Texas 77040, at 6:00 p.m. on February 15, 2005 with respect to an issue of tax-exempt multifamily residential rental development revenue bonds in an aggregate principal amount not to exceed $14,160,000 and taxable bonds, if necessary, in an amount to be determined, to be issued in one or more series (the "Bonds"), by the Issuer. The proceeds of the Bonds will be loaned to Rolling Creek Apartments, LP, a limited partnership, or a related person or affiliate thereof (the "Borrower") to finance a portion of the costs of acquiring, constructing and equipping a multifamily housing development (the "Development") described as follows: 248-unit multifamily residential rental development to be located at approximately the 7800 block of Fairbanks North Houston Road approximately 315 feet north of the northeast corner of Fairbanks North Houston Road and Summertree Drive, Harris County, Texas. The Development initially will be owned by the Borrower.

TRD-200500136

Edwina P. Carrington

Executive Director

Texas Department of Housing and Community Affairs

Filed: January 12, 2005

Multifamily Housing Revenue Bonds (Tower Ridge Apartments) Series 2005

Notice is hereby given of a public hearing to be held by the Texas Department of Housing and Community Affairs (the "Issuer") at Corinth Elementary School, 3501 Cliff Oaks Drive, Corinth, Texas 76210, at 6:00 p.m. on February 8, 2005 with respect to an issue of tax-exempt multifamily residential rental development revenue bonds in an aggregate principal amount not to exceed $15,000,000 and taxable bonds, if necessary, in an amount to be determined, to be issued in one or more series (the "Bonds"), by the Issuer. The proceeds of the Bonds will be loaned to Tower Ridge Corinth 1, Ltd., a limited partnership, or a related person or affiliate thereof (the "Borrower") to finance a portion of the costs of acquiring, constructing and equipping a multifamily housing development (the "Development") described as follows: 224-unit multifamily residential rental development to be located on the west side of Tower Ridge Road, approximately the 2000 block of Tower Ridge Road, Denton County, Texas. The Development initially will be owned by the Borrower.

TRD-200500138

Edwina P. Carrington

Executive Director

Texas Department of Housing and Community Affairs

Filed: January 12, 2005

Multifamily Housing Revenue Bonds (Willow Creek Apartments) Series 2005

Notice is hereby given of a public hearing to be held by the Texas Department of Housing and Community Affairs (the "Issuer") at Northpointe Intermediate School, 11855 Northpointe Boulevard, Tomball, Texas 77377, at 6:00 p.m. on February 16, 2005 with respect to an issue of tax-exempt multifamily residential rental development revenue bonds in an aggregate principal amount not to exceed $14,100,000 and taxable bonds, if necessary, in an amount to be determined, to be issued in one or more series (the "Bonds"), by the Issuer. The proceeds of the Bonds will be loaned to Willow Creek Apartments, L.P., a limited partnership, or a related person or affiliate thereof (the "Borrower") to finance a portion of the costs of acquiring, constructing and equipping a multifamily housing development (the "Development") described as follows: 248-unit multifamily residential rental development to be located at 11743 Northpointe Boulevard, Harris County, Texas. The Development initially will be owned by the Borrower.

TRD-200500135

Edwina P. Carrington

Executive Director

Texas Department of Housing and Community Affairs

Filed: January 12, 2005

Notice of Funding Availability

HOME Investment Partnerships Program

PY 2005 Contract for Deed Conversion Funding Cycle

The Texas Department of Housing and Community Affairs (Department) announces the availability of approximately $6,000,000 for the 2005 Contract for Deed Conversion Set Aside funding cycle for the HOME Investment Partnerships Program (HOME). The availability and use of these funds is subject to the State HOME Rules (10 TAC Chapter 53) and the Federal HOME regulations governing the HOME Program (24 CFR Part 92).

ALLOCATION OF HOME CONTRACT FOR DEED CONVERSION FUNDS (CFDC)

The HOME Program provides state and local government with choices in respect to the allocation of HOME funds. The 78th Texas Legislature passed Appropriations Rider 10: a legislative directive requiring the Department to spend no less than $4 million for the biennium on contract for deed conversions for families that reside in a Colonia and earn less than 60 percent of the Area Median Family Income (AMFI). The CFDC Program helps Colonia families convert their contract for deed into a traditional note and deed.

Eligible homeowners must be permanent residents of the United States. The property must be located in a Colonia as defined in Section 2306.581, Texas Government Code. A Colonia is defined as a geographic area located in a county some part of which is within 150 miles of the international border of this state that has a majority population composed of individuals and families of low income and very low income, based on the federal Office of Management and Budget poverty index, and meets the qualifications of an economically distressed area under §17.921, Texas Water Code; or has the physical and economic characteristics of a Colonia, as determined by the Texas Water Development Board.

ELIGIBLE ACTIVITIES

The Contract for Deed Conversion Set Aside funds will be awarded on a first-come, first-serve basis to provide acquisition assistance to convert a contract for deed to a conventional note and deed, or acquisition assistance to convert a contract for deed to a conventional note and deed and assistance to rehabilitate the unit.

* Acquisition, in the form of costs related to the prepayment of existing contract for deeds and costs related to the conversion; or

* Acquisition and Rehabilitation, in the form of costs related to the prepayment of existing contract for deed and costs related to the conversion, and rehabilitation costs associated with bringing the home up to Colonia Housing Standards.

ELIGIBLE APPLICANTS

The Department provides HOME funds for the Contract for Deed Conversion Set-a-SideSet Aside to the following eligible recipients:

* Units of General Local Government;

* Nonprofits; and

* Public Housing Authorities (PHAs).

Under the Contract for Deed Conversion Set-a-Side, the Department will provide grant or loan funds to eligible Colonia residents for contract for deed conversion, to extremely low and very low income individuals and families.

The Department will score applications on a first-come, first-serve basis and make funding recommendations based on the availability of funds.

Funds will be awarded in accordance with the rules and procedures as set forth in the State of Texas HOME Program rules at 10 TAC §§53.50-53.63.

DESCRIPTION OF ACTIVITY

Under the HOME Contract for Deed Conversion Set Aside, the Department will provide grant or loan funds to eligible recipients for contract for deed conversion or Contract for Deed Conversion with rehabilitation in order to, at a minimum, bring the unit up to Colonia Housing Standards.

Approximately $6,000.000 of HOME Contract for Deed Conversion funds is available. CFDC funds are not subject to the Regional Allocation Formula.

COMPETITIVE REVIEW OF APPLICATIONS

HOME project funds will be awarded per State of Texas HOME Program Rules, 10 TAC §§53.50-53.63. General Selection Criteria is listed in the State of Texas HOME Program Rules, 10 TAC §§53.50-53.63 and forms the basis for the State’s development of scoring criteria for each Activity. Scoring criteria will include the implementation of various bills, riders, and agency goals, which will be defined in the application process. The Department will conduct the review and scoring of all applications, and make recommendations for funding.

SELECTION PROCESS

APPLICATION PROCEDURES, FINAL FILING

The HOME Application Guide will be available on the Department’s website at www.tdhca.state.tx.us on Friday, February 11, 2005, under What’s New or you may call (512) 475-3993 to request an application copy on or after Friday, February 11, 2005. Applications must be on forms provided by the Department, and cannot be altered or modified and must be in final form before submitting them to the Department.

There is no deadline for submitting a COMPLETE application and application fee. A complete application should be submitted when the Applicant is ready to administer a program. The FY 2005 Contract for Deed Conversion funding cycle will remain opened until all funds have been awarded. The Department will be accepting applications on an ongoing basis. Applications will be accepted on an ongoing basis until all funds have been awarded, or until the current state fiscal year ends on Wednesday, August 31st, 2005. Applications will be accepted, reviewed and recommended to the Department’s Board in accordance with Department’s process for handling Open Cycle Applications detailed at §53.58 of the HOME Rule. Applications will not be accepted through facsimile.

Applications mailed via the U.S. Postal Service must must be mailed to:

Texas Department of Housing & Community Affairs

Single Family Finance Production Division

P.O. Box 13941

Austin, Texas 78711-3941

Applications mailed by private carrier or hand-delivered will be received at the physical address of:

Texas Department of Housing & Community Affairs

Single Family Finance Production Division

507 Sabine, Suite 700

Austin, Texas 78701

Applications will not be accepted through facsimile.

Applicants are required to remit a non-refundable application fee payable to the Texas Department of Housing and Community Affairs in the amount of $30.00 per application. Please send check, cashier’s check or money order; do not send cash. Section 2306.147(b) of the Texas Government Code requires the Department to waive grant application fees for nonprofit organizations that offer expanded services such as child care, nutrition programs, job training assistance, health services, or human services. These organizations must include proof of their exempt status in lieu of the application fee. The application fee is not an eligible or reimbursable cost under the HOME Program.

Applications that do not meet the filing and application fee requirements will be returned to the Applicant and will not be considered for funding.

If an application contains deficiencies which, in the determination of Department staff, require clarification or correction of information submitted at the time of application, staff may request clarification or correction of such deficiencies. The Department may request clarification or correction in a deficiency notice in the form of a facsimile and a telephone call to the Applicant advising that such a request has been transmitted. If deficiencies are not clarified or corrected to the satisfaction of the Department within five business days of the deficiency notice date, five points shall be deducted from the score for each day the deficiency remains unresolved. If deficiencies are not clarified or corrected within seven business days from the deficiency notice date, then the application shall be terminated. The time period for responding to a deficiency notice begins at the start of the business day following the deficiency notice date.

An Applicant may appeal decisions made by the Department in accordance with 10 TAC Sections 1.7-1.8.

This NOFA does not include text of the various applicable regulatory provisions that may be important to the HOME Contract for Deed Conversion Program. For proper completion of the application, the Department strongly encourages potential Applicants to review the State and Federal regulations and to attend application training workshops.

APPLICATION WORKSHOPS

The Department will present one-day HOME Program Application Workshops that will provide an overview of the HOME Program and exclusively address the Contract for Deed Conversion Set Aside, application preparation and submission, evaluation criteria and information about the major Federal and State requirements that may affect a HOME project. The HOME Contract for Deed Conversion Application Workshop schedule and registration will be posted on the Department’s website at www.tdhca.state.tx.us on Friday, January 28, 2005.

RESOLUTION REQUIREMENTS

The Department requires that all applications submitted must include a resolution from the Applicant’s direct governing body (Board of Directors) authorizing the submission of the application.

AUDIT REQUIREMENTS

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

Individuals who require auxiliary aids or services should contact Gina Esteves, ADA Responsible Employee, at least two days before the scheduled workshop, at (512) 475-3943, or Relay Texas at 1-800-735-2989, so that appropriate arrangements can be made.

TRD-200500141

Edwina P. Carrington

Executive Director

Texas Department of Housing and Community Affairs

Filed: January 12, 2005

Notice of Funding Availability

HOME Investment Partnerships Program

PY 2005 Single Family Funding Cycle

The Texas Department of Housing and Community Affairs (Department) announces the availability of approximately $31,500,000 for the 2005 Single Family funding cycle for the HOME Investment Partnerships Program (HOME). The availability and use of these funds is subject to the State HOME Rules (10 TAC Chapter 53) and the Federal HOME regulations governing the HOME Program (24 CFR Part 92).

ALLOCATION OF PY 2005 FUNDS

Section 2306.111, Texas Government Code, mandates the Department to allocate housing funds awarded in the HOME Program to each Uniform State Service Region using the Regional Allocation Formula, developed by the Department.

Section 2306.111, Texas Government Code, also mandates the Department to allocate no less than 95 percent of the HOME Program Funds to applicants which serve households located in a non-participating jurisdiction (non-PJ). In addition, five percent of the HOME Program Funds are to be allocated to applicants serving persons with disabilities through either Multifamily or Single Family Activities. However, no Single Family Activities will be funded in a participating jurisdiction. All housing related applications intended to serve persons with disabilities must adhere to the Department's Integrated Housing Rule.

The Department has a goal of allocating 20% of the annual HOME allocation to applicants serving persons with special needs. Eligible applicants include nonprofits, units of general local government, and PHAs with documented histories of working with special needs populations. Eligible Activities include homebuyer assistance, owner occupied housing assistance, and tenant based rental assistance. Scoring criteria may be established under each of the eligible Activities to assist the Department in reaching its goal.

ELIGIBLE APPLICANTS

Units of General Local Government

Nonprofit Organizations

Public Housing Agencies (PHAs)

DESCRIPTION OF ACTIVITIES

American Dream Downpayment Initiative (ADDI)

Downpayment and closing cost assistance is provided to first time homebuyers for the acquisition of affordable single family housing.

Eligible first time homebuyers may receive loans up to $10,000 for down payment and closing costs. ADDI assistance will be in the form of a 2nd or 3rd lien, 0% interest, 10-year deferred forgivable loan. The loans are to be repaid at the time of resale of the property, refinance of the first lien, repayment of the first lien, or if the unit ceases to be the assisted homebuyer's principal residence, if any of these occurs before the end of the 10-year term. The amount of recapture will be based on the pro-rata share of the remaining loan term.

At the completion of the assistance, all properties must meet all applicable codes and standards, as specified in the application guide. Compliance with the basic access standards in new construction, established by §2306.514, Texas Government Code, is also required for any applicants utilizing Federal or State money administered by the Department in the construction of single family homes.

For PY 2005 funds, approximately $5,500,000 of ADDI funds are available. ADDI funds are not subject to the Regional Allocation Formula.

Owner Occupied Housing Assistance (OCC)

Rehabilitation or reconstruction cost assistance, in the form of grants or loans, is provided to homeowners for the repair or reconstruction of their existing homes. The homes must be the principal residence of the homeowner.

At the completion of the assistance, all properties must meet all applicable codes and standards, as specified in the application guide. In addition, all housing that is reconstructed or rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances in accordance with 24 CFR 92.251(a). If a home is reconstructed, the applicant must also ensure compliance with the universal design features in new construction, established by §2306.514, Texas Government Code, required for any applicants utilizing federal or state money administered by the Department in the construction of single family homes.

This activity will comprise 80% of the HOME allocation that will be available through the Regional Allocation Formula process, approximately $20,800.000.

Tenant Based Rental Assistance (TBRA)

Rental subsidy and security and utility deposit assistance is provided to tenants, in accordance with written tenant selection policies, for a period not to exceed twenty four months. TBRA allows the assisted tenant to move to and live in any dwelling unit with a right to continued assistance with the condition that assisted families participate in a Self-Sufficiency Program.

This activity will comprise 20% of the HOME allocation that will be available through the Regional Allocation Formula process, approximately $5,200,000.

COMPETITIVE REVIEW OF APPLICATIONS

HOME project funds will be awarded competitively per State of Texas HOME Program Rules, 10 TAC §§53.50 - 53.63. General Selection Criteria is listed in the State of Texas HOME Program Rules, 10 TAC §§53.50 - 53.63 and forms the basis for the State's development of scoring criteria for each Activity. Scoring criteria will include the implementation of various bills, riders, and agency goals, which will be defined in the application process. The Department will conduct the review and scoring of all applications, by region where applicable, and make recommendations for funding.

SELECTION PROCESS

All applications for funds received are reviewed for threshold requirements regarding application documentation and compliance with Department requirements of previously awarded contracts. Qualifying applications are then ranked using scoring criteria that reflects the Department's housing priorities. Applicants are recommended for funding if the score exceeds the minimum score established in the State of Texas HOME Program rules. The highest scoring OCC and TBRA applicants will be recommended up to the limit of funds available per region, and area type. Should an Activity not have enough qualified applicants, the funds will be redirected to the next Activity in the region that had a higher number of qualified applicants. The highest scoring ADDI applicants will be recommended up to the limit of funds available statewide.

APPLICATION PROCEDURES, FINAL FILING

The HOME Application Guide will be available on the Department's website at www.tdhca.state.tx.us on Friday, February 11, 2005, or you may call (512) 475-3993 to request an application copy on or after Friday, February 11, 2005. Applications must be on forms provided by the Department, and cannot be altered or modified and must be in final form before submitting them to the Department.

Deadline date for submitting a COMPLETE application and application fee is Friday, April 29, 2005, at 5:00 pm CST. Regardless if an application is hand-delivered, mailed through the U.S. Postal Service, or sent through a private carrier such as Federal Express or Airborne, the application must be received by the Department no later than Friday, April 29, 2005, at 5:00pm CST. Applications will not be accepted through facsimile.

Applications mailed via the U.S. Postal Service must be mailed to:

Texas Department of Housing and Community Affairs

Single Family Finance Production Division

P.O. Box 13941

Austin, Texas 78711-3941

Applications mailed by private carrier or hand-delivered will be received at the physical address of:

Texas Department of Housing and Community Affairs

Single Family Finance Production Division

507 Sabine, Suite 700

Austin, Texas 78701

Applicants are required to remit a non-refundable application fee payable to the Texas Department of Housing and Community Affairs in the amount of $30 per application. Please send check, cashier's check or money order; do not send cash. Section 2306.147(b) of the Texas Government Code requires the Department to waive grant application fees for nonprofit organizations that offer expanded services such as child care, nutrition programs, job training assistance, health services, or human services. These organizations must include proof of their exempt status in lieu of the application fee. The application fee is not an eligible or reimbursable cost under the HOME Program.

Applications that do not meet the filing deadline and application fee requirements will be returned to the applicant and will not be considered for funding.

If an application contains deficiencies which, in the determination of Department staff, require clarification or correction of information submitted at the time of application, staff may request clarification or correction of such deficiencies. The Department may request clarification or correction in a deficiency notice in the form of a facsimile and a telephone call to the applicant advising that such a request has been transmitted. If deficiencies are not clarified or corrected to the satisfaction of the Department within five business days of the deficiency notice date, five points shall be deducted from the score for each day the deficiency remains unresolved. If deficiencies are not clarified or corrected within seven business days from the deficiency notice date, then the application shall be terminated. The time period for responding to a deficiency notice begins at the start of the business day following the deficiency notice date.

An applicant may appeal decisions made by the Department in accordance with 10 TAC §1.7 and §1.8.

This Notice of Funding Availability does not include text of the various applicable regulatory provisions that may be important to the HOME Program. For proper completion of the application, the Department strongly encourages potential applicants to review the State and Federal regulations and to attend application training workshops.

Application Workshops

The Department will present one-day HOME Program Application Workshops that will provide an overview of the HOME Program, application preparation and submission, evaluation criteria and information about the major Federal and State requirements that may affect a HOME project. The HOME Application Workshop schedule and registration will be posted on the Department's website at www.tdhca.state.tx.us on Friday, January 28, 2005.

Resolution Requirements

The Department requires that all applications submitted must include a resolution from the applicant's direct governing body (Board of Directors) authorizing the submission of the application.

Audit Requirements

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

TRD-200500134

Edwina P. Carrington

Executive Director

Texas Department of Housing and Community Affairs

Filed: January 12, 2005

Notice of Funding Availability (NOFA) 2005 Housing Trust Fund Rental Development Program

Multifamily Finance Production Division

The Texas Department of Housing and Community Affairs, through its Housing Trust Fund (HTF), is pleased to announce the availability of Four Million Dollars ($4,000,000) to finance, acquire, rehabilitate, and develop safe, decent and affordable rental housing for low, very low, and extremely low income individuals and families; including persons with special needs.

The Housing Trust Funds available through this NOFA will be awarded as loans and are best designed to provide gap financing to eligible multifamily rental developments. Funds will be awarded consistent with the Department’s Regional Allocation Formula as required by §2306.111(d) of the Texas Government Code. Eligible Applicants include local units of government, public housing authorities, community housing development organizations, nonprofit organizations and for profit entities. TDHCA will reject any proposal violating §51.6 of the Housing Trust Fund rules regarding Ineligible Activities and Restrictions.

Applications must comply with the Housing Trust Fund Rules, this NOFA and the Housing Trust Fund Application Submission Procedures Manual. Applications that satisfy the eligibility criteria and threshold criteria will then be evaluated for material noncompliance, and scored according to the selection criteria outlined in the following section. Because the allocation of funding is subject to the Department’s Regional Allocation Formula, each applicant will be ranked based on score and will compete against all other applications within the same Uniform State Service Region. Any funding not allocated within a specific region may be combined into other state service regions to fulfill the funding needs of the highest scoring applicants. Because of the limited funds available, each region has not been further subdivided into rural and urban/exurban allocations; however, consistent with overall statewide urban/exurban and rural allocation goals, the Department will make the first award in each region to the highest scoring rural applicant, except in regions where there are no eligible rural applications. Therefore, the highest scoring rural applicant will be granted the first award from each region based on available funding. After the top scoring rural applicant has been awarded funds, all remaining applicants will be awarded funding based on score and availability of funding within the region, regardless of their location in a rural or urban/exurban area.

Table 1: Housing Trust Fund Regional Allocation Formula (.pdf)

Threshold Criteria

Threshold criteria for all applicants to the HTF Rental Development program are based on the criteria outlined in the HTF Rule at §§51.5 - 51.9, criteria detailed in this NOFA, and any additional criteria detailed in the HTF application manual. The following items are specific threshold requirements that applicants should be aware of:

Public Notifications: Applicants are required to fulfill the public notification requirements detailed under §49.9(f)(8)(A) of the QAP with the exception that applicants are not required to provide notification to local elected officials for Neighborhood Organizations Input as detailed by §49.9(f)(8)(A)(ii)(I) of the QAP.

Minimum Unit Set-Aside: All development proposals must set-aside at least 50% of the planned units in every development for persons earning at least 60% or less of the area median family income. Rents for all set-aside units are required to be affordable to the target population’s income, as determined by the Department on an annual basis. Applicants should consult the HTF rent and income limitations posted on the Department’s website and in the HTF Application Reference Manual.

Experience Certification: Applicants will be required to submit evidence of experience in housing development; the type of evidence needed is outlined in §49.9(e)(1) of the 2005 QAP. Applicants proposing a development of 36 or less units must provide evidence of having developed, through new construction or rehabilitation, 10 or more units of residential housing within the past 10 years. Applicants proposing to develop more than 36 units are required to meet the developer certification standards as provided under the QAP at §49.9(e)(1)(A). The certification forms and process is outlined in the HTF application submission manual.

Additional Certifications: Applicants will be required to certify that no current affordable housing tenants will be displaced and that opportunities for training and employment shall be given to low, very low, and extremely low income persons residing within the area in which the project is located, when feasible, as required by §51.6(a) and §51.9(a) respectively.

As noted in the examples above, Applicants applying for only HTF funds will find additional details on threshold requirements in the HTF application manual. Applicant submitting applications to multiple programs must meet all the requirements of the more restrictive program (i.e. an applicant for Tax Credits and HTF must meet all the requirements of the 2005 QAP and the exceptions noted for HTF are not applicable). Applicants are also encouraged to contact Department staff if they have any questions regarding their submissions.

Scoring Criteria

The following is a list of the criteria that will be used:

Housing Needs: Applicants may receive up to 15 points for showing that their proposed project is consistent with local planning and on the Affordable Housing Needs Score for the place or county for which the Development is located. Applicants who can show that the development will be consistent or meet the affordable housing needs of the local municipality or community where it will be located will receive 8 points. Proof must be in the form of a letter from the local public official responsible for creation of the community’s Comprehensive Plan, Consolidated Plan, or other planning documents that describe the housing needs of the community; or a letter from the community’s mayor, chief executive officer (city manager), or County judge, which states that the community does not have a comprehensive housing plan but that they support the proposed development.

Applicants may receive up to 7 additional points for the Affordable Housing Needs Score for the place or county for which the Development is located. The housing needs score can be found in the Housing Trust Fund Application Reference Manual.

Targeting of Extremely Low-Income Populations: Applicants may receive up to 15 points for reserving a portion of their units for persons earning 30% or less of the Area Median Family Income (AMFI). Applicants who reserve at least 5% of their total units for persons earning 30% or less of the AMFI shall receive 10 points. Applicants who reserve at least 10% of their total units for persons earning 30% or less of the AMFI shall receive 15 points. Reserved units will be required to meet the HTF rent and income limitations published by the Department, and will be required by the LURA.

Support from Public Officials: Applicants may receive a total of 6 points for letter of support from local officials. To qualify for points Applicants must submit letters of support from the State Representative and State Senator for the districts where the development is located. Applicants will receive 3 points, a maximum of 6 points, for each letter of support received by the Department by April 1, 2005.

Leveraging of Public and Private Financing: Applicants may receive up to 10 points for the extent to which the development will leverage the HTF with other resources, including federal resources and private sector funds, which may include commercial lenders. Applicants will receive 3 points if the percentage of Housing Trust Funds is less than 30% of total development costs. Applicants will receive 6 points if the percentage of Housing Trust Funds is less than 15% of total development costs. Applicants will receive 9 points if the percentage of Housing Trust funds is less than 5% of the total development costs. Applicants must provide evidence in the form of a commitment letter or funding agreement which clearly states the rates, terms and conditions of at least one leveraging resource and outline the total percentage of HTF funds in the development.

Supportive Services to Tenants: Applicants who provide supportive services to tenants may be eligible to receive up to 6 points. Six (6) points will be awarded for the provision of three (3) supportive services. Four (4) points will be awarded for the provision of two (2) supportive services. Two (2) points will be awarded for the provision of one (1) supportive service. Applicants will be required to certify that they will provide a combination of special supportive services appropriate for the proposed tenants. No fees can or will be charged to tenants for any of the services. Services must be provided on-site or transportation to off-site services must be provided free of charge. A list of acceptable supportive services will be provided in the HTF manual.

Site Characteristics: Applicants may receive 5 points for proposing developments that are located near community services which the Department has identified as being important to tenant needs. Applicant must show that at least four of the identified services are within one mile of the proposed development site for Urban/Exurban developments, or 2 miles for Rural Developments. The list of services and process for identifying the location and existence of services will be detailed in the HTF application submission manual.

Accessible Housing Design: Applicants may receive 5 points for building at least 10% of their proposed units to be accessible for persons with mobility impairments. The units must be designed to meet Fair Housing Accessibility and Section 504 Accessibility Standards. Applicants will not be required to set-aside units for persons with disabilities, but must make them available to eligible tenants in accordance with the provisions of Section 504 of the 1973 Rehabilitation Act.

Targeting of Special Needs Populations: Applicants may receive 5 points for reserving at least 10% of the proposed units for special needs populations as defined by the Housing Trust Fund Rule at §51.3(18). Applicants serving persons with disabilities must also conform to the Departments Integrated Housing Rule and may not receive points under the Accessible Housing Design criterion.

Cost Effectiveness of Project - (tie breaker criteria): The Department will evaluate applicants on the cost effectiveness of their developments in the event of a tie. The Department has determined that the total subsidy per unit of Housing Trust Fund dollars will be the determining factor. In the case of a tie, the Applicant with the lower cost effectiveness value will be awarded funding. To calculate this number the Department will use the following equation.

Total HTF Funds Requested/Total Number of Low-Income Units to be Set-Aside = Cost Effectiveness

Example: if Applicant A has requested $500,000 for a development that will set-aside 40 units for HTF their cost effectiveness value would be $12,500. If Applicant B has requested $400,000 for a development that will set-aside 50 units for HTF their cost effectiveness value would be $8,000. In this case, with each applicant having the same score on all previous scoring criteria, Applicant B would be awarded funding.

Applicants should consult the Department prior to submission of an application package if they have any concerns or questions regarding the threshold or scoring criteria.

Additional Information

The Department's Board of Directors reserves the right to change the award amount, and to award more or less than the requested amount. All Housing Trust Fund dollars expended on a development that is canceled prior to completion must be repaid to the Department by the Borrower. The Department will not review applications involving the refinancing of previously assisted developments not at risk of loosing their affordability. All developments financed through the Housing Trust Fund must adhere to the Department’s Integrated Housing Rule and the Housing Trust Fund Property Standards.

Applicants are required to remit a non-refundable application fee at the time of application submission payable to the Texas Department of Housing and Community Affairs in the amount of $5.00 per unit for the proposed development. Payment must be in the form of a check, cashier’s check or money order. Section 2306.147(b) of the Texas Government Code requires the Department to waive application fees for nonprofit organizations that offer expanded services such as child care, nutrition programs, job training assistance, health services, or human services. These organizations must include proof of their exempt status and a description of their supportive services in lieu of the application fee.

All interested parties are encouraged to participate in this program. The application and reference materials will be available on the Multifamily Division’s section of the Department’s web site at www.tdhca.state.tx.us for the use of applicants at the time the NOFA is release in final form. For additional information please call the Multifamily Finance Production Division Office at (512) 475-3340, check the Department’s web site or e-mail your request to emily.price@tdhca.state.tx.us. Applicants should note §51.6 of the HTF Rule regarding restrictions on communication to ensure no violations of the rule occur. Please direct your applications to:

Texas Department of Housing and Community Affairs

Multifamily Finance Production Division

Post Office Box 13941

Austin, Texas 78711-3941

Or by courier to:

507 Sabine, Suite 700

Austin, Texas 78701

Applications must be submitted on or before 5:00 p.m., March 1, 2005.

FAXED APPLICATIONS WILL NOT BE ACCEPTED.

TRD-200500086

Edwina Carrington

Executive Director

Texas Department of Housing and Community Affairs

Filed: January 10, 2005

Notice of Funding Availability (NOFA) Community Housing Development Organization Housing Development Open Funding Cycle

HOME Investment Partnerships Program

The Texas Department of Housing and Community Affairs ("the Department") announces the availability of approximately $13,000,000 in federal funding from the HOME Investment Partnerships Program (HOME) for Community Housing Development Organizations (CHDOs) to develop affordable housing for low-income Texans. The availability and use of these funds is subject to the State HOME Rules at 10 TAC Chapter 53 ("HOME Rules"), the Federal HOME regulations governing the HOME program (24 CFR Part 92), and any other federal or state regulation that may apply to the development and operation of affordable housing units.

Allocation of HOME CHDO Funds

CHDO funding is made available as a set-aside from the annual federal allocation of HOME funds to the Department. All funds released under this NOFA are to be used for the creation of affordable housing for low-income Texans earning 80 percent or less than the Area Median Family Income (AMFI) for the locality where the proposed development is located. Only rental development funds will be eligible for use in a participating jurisdiction, in accordance with §2306.111(c) of the Texas Government Code, which states that the Department shall expend at least 95 percent of its HOME funds for the benefit of non-participating small cities and rural areas that do not qualify to receive funds under the Cranston-Gonzalez National Affordable Housing Act directly from the United States Department of Housing and Urban Development. All funds not set aside under this subsection shall be used for the benefit of persons with disabilities who live in areas other than small cities and rural areas. The Department will accept applications from 9 a.m. to 5 p.m. each business day, excluding federal and state holidays, on an ongoing basis until such time as all funding has been committed, or until the current state fiscal year ends on August 31, 2005.

Eligible Activities

Eligible activities will include all those permissible under the federal HOME Rule at 24 CFR §92.205, the state HOME Rules at 10 TAC §§53.54 & 53.55, which involve the acquisition, rehabilitation and construction of affordable housing. Refinancing of federally financed properties is not an eligible activity. Tenant based rental assistance, owner occupied rehabilitation, and other activities not specifically related to the creation, building or development of affordable housing will not be considered under this NOFA. The NOFA is available to fund developments for homeownership and rental developments. Two separate applications will be available to eligible applicants: one for homeownership development activities and one for rental development activities. Interested applicants should contact the appropriate contact persons listed below for additional information regarding the application manuals and processes.

For homeownership development activities contact:

Paige McGilloway, (512) 475-4604 email: pmcgillo@tdhca.state.ts.us

For rental development activities contact:

David Danenfelzer, (512) 475-3865 email: ddanenfe@tdhca.state.tx.us

Applicants should be aware that there are minimum affordability standards necessary for HOME assisted rental developments. At a minimum, at least 20% of HOME assisted units should be affordable to persons earning 50% of the AMFI; at least 90% of the HOME assisted units should be affordable to persons earning 60% of the AMFI. These minimum requirements affect only those units which are HOME assisted and in no way supercede the minimum affordability requirements for applicants jointly applying for HOME and Housing Tax Credits under §42(i)(E) of the Internal Revenue Code.

Eligible Applicants

The Department provides HOME CHDO funding from the federal government to qualified nonprofit organizations eligible for CHDO certification. All applicants will be required to submit an application for CHDO certification with each development application. Previous CHDO status or certification will not be acceptable. The CHDO application package will be available with all other application materials on the Department’s web site. CHDO Applicants must be the sponsor, owner or developer of the proposed development. Applicants who are jointly applying for Housing Tax Credits will be required to provide evidence that the CHDO Applicant is the managing general partner of the Limit Partnership. Applicants may be ineligible for funding if they meet any of the criteria listed in §53.52(b) of the Department’s HOME rule. Applicants are encouraged to familiarize themselves with the Department’s certification and debarment policies prior to application.

Allocation of Funds

The Department awards HOME funds, typically as a loan, to eligible recipients for the provision of housing for low, very low and extremely low-income individuals and families. Award amounts are limited to no more than $1.5 million per development. The per unit subsidy may not exceed the per-unit dollar limits established by the U.S. Department of Housing and Urban Development (HUD) under §221(d)(3) of the National Housing Act which are applicable to the area in which the development is located, and as published by HUD. The minimum loan amount is $1,000 per unit. Rental developments involving rehabilitation must establish that the rehabilitation will substantially improve the condition of the housing and will involve at least $6,000 per Unit in direct hard costs. Funds will be awarded in accordance with the rules and procedures as set forth in the State of Texas HOME Program rules at 10 TAC §§53.50-53.63. The Department may, at its discretion and based upon review of the financial feasibility of the development, determine to award HOME funds as either a loan or as a grant. Loans can not exceed amortization of more than 40 years.

Each CHDO that is awarded funds for their development application may also be eligible to receive a grant of CHDO operating funds. Applicants will be required to submit organizational operating budgets, audits and other materials detailed in the HOME application. The amount of CHDO operating funds granted will be based on the Applicant’s need. Awards may be for an amount up to 50% of the CHDO’s total operating expenses per fiscal year, or $50,000 per fiscal year, whichever is greater.

Each development will have a two-tier affordability term. The first tier will entail the federally required affordability term. For new construction or acquisition of new housing, this term is 20 years. For rehabilitation or acquisition of existing housing, the term is 5 years if the HOME investment is less than $15,000 per unit; 10 years if the HOME investment is $15,000 to $40,000 per unit; and 15 years if the HOME investment is greater than $40,000 per unit. This first tier is subject to all federal laws and regulations regarding HOME requirements, recapture, net proceeds and affordability. The second tier of affordability is the additional number of years required to bring the total term of affordability up to 30 years (for example, the second tier of affordability on a 10 year federal affordability term, is 20 additional years). The second tier, or remaining term, is subject only to state regulations and affordability requirements. Properties will be restricted under a land use restriction agreement ("LURA"), or other such instrument as determined by the Department for these terms. Among other restrictions, the LURA may require the owner of the property to continue to accept subsidies which may be offered by the federal government, prohibit the owner from exercising an option to prepay a federally insured loan, impose tenant income-based occupancy and rental restrictions, or impose any of these and other restrictions as deemed necessary at the sole discretion of the Department in order to preserve the property as affordable housing on a case-by-case basis.

Match Requirements

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

Development Requirements

Housing units subsidized by HOME funds must be affordable to low, very-low or extremely low income persons. Mixed Income rental developments may only receive funds for units that meet the HOME program affordability standards. All applications intended to serve persons with disabilities must adhere to the Department’s Integrated Housing Rule at 10 TAC §1.15. Applicants serving local Participating Jurisdictions may only receive funding for those units which are specifically set-aside for persons with disabilities, in accordance with §2306.111(c) of the Texas Government Code.

All applications will be required to meet Section 8 Housing Quality Standards detailed under 24 CFR §92.401, Texas Minimum Construction Standards, as well as the accessibility requirements to meet Fair Housing Accessibility Standards and Section 504 of the Rehabilitation Act of 1973. Developments must also meet all local building codes or standards that may apply. If the development is located within a jurisdiction that does not have building codes, developments must meet the most current International Building Code. Applicants for rental development programs must also meet the applicable development standards of the Housing Tax Credit program rules at 10 T.A.C. §49.6, as further detailed in the application manual.

Resolution Requirements

The Department requires that all applications submitted must include a resolution from the applicant’s direct governing body (Board of Directors) authorizing the submission of the application.

Audit Requirements

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

CHDO Certification

Certification will be awarded in accordance with the rules and procedures as set forth in the HOME Investment Partnerships Program rules at 10 TAC §53.63, Community Housing Development Organization (CHDO) Certification. If all requirements under this Section are met, the Applicant is certified as a CHDO upon the award of the HOME funds by the Department. A new application for CHDO certification must be submitted to the Department with each new application for HOME funds under the CHDO set aside. For additional information about CHDO certification please contact Jorge Reyes at (512) 475-4577.

Review Process

Applications will be accepted from 9 a.m. to 5 p.m. each business day, excluding federal and state holidays, on an ongoing basis until such time as all funding has been committed, or until the current state fiscal year ends on August 31, 2005. Applications will be accepted, reviewed and recommended to the Department’s Board in accordance with Department’s process for handling Open Cycle Applications detailed at §53.58(b) of the HOME Rule.

All applications must be submitted, and provide all documentation, as described in this NOFA, 10 TAC §53.58 of the HOME Rule and as further detailed in the appropriate HOME Application Manual. Applicants should refer to the appropriate application manual, for the appropriate threshold criteria.

The HOME Rental Application Manual, all required application documents (including CHDO application), a HOME Reference Manual, and all applicable HOME rules, will be available on the Department’s web site at www.tdhca.state.tx.us/home.htm. The HOME Homeownership application & manual is anticipated to be available in Spring 2005. Applications will be required to adhere to the HOME Rule and threshold requirements in effect at the time of the application submission. Applications must be on forms provided by the Department, and cannot be altered or modified and must be in final form before submitting them to the Department.

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

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

An Applicant may appeal decisions made by the Department in accordance with 10 TAC §§1.7-1.8.

Parties interested in submitting an application are encouraged to arrange a pre-application meeting with the Department staff before submitting an application. To arrange a meeting on rental development applications, Applicants should contact David Danenfelzer, Multifamily Housing Administrator at (512) 475-3865. To arrange a meeting on homeownership development applications, Applicants should contact Paige McGilloway, Single Family Project Manager at (512) 475-4604.

Application Submission

Application materials must be organized and submitted in the manner detailed in the appropriate application submission manual for rental and homeownership developments. Applicants must submit two complete copies of all application materials.

Applicants are required to remit a non-refundable application fee payable to the Texas Department of Housing and Community Affairs in the amount of $500.00 per application. Please send check, cashier’s check or money order; do not send cash. §2306.147(b) of the Texas Government Code requires the Department to waive application fees for nonprofit organizations that offer expanded services such as child care, nutrition programs, job training assistance, health services, or human services. These organizations must include proof of their exempt status and a description of their supportive services in lieu of the application fee. The application fee is not an allowable or reimbursable cost under the HOME Program.

Applications may be sent to:

Multifamily Finance Production Division

Texas Department of Housing and Community Affairs

507 Sabine, Suite 700

Austin, TX 78701

or via the U.S. Postal Service to:

Multifamily Finance Production Division

Texas Department of Housing and Community Affairs

Post Office Box 13941

Austin, TX 78711-3941

NOTE: This NOFA does not include the text of the various applicable regulatory provisions that may be important to the particular HOME CHDO Program. For proper completion of the application, the Department strongly encourages potential applicants to review the State and Federal regulations and to participate in a pre-application conference when possible.

TRD-200500087

Edwina Carrington

Executive Director

Texas Department of Housing and Community Affairs

Filed: January 10, 2005

Notice of Funding Availability (NOFA) Rental Housing Development Open Funding Cycle

HOME Investment Partnerships Program

The Texas Department of Housing and Community Affairs ("the Department") announces the availability of approximately $5,000,000 in federal funding from the HOME Investment Partnerships Program (HOME) to develop affordable rental housing for low-income Texans. The availability and use of these funds is subject to the State HOME Rules at 10 TAC Chapter 53 ("HOME Rules"), the federal regulations governing the HOME program (24 CFR Part 92), and any other federal or state regulation that may apply to the development and operation of affordable housing units.

Allocation of Funds

The Department has set-aside approximately $5,000,000 in HOME Investment Partnership Program Funds from its 2005 federal allocation for rental development activities. All funds released under this NOFA are to be used for the creation of affordable rental housing for low-income Texans earning 80 percent or less than the Area Median Family Income (AMFI) for the locality where the proposed development is located. At least $2,000,000 of these funds are specifically set-aside for rental development proposals which involve the acquisition and rehabilitation of existing affordable housing that is at-risk of losing the benefit of a subsidy in the form of a below-market interest rate loan, interest rate reduction, rental subsidy, Section 8 housing assistance payment, rental supplement payment, rental assistance payment, or equity incentive. The remaining $3,000,000 in funds will be available to all eligible applicants for rental development activities. The Department will accept applications from 9 a.m. to 5 p.m. each business day, excluding federal and state holidays, on an ongoing basis until all funding has been committed, or until the current state fiscal year ends on August 31, 2005.

Applicants for the preservation set-aside must provide evidence that any stipulation to maintain affordability in the contract granting the subsidy is at-risk of expiring, or that the federally insured mortgage on the Development is eligible for prepayment, within 24 months from the date of application submission. An Application for a Development that includes the demolition of the existing units which have received any of the previously listed benefits will not qualify as an At-Risk Development unless the redevelopment will include the same site and is supplemented with HOPE VI funding or funding from the Local Housing Authority’s capital grant fund.

The Department awards HOME funds, typically as a loan, to eligible recipients for the provision of housing for low, very low and extremely low-income individuals and families. Award amounts are limited to no more than $1.5 million per development. The per unit subsidy may not exceed the per unit dollar limits established by the U.S. Department of Housing and Urban Development (HUD) under §221(d)(3) of the National Affordable Housing Act which are applicable to the area in which the development is located, and as published by HUD. The minimum loan amount is $1,000 per unit. Rental developments involving rehabilitation must establish that the rehabilitation will substantially improve the condition of the housing and will involve at least $6,000 per unit in direct hard costs. Funds will be awarded in accordance with the rules and procedures as set forth in the State of Texas HOME Program rules at 10 TAC §§53.50 - 53.63. The Department may, at its discretion and based upon review of the financial feasibility of the development, determine to award HOME funds as either a loan or as a grant. Loans can not exceed amortization of more than 40 years.

Eligible Activities

Eligible activities will include those permissible under the Federal HOME Rule at 24 CFR §92.205, the state HOME Rules at 10 TAC §53.54 and §53.55, and are limited by this NOFA to activities which involve the acquisition, rehabilitation and construction of affordable rental housing. Refinancing of federally financed properties is not an eligible activity. Rental development funds will be eligible for use in a participating jurisdiction, in accordance with §2306.111(c) of the Texas Government Code, which states that the Department shall expend at least 95 percent of is HOME funds for the benefit of non-participating small cities and rural areas that do not qualify to receive funds under the Cranston-Gonzalez National Affordable Housing Act directly from the United States Department of Housing and Urban Development. All funds not set aside under this subsection shall be used for the benefit of persons with disabilities who live in areas other than small cities and rural areas.

Applicants should be aware that there are minimum affordability standards necessary for HOME assisted developments. At a minimum, at least 20% of HOME assisted units should be affordable to persons earning 50% of the AMFI, and at least 90% of the HOME assisted units should be affordable to persons earning 60% of the AMFI. These minimum requirements affect only those units which are HOME assisted and do not supercede the minimum affordability requirements for applicants jointly applying for HOME and Housing Tax Credits under §42(i)(E) of the Internal Revenue Code.

Eligible Applicants

The Department provides HOME funding from the federal government to qualified nonprofit organizations, for-profit entities, sole proprietors, public housing authorities and units of local government. Applicants may be ineligible for funding if they meet any of the criteria listed in §53.52(b) of the Department’s HOME rule. Applicants are encouraged to familiarize themselves with the Department’s certification and debarment policies prior to application.

Match Requirements

Development Requirements

All applications will be required to meet Section 8 Housing Quality Standards detailed under 24 CFR §92.401, Texas Minimum Construction Standards, as well as the accessibility requirements to meet Fair Housing Accessibility Standards and Section 504 of the Rehabilitation Act of 1973. Developments must also meet all local building codes or standards that may apply. If the development is located within a jurisdiction that does not have building codes, developments must meet the most current International Building Code. Applicants for rental development programs must also meet the applicable development standards of the Housing Tax Credit program rules at §49.6, as further detailed in the application manual.

Resolution Requirements

The Department requires that all applications submitted must include a resolution from the applicant’s direct governing body (Board of Directors or Sole Proprietor) authorizing the submission of the application.

Audit Requirements

Review Process

The Department will be accepting applications on an ongoing basis. Applications will be accepted from 9 a.m. to 5 p.m. each business day, excluding federal and state holidays, on an ongoing basis until such time as all funding has been committed, or until the current state fiscal year ends on August 31, 2005. Applications will be accepted, reviewed and recommended to the Department’s Board in accordance with Department’s process for handling Open Cycle Applications detailed at §53.58(b) of the HOME Rule.

All applications must be submitted, and provide all documentation, as described in this NOFA, 10 TAC §53.58 of the HOME Rule and as further detailed in the appropriate HOME Rental Application Manual. Applicants should refer to the application manual, for the appropriate threshold criteria.

The HOME Rental Application Manual, all required application documents, a HOME Reference Manual, and all applicable HOME rules, will be available on the Department’s website at www.tdhca.state.tx.us/home.htm. Applications must be on forms provided by the Department, and cannot be altered or modified and must be in final form before submitting them to the Department.

An Applicant may appeal decisions made by the Department in accordance with 10 TAC §1.7 and §1.8.

Application Submission

Application materials must be organized and submitted in the manner detailed in the application submission manual for rental developments. Applicants must submit two complete copies of all application materials.

Applications may be sent to:

Multifamily Finance Production Division

Texas Department of Housing and Community Affairs

507 Sabine, Suite 700

Austin, TX 78701

or via the U.S. Postal Service to:

Multifamily Finance Production Division

Texas Department of Housing and Community Affairs

Post Office Box 13941

Austin, TX 78711-3941

TRD-200500085

Edwina Carrington

Executive Director

Texas Department of Housing and Community Affairs

Filed: January 10, 2005

Houston-Galveston Area Council

Request for Proposal

The Houston-Galveston Area Council (H-GAC) is seeking the services of a qualified consultant to evaluate control measures that reduce on-road mobile emissions of nitrogen oxides (NOx) and volatile organic compounds (VOCs) and quantify potential emission benefits and associated costs of potential mobile source control measures contained in the revisions of the Texas State Implementation Plan for the Houston-Galveston nonattainment area. The consultant will be responsible for all aspects of the project, including working on the Voluntary Mobile Emission Program, the web-based calculators and Transportation Control Measures, assisting in the identification and recruitment of prospective fleet operations and develop the necessary documentation methodology, and performing congestion and emissions analyses of Transportation Control Measures that may be applied to the Houston-Galveston Area.

Proposal submissions are due by Monday, February 7, 2005, 5 p.m. CST . Late submittals will NOT be accepted. Twelve (12) typewritten, bound/stapled and signed copies are required.

The Request for Proposals packet can be downloaded from the H-GAC Transportation Department Web site at www.h-gac.com/transportation . Interested firms may also obtain the packet at the H-GAC offices at 3555 Timmons Lane, Suite 120, Houston, Texas 77027, or by contacting Shelley A. Whitworth at 713-627-3200. All questions regarding the Request for Proposals must be made in writing, and can be sent to the attention of Shelley A. Whitworth by email to shelley.whitworth@h-gac.com, faxed to 713-993-4508, or mailed to the Houston-Galveston Area Council, P.O. Box 22777, Houston, TX 77227-2777.

TRD-200500125

Alan Clark

MPO Director

Houston-Galveston Area Council

Filed: January 12, 2005

Texas Department of Insurance

Company Licensing

Application to change the name of RANGER LLOYDS to FAIRMONT SPECIALTY LLOYDS, a domestic Lloyds/Reciprocal. The home office is in Houston, Texas.

Any objections must be filed with the Texas Department of Insurance, addressed to the attention of Godwin Ohaechesi, 333 Guadalupe Street, M/C 305-2C, Austin, Texas 78701, within 20 days after this notice is published in the Texas Register .

TRD-200500132

Gene C. Jarmon

General Counsel and Chief Clerk

Texas Department of Insurance

Filed: January 12, 2005

Notice of Application by a Small Employer Carrier to be a Risk-Assuming Carrier

Notice is given to the public of the application of the listed small employer carrier to be a risk-assuming carrier under Texas Insurance Code Article 26.52. A small employer carrier is defined by Chapter 26 of the Texas Insurance Code as a health insurance carrier that offers, delivers or issues for delivery, or renews small employer health benefit plans subject to the chapter. A risk-assuming carrier is defined by Chapter 26 of the Texas Insurance Code as a small employer carrier that elects not to participate in the Texas Health Reinsurance System. The following small employer carrier has applied to be a risk-assuming carrier:

Valley Group Hospital Service Corporation

The application is subject to public inspection at the offices of the Texas Department of Insurance, Legal & Compliance Division - Archie Clayton, 333 Guadalupe, Tower I, Room 860, Austin, Texas.

If you wish to comment on the application of Valley Group Hospital Service Corporation to be a risk-assuming carrier, you must submit your written comments within 60 days after publication of this notice in the Texas Register to Gene C. Jarmon, General Counsel and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P. O. Box 149104, Austin, Texas 78714-91204. Upon consideration of the application and comments, if the Commissioner is satisfied that all requirements of law have been met, the Commissioner or his designee may take action to approve the applicant to be a risk-assuming carrier.

TRD-200500109

Gene C. Jarmon

General Counsel and Chief Clerk

Texas Department of Insurance

Filed: January 10, 2005

Texas Lottery Commission

Instant Game Number 534 "Monthly Bonus"

1.0 Name and Style of Game.

A. The name of Instant Game No. 534 is "MONTHLY BONUS". The play style is "key number match with auto win".

1.1 Price of Instant Ticket.

A. Tickets for Instant Game No. 534 shall be $5.00 per ticket.

1.2 Definitions in Instant Game No. 534.

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

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

C. Play Symbol - The printed data under the latex on the front of the instant ticket that is used to determine eligibility for a prize. Each Play Symbol is printed in Symbol font in black ink in positive except for dual-image games. The possible black play symbols are: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, DOLLAR BILL SYMBOL, $1.00, $2.00, $4.00, $5.00, $10.00, $20.00, $50.00, $200, $2,000, $10,000 and $20,000.

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

Figure 1: GAME NO. 534 - 1.2D

E. Retailer Validation Code - Three (3) letters found under the removable scratch-off covering in the play area, which retailers use to verify and validate instant winners. The possible validation codes are:

Figure 2: GAME NO. 534 - 1.2E

Low-tier winning tickets use the required codes listed in Figure 2:16. Non-winning tickets and high-tier tickets use a non-required combination of the required codes listed in Figure 2:16 with the exception of ∅, which will only appear on low-tier winners and will always have a slash through it.

F. Serial Number - A unique 13 (thirteen) digit number appearing under the latex scratch-off covering on the front of the ticket. There is a boxed four (4) digit Security Number placed randomly within the Serial Number. The remaining nine (9) digits of the Serial Number are the Validation Number. The Serial Number is positioned beneath the bottom row of play data in the scratched-off play area. The format will be: 0000000000000.

G. Low-Tier Prize - A prize of $5.00, $10.00, $12.00, $20.00 or $24.00.

H. Mid-Tier Prize - A prize of $50.00, $60.00 or $200.

I. High-Tier Prize - A prize of $2,000, $20,000 or $10,000/MO ($10,000 per month for 20 years).

J. Bar Code - A 22 (twenty-two) character interleaved two (2) of five (5) bar code which will include a three (3) digit game ID, the seven (7) digit pack number, the three (3) digit ticket number and the nine (9) digit Validation Number. The bar code appears on the back of the ticket.

K. Pack-Ticket Number - A 13 (thirteen) digit number consisting of the three (3) digit game number (534), a seven (7) digit pack number, and a three (3) digit ticket number. Ticket numbers start with 001 and end with 075 within each pack. The format will be: 534-0000001-001.

L. Pack - A pack of "MONTHLY BONUS" Instant Game tickets contains 075 tickets, packed in plastic shrink-wrapping and fanfolded in pages of one (1). The packs will alternate. One will show the front of ticket 001 and back of ticket 075 while the other fold will show the back of ticket 001 and front of 075.

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

N. Ticket or Instant Game Ticket, or Instant Ticket - A Texas Lottery "MONTHLY BONUS" Instant Game No. 534 ticket.

2.0 Determination of Prize Winners. The determination of prize winners is subject to the general ticket validation requirements set forth in Texas Lottery Rule 401.302, Instant Game Rules, these Game Procedures, and the requirements set out on the back of each instant ticket. A prize winner in the "MONTHLY BONUS" Instant Game is determined once the latex on the ticket is scratched off to expose 45 (forty-five) Play Symbols. If a player matches any of YOUR NUMBERS play symbols to any of the LUCKY NUMBERS play symbols the player wins prize shown for that number. If a player reveals a dollar bill play symbol the player wins $10,000 per month for 20 years. No portion of the display printing nor any extraneous matter whatsoever shall be usable or playable as a part of the Instant Game.

2.1 Instant Ticket Validation Requirements.

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

1. Exactly 45 (forty-five) Play Symbols must appear under the latex overprint on the front portion of the ticket;

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

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

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

5. The ticket shall be intact;

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

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

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

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

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

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

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

13. The ticket must be complete and not miscut, and have exactly 45 (forty-five) Play Symbols under the latex overprint on the front portion of the ticket, exactly one Serial Number, exactly one Retailer Validation Code, and exactly one Pack-Ticket Number on the ticket;

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

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

16. Each of the 45 (forty-five) Play Symbols must be exactly one of those described in Section 1.2.C of these Game Procedures.

17. Each of the 45 (forty-five) Play Symbols on the ticket must be printed in the Symbol font and must correspond precisely to the artwork on file at the Texas Lottery; the ticket Serial Numbers must be printed in the Serial font and must correspond precisely to the artwork on file at the Texas Lottery; and the Pack-Ticket Number must be printed in the Pack-Ticket Number font and must correspond precisely to the artwork on file at the Texas Lottery;

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

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

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

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

2.2 Programmed Game Parameters.

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

B. No more than one winner of $60 and higher per pack.

C. 5. No duplicate non-winning Your Numbers on a ticket.

D. No duplicate Lucky Numbers on a ticket.

E. No more than four like non-winning prize symbols on a ticket.

F. A non-winning prize symbol will never be the same as a winning prize symbol.

G. 10. No prize amount in a non-winning spot will correspond with the Your Number play symbol (i.e. 5 and $5).

H. The "dollar bill" and $10,000 prize symbol will only appear on intended winning tickets as dictated by the prize structure and will only appear with each other.

2.3 Procedure for Claiming Prizes.

A. To claim a "MONTHLY BONUS" Instant Game prize of $5.00, $10.00, $12.00, $20.00, $24.00, $50.00, $60.00 or $200, a claimant shall sign the back of the ticket in the space designated on the ticket and present the winning ticket to any Texas Lottery Retailer. The Texas Lottery Retailer shall verify the claim and, if valid, and upon presentation of proper identification, make payment of the amount due the claimant and physically void the ticket; provided that the Texas Lottery Retailer may, but is not, in some cases, required to pay a $50.00, $60.00 or $200 ticket. In the event the Texas Lottery Retailer cannot verify the claim, the Texas Lottery Retailer shall provide the claimant with a claim form and instruct the claimant on how to file a claim with the Texas Lottery. If the claim is validated by the Texas Lottery, a check shall be forwarded to the claimant in the amount due. In the event the claim is not validated, the claim shall be denied and the claimant shall be notified promptly. A claimant may also claim any of the above prizes under the procedure described in Section 2.3.B and Section 2.3.C of these Game Procedures.

B. To claim a "MONTHLY BONUS" Instant Game prize of $2,000, $20,000 or $10,000/MO ($10,000 per month for 20 years), the claimant must sign the winning ticket and present it at one of the Texas Lottery’s Claim Centers. If the claim is validated by the Texas Lottery, payment will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification. When paying a prize of $600 or more, the Texas Lottery shall file the appropriate income reporting form with the Internal Revenue Service (IRS) and shall withhold federal income tax at a rate set by the IRS if required. In the event that the claim is not validated by the Texas Lottery, the claim shall be denied and the claimant shall be notified promptly.

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

D. When claiming a "MONTHLY BONUS" Instant Game prize of $10,000 per month for 20 years, the claimant must choose one of two (2) payment options for receiving his prize:

1. Monthly via direct deposit to the winner’s account. With this plan, upon validation of the prize, a payment of $10,000 less any taxes and/or other offsets or mandatory withholdings required by law, will be made each month on the first business day of the month for a combined total of $120,000 per year. Monthly payments will be made for a period of 20 years or a total of 240 monthly payments to reach the total maximum payment of $2,400, 000.

2. Annually via direct deposit to the winner’s account. With this plan, upon validation of the prize, a payment of $120,000 less any taxes and/or other offsets or mandatory withholdings required by law, will be made once a year on the first business day of the anniversary month of the claim. Annual payments will be made for a period of 20 years or a total of 20 annual to reach the total maximum payment of $2,400,000.

5. If a payment falls on a holiday or weekend, the payment will be made on the following business day.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3.0 Instant Ticket Ownership.

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

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

4.0 Number and Value of Instant Prizes. There will be approximately 8,040,000 tickets in the Instant Game No. 534. The approximate number and value of prizes in the game are as follows:

Figure 3: GAME NO. 534 - 4.0

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

5.0 End of the Instant Game. The Executive Director may, at any time, announce a closing date (end date) for the Instant Game No. 534 without advance notice, at which point no further tickets in that game may be sold.

6.0 Governing Law. In purchasing an Instant Game ticket, the player agrees to comply with, and abide by, these Game Procedures for Instant Game No. 534, the State Lottery Act (Texas Government Code, Chapter 466), applicable rules adopted by the Texas Lottery pursuant to the State Lottery Act and referenced in 16 TAC, Chapter 401, and all final decisions of the Executive Director.

TRD-200500106

Kimberly Kiplin

General Counsel

Texas Lottery Commission

Filed: January 10, 2005

Instant Game Number 535 "Bob Wills Commemorative Game"

1.0 Name and Style of Game.

A. The name of Instant Game No. 535 is "BOB WILLS COMMEMORATIVE". The play style is "key symbol match with auto win".

1.1 Price of Instant Ticket.

A. Tickets for Instant Game No. 535 shall be $1.00 per ticket.

1.2 Definitions in Instant Game No. 535.

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

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

C. Play Symbol - The printed data under the latex on the front of the instant ticket that is used to determine eligibility for a prize. Each Play Symbol is printed in Symbol font in black ink in positive except for dual-image games. The possible black play symbols are: BOOT SYMBOL, SADDLE SYMBOL, HAT SYMBOL, SPUR SYMBOL, HORSE SYMBOL, STAR SYMBOL, HORSESHOE SYMBOL, LASSO SYMBOL, ROSE SYMBOL, MUSIC NOTES SYMBOL, DRUM SYMBOL, GUITAR SYMBOL, TRUMPET SYMBOL, BW SYMBOL, $1.00, $2.00, $4.00, $5.00, $10.00, $20.00, $100 or $1,100.

Figure 1: GAME NO. 535 - 1.2D

Figure 2: GAME NO. 535 - 1.2E

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

H. Mid-Tier Prize - A prize of $100.00

I. High Tier Prize - A prize of $1,100.00

K. Pack-Ticket Number - A 13 (thirteen) digit number consisting of the three (3) digit game number (535), a seven (7) digit pack number, and a three (3) digit ticket number. Ticket numbers start with 001 and end with 250 within each pack. The format will be: 535-0000001-001.

L. Pack - A pack of "BOB WILLS COMMEMORATIVE" Instant Game tickets contains 250 tickets, packed in plastic shrink-wrapping and fanfolded in pages of five (5). Tickets 001 and 005 will be on the top page; tickets 006 and 010 on the next page; etc.; and tickets 246 and 250 will be on the last page. A ticket will be folded over on both the front and back of the book so both ticket art and ticket backs are displayed in the shrink-wrap.

N. Ticket or Instant Game Ticket, or Instant Ticket - A Texas Lottery "BOB WILLS COMMEMORATIVE" Instant Game No. 535 ticket.

2.0 Determination of Prize Winners. The determination of prize winners is subject to the general ticket validation requirements set forth in Texas Lottery Rule 401.302, Instant Game Rules, these Game Procedures, and the requirements set out on the back of each instant ticket. A prize winner in the "BOB WILLS COMMEMORATIVE" Instant Game is determined once the latex on the ticket is scratched off to expose 9 (nine) Play Symbols. If a player matches any of YOUR SYMBOLS play symbols in the play area to the SWING SYMBOL play symbol the player wins the prize shown for that symbol. If a player reveals a "BW" play symbol the player wins $100 instantly. No portion of the display printing nor any extraneous matter whatsoever shall be usable or playable as a part of the Instant Game.

2.1 Instant Ticket Validation Requirements.

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

1. Exactly 9 (nine) Play Symbols must appear under the latex overprint on the front portion of the ticket;

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

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

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

5. The ticket shall be intact;

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

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

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

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

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

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

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

13. The ticket must be complete and not miscut, and have exactly 9 (nine) Play Symbols under the latex overprint on the front portion of the ticket, exactly one Serial Number, exactly one Retailer Validation Code, and exactly one Pack-Ticket Number on the ticket;

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

16. Each of the 9 (nine) Play Symbols must be exactly one of those described in Section 1.2.C of these Game Procedures.

17. Each of the 9 (nine) Play Symbols on the ticket must be printed in the Symbol font and must correspond precisely to the artwork on file at the Texas Lottery; the ticket Serial Numbers must be printed in the Serial font and must correspond precisely to the artwork on file at the Texas Lottery; and the Pack-Ticket Number must be printed in the Pack-Ticket Number font and must correspond precisely to the artwork on file at the Texas Lottery;

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

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

2.2 Programmed Game Parameters.

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

B. Each prize symbol will be approximately evenly distributed among its possible locations.

C. No duplicate non-winning play symbols on a ticket.

D. No duplicate non-winning prize symbols on a ticket.

E. The "BW" auto win play symbol will only appear on intended winning tickets and will always appear with the $100 prize symbol.

2.3 Procedure for Claiming Prizes.

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

B. To claim a "BOB WILLS COMMEMORATIVE" Instant Game prize of $1,100, the claimant must sign the winning ticket and present it at one of the Texas Lottery’s Claim Centers. If the claim is validated by the Texas Lottery, payment will be made to the bearer of the validated winning ticket for that prize upon presentation of proper identification. When paying a prize of $600 or more, the Texas Lottery shall file the appropriate income reporting form with the Internal Revenue Service (IRS) and shall withhold federal income tax at a rate set by the IRS if required. In the event that the claim is not validated by the Texas Lottery, the claim shall be denied and the claimant shall be notified promptly.

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

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