PART 6. OFFICE OF RURAL COMMUNITY AFFAIRS
CHAPTER 255. TEXAS COMMUNITY DEVELOPMENT PROGRAM
SUBCHAPTER A. ALLOCATION OF PROGRAM FUNDS
The Office of Rural Community Affairs (ORCA) proposes amendments to §255.7, concerning the Texas Capital Fund. These changes are designed to increase the utility of this rural economic development program by simplifying the application process and expediting the selection of award recipients. If the amendments are adopted, the fund will accept applications continuously throughout the year instead of only quarterly, as is current practice. Additionally, funding decisions will be made on a monthly basis instead of the current practice of only making decisions quarterly.
The proposed amendments to §255.7 are made to revise the allocation of funding and streamline the application process of the Infrastructure and Real Estate Programs. The proposed amendment to §255.7(a)(14) will provide that up to 70% of the allocated funding for the Infrastructure and Real Estate Program may be used to fund qualifying applications during the first six months of the calendar year. The amendment to §255.7(c) will allow for applications to be submitted at any time throughout the year. The amendment to §255.7(e) will allow for applications to be funded on a monthly basis; and allows for the use of a shortened application. This proposed amendment will apply to the Infrastructure and Real Estate Programs and will not be effective until January 1, 2010.
Charles S. (Charlie) Stone, Executive Director, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section, as amended.
Mr. Stone has also has determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the section will be the equitable allocation of CDBG non-entitlement area funds to eligible units of general local government in Texas. There will be no effect on small or large businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed.
Comments on the proposal may be submitted to Karl Young, Finance Programs Coordinator, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposed amendments in the Texas Register.
The amendments to §255.7 are proposed under the Texas Government Code §487.052, which provides the Office of Rural Community Affairs with the authority to adopt rules and administrative procedures to carry out the provisions of Chapter 487 of the Texas Government Code.
The Texas Administrative Code, Title 10, Part 6, Chapter 255, is affected by the proposal.
§255.7.Texas Capital Fund.
(a) General Provisions. This fund covers projects which will result in either an increase in new, permanent employment within a community or retention of existing permanent employment. Under the main street improvements and downtown revitalization programs, projects must qualify to meet the national program objective of aiding in the prevention or elimination of slum or blighted areas.
(1) - (13) (No change.)
(14) TDA will allocate the available funds for
the year, less $600,000 for the main street program, and $1,200,000
for the downtown revitalization program, by awarding up to 70% of
the annual allocation plus any deobligated and program income funds
available during the first half of the calendar year. All remaining
funds may be allocated to applications received during the second
half of the calendar year, including any unfunded applications received
during the first half of the calendar year. Final funding decisions
may be made on a monthly basis. [TDA will allocate the
available funds for the year, less $600,000 for the main street program,
and $1,200,000 for the downtown revitalization program, as follows:]
[(A) First round. 30% of the annual
allocation plus any deobligated and program income funds available,
as of the application due date. In the event there are sufficient
funds to fund 50% or more of an application request, but less than
100%, additional funds may be allocated to allow full or 100% funding.]
[(B) Second round. 40% of the remaining
allocation plus any deobligated and program income funds available,
as of the application due date. In the event there are sufficient
funds to fund 50% or more of an application request, but less than
100%, additional funds may be allocated to allow full or 100% funding.]
[(C) Third round. 50% of the remaining
allocation plus any deobligated and program income funds available,
as of the application due date. In the event there are sufficient
funds to fund 50% or more of an application request, but less than
100%, additional funds may be allocated to allow full or 100% funding.
If only three application rounds are scheduled, all remaining funds
will be allocated to the final round.]
[(D) Fourth round. Any remaining allocation
plus any deobligated and program income funds available, as of the
application due date.]
(b) (No change.)
(c) Application Dates. The TCF (except for the main
street program and the downtown revitalization program) is available
to eligible applicants on a continuous competitive basis throughout
the calendar year [up to four times during the year, on
a competitive basis, to eligible applicants statewide]. Applications
for the main street program and the downtown revitalization program
are accepted annually. Applications will not be accepted after 5:00
p.m. on the final day of submissions, unless the applicant can demonstrate
that the untimely submission was due to extenuating circumstances
beyond the applicant's control. The application deadline dates are
included in the program guidelines.
(d) (No change.)
(e) Application process for the infrastructure and
real estate programs. [The] TDA will [
only] accept applications at any time during normal business hours [
during the months identified in the program guidelines]. Applications
are reviewed after they have been competitively scored. Based
upon the scoring, TDA staff [Staff] makes recommendation
for award to the TDA Commissioner. The TDA Commissioner makes the
final decision. The application and the selection procedures consist
of the following steps:
(1) Each applicant must submit a complete short
form application to TDA's Rural Economic Development Division.
No changes to the application will be allowed after
submission [the application deadline date
], unless they are a result of
TDA staff recommendations. Any change that occurs will only be considered
through the amendment/modification process after the contract is signed.
(2) (No change.)
(3) TDA staff will review the applications on
a monthly basis for eligibility and completeness
and list them in descending order based on the scoring.
The communities and businesses of those applications being considered for funding
will be notified and given 30 business days to provide additional
information and supporting documentation. Applicants and/or businesses
that fail to provide requested information or supporting documentation
may be determined to be incomplete and the application will no longer
be considered for funding. [The applicant will be given
10 business days to rectify all deficiencies. An application containing
an excessive number of deficiencies, or deficiencies of a material
nature will be determined incomplete and returned.] In the event
staff determines that an application contains activities that are
ineligible for funding, the application may be restructured by
staff or returned to the applicant to be amended and resubmitted.
Eligible applications not selected for further consideration may be
held over for a one-year period and may be re-evaluated and considered
for funding. [will be restructured or returned to the applicant.
An application resubmitted for future funding cycles will be competing
with those applications submitted for that cycle. No preferential
placement will be given an application previously submitted and not
funded.]
(4) - (9) (No change.)
(f) - (m) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 10, 2009.
TRD-200903487
Charles S. (Charlie) Stone
Executive Director
Office of Rural Community Affairs
Proposed date of adoption: January 1, 2010
For further information, please call: (512) 936-6734