| (a) The Department may debar a Responsible Party, a
Consultant and/or a Vendor who has exhibited past failure to comply
with any condition imposed by the Department in the administration
of its programs. A Responsible Party, Consultant or Vendor may be
referred to the Committee for Debarment for any of the following:
(1) Refusing to provide an acceptable plan to implement
and adhere to procedures to ensure compliant operation of the program
after being placed on Modified Cost Reimbursement;
(2) Refusing to repay disallowed costs;
(3) Refusing to enter into a plan to repay disallowed
costs or egregious violations of an agreed repayment plan;
(4) Meeting any of the ineligibility criteria referenced
in §11.202 of this title (relating to Ineligible Applicants and
Applications) or other ineligibility criteria outlined in a Program
Rule, with the exception of: ineligibility related to conflicts of
interest disclosed to the Department for review, and ineligibility
identified in a previous participation review in conjunction with
an application for funds or resources (unless otherwise eligible for
Debarment under this Subchapter D);
(5) Providing fraudulent information, knowingly falsified
documentation, or other intentional or negligent material misrepresentation
or omission with regard to any documentation, certification or other
representation made to the Department;
(6) Failing to correct Events of Noncompliance as required
by an order that became effective after April 1, 2021, and/or failing
to pay an administrative penalty as required by such order, within
six months of a demand being issued by the Department. In this circumstance,
if the Debarment process is initiated but the Responsible Party fully
corrects the findings of noncompliance to the satisfaction of the
referring division and pays the administrative penalty as required
by the order before the Debarment is finalized by the Board, the Debarment
recommendation may be cancelled or withdrawn by Committee recommendation
and Executive Director concurrence. This type of referral would be
initiated by the Secretary;
(7) Controlling a multifamily Development that was
foreclosed after April 1, 2021, where the foreclosure or deed in lieu
of foreclosure terminates a subordinate TDHCA LURA;
(8) Controlling a multifamily Development and allowing
a change in ownership after April 1, 2021, without Department approval;
(9) Transferring a Development, after April 1, 2021,
without regard for a Right of First Refusal requirement;
(10) Being involuntary removed, or replaced due to
a default by the General Partner under the Limited Partnership Agreement,
after April 1, 2021;
(11) Controlling a multifamily Development and failing
to correct Events of Noncompliance before the expiration of a Land
Use Restriction Agreement, after the effective date of this rule;
(12) Refusing to comply with conditions approved by
the Board that were recommended by the Executive Award Review Advisory
Committee after April 1, 2021;
(13) Having any Event of Noncompliance that occurs
after April 1, 2021, that causes the Department to be required to
repay federal funds to any federal agency including, but not limited
to the U.S. Department of Housing and Urban Development; and/or
(14) Submitting a written certification that non-compliance
has been corrected when it is determined that the Event of Noncompliance
was not corrected. For certain Events of Noncompliance, in lieu of
documentation, the Compliance Division accepts a written certification
that noncompliance has been corrected. If it is determined that the
Event of Noncompliance was not corrected, a Person who signed the
certification may be recommended for debarment;
(15) Refusing to provide an amenity required by the
LURA after April 1, 2021;
(16) Failing to reserve units for Section 811 PRA participants
after April 1, 2021;
(17) Failing to notify the Department of the availability
of 811 PRA units after April 1, 2021;
(18) Taking "choice limiting" actions prior to receiving
HUD environmental clearance (24 CFR §58.22);
(19) Substandard construction, as defined by the Program,
and repeated failure to conduct required inspections;
(20) Repeated failure to provide eligible match. 24
CFR §92.220, 24 CFR §576.201, and as required by NOFA;
(21) Repeated failure to report program income. 24
CFR §200.80, 24 CFR §570.500, 24 CFR §576.407(c), 24
CFR §92. 503, (as applicable), and 10 TAC §20.9, or as defined
by Program Rule;
(22) Participating in activities leading to or giving
the appearance of "Conflict of Interest". As applicable, in 2 CFR
Part 215 2 CFR Part 200. 24 CFR §93.353, §92.356 24 CFR, §570.489,
24 CFR §576.404, 10 TAC §20.9, or as defined by Program
Rule;
(23) Repeated material financial system deficiencies.
As applicable, 2 CFR Part 200, 24 CFR §§, 92.205, 92.206,
92.350, 92.505, and 92.508, 2 CFR Part 215, 2 CFR Part 225 (if applicable),
2 CFR Part 230 (, 10 TAC §20.9, Uniform Grant Management Standards,
and Texas Grant Management Standards (as applicable), and as defined
by Program Rule.
(24) Repeated violations of Single Audit or other programmatic
audit requirements;
(25) Failure to remain a CHDO for Department committed
HOME funds;
(26) Commingling of funds, Misapplication of funds;
(27) Refusing to submit a required Audit Certification
Form, Single Audit, or other programmatic audit;
(28) Refusing to timely respond to reports/provide
required correspondence;
(29) Failure to timely expend funds; and
(30) A Monitoring Event determines that 50% or more
of the client or household files reviewed do not contain required
documentation to support income eligibility or indicate that the client
or household is not income eligible.
(b) The Department shall debar any Responsible Party,
Consultant, or Vendor who is debarred from participation in any program
administered by the United States Government.
(c) Debarment for violations of the Department's Multifamily
Programs. The Department shall debar any Responsible Party who has
materially or repeatedly violated any condition imposed by the Department
in connection with the administration of a Department program, including
but not limited to a material or repeated violation of a land use
restriction agreement (LURA) or Contract. Subsection (d) of this section
provides the criteria the Department will use to determine if there
has been a material violation of a LURA. Subsections (e)(1) and (e)(2)
of this section provide the criteria the Department shall use to determine
if there have been repeated violations of a LURA.
(d) Material violations of a LURA. A Responsible Party
will be considered to have materially violated a LURA, Program Agreement,
or condition imposed by the Department and shall be referred to the
committee for mandatory Debarment if they:
(1) Control a Development that has, on more than one
occasion scored 50 or less on a UPCS inspection or has, on more than
one occasion scored 50 or less on a NSPIRE inspection, or any combination
thereof. The Compliance Division may temporarily decrease this NSPIRE
score threshold with approval by the Executive Director, for a period
of time not longer than one year, so long as the score threshold is
applied evenly to all properties;
(2) Refuse to allow a monitoring visit when proper
notice was provided or failed to notify residents, resulting in inspection
cancellation, or otherwise fails to make units and records available;
(3) Refuse to reduce rents to less than the highest
allowed under the LURA;
(4) Refuse to correct a UPCS, NSPIRE, or final construction
inspection deficiency after the effective date of this rule;
(5) Fail to meet minimum set aside by the end of the
first year of the credit period (HTC Developments only) after April
1, 2021; or
(6) Excluding an individual or family from admission
to the Development solely because the household participates in the
HOME Tenant Based Rental Assistance Program, the housing choice voucher
program under Section 8, United States Housing Act of 1937 (42 U.S.C. §1-437),
or other federal, state, or local government rental assistance program
after April 1, 2021.
(e) Repeated Violations of a LURA that shall be referred
to the Committee for Debarment.
(1) A Responsible Party shall be referred to the Committee
for mandatory Debarment if they Control a Development that, during
two Monitoring Events in a row is found to be out of compliance with
the following Events of Noncompliance:
(A) No evidence of, or failure to certify to, material
participation of a non-profit or HUB, if required by the Land Use
Restriction Agreement;
Cont'd... |
