| (a) Failure to comply with regulations or program requirements.
(1) If a grant recipient fails to comply with applicable
federal or state regulations, the Department will require corrective
action to address the violations. If the violation is egregious or
the result of failure to implement a previous corrective action plan,
the Department will take any action(s) available under the grant agreement,
24 CFR Part 570, and/or the TxGMS.
(2) If applicable, if the violation or noncompliance
is not cured within the period allowed for cure, all TxCDBG funds
awarded to the grant recipient will be suspended, including all open
grants and any pending awards, until the non-compliance is resolved.
(b) Failure to meet grant agreement requirements. If
the Department finds that a grant recipient did not provide the level
of benefits specified in its grant agreement, the following actions
may be taken, including but not limited to:
(1) holding the grant recipient ineligible to apply
for or receive TxCDBG funds for a period of at least two program years
or until any issue of restitution is resolved, whichever is longer;
and
(2) requiring the grant recipient to reimburse the
Department for the difference between the amount of funds provided
for the level of benefits specified in the agreement and the amount
of funds actually expended in providing such level of benefits.
(c) Corrective action plan.
(1) The Department may require a corrective action
plan which includes:
(A) a statement acknowledging the violation as determined
by the Department;
(B) identification of the cause of the violation and
timeline of events;
(C) a plan outlining actions the grant recipient will
take to improve performance to meet program requirements, the persons
(or position titles) responsible for implementing the corrective action
plan, and the date the plan will be implemented; and
(D) a statement acknowledging that failure to effectively
improve performance may result in a reduction of funding or other
sanctions as determined by TDA.
(2) If the grant recipient fails to provide a corrective
action plan, or if the Department determines that proposed project
benefits may not be met without an extension of the grant term, the
Department may terminate the grant agreement.
(3) If a grant agreement is terminated, the grant recipient
is required to repay all TxCDBG funds received under the grant prior
to termination.
(d) Withdrawal, suspension or termination. The Department
may withdraw, suspend or terminate an award or grant agreement under
other circumstances when warranted by federal or state law, including
applicable federal grant management standards or the TxGMS.
(e) Disqualification of an Administrator.
(1) Third-party administrators. If there is at least
one unresolved finding of noncompliance that results in significant
required repayment by the grant recipient to the Department, the following
actions will be taken:
(A) after the first finding related to a third-party
administrator, administrative costs will be disallowed and funds paid
for administration will not be considered toward match requirements;
and
(B) after the second finding related to the same administrator,
administrative costs will be disallowed, funds paid for administration
will not be considered toward match requirements, and the third-party
administrator will be ineligible to administer a TxCDBG grant for
a period of three years from the date of the finding.
(2) Self-administering communities. In the event there
is at least one unresolved finding that results in significant required
repayment by a grant recipient that self-administers the grant, the
following actions will be taken:
(A) after the first finding, administrative costs will
be disallowed and funds paid for administration will not be considered
toward match requirements; and
(B) after the second finding, administrative costs
will be disallowed, funds paid toward administration will not be considered
toward match requirements, and in order to be eligible for a future
TxCDBG grant award, the grant recipient will be required to hire a
third-party administrator in good standing with the Department for
subsequent TxCDBG grants for a period of three years from the date
of the finding.
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