(a) Purpose and applicability. This section applies
to program awards not covered by §1.301 of this subchapter (relating
to Previous Participation Reviews for Multifamily Awards and Ownership
Transfers). With the exception of a household or project commitment
contract, prior to awarding or allowing access to Department funds
through a Contract or through a Reservation Agreement a previous participation
review will be performed in conjunction with the presentation of award
actions to the Department's Board.
(b) Capitalized terms used in this subchapter herein
have the meaning assigned in the specific chapters and rules of this
title that govern the program associated with the request, or assigned
by federal or state laws. For this section, the word Applicant means
the entity that the Department's Board will consider for an award
of funds or a Contract. As used in this section, the term Single Audit
relates specifically to the audit required by 2 CFR §200.501
or the Texas Single Audit Act.
(c) Upon Department request, Applicant will be required
to submit:
(1) A listing of the members of its board of directors,
council, or other governing body as applicable or certification that
the same relevant information has been submitted in accordance with §1.22
of this subchapter (relating to Providing Contact Information to the
Department), and if applicable with §6.6 of this title (relating
to Subrecipient Contact Information and Required Notifications);
(2) A list of any multifamily Developments owned or
Controlled by the Applicant that are monitored by the Department;
(3) Identification of all Department programs that
the Applicant has participated in within the last three years;
(4) An Audit Certification Form for the Applicant or
entities identified by the Applicant's Single Audit, or a certification
that the form has been submitted to the Department in accordance with §1.403
of this chapter (relating to Single Audit Requirements). If a Single
Audit is only required by the State Single Audit Act and not by a
federal requirement, a copy of the State Single Audit must be submitted
to the Department;
(5) In addition to direct requests for information
from the Applicant, information is considered to be requested for
purposes of this section if the requirement to submit such information
is made in a NOFA or Application for funding; and
(6) Applicants will be provided a reasonable period
of time, but not less than seven calendar days, to provide the requested
information.
(d) The Applicant's/Affiliate's financial obligations
to the Department will be reviewed to determine if any of the following
conditions exist:
(1) The Applicant or Affiliate entities identified
by the Applicant's Single Audit owes an outstanding balance in accordance
with §1.21 of this chapter (relating to Action by Department
if Outstanding Balances Exist), and a repayment plan has not been
executed between the Subrecipient and the Department or the repayment
plan has been violated;
(2) The Department has requested and not been provided
evidence that the Owner has maintained required insurance on any collateral
for any loan held by the Department; or
(3) The Department has requested and not been provided
evidence that property taxes have been paid or satisfactory evidence
of a tax exemption on any collateral for any loan held by the Department.
(e) The Single Audit of an Applicant, or Affiliate
entities identified by the Applicant's Single Audit, subject to a
Single Audit, and not currently contracting for funds with the Department
will be reviewed. In evaluating the Single Audit, the Department will
consider both audit findings, and management responses in its review
to identify concerns that may affect the organization's ability to
administer the award. The Department will notify the Applicant of
any Deficiencies, findings or other issues identified through the
review of the Single Audit that requires additional information, clarification,
or documentation, and will provide a deadline to respond.
(f) The Compliance Division will make a recommendation
of award, award with conditions, or denial based on:
(1) The information provided by the Applicant;
(2) Information contained in the most recent Single
Audit;
(3) Issues identified in subsection (d) of this section;
(4) The Deficiencies, Findings and Concerns identified
during any monitoring visits conducted within the last three years
(whether or not the Findings were corrected during the Corrective
Action Period); and
(5) The Department's record of complaints concerning
the Applicant.
(g) Compliance Recommendation to the Executive Director.
(1) If the Applicant has no history with Department
programs, and Compliance staff has not identified any issues with
the Single Audit or other required disclosures, the Application will
be deemed acceptable (for Compliance purposes) without further review
or discussion.
(2) An Applicant with no history of monitoring Findings,
Concerns, and/or Deficiencies or with a history of monitoring Findings,
Concerns, and/or Deficiencies that have been awarded without conditions
subsequent to those identified Findings, Concerns, and/or Deficiencies,
will be deemed acceptable without further review or discussion for
Compliance purposes, if there are no new monitoring Findings, Concerns,
or Deficiencies or complaint history, and if the Compliance Division
determines that the most recent Single Audit or other required disclosures
indicate that there is no significant risk to the Department funds
being considered for award.
(3) The Compliance Division will notify the Applicant
when an intended recommendation is an award with conditions or denial.
Any recommendation for an award with conditions will utilize the conditions
identified in §1.303 of this subchapter. The Applicant will be
provided a seven calendar day period to provide written comment, submit
any remaining evidence of corrective action for uncorrected events,
propose one or more of the conditions listed in §1.303 of this
subchapter, or propose other conditions for consideration by the Board.
(4) After review of materials submitted by the Applicant
during the seven day period, the Compliance Division will make a final
recommendation regarding the award. If recommending denial or award
with conditions, the Applicant will be notified of their right to
file a dispute under §1.303 of this subchapter.
(h) Consistent with §1.403 of Subchapter D of
this chapter, (relating to Single Audit Requirements), the Department
may not enter into a Contract or extend a Contract with any Applicant
who is delinquent in the submission of their Single Audit unless an
extension has been approved in writing by the cognizant federal agency
except as required by law, and in the case of certain programs, funds
may be reserved for the Applicant or the service area covered by the
Applicant.
(i) Except as required by law, the Department will
not enter into a Contract with any Applicant or entity who has an
Affiliate, Board member, or person identified in the Application that
is currently debarred by the Department or is currently on the Federal
Suspended or Debarred Listing. Applicants will be notified of the
debarred status of an Affiliate, Board Member or Person and will be
given an opportunity to remove and replace that Affiliate, Board Member
or Person so that funding may proceed. However, individual Board Member's
participation in other Department programs is not required to be disclosed,
and will not be taken into consideration by the Executive Director.
(j) Previous Participation reviews will not be conducted
for Contract extensions. However, if the Applicant is delinquent in
submission of its Single Audit, the Contract will not be extended
except as required by law, unless the submission is made, and the
Single Audit has been reviewed and found acceptable by the Department.
(k) For CSBG funds required to be distributed to Eligible
Entities by formula, the recommendation of the Compliance Division
will only take into consideration subsection (i) of this section.
(l) Previous Participation reviews will not be conducted
for Contract Amendments that staff is authorized to approve, although
federal and state requirements will still be affirmed, including but
not limited to Single Audit, debarment and suspension, litigation
disclosures, and §1.21 of this chapter (relating to Action by
the Department if Outstanding Balances Exist).
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