(a) The Department will retain funds for Administrative
activities. Funds for Administrative or Program Participant services
may be retained by TDHCA to Subgrant specific ESG activities, such
as legal services or as operating costs for non-congregate emergency
shelters funded by the Department's allocation of funds from the HOME
American Rescue Plan Act.
(b) If the Department receives ESG funding from HUD
that has additional activity or geographic restrictions, the Department
may elect not to use the Allocation Formula. Funds retained under
subsection (a) of this section are not subject to the Allocation Formula.
(c) ESG funds not retained for the purposes outlined
in subsections (a) and (b) of this section will be made available
by CoC region based on an Allocation Formula. Allocation Formula factors
noted in paragraphs (1) - (4) of this subsection will be used to calculate
distribution percentages for each CoC region as follows:
(1) Fifty percent weight will be apportioned to renter
cost burden for Households with incomes less than 30% Area Median
Family Income (AMFI), as calculated in the U.S. Department of Housing
and Urban Development's (HUD) Comprehensive Housing Affordability
Strategy;
(2) Fifty percent weight will be apportioned for the
number of persons in poverty from the most recent five-year estimate
of the American Community Survey released by the U.S. Census Bureau;
(3) Fifty percent weight will be apportioned to point-in-time
counts, which are annual counts of sheltered and unsheltered persons
experiencing homelessness on one day during the last two weeks of
January as required by HUD for CoCs. If a CoC did not conduct a point-in-time
count or only completed a partial point-in-time count, the results
of the most recent point-in-time count conducted that covered both
the sheltered and unsheltered persons experiencing homelessness will
be utilized for the purposes of the Allocation Formula; and
(4) Negative 50% weight will be apportioned based on
a total of all ESG funding allocated by HUD to local jurisdictions
within the CoC region, and ESG funding awarded by the Department within
the region from the previous fiscal year.
(d) Each CoC region is allocated a minimum amount of
$100,000. This is accomplished by taking the amounts of all regions
with over $100,000 during the initial allocation and redistributing
a proportional share to the regions with less than $100,000. If the
Department distributes by Allocation Formula less than the amount
required to provide all regions with $100,000, then the funds will
be split evenly among the CoC regions.
(e) Not less than 70% of ESG funding allocated to the
CoC regions shall be initially withheld from competition for use by
Subrecipients eligible for continuing awards as described under §7.34
of this subchapter (relating to Continuing Awards).
(f) Those ESG funds allocated based on the formula
in subsection (c) of this section will be made available for the provision
of Program Participant services; they will be made available through
a NOFA for both continuing awards described in subsection (e) of this
section and for competitive Applications which will be released on
an annual basis.
(1) Not more than 60% of total ESG funds under direct
Subgrants, continuing, and competitive awards may be awarded for the
provision of street outreach and emergency shelter activities. Funds
will first be made available to direct Subgrants, then continuing
awards. Remaining funds made available for competitive awards.
(2) Contract funding limits include the funding request
for all Program Participant services proposed in the Application,
HMIS, and Administrative funds.
(A) Funding request minimums and maximums will be noted
in the NOFA.
(B) Funds awarded for HMIS are limited to 12% of the
amount of funds awarded for Program Participant services.
(C) Administrative activities are limited to three
percent of the amount of funds awarded for Program Participant services.
(g) ESG funds that have been deobligated by the Department
or that have been voluntarily returned from an ESG Contract may be
reprogrammed at the discretion of the Department, and are not included
in the Allocation Formula or award process detailed in subsections
(c) - (f) or (h) - (j) of this section.
(h) An ESG Applicant may have the right to appeal funding
decisions per §1.7 of this title (relating to Appeals Process).
(i) The Department reserves the right to negotiate
the final Contract amount and local Match requirement with an Applicant.
(j) Percentages described in this subchapter will not
be rounded up to the nearest whole number.
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