| (a) Allocation.
(1) The Department distributes CSHC funds to UGLGs
from the 2.5% set-aside appropriated to the Department from the annual
CDBG allocation to the state of Texas.
(2) The Department shall allocate no more than $1 million
per CSHC award except as provided by this chapter. If there are insufficient
funds available from any specific program year to fully fund an Application,
the awarded Administrator may accept the amount available at that
time and wait for the remaining funds to be committed upon the Department's
receipt of the CDBG set-aside allocation from the next program year.
(3) A baseline award will first be calculated for a
CSHC beginning at $500,000 (or a lesser amount as provided for in
paragraph (2) of this subsection). The Department will add to the
baseline award up to an additional $100,000 for each Expenditure Threshold
that has been met on the current CSHC Contract, as defined in §25.10
of this chapter (relating to Expenditure Thresholds and Closeout Requirements).
An additional amount up to $100,000 may be added for an accepted Application
submitted by the deadline. An Administrator may request that the Board
add additional funds to a baseline award, despite the failure to meet
one or more Expenditure Thresholds. To add funds to a CSHC Contract
being considered for award, the Board must find that the failure to
meet each Expenditure Threshold requirement was principally related
to factors beyond the control of the Administrator. If the Board decides
to award these additional funds in whole or in part, it must also
determine that the award of these funds to the Administrator does
not create a substantial risk to the State of recapture of CDBG funds
by HUD.
(b) Deobligation and Termination.
(1) At any point in which an Administrator has missed
one of the Expenditure Thresholds required in §25.10 of this
chapter, the Department will send a notification of possible deobligation.
An Administrator will have the opportunity to submit a mitigation
plan that outlines how it will bring the Contract back into compliance,
and how it will ensure that subsequent Expenditure Thresholds can
be achieved. If the Department approves the mitigation plan, it will
take no further action on deobligation at that time. If the Department
receives no response, or if the mitigation plan is insufficient to
be approved by the Department, the Department will send notice to
the Administrator and the UGLG official to announce the initiation
of deobligation proceedings and to identify the Administrator's rights
under Tex. Gov't Code, Chapter 2105 and 10 TAC §1.411 (relating
to Administration of Block Grants under Chapter 2105 of the Tex. Gov't
Code). Approval of such action will be presented to the Department's
Board.
(2) At any point in which the Department has determined
that a Contract should be terminated for violation of program requirements,
the Department will send a notification of possible termination of
Contract. A Subrecipient will have the opportunity to submit a mitigation
plan that outlines how it will bring the Contract back into compliance.
If the Department approves the mitigation plan, it will take no further
action on termination at that time. If the Department receives no
response, or if the mitigation plan is insufficient to be approved
by the Department, the Department will send notice to the Administrator
and the UGLG official to announce the initiation of deobligation proceedings
and to identify the Administrator's rights under Tex. Gov't Code,
Chapter 2105 and 10 TAC §1.411. Approval of such action will
be presented to the Department's Board.
(3) During the time that a deobligation or termination
process is pending, the Department may reduce an Administrator's Contract
by up to 24.99% of the Contract and may publish a Request for Administrators
(RFA) to identify another UGLG to implement the CSHC Program in the
affected service area. No award to a respondent of an RFA will be
made in an amount greater than 24.99% of the original Administrator's
Contract until the process provided by Tex. Gov't Code, Chapter 2105
has been completed. Once that process is completed, an Administrator
awarded a Contract through the RFA may receive up to the maximum award
available, subject to funding availability.
(c) Reobligation.
(1) When funds become available from the proceedings
of subsection (b) of this section, they will be held for a period
of at least 90 days while an RFA for the service area is initiated.
Unless debarred by HUD or the Department, a prior Administrator is
not precluded from applying under an RFA for this service area.
(2) In all cases, funds for a given service area will
continue to be allocated to that service area unless no acceptable
respondents are identified. Only in such cases that no qualified provider
can be identified for a given service area will funds available for
that area be reissued to other CSHC Contracts for other service areas.
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