| (a) The Department shall contract with an UGLG for
the operation of a CSHC. The UGLG may subaward the activity to a Nonprofit
Organization, Community Action Agency, or Housing Authority that has
demonstrated the ability to carry out all or part of the functions
of a CSHC. The UGLG must perform the requirements of a pass-through
entity, as further described in 2 CFR §200.332 and TxGMS.
(b) The Administrator is required to complete an environmental
review in accordance with 24 CFR Part 58, and receive the Authority
to Use Grant Funds from the Department before:
(1) Any commitment of CDBG funds (i.e., execution of
a legally binding Agreement and expenditure of CDBG funds) for Activities
other than those that are specifically exempt from environmental review;
and
(2) Any commitment of non-CDBG funds associated with
the scope of work in the Contract that would have an adverse environmental
impact (i.e., demolition, excavating, etc.) or limit the choice of
alternatives (i.e., acquisition of real property, Rehabilitation of
buildings or structures, etc.).
(c) Request for Payments. The Administrator shall submit
a properly completed request for reimbursement, as specified by the
Department, at a minimum on a quarterly basis; however, the Department
reserves the right to request more frequent reimbursement requests
as it deems appropriate. The Department shall determine the reasonableness
of each amount requested and shall not make disbursement of any such
payment request until the Department has reviewed and approved such
request. Payments under the Contract are contingent upon the Administrator's
full and satisfactory performance of its obligations under the Contract.
The Department may reduce a request for payment if documentation is
insufficient or the performance is unsatisfactory.
(1) $2,500 is the minimum amount for a Draw to be processed,
unless it is the final Draw request. If an Administrator fails to
submit a draw for 12 consecutive months the Contract may be subject
to termination for failure to meet the Contract obligations.
(2) Draw requests will be reviewed to comply with all
applicable laws, rules and regulations. The Administrator is responsible
for maintaining a complete record of all costs incurred in carrying
out the Activities of the Contract.
(3) Draw requests for all housing Activities will only
be reimbursed upon satisfactory completion of types of Activities
(e.g., all plumbing completed, entire roof is completed, etc.), consistent
with the construction contract.
(4) The Administrator will be the principal contact
responsible for reporting to the Department and submitting Draw requests.
(d) Reporting. The Administrator shall submit to the
Department reports on the operation and performance of the Contract
on forms as prescribed by the Department. Quarterly Reports shall
be due no later than the tenth calendar day of the month after the
end of each calendar quarter. The Administrator shall maintain and
submit to the Department up-to-date accomplishments in quarterly reports
identifying quantity and cumulative data including the expended funds,
Activities completed and total number of Beneficiaries. Processing
of draws may be suspended until the Administrator's quarterly reports
are submitted and approved by the Department. If an Administrator
fails to submit Activity data within a 24-consecutive-month period,
the Contract may be subject to termination for failure to meet the
Contract obligations.
(e) Amendments. The Department's executive director
or its designee, may authorize, execute, and deliver amendments to
any Contract.
(1) One Contract Extension of no more than six months
may be granted beyond the four-year Contract period.
(2) Changes in Beneficiaries. Any changes to increase
contractual deliverables and Beneficiaries shall require a Contract
amendment.
(3) The Department, at its discretion and in coordination
with an Administrator, may increase a Contract Budget amount and the
number of Activities and Beneficiaries to be assisted based on the
availability of CSHC funds, the exemplary performance in the implementation
of an Administrator's current Contract, and the time available in
the four-year Contract period. Upon Board approval, the cap on the
maximum Contract amount may be exceeded if the terms of this paragraph
are met by the Administrator.
(f) Participating Households must provide at least
15% of the labor necessary to construct or Rehabilitate the Single
Family Housing Unit by contributing the labor personally and/or through
non-contract labor assistance from family, friends, or volunteers.
Volunteer hours at the CSHC may also fulfill the 15% labor requirement.
(g) Program funds can be used for Rehabilitation, Reconstruction,
or New Construction. Assistance may be provided in the form of a grant
or a forgivable loan to the household. Additional funds from other
sources may be leveraged with Program funds. Program funds cannot
exceed the following limits:
(1) Program funds for Rehabilitation cannot exceed
$75,000 in Program funds per unit per Income Eligible Household.
(2) Program funds for Reconstruction or New Construction
cannot exceed $100,000 in Program funds per unit per Income Eligible
Household.
(3) An additional $5,000 in Program funds is available
for properties with non-functioning and/or unpermitted cesspools or
septic tanks that need replacement with an appropriately sized on-site
sewage facility, or connection to a Department-approved source of
potable water and wastewater disposal.
(h) All Direct Delivery Costs must be eligible and
based on actual expenses for the specific housing unit. Subawardees
acting on behalf of an UGLG shall incorporate Direct Delivery Costs
into its bid proposals.
(i) Prior to Department approval of CSHC construction
activity, the CSHC must document that existing on-site sewage facilities
(septic systems) have been inspected by a Texas Commission on Environmental
Quality-authorized agent to determine if the system is in substantial
compliance with Health & Safety Code, Chapter 366 and the rules
adopted under that chapter. Cesspools that have not been previously
permitted are unacceptable and must be replaced by an appropriately
sized on-site sewage facility or the home must be connected to a Department-approved
source of potable water and wastewater disposal.
(j) New Construction, Reconstruction, and Rehabilitation
activities. An Administrator under the CSHC Program must adhere to
the Inspection Requirements for Construction Activities under Chapter
20 of this title and the Minimum Energy Efficiency Requirements for
Single Family Construction Activities under Chapter 21 of this title.
(1) New Construction Requirements.
(A) No initial inspection is required, however building
construction plans must be submitted to the Department for approval.
(B) A Certificate of Occupancy is acceptable confirmation
of meeting construction requirements. If the activity occurs in a
jurisdiction that does not issue Certificates of Occupancy, a Qualified
Inspector shall inspect the property applying all applicable construction
standards and forms prescribed by the Department.
(2) Reconstruction Requirements.
(A) The initial inspection must identify all substandard
conditions as described by Texas Minimum Construction Standards (TMCS)
and any health or safety concerns that are beyond repair; confirm
that a governmental entity has condemned the unit; or identify the
unit as an MHU that will not be rehabilitated. The work write-up and
cost estimate shall address all substandard conditions in sufficient
detail to justify the need for reconstruction.
(B) A Certificate of Occupancy is acceptable confirmation
of meeting construction requirements. If the activity occurs in a
jurisdiction that does not issue Certificates of Occupancy, a Qualified
Inspector shall inspect the property applying all applicable construction
standards and forms prescribed by the Department.
(C) Administrator must demonstrate compliance with §2306.514
Tex. Gov't Code, "Construction Requirements for Single Family Affordable
Housing".
(3) Rehabilitation Requirements.
(A) The initial inspection must identify all substandard
conditions as described by TMCS and any health or safety concerns.
The work write-up and cost estimate shall address all substandard
conditions in sufficient detail.
(B) The final inspection shall document that all elements
incorporated into the contracted work-write up have been addressed
satisfactorily prior to the final draw request.
(k) Primary residences being assisted with any construction
activities (Rehabilitation, Reconstruction and New Construction) must:
(1) Comply with adopted Model Subdivision Rules for
the county in which assistance is being provided; and
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