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RULE §30.3Program Overview

(a) Fund categories. TxCDBG Program assistance is available through the following seven fund categories.

  (1) Community Development (CD) Fund provides assistance for public facilities, basic infrastructure projects such as sewer or water improvements, street and drainage improvements, and housing activities, or other eligible activities as specified by the Department.

  (2) Texas Capital Fund (TCF) is designed to support rural business development, retention and expansion by providing grants and/or loans for real estate or infrastructure development, or the elimination of deteriorated conditions. TCF is composed of five programs:

    (A) Real Estate Program provides grants and/or loans to purchase, construct, or rehabilitate real estate that is wholly or partially owned by a community and leased to a specific benefiting business for the purpose of creating or retaining permanent jobs in primarily rural communities;

    (B) Infrastructure Development Program provides grants and/or loans for infrastructure development, such as construction or improvement of water/wastewater facilities, public roads, natural gas-line main, electric-power services, and railroad spurs, for the purpose of creating or retaining permanent jobs in primarily rural communities;

    (C) Downtown Revitalization Program (DRP) provides grants for public infrastructure to foster and stimulate economic development in rural downtown areas;

    (D) Main Street Improvements Program is designed to aid in the prevention or elimination of slum or blighted areas and provides assistance to expand or enhance public infrastructure in historic main street areas; and

    (E) Small and Microenterprise Revolving Fund (SMRF) is available to communities partnering with a non-profit organization to provide loans to local small businesses.

  (3) Colonia Fund is available for projects in severely distressed unincorporated areas which meet the definition of a colonia. The Colonia Fund is divided into five programs:

    (A) Colonia Fund Construction (CFC) program is available for eligible activities designed to meet the needs of colonia residents, such as water and wastewater improvements, housing rehabilitation for low and moderate income households, the payment of assessments levied against properties owned and occupied by persons of low and moderate income to recover the capital cost for a public improvement, and other improvements including street paving and drainage;

    (B) Colonia Fund Planning (CFP) program provides assistance for planning activities that prepare colonia areas for needed water, sewer and housing improvements. Assistance is provided to gather information regarding demographics, housing, land use statistics, public facilities and public services;

    (C) Colonia Economically Distressed Areas Program (CEDAP) provides assistance to colonia areas to connect to a water and/or sewer system project funded by the Texas Water Development Board Economically Distressed Area Program (TWDB EDAP);

    (D) Colonia Self-Help Center Program, which is administered by the Texas Department of Housing and Community Affairs (TDHCA), provides assistance to low-income and very low-income individuals and families living in colonias to finance, refinance, construct, improve or maintain safe and suitable housing; and

    (E) Colonias-to-Cities Initiative Program (CCIP) provides assistance for basic infrastructure considered necessary for a colonia area to be annexed by an adjoining city.

  (4) Planning/Capacity Building (PCB) Fund provides assistance to conduct planning activities that assess local needs, develop strategies to address local needs, build or improve local capacity to undertake future community development projects, or that include other needed planning elements (including telecommunications and broadband needs).

  (5) State Urgent Need (SUN) Fund is available for assistance and recovery following a disaster situation.

  (6) Small Towns Environment Program (STEP) Fund provides financial assistance to units of general local government that are willing to address water and sewer needs through self-help methods via local volunteers.

  (7) Fire, Ambulance & Services Truck (FAST) Fund provides assistance to rural communities for fire, ambulance, and similar emergency vehicle response needs.

(b) Fund allocations. Of the state's annual CDBG allocation from HUD, the department allocates a certain percentage to each TxCDBG fund category. For specific fund allocations, refer to the department's current TxCDBG Action Plan.

Source Note: The provisions of this §30.3 adopted to be effective January 1, 2015, 39 TexReg 10395; amended to be effective February 1, 2016, 41 TexReg 775; amended to be effective March 14, 2019, 44 TexReg 1285; amended to be effective February 2, 2020, 45 TexReg 527

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