| (a) The Department will perform monitoring of single
family Program Contracts and Activities in order to ensure that applicable
requirements of federal laws and regulations, and state laws and rules
have been met, and to provide Administrators with clear communication
regarding the condition and operation of these Contracts and Activities
so they understand clearly, with a documented record, how they are
performing in meeting obligations.
(1) The physical condition of assisted properties and
Administrator's documented compliance with contractual and Program
requirements may be subject to monitoring.
(2) The Department may contract with an independent
third party to monitor an Activity for compliance with any conditions
imposed by the Department in connection with the award of any Department
funds, and appropriate state and federal laws.
(b) If an Administrator has Contracts for more than
one single family Program, or other programs through the Department
or the State, the Department may, at its discretion, coordinate monitoring
of those programs with monitoring of single family Contracts under
this chapter.
(c) In general, Administrators will be scheduled for
monitoring based on federal or state monitoring requirements, or a
risk assessment process including but not limited to: the number of
Contracts administered by the Administrator, the amount of funds awarded
and expended, the length of time since the last monitoring, Findings
identified during previous monitoring, issues identified through the
submission or lack of submission of a Single Audit, complaints, and
reports of fraud, waste and/or abuse. The risk assessment will also
be used to determine which Administrators will have an onsite review,
and which may have a desk review.
(d) The Department will provide an Administrator with
written notice of any upcoming onsite or desk monitoring review, and
such notice will be given to the Administrator by email to the Administrator's
chief executive officer at the email address most recently provided
to the Department by the Administrator. In general, a 30 calendar
day notice will be provided. However, if a credible complaint of fraud
is received, the Department reserves the right to conduct unannounced
monitoring visits, or provide a shorter notice period. If the Department
receives a complaint under §1.2 of this title (relating to Department
Complaint System to the Department), it will follow the procedures
outlined therein instead of this section. It is the responsibility
of the Administrator to maintain current contact information with
the Department for the organization, key staff members, and governing
body in accordance with §1.22 of this title (relating to Providing
Contact Information to the Department).
(e) Upon request, an Administrator must make available
to the Department all books and records that the Department determines
are reasonably relevant to the scope of the Department's review, along
with access to assisted properties.
(f) Post Monitoring Procedures. After the review, a
written monitoring report will be prepared for the Administrator describing
the monitoring assessment and any corrective actions, if applicable.
The monitoring report will be emailed to the Administrator. Issues
of concern over which there is uncertainty or ambiguity may be discussed
by the Department with the staff of cognizant agencies overseeing
federal funding.
(g) Administrator Response. If there are any Findings
and/or Concerns of noncompliance requiring corrective action, the
Administrator will be provided a 30 day corrective action period,
which may be extended for good cause. In order to receive an extension,
the Administrator must submit a written request to the Compliance
Division within the corrective action period, stating the basis for
good cause that the Administrator believes justifies the extension.
In general, the Department will approve or deny the extension request
within three business days. Failure to timely respond to a corrective
action notice and/or failure to correct all Findings will be taken
into consideration if the Administrator applies for additional funding
and may result in suspension of the Contract, referral to the Enforcement
Committee, or other action under this title.
(h) Monitoring Close Out. After completion of the monitoring
review, a close out letter will be issued to the Administrator. If
the Administrator supplies evidence establishing continual compliance
that negates the Finding of noncompliance, the issue of noncompliance
will be rescinded. If the Administrator's response satisfies all Findings
and Concerns noted in the monitoring letter, the issue of noncompliance
will be noted as resolved. In some circumstances, the Administrator
may be unable to secure documentation to resolve a Finding. In those
instances, if there are mitigating circumstances, the Department may
note the Finding is not resolved but may close the issue with no further
action required. If the Administrator's response does not correct
all Findings noted, the close out letter will identify the documentation
that must be submitted to correct the issue. Results of monitoring
Findings may be reported to the EARAC for consideration relating to
Previous Participation.
(i) Options for Review. If, following the submission
of corrective action documentation, Compliance staff continues to
find the Administrator in noncompliance, and the Administrator disagrees,
the Administrator may request or initiate review of the matter using
the following options, where applicable:
(1) If the issue is related to a federal program requirement
or prohibition, Administrators may contact an applicable federal program
officer for guidance, or request that the Department contact applicable
federal program officer for guidance without identifying the Administrator.
(2) If the issue is related to a provision of the Contract
or a requirement of the TAC, or a provision of TxGMS, the Administrator
may submit an appeal to the Executive Director consistent with §1.7
of this title (relating to Appeals Process).
(3) An Administrator may request Alternative Dispute
Resolution (ADR). An Administrator must send a proposal to the Department's
Dispute Resolution Coordinator to initiate ADR pursuant to §1.17
of this title (relating to Alternative Dispute Resolution).
(j) If an Administrator does not respond to a monitoring
letter or fails to provide acceptable evidence of timely compliance
after notification of an issue, the matter will be reported to the
Department's Enforcement Committee for consideration of administrative
penalties, full or partial cost reimbursement, or suspension.
(k) An Administrator must provide timely response to
corrective action requirements imposed by other agencies. Administrator
records may be reviewed during the course of monitoring or audit of
the Department by HUD, the Office of the Inspector General, the State
Auditor's Office, or others. If a Finding or Concern is identified
during the course of a monitoring or audit by another agency, the
Administrator is required to provide timely action and response within
the conditions imposed by that agency's notice.
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