1. (a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Block grant--A program resulting from the consolidation or transfer of separate federal categorical or other federal grant programs so that the state determines the method or amounts to be allocated from the combined amounts to various agencies or programs, including programs so defined by the Federal Omnibus Budget Reconciliation Act of 1981.
   2. (2) Contract--A written agreement executed by the department and contractor for the provision of a block grant program which is funded with block grant monies.
   3. (3) Contractor--An entity with which the department has executed a contract.
   4. (4) Department--Texas Department of Housing and Community Affairs.
   5. (5) Entity--A local governmental unit, council of government, community action agency, private new community developer, or nonprofit community association within any community originally established as a new community development program pursuant to the Urban Growth and New Community Development Act of 1970, 42 United States Code §§4511-4532, or another public or private organization that receives block grant funds or that may be eligible to receive block grant funds to provide services or benefits to the public.
   6. (6) Recipients--Individuals or classes of individuals who are the beneficiaries of a contract.
   7. (7) Same geographic area--Substantially the same geographic area as is being served under the existing contract.
   8. (8) Similar services--Substantially the same services as are being provided under the existing contract.
2. (b) Applicability. This subchapter only applies to a reduction in the amount of funding of any contract that equals or exceeds 25% of the department's maximum monetary obligation under the contract and to the nonrenewal of any contract.

Source Note:The provisions of this §1.11 adopted to be effective February 6, 1984, 9 TexReg 412; amended to be effective October 30, 1985, 10 TexReg 4084; amended to be effective January 10, 1992, 17 TexReg 43.