1. (a) This section applies to program awards not covered by §1.301 of this subchapter. With the exception of a household or project commitment contract, prior to awarding or allowing access to Department funds through a Contract or through a Reservation Agreement a previous participation review will be performed in conjunction with the presentation of award actions to the Department's Board.
2. (b) Capitalized terms used in this section herein have the meaning assigned in the specific Chapters and Rules of this Part that govern the program associated with the request, or assigned by federal or state laws. For this Section, the word Applicant means the entity that the Department's Board will consider for an award of funds or a Contract.

3. (c) Upon Department request, Applicants will be required to submit:

   1. (1) A listing of the members of its board of directors, council, or other governing body as applicable or certification that the same relevant information in the Community Affairs contract system is current and accurate;
   2. (2) A description of any pending state or federal litigation (including administrative proceedings including, but not limited to, proceedings to impose any penalty or revoke or suspend any funding, license, or permit) and any final decrees within the last three years that involve federal or state program administration or funds (if the requested judgment or notice against or with respect to an entity would represent a twenty percent reduction or more in the entity's current year operating budget) or any conviction of any Applicant or Affiliate for a crime of moral turpitude that would relate to their fitness to act in their Applicant or Affiliate role, or final notice of any termination or reduction of any program or programmatic award;
   3. (3) A list of any multifamily Developments owned or Controlled by the Applicant or Affiliate that are monitored by the Department; and
   4. (4) Identification of all Department programs that the Applicant or Affiliate has participated in within the last three years.
   5. (5) In addition to direct requests for information from the Applicant or Affiliate, information is considered to be requested for purposes of this section if the requirement to submit such information is made in a notice of funding availability or application for funding.
   6. (6) Applicants will be provided a reasonable period of time, but not less than five business days, to provide the requested information.

4. (d) The Applicant's/Affiliate's financial obligations to the Department will be reviewed to determine if any of the following conditions exist:

   1. (1) The Applicant or an Affiliate owes an outstanding balance in accordance with §1.21 of Chapter 1 of this Title, and a repayment plan has not been executed between the Subrecipient and the Department or the repayment plan has been violated;
   2. (2) The Department has requested and not been provided evidence that the Owner has maintained required insurance on any collateral for any loan held by the Department; or
   3. (3) The Department has requested and not been provided evidence that property taxes have been paid or satisfactory evidence of a tax exemption on any collateral for any loan held by the Department.
5. (e) The information provided by the Applicant, the results of the most recent Single Audit, any noncompliance identified in the sections above and summary information regarding monitoring Deficiencies, Findings and Concerns identified during any monitoring visits conducted within the last three years (whether or not the Findings were corrected during the corrective action period), and Department's record of complaints concerning the Applicant will be compiled and a summary provided to EARAC.
6. (f) EARAC will review the information and may recommend approval, denial or approval with conditions. During the monitoring process and the Single Audit review process Subrecipients will be notified that Deficiencies, Findings, and Concerns are reported to EARAC, and provided the opportunity to submit comments for consideration. If an Applicant submitted comments during the monitoring or Single Audit process, those will be shared with EARAC. EARAC may request any other information from the Department staff or the Applicant.
7. (g) Any Applicant which will be recommended for denial or an award with conditions will be informed in writing. If EARAC recommends denial or if the Applicant does not agree with the conditions recommended by EARAC, the Applicant will have the opportunity to appeal EARAC's recommendation in accordance with §1.304 of this subchapter.
8. (h) Consistent with §1.403 of Subchapter D of this chapter, concerning Single Audit Requirements, the Department will not enter into a Contract or extend a Contract with any Applicant who is delinquent in the submission of their Single Audit unless an extension has been approved in writing by the cognizant federal agency except as required by law, and in the case of certain programs, funds may be reserved for the Applicant or the service area covered by the Applicant.
9. (i) Except as required by law, the Department will not enter into a Contract with any entity who has a Board member on the Department's debarment list or the federal debarred and suspended listing. Applicants will be notified of the debarred status of a board member and will be given an opportunity to remove and replace that board member so that funding may proceed. However, individual Board member's participation in other Department programs is not required to be disclosed and will not be taken into consideration.
10. (j) Except as required by law, the Department will not enter into a Contract with any Applicant who is on the Department's or the federal debarred and suspended listing.
11. (k) Previous Participation reviews will not be conducted for Contract extensions. However, if the Applicant is delinquent in submission of its Single Audit, the Contract will not be extended except as required by law.
12. (l) For non-discretionary CSBG, EARAC will only evaluate the considerations under subsections (i) and (j) of this section, but the Board Action on the award may contain the information gathered as part of the previous participation review.
13. (m) Previous Participation reviews will not be conducted for Contract Amendments that staff is authorized to approve if the increase in funds is 15% or less of the initial award of funds. Previous Participation reviews will be conducted for Contract amendments if the increase in funds from the initial award is greater than 15%.

Source Note:The provisions of this §1.302 adopted to be effective December 4, 2016, 41 TexReg 9266.