1. (a) Eligible Applicants may include entities such as units of local governments, nonprofit corporations, or other entities as further provided in the Program Rules and/or NOFA.
2. (b) Applicants shall be in good standing with the Texas Office of the Secretary of State and Texas Comptroller of Public Accounts, as applicable.
3. (c) Applicants shall comply with all applicable state and federal rules, statutes, or regulations.
4. (d) Resolutions must be provided in accordance with the applicable Program Rule or NOFA.

5. (e) The violations described in paragraphs (1) - (5) of this subsection may cause an Applicant and any Applications they have submitted, to be ineligible:

   1. (1) Applicant did not satisfy all eligibility requirements described in the Program Rules and NOFA to which they are responding;
   2. (2) Applicant failed to make timely payment on fee commitments or on debts to the Department and for which the Department has initiated formal collection or enforcement actions;
   3. (3) Applicant failed to comply with any other provisions of debt instruments held by the Department including, but not limited to, such provisions as timely payment of property taxes and proper placement and maintenance of insurance;
   4. (4) Applicant is debarred by HUD or the Department; or
   5. (5) current or previous noncompliance. Each Applicant will be reviewed for compliance history by the Department. Applications submitted by Applicants found to be in material noncompliance or otherwise violating the Compliance Rules of the Department may be terminated and/or not recommended for funding.
6. (f) The Department reserves the right to adjust the amount awarded based on the Application's feasibility, underwriting analysis, the availability of funds, or other similar factors as deemed appropriate by the Department.
7. (g) The Department may decline to fund any Application if the proposed activities do not, in the Department's sole determination, represent a prudent use of the Department's funds. The Department is not obligated to proceed with any action pertaining to any Applications which are received, and may decide it is in the Department's best interest to refrain from pursuing any selection process. The Department reserves the right to negotiate individual elements of any Application.

Source Note:The provisions of this §20.6 adopted to be effective November 1, 2012, 37 TexReg 8470.