1. (a) Eligible Applicants may include entities such as units of local governments, Nonprofit Organizations, or other entities as further provided in the Program Rule and/or NOFA.
2. (b) Applicants shall be in good standing with the Department, Texas Secretary of State, Texas Comptroller of Public Accounts and HUD, as applicable.
3. (c) Applicants shall comply with all applicable state and federal rules, statutes, or regulations including those administrative requirements in 10 TAC Chapter 1.
4. (d) Applicants must provide Resolutions in accordance with the applicable Program Rule.

5. (e) The actions described in the following 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 and/or threshold requirements described in the applicable Program Rule and NOFA;
   2. (2) Applicant failed to make timely payments on fee commitments or on debts to the Department 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 insurance;
   4. (4) Applicant is debarred by HUD or the Department; or
   5. (5) Applicant is currently noncompliant or has a history of noncompliance with any Department Program. Each Applicant will be reviewed for compliance history by the Department. Applications submitted by Applicants found to be in noncompliance or otherwise violating the rules of the Department may be terminated, recommended with conditions, 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 components of any Application.
8. (h) If Applicant is originating or servicing a Mortgage Loan, Applicant must possess all licenses required under state or federal law for taking the application of and/or servicing a residential mortgage loan and be in good standing with respect hereto, unless Applicant is specifically exempted from such licensure pursuant to the applicable state and federal laws and regulations regarding residential mortgage loans.

Source Note:The provisions of this §20.6 adopted to be effective August 24, 2017, 42 TexReg 4124.