Unless otherwise provided in this chapter, the CA, RSP, or Development Owner, must comply with the requirements described in paragraphs (1) - (18) of this section, for the administration and use of HOME funds:

1. (1) complete training, as applicable;
2. (2) provide all applicable Department Housing Contract System access request information and documentation requirements;
3. (3) establish and maintain sufficient records at its regular place of business and make available for examination by the Department, HUD, the State Auditor of Texas, the U.S. General Accounting Office, the Comptroller of Public Accounts of the State of Texas, and the U.S. Comptroller, or any of their duly authorized representatives;

4. (4) for non-development Activities, develop and establish written procurement procedures that comply with federal, state, and local procurement requirements including:

   1. (A) develop and comply with written procurement selection criteria and committees;
   2. (B) develop and comply with a written code of conduct governing employees, officers, or agents engaged in administering HOME funds and appoint a procurement officer to manage any bid process;
   3. (C) ensure consultant or any procured service provider does not participate in or direct the process of procurement for services. A consultant cannot assist in their own procurement before or after an award is made;
   4. (D) ensure that procedures established for procurement of building construction contractors do not include requirements for the provision of general liability insurance coverage in an amount to exceed the value of the contract;
   5. (E) ensure that building construction contractors are procured using a formal sealed bid procedure for single family New Construction, Reconstruction or Rehabilitation Projects;
   6. (F) ensure that professional service providers (consultants) are procured using an open competitive procedure and are not procured based solely on the lowest priced bid; and

   7. (G) ensure that any Request for Proposals or Invitation for Bid include:

      1. (i) an equal opportunity disclosure and a notice that bidders are subject to search for listing on the Excluded Parties List;
      2. (ii) bidders' protest rights and an outline of the procedures bidders must take to address procurement related disputes;
      3. (iii) a conflict of interest disclosure;
      4. (iv) a clear and accurate description of the technical requirements for the material, product, or service to be procured. The description must include complete, adequate, and realistic specifications;
      5. (v) for sealed bid procedures, disclose the date, time and location for public opening of bids and indicate a fixed-price contract; and
      6. (vi) for competitive proposals, disclose the specific selection/evaluation criteria;
5. (5) in instances where potential conflict of interest exists, follow procedures to submit a request to the Department to grant an exception to any conflicts prohibited by 24 CFR §92.356. The request submitted to the Department must include a disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict by newspaper publication and a description of how the public disclosure was made. No HOME funds will be committed to or reserved to assist a Household until HUD has granted an exception to the conflict of interest provisions;
6. (6) perform environmental clearance procedures, as required, before acquiring any Property or before performing any construction activities, including demolition, or before the occurrence of the loan closing, if applicable;
7. (7) develop and comply with written applicant intake and selection criteria for program eligibility and promote and comply with Fair Housing requirements;

8. (8) complete applicant intake and applicant selection. Notify each applicant Household in writing of either acceptance or denial of HOME assistance within sixty (60) days following receipt of the intake application. For Homeowner Rehabilitation Assistance and Contract for Deed Conversion the CA or RSP must:

   1. (A) provide Rehabilitation as an available option to Households, provide Households with a general cost estimate, and to the extent that Rehabilitation would not meet the program requirements, explain these program requirements;
   2. (B) unless not allowed by local code, provide replacement of an existing housing unit with a new MHU as an available option; and
   3. (C) explain relocation as an available option to any Households located within the 100-year floodplain and present the costs associated with flood insurance;
9. (9) determine the income eligibility of a Household using the "Annual Income" as defined at 24 CFR §5.609;
10. (10) except for Single Family Development, complete an updated income eligibility determination of a Household if more than six (6) months has elapsed from the date of certification and the date the HOME assistance is provided to the Household. For Single Family Development, complete income eligibility determination of a Household if more than six (6) months has elapsed from the date of certification and the date the contract to purchase the housing unit is executed with the Household;
11. (11) for single family Activities involving construction, perform initial inspection in accordance with Chapter 20 of this title (relating to Single Family Programs Umbrella Rule) and at least four (4) progress inspections. Property inspections must include photographs of the front and side elevation of the housing unit and at least one picture of the kitchen, family room, one of the bedrooms and one of the bathrooms. The inspection must be signed and dated by the inspector and CA or RSP;
12. (12) submit requests for the Commitment or Reservation of Funds, loan closing preparation, and disbursements and all required information and verification documentation in the Housing Contract System. A request will not be reviewed by the Department until the CA, RSP, or Development Owner has submitted all required documentation. If, during review, the Department identifies Administrative Deficiencies, the Department will allow a cure period of ten (10) business days beginning at the start of the first business day following the date the CA, RSP or Development Owner is notified of the deficiency. If any Administrative Deficiency remains after the cure period, the Department, in its sole discretion, shall disapprove the request. Disapproved requests will not be considered sufficient to meet the performance benchmark and shall not constitute a Reservation of Funds;
13. (13) not proceed or allow a contractor to proceed with construction, including demolition, on any Project or Development without first completing the required environmental clearance procedures, preconstruction conference and receiving notice to proceed, if applicable, and execution of grant agreement or loan closing with the Department, whichever is applicable;
14. (14) submit any Program Income received by the CA, RSP or Development Owner to the Department within ten (10) business days of receipt. Return any refunds to the Department's accounting division and include a written explanation of the return of funds, the Contract number, name of CA, RSP, or Development Owner, Project address and Project number referenced on the check;
15. (15) submit required documentation, for project completion reports no later than sixty (60) days after the completion of the Project;
16. (16) for Contract awards, submit certificate of Contract Completion within ten (10) business days of the Department's request;
17. (17) submit to the Department reports or information regarding the operations related to HOME funds provided by the Department; and
18. (18) if required by state or federal law, place the appropriate bonding requirement in any contract or subcontract entered into by the CA, RSP, or Development Owner in connection with a HOME award.

Source Note:The provisions of this §23.28 adopted to be effective October 31, 2012, 37 TexReg 8477.