All Applicants and Applications must submit or comply with this section.

1. (1) The requirements of this section are waived until August 31, 2013. Any Projects submitted to the Department under a Reservation Agreement or Contract awarded prior to December 31, 2013 will not be required to provide Match as outlined in this section, except for Match that is proposed to meet Application threshold criteria. An itemized schedule of the proposed Match and evidence to support the Applicant's ability to provide the required Match must be submitted. The Department may not require such support at the time an Application is submitted when the funds are made available under a reservation system. Except for Applications for disaster relief and Persons with Disabilities set-asides, the amount of Match required must be at least 5 percent of Project funds requested. The Department may incentivize or provide preference to Applicants committing to provide additional Match above the requirement of this section. Such incentives may be established in the form of a threshold or selection criteria and may be different for each Activity.

2. (2) Documentation of a commitment of at least $80,000 or for a Contract award, 100 percent of the award amount, whichever is less, in cash reserves to facilitate administration of the program and to ensure the capacity to cover costs prior to reimbursement or costs determined to be ineligible for reimbursement. Evidence of this commitment and the amount of the commitment must be included in the Applicant's resolution. To meet this requirement, Applicants must submit:

   1. (A) financial statements indicating adequate local unrestricted cash or cash equivalents to utilize as cash reserves and a letter from the Applicant's bank(s) or financial institution(s) indicating that current account balances are sufficient; or
   2. (B) evidence of an available line of credit or equivalent in an amount equal to or exceeding the requirement in subparagraph (A) of this paragraph; or
   3. (C) the Certified Public Accountant (CPA) opinion letter from the most recent audit and a statement from the CPA that indicates, based on past experience with grant programs and past audits, the applicant has in place the best practices and financial capacity necessary in order to effectively administer a HOME Program award.

Source Note:The provisions of this §23.40 adopted to be effective October 31, 2012, 37 TexReg 8486.