1. (a) The Department distributes Colonia Self-Help Center funds to Unit of General Local Governments (UGLGs) from the 2.5 percent set-aside of the annual Community Development Block Grant (CDBG) allocation to the state of Texas.
2. (b) The Department shall allocate no more than $1 million per Colonia Self-Help Center award except as provided by this chapter. If there are insufficient funds available from any specific program year to fully fund an Application, the awarded Contract Administrator may accept the amount available at that time and wait for the remaining funds to be committed upon the Department's receipt of the CDBG set-aside allocation from the next program year.
3. (c) With a baseline award beginning at $500,000, the Department will add an additional $100,000 for each expenditure threshold, as defined in §25.9 of this chapter (relating to Expenditure Thresholds and Closeout Requirements), met on the current Colonia Self-Help Center Contract, and an additional $100,000 for an accepted Application submitted by the deadline. If a Contract Administrator can demonstrate that any violation of an Expenditure Threshold was beyond the control of the Contract Administrator, it may request of the Board that an individual violation be waived for the purpose of future funding. The Board, in its discretion and within the limits of federal and state law, may waive any one or more of the expenditure threshold requirements if the Board finds the waiver is appropriate to fulfill the purposes or policies of the Texas Government Code, or for other good cause as determined by the Board.
4. (d) The Contract Administrator shall submit its Application no later than three (3) months before the expiration of its current Contract, or when 90 percent of the funds under the current Contract have been expended, whichever comes first. If this requirement is not met, the Department will apply the options outlined in subsection (c) of this section which will result in lost and delayed funding.
5. (e) Application reviews are conducted on a first-come first-served basis until all Self-Help Center funds for the current program year and deobligated Self-Help Center funds are committed. Each complete Application will be assigned a "received date" based on the date and time it is received by the Department.

6. (f) In order to be accepted, each Application must include:

   1. (1) evidence of the submission of the Contract Administrator's current annual single audit;
   2. (2) a Colonia Identification form for each colonia to be served, including all required back-up documentation as identified on the form, executed by the county judge;
   3. (3) a boundary map for each of the five colonias;

   4. (4) a description of the method of implementation. For each colonia to be served by the Colonia Self-Help Center, the Contract Administrator shall describe the services and activities to be delivered. The Application must identify:

      1. (A) the percentage (15 percent minimum) and scope of work that will be performed using self-help methodologies;
      2. (B) the estimated percentage or services that will be contracted to the Colonia Self-Help Center Provider; and
      3. (C) the activities that the Contract Administrator will be administering;
   5. (5) the proposed performance statement. The Contract Administrator must include the number of colonia residents to be assisted from each activity, the activities to be performed (including all sub-activities under each budget line item), and corresponding budget;

   6. (6) the proposed Contract Budget must address:

      1. (A) the Administration line item may not exceed 15 percent of the total budget;
      2. (B) the Public Service line item may not exceed 7.5 percent of the total budget;
      3. (C) the Application must identify at least 15 percent of the budget that will be allocated for direct Self-Help activities;
      4. (D) the amount of leveraged funding, if applicable; and
      5. (E) Direct Delivery Costs for all contractual activities, exclusive of Rehabilitation, cannot exceed 10 percent of each budget line item. Direct Delivery Costs for Rehabilitating are limited to 15 percent of each budget line item;
   7. (7) proposed housing guidelines (includes small repair, Rehabilitation, Reconstruction, New Construction and all other housing activities);
   8. (8) evidence of model subdivision rules adopted by the Contract Administrator;

   9. (9) written policies and procedures, as applicable, for:

      1. (A) solid waste removal;
      2. (B) construction skill classes;
      3. (C) homeownership classes;
      4. (D) technology access;
      5. (E) homeownership assistance; and/or
      6. (F) tool lending library. All Colonia Self-Help Centers are required to operate a tool lending library;
   10. (10) authorized signatory form and direct deposit authorization;
   11. (11) UGLG resolution authorizing the submission of the Application and appointing the primary signator for all Contract documents;
   12. (12) acquisition report (even if there is no acquisition activity);
   13. (13) certification of exemption for HUD funded projects; and
   14. (14) initial disclosure report.
7. (g) Upon receipt of the Application, the Department will perform an initial review to determine whether the Application is complete and that each activity meets a national objective as required by §104(b)(3) of the Housing and Community Development Act of 1974 (42 U.S.C. §5304(b)(3)).
8. (h) The Department may reduce the funding amount requested in the Application in accordance to subsection (c) of this section. Should this occur, the Department shall notify the appropriate Contract Administrator before the Application is submitted to C-RAC for review, comments and approval. The Department and the Contract Administrator will work together to jointly agree on the performance measures and proposed funding amounts for each activity.
9. (i) The Department shall execute a four (4) year Contract with Contract Administrator. No Contract extensions will be allowed. If the Contract Administrator requirements are completed prior to the end of the four (4) year contract period, the Contract Administrator may submit a new Application.
10. (j) The Department may decline to fund any Application if the activities do not, in the Department's sole determination, represent a prudent use of Colonia Self-Help Center funds. The Department is not obligated to proceed with any action pertaining to any Application which is received, and may decide it is in the Department's best interest to refrain from pursuing any selection process.

Source Note:The provisions of this §25.5 adopted to be effective November 1, 2012, 37 TexReg 8500; amended to be effective May 5, 2013, 38 TexReg 2618.