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 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 an Administrator can demonstrate that any violation of an Expenditure Threshold was beyond the control of the 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 Administrator shall submit its Application no later than three (3) months before the expiration of its current Contract, or when ninety (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 Colonia Self-Help Center funds for the current program year and deobligated Colonia 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;
   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 Administrator shall describe the services and Activities to be delivered. Participating households must provide at least 15% of the labor necessary to build or rehabilitate the proposed housing by contributing the labor personally and/or through non-contract labor assistance from family, friends, or volunteers. Volunteer hours at the Colonia Self-Help Center may also fulfill the 15% labor requirement.
   5. (5) The proposed Performance Statement 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 the corresponding budget;

   6. (6) The proposed Contract Budget must adhere to the following limitations:

      1. (A) The Administration line item may not exceed fifteen (15) percent;
      2. (B) Eight (8) percent must be used for the Public Service Activities;

      3. (C) Colonia Self-Help Center Program funds cannot exceed the following amounts per unit (however, additional funds from other sources can be leveraged with Program funds):

         1. (i) $10,000 Small Repairs;
         2. (ii) $40,000 Rehabilitation;
         3. (iii) $50,000 Reconstruction or New Construction.
      4. (D) Direct Delivery Costs for all New Construction and Reconstruction Activities cannot exceed ten (10) percent per unit provided by the Colonia Self-Help Center Program. Direct Delivery Costs for Rehabilitation, including Small Repair, are limited to fifteen (15) percent per unit provided by the Colonia Self-Help Center Program;
   7. (7) Proposed housing assistance guidelines (includes Small Repair, Rehabilitation, Reconstruction, or New Construction);
   8. (8) Evidence of model subdivision rules adopted by the County;

   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 Administrator before the Application is submitted to C-RAC for review, comments and approval. The Department and the 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 the Administrator. No Contract extensions will be allowed. If the Administrator requirements are completed prior to the end of the four (4) year Contract period, the 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; amended to be effective August 3, 2014, 39 TexReg 5740.