1. (a) The Department shall contract with a UGLG for the operation of a Colonia Self-Help Center. The UGLG shall subcontract with a local nonprofit organization, local community action agency, or local housing authority that has demonstrated the ability to carry out all or part of the functions of a Colonia Self-Help Center. The contracted Colonia Self-Help Center provider selected by the UGLG shall have the capacity to administer and manage financial resources and provided documentation and auditable programmatic compliance, as evidenced by previous experience as described in paragraphs (1) - (7) of this subsection:

   1. (1) implementation of a CDBG contract;
   2. (2) affordable housing, including new construction; and housing rehabilitation, reconstruction, small repair; and experience in homebuyer and down payment assistance programs;
   3. (3) grantsmanship, project planning and development in housing and infrastructure, and project management;
   4. (4) home ownership counseling, home loan processing and coordinating with private financial institutions;
   5. (5) property development, including experience in processes related to surveying, platting, and recording of property records;
   6. (6) self-help programs related to housing or infrastructure, including operation of a tool library; and
   7. (7) managing state/federally funded projects or projects funded under private foundations and not have major outstanding monitoring or audit issues.
2. (b) Upon award of Colonia Self-Help Center funds by the Board, the Department shall deliver a Contract based on the scope of work to be performed within thirty (30) days of the award date, unless extenuating circumstances do not allow for delivery. Any activity funded under the Colonia Self-Help Center Program will be governed by a written Contract that identifies the terms and conditions related to the awarded funds. The Contract will not be effective until executed by all parties to the Contract.

3. (c) Contractors are required to complete their environmental reviews in accordance with 24 CFR Part 58 and receive the Authority to Use Grant Funds from the Department before:

   1. (1) any commitment of Community Development Block Grant (CDBG) funds (i.e., execution of a legally binding agreement and expenditure of CDBG funds) for activities other than those that are specifically exempt from environmental review.
   2. (2) any commitment of non-CDBG funds associated with the scope of work in the Contract that would have an adverse environmental impact (i.e., demolition, excavating, etc.) or limit the choice of alternatives (i.e., acquisition of real property, rehabilitation of buildings or structures, etc.).

4. (d) Request for Payments. The Contract Administrator shall submit a properly completed request for reimbursement, as specified by the Department, at a minimum on a quarterly basis; however the Department reserves the right to request more frequent reimbursement requests as it deems appropriate. The Department shall determine the reasonableness of each amount requested and shall not make disbursement of any such payment request until the Department has reviewed and approved such request. Payments under the Contract are contingent upon the Contract Administrator's full and satisfactory performance of its obligations under the Contract.

   1. (1) $2,500 is the minimum amount for a draw to be processed, unless it is the final draw request.
   2. (2) Draw requests will be reviewed to comply with all applicable laws, rules and regulations. The Contract Administrator is responsible for maintaining a complete record of all costs incurred in carrying out the activities of the Contract.
   3. (3) Draw requests for all housing activities will only be reimbursed upon satisfactory completion of types of activities (i.e., all plumbing completed, entire roof is completed, etc.), consistent with the construction contract.
   4. (4) The Contract Administrator will be the principal contact responsible for reporting to the Department and submitting draw requests.
5. (e) Reporting. The Contract Administrator shall submit to the Department reports on the operation and performance of the Contract on forms as prescribed by the Department. Quarterly Reports shall be due no later than the tenth (10th) calendar day of the month after the end of each calendar quarter. The Contract Administrator shall maintain and submit to the Department up-to-date accomplishments in quarterly reports identifying quantity and cumulative data including the expended funds, activities completed and total number of Beneficiaries.
6. (f) The Department will only reimburse for two inspection reports for housing rehabilitation and reconstruction, and one inspection report for new construction and small home repair.
7. (g) Cosmetic issues such as paint, wall texture, etc. identified as deficiencies on final inspection reports will not be required to be corrected if self-help construction is utilized.

8. (h) Amendments. The Department's executive director or its designee, may authorize, execute, and deliver amendments to any Contract.

   1. (1) Contract Time Extensions beyond the four (4) year contract period will not be allowed for Self-Help Center contracts.
   2. (2) Changes in beneficiaries. Reductions in contractual deliverables and beneficiaries shall require a contract amendment. Increases in contractual deliverables and beneficiaries that do not shift funds, or cumulatively shift less than 10 percent of total contract funds, shall be completed through a contract modification rather than a contract amendment.
   3. (3) The Department, at its discretion and in coordination with a Contract Administrator, may increase a contract budget amount and the number of activities and beneficiaries based on the availability of Self-Help Center funds, the exemplary performance in the implementation of a Contract Administrator's current contract, and the time available in the four (4) year contract period. Upon Board approval, the cap on the maximum contract amount may be exceeded if the terms of this paragraph are met by a Contract Administrator.
9. (i) Every new construction and reconstruction, and any rehabilitation construction costs exceeding $30,000 in hard costs shall have a lien placed on the property secured by a deferred forgivable loan not shorter than five (5) years.
10. (j) The Contract Administrator's initial and any revised housing Activity guidelines shall be approved by commissioners' court and the Department prior to implementation.
11. (k) Access to all public service activities identified in the contract shall be provided at least two (2) Saturdays a month during hours preferable to colonia residents. In addition, access shall be provided at least one day during the workweek after hours for a period long enough to allow colonia residents to utilize the services.
12. (l) The purchase of new tools, new computers and computer equipment shall only occur within the first thirty-six (36) months of the contract period. Any purchases of these items after thirty-six (36) months shall be approved by the Department prior to purchase.

Source Note:The provisions of this §25.7 adopted to be effective November 1, 2012, 37 TexReg 8500.