1. (a) Purpose. This chapter clarifies the performance responsibilities and duties of the Local Operators for Housing Choice Vouchers administered by the Texas Department of Housing and Community Affairs and outlines the procedures for the Department to renew existing LOs.

2. (b) Definitions.

   1. (1) Board--The governing board of the Texas Department of Housing and Community Affairs.
   2. (2) Contract--The executed written agreement between the Department and a Local Operator performing an activity related to a program that outlines performance requirements and responsibilities as identified in the document.
   3. (3) Department--The Texas Department of Housing and Community Affairs.
   4. (4) Housing Quality Standards--(HQS) are minimum standards for tenant-based programs and are required both at initial occupancy and during the term of the lease. HQS standards apply to the building and premises, as well as to the unit.
   5. (5) HUD--U.S. Department of Housing and Urban Development.
   6. (6) Local Operators (LOs)--LOs are the local administrators who perform unit inspections, provide client processing, and perform other administrative duties on the Department's behalf as Housing Choice Vouchers are issued and maintained in some of the local communities served by the Department's Housing Choice Voucher Program.
   7. (7) Owner--The Person who owns a unit for which a Section 8 Housing Choice Voucher is being considered or being used.
   8. (8) Program--The Section 8 Housing Choice Voucher Program operated by the Department.

3. (c) Performance Requirements. The duties and expectations of the LO include the following and will be included in the LO contract. LO must:

   1. (1) follow and comply with HUD's rules and regulations, including the U.S. Housing Act of 1937, the Annual Contributions Contract between the Department and HUD, the Housing Assistance Program contract between the Department and the owner of the unit occupied by an assisted family, as well as the Department's Administrative Plan and other applicable laws covering the Program;
   2. (2) designate a specific contact to serve as a liaison with the Department;
   3. (3) disseminate information concerning the availability and nature of housing assistance for lower-income families;
   4. (4) seek to increase the number of local property Owners willing to make dwelling units available for leasing to eligible families;
   5. (5) assist in the issuance of Housing Choice Vouchers to selected eligible families and provide the family with necessary information regarding the program in accordance with 24 CFR §982.301;
   6. (6) certify rent reasonableness under 24 CFR §982.507;
   7. (7) assist in facilitation of the Owner's execution of the Housing Choice Voucher Contract in a form prescribed by HUD under 24 CFR §982.451;
   8. (8) annually, assist in re-determination of eligibility and calculation of the amount of housing assistance payment in accordable with HUD established schedules and under 24 CFR §982.516, and submit redetermination information to the Department within ninety (90) to one-hundred-twenty (120) days of request;
   9. (9) perform any necessary Housing Quality Standard inspections (or other inspections required by HUD) and notify Owners and families of property inspection determinations;
   10. (10) perform any necessary Housing Quality Standard inspections for new admissions within sixty (60) days, or within one-hundred-twenty (120) days with Department approval of sixty (60) day extension;
   11. (11) assist in coordination of portability requests in accordance with Department policies;
   12. (12) assist in processing changes in income and changes in household requests in accordance with Department policies;
   13. (13) maintain confidential client files in a manner that protects the privacy of each client and maintains the same for future reference;
   14. (14) store physical client files in a secure space in a manner that ensures confidentiality and in accordance with program policies and procedures; and
   15. (15) perform such other functions as directed by the Department.

4. (d) Eligibility of Local Operators.

   1. (1) Eligibility Criteria for LO Contract Renewals. Currently designated LOs wishing to renew their contract must meet the following eligibility criteria:

      1. (A) Eligible organizations must have a publicly accessible confidential meeting space available to meet with Housing Choice Voucher families.
      2. (B) Eligible organizations must have access to the internet, electronic mail, and a telephone for communication with the Department.

   2. (2) Ineligibility Criteria for LOs. The following conditions will cause a currently designated LO wishing to renew their contract, to be ineligible:

      1. (A) Failure to comply with federal and state law and/or failure to comply with the terms outlined in the LO contract; or refusal by the LO to assist in issuing Housing Choice Vouchers in a timely manner and/or unwillingness to add vouchers to the LO service area.
      2. (B) The LO has failed to perform the performance requirements outlined in subsection (c) of this section.
      3. (C) The LO had a previously funded Contract for which Department funds have been partially or fully de-obligated due to failure to meet contractual obligations during the prior 12 months.
      4. (D) The LO has failed to submit or is delinquent in a response to provide an explanation, or evidence of corrective action as a result of a technical assistance visit by the Department.
      5. (E) The LO has been or is barred, suspended, or terminated from procurement in a state or federal program or listed in the "List of Parties Excluded from Procurement of Non-procurement Programs" or has otherwise been debarred by HUD or the Department.
      6. (F) The LO has violated the state's revolving door policy.
      7. (G) The LO has been convicted of a state or federal felony crime involving fraud, bribery, theft, misrepresentation of material fact, misappropriation of funds, or other similar criminal offenses.

      8. (H) The LO at the time of renewal is:

         1. (i) subject to an enforcement or disciplinary action under state or federal securities law or by the Financial Industry Regulatory Authority (FINRA) is subject to a federal tax lien; or
         2. (ii) is the subject of an enforcement proceeding with any governmental entity.

5. (e) Local Operator Contract Execution and Renewal.

   1. (1) Upon determination that a renewal is eligible and desired by both parties, the Department's Executive Director or Deputy Executive Director that oversees the Housing Choice Voucher Program and the LO shall enter into and execute an agreement for the administration of the Housing Choice Voucher program. The Department, acting by and through its Executive Director or his/her designee, may authorize, execute, and deliver modifications, amendments or extensions to the contract.
   2. (2) Contracts will be for a one year period.
   3. (3) LOs in an existing contract will, upon expiration of the current contract, be eligible to execute a contract under paragraph (2) of this subsection so long as they are maintaining compliance with the eligibility criteria in subsection (d) of this section and have performed according to the performance requirements outlined in subsection (c) of this section.

Source Note:The provisions of this §5.802 adopted to be effective May 26, 2011, 36 TexReg 3177; amended to be effective August 17, 2016, 41 TexReg 5991.