- (a) The purpose of this rule is to provide guidance and procedures for the Emergency Solutions Grants (ESG) and Special Allocations of ESG funding as authorized by Tex. Gov't Code §2306.053. ESG and federally-funded Special Allocation Program funds are federal funds awarded to the State of Texas by HUD and administered by the Department under this Chapter.
- (b) The regulations in this subchapter, relating to ESG , govern the administration of funds and establish policies and procedures for use of ESG funds to meet the purposes contained in Title IV of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. §§11371 - 11378) (the Act), as amended by the Homeless Emergency Assistance and Rapid Transition to Housing Act (HEARTH Act). This is also generally the case for federally-funded Special Allocation Programs administered under this Chapter.
- (c) Federally-funded Special Allocation Programs are not subject to §7.33 of this title (relating to Apportionment of ESG Funds), §7.34 of this title (relating to Continuing Awards), §7.38 of this title (relating to Competitive Award and Funding Process), §7.39 of this title (relating to Uniform Selection Criteria), or §7.40 of this title (relating to Competitive Program Participant Services Section Criteria).
- (d) In addition to this subchapter, a Subrecipient shall comply with the regulations applicable to the ESG and federally-funded Special Allocation programs as set forth in Chapters 1 and 2 of this title (relating to Administration and Enforcement, respectively), Subchapter A of Chapter 7 of this title (relating to General Policies and Procedures) and as set forth in 24 CFR Parts 5, 91, and 576 (the Federal Regulations). A Subrecipient must also follow all other applicable federal and state statutes and the regulations established in this chapter, relating to Homelessness Programs, as amended or supplemented.
- (e) In the event that Congress, the Texas Legislature, or HUD add or change any statutory or regulatory requirements, special conditions, or waivers, concerning the use or administration of these funds, a Subrecipient shall comply with such requirements at the time they become effective.
Source Note:The provisions of this §7.31 adopted to be effective April 29, 2026, 51 TexReg 2694.