1. (a) Eligible property. To be considered eligible for grant assistance, a property must:

   1. (1) be included in the National Register of Historic Places; or
   2. (2) be designated as a recorded Texas historic landmark; or
   3. (3) be designated as a State Archeological Landmark; or
   4. (4) be determined by the commission to qualify as an eligible property under criteria for inclusion in the National Register of Historic Places or for designation as a recorded Texas historic landmark or a State Archeological Landmark; or
   5. (5) have a permanent conservation easement.

2. (b) Eligible Applicants: Any public or private entity, including those whose purposes include historic preservation, and that is either the owner, manager, lessee, maintainer, or potential purchaser of an eligible historic property is eligible for fund assistance. If applicant is not the owner of the historic property, written approval must be submitted by the owner at time of application agreeing to follow all rules and conditions of the commission required for receipt of funds.

   1. (1) Grants are awarded on a competitive basis to eligible properties judged by the Commission to provide the best use of limited grant funds.
   2. (2) Meeting the eligibility criteria and submissions of a grant application does not guarantee award of a grant in any amount.

3. (c) Types of preservation grants. Preservation grants shall be awarded only for:

   1. (1) development ("preservation," "restoration," "rehabilitation," and "reconstruction," as defined by the Secretary of the Interior's Standards for The Treatment of Historic Properties, 1992 or latest edition); the costs include professional fees to prepare an acceptable project proposal and supervise actual construction, the costs of construction, and related expenses approved by the commission; or
   2. (2) acquisition of absolute ownership of an eligible property (that is what is defined in subsection (a) of this section of these rules) and related costs and professional fees approved by the commission; or
   3. (3) planning costs necessary for the preparation of property specific historic structure reports, historic or cultural resource reports, preservation plans, maintenance studies, and/or feasibility studies as approved by the commission; or
   4. (4) education costs necessary for training individuals and organizations about historic resources and historic preservation techniques.
4. (d) Eligible match for grant assistance. Applicants eligible to receive grant assistance shall provide a minimum of one dollar in cash match to each state dollar for approved project costs. The commission or the Executive Director upon designation by the commission, by written policy, may approve up to 50 percent in-kind match for projects involving highly significant and endangered properties. In exceptional circumstances and upon recommendation by the Executive Director of the commission, the commission may also waive the one to one cash match requirement completely, and/or approve any combination of matching cash or in-kind contribution percentages that the commission deems appropriate.

5. (e) Grant applications.

   1. (1) An application schedule and deadline will be set by the commission, application forms are to be received by the commission at its offices by this deadline.
   2. (2) To remain eligible for potential funding, applicants must complete the grant application form and include all required attachments as stated in the grant application instruction booklet.
   3. (3) Grant applications that are incomplete and/or received after the application deadline are ineligible for funding.
   4. (4) Grant applications with budgets showing a high percentage of administrative costs will be considered to be less competitive than applications having little or no administrative costs.
6. (f) Initial grant allocations. Grants shall be allocated by vote of the commission at large upon the recommendation of the Trust Fund Committee at any duly noticed meeting of the commission. Reallocation of returned funds may be made by the executive committee of the commission upon the recommendation of the architecture and/or archeological committees of the commission. Grant allocations will generally be in the amount of $2,500 or more, but shall not exceed $100,000.

7. (g) Final grant approval.

   1. (1) Submission of project proposal.

      1. (A) For architectural projects to remain eligible for the grant allocation, an acceptable project proposal, consistent with the Secretary of the Interior's Standards for the Treatment of Historic Properties, 1992 or most recent edition, and consisting of plans/specifications, appraisal, unexecuted contract documents, and/or other material as required shall be submitted to the commission for review and approval.
      2. (B) An acceptable project proposal must be submitted within three months of the allocation by the commission unless otherwise approved in writing by the commission.

   2. (2) Review and approval of project proposal. Upon completion of the review of the project proposal, approved projects will be notified of the assigned project start date, as well as the project expenses eligible for grant funding (allowable expenses) and those expenses not eligible (unallowable expenses).

      1. (A) For archeological projects to remain eligible for the grant allocation, modifications to the scope of work and research design as required by the commission shall be submitted to the commission for review and approval.
      2. (B) Review and approval of scope of work and research design. Upon completion of the review of the scope of work and research design, approved projects will be notified of the assigned project start date, as well as the project expenses eligible for grant funding (allowable expenses) and those expenses not eligible (unallowable expenses).
      3. (C) For educational projects to remain eligible for the grant allocation, an acceptable project proposal must be submitted within three months of the allocation by the commission unless otherwise approved in writing by the commission.
      4. (D) Approved projects will be notified of the assigned project start date, as well as the project expenses eligible for grant funding (allowable expenses) and those expenses not eligible (unallowable expenses).
      5. (E) For planning projects to remain eligible for the grant allocation, an acceptable project proposal must be submitted within three months of the allocation by the commission unless otherwise approved in writing by the commission.
      6. (F) Approved projects will be notified of the assigned project start date, as well as the project expenses eligible for grant funding (allowable expenses) and those expenses not eligible (unallowable expenses).
   3. (3) Commencement of project work. Project work as approved shall commence within 60 days of the assigned start date unless otherwise approved in writing by the commission.
   4. (4) Forfeiture of grant allocation. Failure to comply with the deadline for submission of an acceptable project proposal, or to meet the deadline for starting the project work, or to perform any part of the project work as approved, or to receive permission from the commission before commencing additional work, shall result in forfeiture of the full grant amount.

8. (h) Award of contract.

   1. (1) Architectural development grant projects. All project work as approved in the project proposal shall be awarded subsequent to formal advertising for bids.
   2. (2) Architectural planning grant projects. Contract for work described in the approved project proposal shall be awarded subsequent to interview with at least three professional firms.
   3. (3) Commencement of project work. Approved project work may not begin before the assigned project start date, except for planning work connected with development projects.

9. (i) Grant reimbursement procedures.

   1. (1) Reimbursement of allowable project expenses. The only expenditures made before a start date that are reimbursable are for planning work done on development projects performed subsequent to initial project application submittal.
   2. (2) All payment of grant funds shall be strictly on a reimbursement basis. Reimbursement may be made after the competitive award of contract and submission of proof of all incurred allowable expenses in increments of at least $2,500 or at least 10% of the total project cost, whichever is greater; or according to a schedule as determined by the Executive Director of the commission; or at the completion of the project after an acceptable required completion report and/or planning documents have been received by the commission.
   3. (3) Deadline for submission of requests for reimbursement. Allowable project expenses equal to two times the grant amount shall be incurred by the following July 15 unless otherwise announced by the commission. Proof of those incurred expenses and corresponding payments shall be submitted to the commission by the following August 1 unless otherwise announced by the commission.
   4. (4) Forfeiture of grant. Failure to expend the full grant amount by the July 15 deadline or other deadline as announced by the commission or to submit to the commission all required material by the August 1 deadline or other deadline as announced by the commission shall result in forfeiture of the remaining grant amount unless otherwise approved in writing by the commission.

10. (j) Deed restrictions/designations/conservation easements. Acquisition and development projects shall be encumbered, prior to reimbursement of any project expenses, with a protective designation, deed restriction or conservation easement in a format acceptable to the commission requiring the owner and successors in interest, if any, to maintain the site in the condition or state of repair as at the time of completion of grant-assisted work, to secure the approval of the commission or its duly authorized representative for any proposed changes beyond normal maintenance to the site, and, in the case of political subdivisions of the state, to meet the requirements of the Uniform Grant and Contract Management Act, Texas Government Code Chapter 783. The deed restriction shall run with the land, be enforceable by the State of Texas, and its duration will be based upon the cumulative amount of grant assistance as follows:

    1. (1) less than $10,000--10 years from start date of the deed restrictions set by the commission.
    2. (2) $10,000-$50,000--30 years from start date of the deed restrictions set by the commission.
    3. (3) greater than $50,000--50 years from start date of the deed restrictions set by the commission.
11. (k) Repayment penalty for resale of property within one year of acquisition. If a property acquired with a preservation grant is sold within one year of the purchase date, the project allocation agreement shall provide that the owner shall repay the State of Texas the amount of the grant allocation.
12. (l) Completion reports for acquisition and development projects. Projects assisted with acquisition or development grants will be required to submit a project completion report in triplicate, consisting of photo documentation and project summary prepared by the supervising project professional, to the commission no later than August 1, or as otherwise announced by the commission, of the current fiscal year. Final reimbursement of the grant allocation will be retained until receipt of an acceptable completion report by the commission.

13. (m) Professional standards.

    1. (1) Project personnel for development and planning grants. Project proposal documents for development and planning grants shall be prepared by, and development work supervised by, appropriate personnel in compliance with the following criteria:

       1. (A) History. The minimum professional qualifications in history are a graduate degree in history or closely related field; or a bachelor's degree in history or closely related field plus one of the following:

          1. (i) at least two years of full-time experience in research, writing, teaching, interpretation, or other demonstrable professional activity with an academic institution, historical organization or agency, museum, or other professional institution; or
          2. (ii) substantial contribution through research and publication to the body of scholarly knowledge in the field of history.

       2. (B) Archeology. The minimum professional qualifications in archeology are a graduate degree in archeology, anthropology, or closely related field plus:

          1. (i) at least one year of full-time professional experience or equivalent specialized training in archeological research, administration, or management;
          2. (ii) at least four months of supervised field and analytic experience in general North American archeology; and
          3. (iii) demonstrated ability to carry research to completion.
          4. (iv) In addition to these minimum qualifications, a professional in prehistoric archeology shall have at least one year of full-time professional experience at a supervisory level in the study of archeological resources of the prehistoric period. A professional in historic archeology shall have at least one year of full-time professional experience at a supervisory level in the study of archeological resources of the historic period.

       3. (C) Architectural history. The minimum professional qualifications in architectural history are a graduate degree in architectural history, art history, historic preservation, or closely related field plus one of the following:

          1. (i) at least two years of full-time experience in research, writing, or teaching in American architectural history or restoration architecture with an academic institution, historical organization or agency, museum, or other professional institution; or
          2. (ii) substantial contribution through research and publication to the body of scholarly knowledge in the field of American architectural history.
       4. (D) Architecture. The minimum professional qualifications in architecture are a professional degree in architecture plus at least two years of full-time professional experience in architecture; or a state license to practice architecture.
    2. (2) Project personnel for acquisition grants. The single appraisal required for acquisition grants shall be prepared by a professional appraiser.
14. (n) Performance standards. All development and planning projects must be in conformance with the Secretary of the Interior's Standards for the Treatment of Historic Properties, 1992 or latest edition. All archeological projects must be in conformance with the Secretary of the Interior's Standards for Preservation Planning and Standards for Archeological Documentation, 1983 or latest edition.
15. (o) Compliance with requirements for accessibility to facilities by persons with disabilities. All projects must be in compliance with or in receipt of appropriate variance from the regulations issued by the Texas Department of Licensing and Regulation, under the Architectural Barriers Act, Article 9102, Texas Civil Statutes.
16. (p) Compliance with Uniform Grant and Contract Management Act. All projects by political subdivisions of the state must be in compliance with the Uniform Grant and Contract Management Act, Texas Government Code Chapter 783.

Source Note:The provisions of this §17.1 adopted to be effective October 1, 2001, 26 TexReg 7529; amended to be effective August 20, 2003, 28 TexReg 6536.