1. (a) General provisions. This fund covers the payment of assessments, access fees, and capital recovery fees for low and moderate income persons for eligible water and sewer improvements projects, all other program eligible activities, eligible planning activities projects, and the establishment of colonia self-help centers to serve severely distressed unincorporated areas of counties which meet the definition of a colonia under this fund. A colonia is defined as: any identifiable unincorporated community that is within 150 miles of the border between the United States and Mexico, except that the term does not include any standard metropolitan statistical area that has a population exceeding 1,000,000; and that is determined to be a colonia on the basis of objective criteria, including lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe, and sanitary housing; and was in existence as a colonia prior to the Cranston-Gonzalez National Affordable Housing Act (November 28, 1990). For an eligible county to submit an application on behalf of eligible colonia areas, the colonia areas must be within 150 miles of the Texas-Mexico border region, except that any county that is part of a standard metropolitan statistical area with a population exceeding one million is not eligible under this fund.

   1. (1) An applicant may not submit an application under this fund and also under any other TxCDBG fund category at the same time if the proposed activity under each application is the same or substantially similar.
   2. (2) In addition to the threshold requirements of §255.1(h) and (n) of this title (relating to General Provisions), in order to be eligible to apply for colonia funds, an applicant must document that at least 51% of the persons who would directly benefit from the implementation of each activity proposed in the application are of low to moderate income.
   3. (3) Eligibility for the Department's colonia economically distressed areas program EDAP fund (colonia EDAP fund) is limited to counties, and nonentitlement cities (that meet other eligibility requirements including the geographic requirements of the Colonia Fund), located in those counties, that are eligible under the TxCDBG Colonia Fund and Texas Water Development Board's EDAP. Eligible colonia EDAP fund projects shall be located in unincorporated colonias and in eligible nonentitlement cities that annexed the eligible colonia where improvements are to be made within five years after the effective date of the annexation, or are in the process of annexing the colonia where improvements are to be made. A colonia EDAP fund application cannot be submitted until the construction of the Texas Water Development Board's Economically Distressed Areas Program financed water or sewer system begins.
   4. (4) In accordance with Subchapter Z, Chapter 43, §43.907 of the Texas Local Government Code, eligible colonia areas meeting specified criteria that are annexed by municipalities on or after September 1, 1999, remain eligible for five years after the effective date of the annexation to receive any form of assistance for which the colonia would be eligible if the annexation had not occurred. A nonentitlement city located in a county that is eligible under the TxCDBG Colonia Fund and Texas Water Development Board's Economically Distressed Areas Program that has annexed a colonia area is an eligible applicant for the Department's colonia EDAP fund. However, an application for TxCDBG colonia construction fund or colonia planning fund assistance for a colonia area annexed by a municipality on or after September 1, 1999, may only be submitted by the county where the annexed colonia area is located.

2. (b) Eligible activities. The only eligible activities under the colonia fund are:

   1. (1) the payment of assessments (including any charge made as a condition of obtaining access) levied against properties owned and occupied by persons of low and moderate income to recover the capital cost for a public water and/or sewer improvement;
   2. (2) payment of the cost of planning community development (including water and sewage facilities) and housing activities; costs for the provision of information and technical assistance to residents of the area in which the activities are located and to appropriate nonprofit organizations and public agencies acting on behalf of the residents; and costs for preliminary surveys and analyses of market needs, preliminary site engineering and architectural services, site options, applications, mortgage commitments, legal services, and obtaining construction loans;
   3. (3) other activities eligible under the Housing and Community Development Act of 1974, §105, as amended, designed to meet the needs of residents of colonias;
   4. (4) the establishment of colonia self-help centers and activities conducted by colonia self-help centers in accordance with the provisions of Chapter 2306, Subchapter Z, of the Texas Government Code.
   5. (5) For the Department's colonia EDAP fund, eligible activities are limited to those that provide assistance to low and moderate income colonia residents that cannot afford the costs associated with connections and service to water or sewer systems funded through the Texas Water Development Board's Economically Distressed Areas Program. In accordance with Rider 7 of the General Appropriations Act, 81st Legislature, the eligible activities are residential service lines, hookups, and plumbing improvements associated with being connected to a water supply or sewer service system, any part of which is financed under the Texas Water Development Board's Economically Distressed Areas Program.

3. (c) Types of applications.

   1. (1) Colonia Planning and Construction Fund.

      1. (A) Colonia Construction Component. The allocation is available on a biennial basis for funding from program years 2011 and 2012 through a 2011 annual competition. Applications received by the 2011 program year application deadline are eligible to receive grant awards from the 2011 and 2012 program year allocations. Funding priority shall be given to TxCDBG applications from localities that have been funded through the Texas Water Development Board Economically Distressed Areas Program (TWDB EDAP) where the TxCDBG project will provide assistance to colonia residents that cannot afford the cost of residential service lines, hookups, and plumbing improvements associated with being connected to the TWDB EDAP-funded water or sewer system. A colonia construction application must include an assessment of the effect of the Model Subdivision Rules established pursuant to §16.343 of the Water Code and enforcement actions throughout the county and provide the colonia identification number for the colonias that would receive the project benefit. An eligible county applicant may submit one (1) application for the following eligible construction activities:

         1. (i) Assessments for Public Improvements--The payment of assessments (including any charge made as a condition of obtaining access) levied against properties owned and occupied by persons of low- and moderate-income to recover the capital cost for a public improvement.
         2. (ii) Other Improvements--Other activities eligible under 42 U.S.C. §5305 designed to meet the needs of colonia residents.

      2. (B) Colonia Planning Component. A portion of the funds will be allocated to two separate biennial competitions for applications that include planning activities targeted to selected colonia areas (Colonia Area Planning activities), and for applications that include countywide comprehensive planning activities (Colonia Comprehensive Planning activities). Applications received by the 2011 program year application deadline are eligible to receive a grant award from the 2011 and 2012 program year allocations. A Colonia Planning activities application must receive a minimum score for the Project Design selection factor of at least 70 percent of the maximum number of points allowable under this factor to be considered for funding.

         1. (i) Colonia Area Planning Activities. In order to qualify for the Colonia Area Planning activities, the county applicant must have a Colonia Comprehensive Plan in place that prioritizes problems and colonias for future action. The targeted colonia must be included in the Colonia Comprehensive Plan. An eligible county may submit an application for eligible planning activities that are targeted to one or more colonia areas. Eligible activities include:

            1. (I) Payment of the cost of planning community development (including water and sewage facilities) and housing activities;
            2. (II) costs for the provision of information and technical assistance to residents of the area in which the activities are located and to appropriate nonprofit organizations and public agencies acting on behalf of the residents; and
            3. (III) costs for preliminary surveys and analyses of market needs, preliminary site engineering and architectural services, site options, applications, mortgage commitments, legal services, and obtaining construction loans.
            4. (IV) for any colonia in close proximity to a city, a plan that if implemented could lead to annexation of the colonia by the city.

         2. (ii) Colonia Comprehensive Planning Activities. To be eligible for these funds, a county must be located within 150 miles of the Texas-Mexico border. The applicant's countywide comprehensive plan will provide a general assessment of the colonias in the county, but will include enough detail for accurate profiles of the county's colonia areas. The prepared comprehensive plan must include the following information and general planning elements:

            1. (I) Verification of the number of dwellings, number of lots, number of occupied lots, and the number of persons residing in each county colonia;
            2. (II) Mapping of the locations of each county colonia;
            3. (III) Demographic and economic information on colonia residents;
            4. (IV) The physical environment in each colonia including land use and conditions, soil types, and flood prone areas;
            5. (V) An inventory of the existing infrastructure (water, sewer, streets, drainage) in each colonia and the infrastructure needs in each colonia including projected infrastructure costs;
            6. (VI) The condition of the existing housing stock in each colonia and projected housing costs;
            7. (VII) A ranking system for colonias that will enable counties to prioritize colonia improvements rationally and systematically plan and implement short-range and long-range strategies to address colonia needs;
            8. (VIII) Goals and Objectives;
            9. (IX) Five-year capital improvement program;
            10. (X) An assessment of the effect of the Model Subdivision Rules established pursuant to §16.343 of the Water Code and enforcement actions throughout the county; and
            11. (XI) For any colonia in close proximity to a city, a plan that if implemented could lead to annexation of the colonia by the city.
   2. (2) Colonia Economically Distressed Areas Program (CEDAP) Legislative Set-aside. The allocation is distributed on an as-needed basis. Eligible applicants may submit an application that will provide assistance to colonia residents that cannot afford the cost of residential service lines, hookups, and plumbing improvements associated with being connected to a TWDB EDAP-funded water and sewer system improvement project. An application cannot be submitted until the construction of the TWDB EDAP-funded water or sewer system begins. In accordance with Rider 7 of the General Appropriations Act, 81st Legislature, eligible program costs are residential service lines, hookups, and plumbing improvements associated with being connected to a water supply or sewer service system, any part of which is financed under the Texas Water Development Board's Economically Distressed Areas Program. If there are an insufficient number of TWDB EDAP projects ready for Colonia Economically Distressed Areas Program (CEDAP) funding, the CEDAP funds may be transferred as appropriate. An applicant may not have an existing CEDAP contract open in excess of 48 months and still be eligible for a new CEDAP award.
   3. (3) Colonia Self-Help Centers Legislative Set-aside. The colonia self-help centers fund is allocated on an annual basis to counties included in Chapter 2306, Subchapter Z, §2306.582, Texas Government Code, and/or counties designated as economically distressed areas under Chapter 17, Texas Water Code. TDHCA has established self-help centers in Cameron County, El Paso County, Hidalgo County, Starr County, and Webb County. If deemed necessary and appropriate, TDHCA may establish self-help centers in other counties (self-help centers have been established in Maverick County and Val Verde County) as long as the site is located in a county that is designated as an economically distressed area under the Texas Water Development Board Economically Distressed Areas Program, the county is eligible to receive EDAP funds, and the colonias served by the center are located within 150 miles of the Texas-Mexico border.

4. (d) Selection procedures.

   1. (1) On or before the application deadline, each eligible county may submit one application for the colonia construction component, colonia area planning activities, and colonia comprehensive planning activities. Eligible applicants for the colonia EDAP fund may submit one application after construction begins on the water or sewer system financed by the Texas Water Development Board's Economically Distressed Areas Program.
   2. (2) Upon receipt of an application, the Department staff performs an initial review to determine whether the application is complete and whether all proposed activities are eligible for funding. The results of this initial review are provided to the applicant. If not subject to disqualification, the applicant may correct any deficiencies identified within ten calendar days of the date of the staff's notification.
   3. (3) Each regional review committee may, at its option, review and comment on a colonia fund proposal from a jurisdiction within its state planning region. These comments will become part of the application file, provided such comments are received by the Department prior to scoring of the applications.
   4. (4) The Department then scores the colonia construction component, colonia area planning activities, and colonia comprehensive planning activities applications to determine rankings. Scores on the selection factors are derived from standardized data from the Census Bureau, other federal or state sources, and from information provided by the applicant. For colonia EDAP fund applications, the Department evaluates information in each application and other factors before the completion of a final technical review of each application.
   5. (5) Following a final technical review, the Department staff presents the funding recommendations for the 2011 and 2012 colonia fund and colonia EDAP fund to the executive director of the Department who approves grant applications and associated funding awards of eligible counties and municipalities.
   6. (6) Upon announcement of the 2011 and 2012 contract awards, the Department staff works with recipients to execute the contract agreements. While the award must be based on the information provided in the application, the Department may negotiate any element of the contract with the recipient as long as the contract amount is not increased and the level of benefits described in the application is not decreased. The level of benefits may be negotiated only when the project is partially funded.

5. (e) Selection criteria (colonia fund). The following is an outline of the selection criteria used by the Department for scoring colonia fund applications (colonia construction component, colonia area planning activities, and colonia comprehensive planning activities).

   1. (1) Colonia construction component (430 total points maximum).

      1. (A) Community distress (total--35 points). All community distress factor scores are based on the unincorporated population of the applicant. An applicant that has 125% or more of the average of all applicants in the competition of the rate on any community distress factor, except per capita income, receives the maximum number of points available for that factor. An applicant with less than 125% of the average of all applicants in the competition on a factor will receive a proportionate share of the maximum points available for that factor. An applicant that has 75% or less of the average of all applicants in the competition on the per capita income factor will receive the maximum number of points available for that factor. An applicant with greater than 75% of the average of all applicants in the competition on the per capita income factor will receive a proportionate share of the maximum points available for that factor.

         1. (i) Percentage of persons living in poverty--15 points
         2. (ii) Per capita income--10 points
         3. (iii) Percentage of housing units without complete plumbing--5 points
         4. (iv) Unemployment rate--5 points

      2. (B) Benefit to low and moderate income persons (total--30 points). A formula is used to determine the percentage of TxCDBG funds benefiting low to moderate income persons. The percentage of low to moderate income persons benefiting from each construction, acquisition, and engineering activity is multiplied by the TxCDBG funds requested for each corresponding construction, acquisition, and engineering activity. Those calculations determine the amount of TxCDBG benefiting low to moderate income person for each of those activities. Then, the funds benefiting low to moderate income persons for each of those activities are added together and divided by the TxCDBG funds requested minus the TxCDBG funds requested for administration to determine the percentage of TxCDBG funds benefiting low to moderate income persons. Points are then awarded in accordance with the following scale:

         1. (i) 100% to 90% of funds benefiting low to moderate income persons--30 points
         2. (ii) 89.99% to 80% of funds benefiting low to moderate income persons--25 points
         3. (iii) 79.99% to 70% of funds benefiting low to moderate income persons--20 points
         4. (iv) 69.99% to 60% of funds benefiting low to moderate income persons--15 points
         5. (v) Below 60% of funds benefiting low to moderate income persons--5 points

      3. (C) Project priorities (total--195 points). When necessary, a weighted average is used to assign scores to applications which include activities in the different project priority scoring levels. Using as a base figure the TxCDBG funds requested minus the TxCDBG funds requested for engineering and administration, a percentage of the total TxCDBG construction dollars for each activity is calculated. The percentage of the total TxCDBG construction dollars for each activity is then multiplied by the appropriate project priorities point level. The sum of the calculations determines the composite project priorities score. The different project priority scoring levels are:

         1. (i) activities (service lines, service connections, and/or plumbing improvements) providing access to water and/or sewer systems funded through the Texas Water Development Board Economically Distressed Area program--195 points
         2. (ii) first time public water service activities (including yard service lines)--145 points
         3. (iii) first time public sewer service activities (including yard service lines)--145 points
         4. (iv) installation of approved residential on-site wastewater disposal systems for providing first time service--145 points
         5. (v) installation of approved residential on-site wastewater disposal systems for failing systems that cause health issues--140 points
         6. (vi) housing activities--140 points
         7. (vii) first time water and/or sewer service through a privately-owned for profit utility--135 points
         8. (viii) expansion or improvement of existing water and/or sewer service--120 points
         9. (ix) street paving and drainage activities--95 points
         10. (x) all other eligible activities--20 points

      4. (D) Matching funds (total--20 points). An applicant's matching share may consist of one or more of the following contributions: cash; in-kind services or equipment use; materials or supplies; or land. An applicant's match is considered only if the contributions are used in the same target areas for activities directly related to the activities proposed in its application; if the applicant demonstrates that its matching share has been specifically designated for use in the activities proposed in its application; and if the applicant has used an acceptable and reasonable method of valuation. The population category under which county applications are scored is dependent upon the project type and the beneficiary population served. If the project is for activities in the unincorporated area of the county with a target area of beneficiaries, the population category is based on the unincorporated residents for the entire county. For county applications addressing water and sewer improvements in unincorporated areas, the population category is based on the actual number of beneficiaries to be served by the project activities. The population category under which multi-jurisdiction applications are scored is based on the combined populations of the applicants according to the 2000 Census. Applications that include a housing rehabilitation and/or affordable new permanent housing activity for low- and moderate-income persons as a part of a multi-activity application do not have to provide any matching funds for the housing activity. This exception is for housing activities only. The TxCDBG does not consider sewer or water service lines and connections as housing activities. The TxCDBG also does not consider on-site wastewater disposal systems as housing activities. Demolition/clearance and code enforcement, when done in the same target area in conjunction with a housing rehabilitation activity, is counted as part of the housing activity. When demolition/clearance and code enforcement are proposed activities, but are not part of a housing rehabilitation activity, then the demolition/clearance and code enforcement are not considered as housing activities. Any additional activities, other than related housing activities, are scored based on the percentage of match provided for the additional activities.

         1. (i) Applicants with populations equal to or less than 1,500 according to the 2000 census:

            1. (I) match equal to or greater than 5.0% of grant request--20 points;
            2. (II) match at least 2.0% but less than 5.0% of grant request--10 points;
            3. (III) match less than 2.0% of grant request--0 points.

         2. (ii) Applicants with populations equal to or less than 3,000 but over 1,500 according to the 2000 census:

            1. (I) match equal to or greater than 10% of grant request--20 points;
            2. (II) match at least 2.5% but less than 10% of grant request--10 points;
            3. (III) match less than 2.5% of grant request--0 points.

         3. (iii) Applicants with populations equal to or less than 5,000 but over 3,000 according to the 2000 census:

            1. (I) match equal to or greater than 15% of grant request--20 points;
            2. (II) match at least 3.5% but less than 15% of grant request--10 points;
            3. (III) match less than 3.5% of grant request--0 points.

         4. (iv) Applicants with populations over 5,000 according to the 2000 census:

            1. (I) match equal to or greater than 20% of grant request--20 points;
            2. (II) match at least 5.0% but less than 20% of grant request--10 points;
            3. (III) match less than 5.0% of grant request--0 points.

      5. (E) Project design (total--140 points). Each application is scored based on how the proposed project resolves the identified need and the severity of need within the applying jurisdiction. A more detailed description on the assignment of points under the project design scoring is included in the application guide for this fund and in subparagraph (F) of this paragraph. Each application is scored by a committee composed of TxCDBG staff using the following information submitted in the application:

         1. (i) the severity of need within the colonia area(s) and how the proposed project resolves the identified need (additional consideration is given to water activities addressing impacts from drought conditions);
         2. (ii) the TxCDBG cost per low to moderate income beneficiary;
         3. (iii) the applicant's past efforts, especially the applicant's most recent efforts, to address water, sewer, and housing needs in colonia areas through applications submitted under the TxCDBG community development fund or through community development block grant entitlement funds;
         4. (iv) the projected water and/or sewer rates after completion of the project based on 3,000 gallons, 5,000 gallons, and 10,000 gallons of usage;
         5. (v) the ability of the applicant to utilize the grant funds in a timely manner;
         6. (vi) the availability of grant funds to the applicant for project financing from other sources;
         7. (vii) whether the applicant, or the service provider, has waived the payment of water or sewer service assessments, capital recovery fees, and other access fees for the proposed low and moderate income project beneficiaries;
         8. (viii) whether the applicant's proposed use of TxCDBG funds is to provide water or sewer connections/yardlines and/or plumbing improvements that provide access to water/sewer systems financed through the Texas Water Development Board Economically Distressed Areas Program;
         9. (ix) whether the applicant has already met its basic water and wastewater needs if the application is for activities other than water or wastewater;
         10. (x) whether the project has provided for future funding necessary to sustain the project;
         11. (xi) whether the applicant has provided any local matching funds for administrative, engineering, or construction activities;
         12. (xii) the applicant's past performance on previously awarded TxCDBG contracts; and
         13. (xiii) proximity of project site to entitlement cities or metropolitan statistical areas.

      6. (F) Project design scoring guidelines. Project design scores are assigned by Department staff using guidelines that first consider the severity of the need for each application activity and how the project resolves the need described in the application. The severity of need and resolution of the need determine the maximum project design score that can be assigned to an application. After the maximum project design score has been established, points are then deducted from this maximum score through the evaluation of the other project design evaluation factors until the maximum score and the point deductions from that maximum score determine the final assigned project design score. When necessary, a weighted average is used to set the maximum project design score to applications that include activities in the different severity of the need/project resolution maximum scoring levels. Using as a base figure the TxCDBG funds requested minus the TxCDBG funds requested for engineering and administration, a percentage of the total TxCDBG construction dollars for each activity is calculated. The percentage of the total TxCDBG construction dollars for each activity is then multiplied by the appropriate maximum project design point level. The sum of the calculations determines the maximum project design score that the applicant can be assigned before points are deducted based on the evaluation of the other project design factors.

         1. (i) Maximum project design score that can be assigned based on the severity of the need and resolution of the problem.

            1. (I) Activities providing first-time public sewer service to the area--maximum score 140 points.
            2. (II) Activities providing first-time public water service to the area--maximum score 140 points.
            3. (III) Installation of approved residential on-site wastewater disposal systems providing first-time sewer service--maximum score 140 points.
            4. (IV) Installation of approved residential on-site wastewater disposal systems for failing systems that cause health issues--maximum score 130 points.
            5. (V) Housing rehabilitation and eligible new housing construction--maximum score 130 points.
            6. (VI) Water activities addressing and resolving water supply shortage from drought conditions--maximum score 130 points.
            7. (VII) Water or sewer activities expanding or improving existing water or sewer system--maximum score 125 points.
            8. (VIII) Street paving activities providing first time surface pavement to the area--maximum score 100 points.
            9. (IX) Installation of designed drainage structures providing first time designed drainage system to the area--maximum score 100 points.
            10. (X) Reconstruction of streets with existing surface pavement--maximum score 90 points.
            11. (XI) Installation of improvements or drainage structures to a designed drainage system--maximum score 90 points.
            12. (XII) All other eligible activities--maximum score 80 points.

         2. (ii) TxCDBG cost per low to moderate income beneficiary. The total amount of TxCDBG funds requested by the applicant is divided by the total number of low to moderate income persons benefiting from the application activities to determine the TxCDBG cost per beneficiary.

            1. (I) Cost per low to moderate income beneficiary is equal to or less than $2,000. Deduct zero points from the set maximum project design score.
            2. (II) Cost per low to moderate income beneficiary is greater than $2,000 but equal to or less than $4,000. Deduct 1 point from the set maximum project design score.
            3. (III) Cost per low to moderate income beneficiary is greater than $4,000 but equal to or less than $6,000. Deduct 2 points from the set maximum project design score.
            4. (IV) Cost per low to moderate income beneficiary is greater than $6,000 but equal to or less than $8,000. Deduct 3 points from the set maximum project design score.
            5. (V) Cost per low to moderate income beneficiary is greater than $8,000 but equal to or less than $10,000. Deduct 4 points from the set maximum project design score.
            6. (VI) Cost per low to moderate income beneficiary is greater than $10,000 but equal to or less than $11,000. Deduct 5 points from the set maximum project design score.
            7. (VII) Cost per low to moderate income beneficiary is greater than $11,000 but equal to or less than $13,000. Deduct 10 points from the set maximum project design score.
            8. (VIII) Cost per low to moderate income beneficiary is greater than $13,000 but equal to or less than $15,000. Deduct 15 points from the set maximum project design score.
            9. (IX) Cost per low to moderate income beneficiary is greater than $15,000 but equal to or less than $17,000. Deduct 20 points from the set maximum project design score.
            10. (X) Cost per low to moderate income beneficiary is greater than $17,000 but equal to or less than $19,000. Deduct 30 points from the set maximum project design score.
            11. (XI) Cost per low to moderate income beneficiary is greater than $19,000. Deduct 40 points from the set maximum project design score.

         3. (iii) The applicant's past efforts, especially the applicant's most recent efforts, to address water, sewer, and housing needs in colonia areas through applications submitted under the TxCDBG community development fund or through community development block grant entitlement funds.

            1. (I) The nonentitlement county submitted an application under the TxCDBG community development fund 2009/2010 biennial competition that was not addressing water, sewer, and housing needs in colonia areas. Deduct 3 points from the set maximum project design score.
            2. (II) The nonentitlement county submitted an application under the TxCDBG community development fund 2007/2008 biennial competition that was not addressing water, sewer, and housing needs in colonia areas. Deduct 3 points from the set maximum project design score.
            3. (III) The entitlement county did not use 2009 CDBG entitlement funds to address water, sewer, and housing needs in colonia areas. Deduct 3 points from the set maximum project design score.
            4. (IV) The entitlement county did not use 2008 CDBG entitlement funds to address water, sewer, and housing needs in colonia areas. Deduct 3 points from the set maximum project design score.

         4. (iv) The projected water and/or sewer rates after completion of the project based on 3,000 gallons, 5,000 gallons, and 10,000 gallons of usage.

            1. (I) The projected water and/or sewer rates may be too high for the application beneficiaries. Deduct 1 point from the set maximum project design score.
            2. (II) The projected water and/or sewer rates are too low to discourage water conservation by the application beneficiaries. Deduct 1 point from the set maximum project design score.

         5. (v) The ability of the applicant to utilize the grant funds in a timely manner.

            1. (I) The application includes the acquisition of real property, easements or rights-of-way. Deduct 1 point from the set maximum project design score.
            2. (II) The application includes matching funds that have not been secured by the applicant. Deduct 1 point from the set maximum project design score.
            3. (III) The proposed application target area is not located in an area where a service provider already has the certificate of convenience and necessity (CCN) needed to provide service to the application beneficiaries. Deduct 1 point from the set maximum project design score.
         6. (vi) The availability of grant funds to the applicant for project financing from other sources. Grant funds for any activity included in the application are available from another source. Deduct 1 point from the set maximum project design score.

         7. (vii) The applicant, or the service provider, has not waived the payment of water or sewer service assessments, capital recovery fees, and other access fees for the proposed low and moderate income project beneficiaries.

            1. (I) Assessments and fees budgeted in the application are equal to or less that $100 per low and moderate income household. Deduct 2 points from the set maximum project design score.
            2. (II) Assessments and fees budgeted in the application are greater than $100 but equal to or less that $200 per low and moderate income household. Deduct 4 points from the set maximum project design score.
            3. (III) Assessments and fees budgeted in the application are greater than $200 but equal to or less that $300 per low and moderate income household. Deduct 6 points from the set maximum project design score.
            4. (IV) Assessments and fees budgeted in the application are greater than $300 but equal to or less that $500 per low and moderate income household. Deduct 8 points from the set maximum project design score.
            5. (V) Assessments and fees budgeted in the application are greater than $500 per low and moderate income household. Deduct 10 points from the set maximum project design score.
         8. (viii) Applicant's proposed use of TxCDBG funds does not provide water or sewer connections/yardlines and/or plumbing improvements that provide access to water/sewer systems financed through the Texas Water Development Board Economically Distressed Areas Program. Deduct 2 points from the set maximum project design score.
         9. (ix) The application is for activities other than water or wastewater and the applicant has not already met its basic water and wastewater needs. Deduct 3 points from the set maximum project design score.
         10. (x) The applicant has not documented that future funding necessary to sustain the project is available. Deduct 3 points from the set maximum project design score.

      7. (G) Past performance. An applicant receives from zero to ten points based on the applicant's past performance on previously awarded TxCDBG contracts. The applicant's score will primarily be based on an assessment of the applicant's performance on the applicant's two most recent TxCDBG contracts that have reached the end of the original contract period stipulated in the contract. TxCDBG staff may also assess the applicant's performance on existing TxCDBG contracts that have not reached the end of the original contract period. An applicant that has never received a TxCDBG grant award will automatically receive these points. TxCDBG staff will assess the applicant's performance on TxCDBG contracts up to the application deadline date. The applicant's performance on TxCDBG contracts after the application deadline date will not be evaluated in this assessment. The evaluation of an applicant's past performance may include, but is not necessarily limited to the following:

         1. (i) The applicant's completion of the previous contract activities within the original contract period.
         2. (ii) The applicant's submission of the required close-out documents within the period prescribed for such submission.
         3. (iii) The applicant's timely response to monitoring findings on previous TxCDBG contracts especially any instances when the monitoring findings included disallowed costs.
         4. (iv) The applicant's timely response to audit findings on previous TxCDBG contracts.
         5. (v) The applicant's submission of all contract reporting requirements such as quarterly progress reports, certificates of expenditures, and project completion reports.
      8. (H) Colonia Construction Component Marginal Applicant. The marginal applicant is the applicant whose score is high enough for partial funding of the applicant's original grant request. If the marginal amount available to this applicant is equal to or more than the Colonia Construction Component grant minimum of $75,000, the marginal applicant may scale down the scope of the original project design, and accept the marginal amount, if the reduced project is still feasible. In the event that the marginal amount remaining in the Colonia Construction Component allocation is less than $75,000, then the remaining funds will be used to either fund a Colonia Planning Fund application or will be reallocated to other established TxCDBG fund categories.

   2. (2) Colonia area planning component (340 Total Points Maximum). The following is an outline of the selection criteria used by the Department for scoring applications for eligible planning activities under this fund. Three hundred forty points are available.

      1. (A) Community distress (total--up to 35 points). All community distress factor scores are based on the unincorporated population of the applicant. An applicant that has 125% or more of the average of all applicants in the competition of the rate on any community distress factor, except per capita income, receives the maximum number of points available for that factor. An applicant with less than 125% of the average of all applicants in the competition on a factor will receive a proportionate share of the maximum points available for that factor. An applicant that has 75% or less of the average of all applicants in the competition on the per capita income factor will receive the maximum number of points available for that factor. An applicant with greater than 75% of the average of all applicants in the competition on the per capita income factor will receive a proportionate share of the maximum points available for that factor.

         1. (i) Percentage of persons living in poverty--15 points
         2. (ii) Per capita income--10 points
         3. (iii) Percentage of housing units without complete plumbing--5 points
         4. (iv) Unemployment Rate--5 points

      2. (B) Benefit to low and moderate income persons (total--30 points). Points are awarded based on the low and moderate income percentage for all of the colonia areas where project activities are located according to the following scale:

         1. (i) 100% to 90% of funds benefiting low to moderate income persons--30 points
         2. (ii) 89.99% to 80% of funds benefiting low to moderate income persons--25 points
         3. (iii) 79.99% to 70% of funds benefiting low to moderate income persons--20 points
         4. (iv) 69.99% to 60% of funds benefiting low to moderate income persons--15 points
         5. (v) Below 60% of funds benefiting low to moderate income persons--5 points

      3. (C) Project design (total--255 points). Each application is scored based on how the proposed planning effort resolves the identified need and the severity of need within the applying jurisdiction. A colonia planning fund application must receive a minimum score for the project design selection factor of at least 70 percent of the maximum number of points available under this factor to be considered for funding. A more detailed description on the assignment of points under the project design scoring is included in the application guide for this fund. Each application is scored by TxCDBG staff using the following information submitted in the application:

         1. (i) Evidence of severity of need as described in originally received application (total--up to 10 points)
         2. (ii) Applicant provides documentation that proposed colonia(s) is/are ranked high that is, within the top five colonias in its "comprehensive plan" as submitted to the TxCDBG (up to 30 points)
         3. (iii) all target area colonia(s) not platted (up to 20 points)
         4. (iv) all target area colonia(s) with no water (up to 20 points)
         5. (v) all target area colonia(s) with no wastewater (up to 20 points)
         6. (vi) all or some target area colonia(s) are partially platted or platted but not recorded (up to 10 points)
         7. (vii) target area colonia(s) partial water (up to 10 points)
         8. (viii) target area colonia(s) partial sewer (up to 10 points)

         9. (ix) Population (total--10 points). The change in county population from 1990 and current HUD estimate is between:

            1. (I) greater than 5% but less than or equal to 10% (2 points)
            2. (II) greater than 10% but less than or equal to 15% (4 points)
            3. (III) greater than 15% but less than or equal to 20% (6 points)
            4. (IV) greater than 20% but less than or equal to 25% (8 points)
            5. (V) greater than 25% (10 points)
         10. (x) Needs are clearly identified in original application by priority through a community needs assessment (total--up to 5 points).
         11. (xi) Evidence provided in the original application of citizen input or known citizen involvement in addressing need (total--up to 15 points).
         12. (xii) Evidence provided in the original application that the public hearings to solicit input on needs were performed as described in the application guide (total--up to 28 points).
         13. (xiii) Proposed planning efforts as described in the application are clear, concise and reasonable (total--up to 20 points).

         14. (xiv) The description of planning activity in the original application:

             1. (I) Originally submitted TABLE 1 requests eligible activities (3 points);
             2. (II) Originally submitted TABLE 1 proposes an inventory, analysis and plan or an eligible activity not previously funded through the Colonia Fund (3 points);
             3. (III) Originally submitted TABLE 1 addresses identified needs (3 points);
             4. (IV) Originally submitted TABLE 1 activities match Table 2 planning elements (3 points);
             5. (V) Originally submitted TABLE 1 describes or indicates an implementable strategy, for example, a capital improvements plan or other method (3 points).
         15. (xv) All proposed activities will be conducted on a colonia-wide basis (10 points).
         16. (xvi) The extent to which any previous planning efforts for colonia areas have been accomplished. Applicant was a previous recipient of Colonia Planning Funds and through implementation of previously funded activities a colonia has been eliminated from colonia status (water, wastewater and housing needs have been provided for). Evidence such as a resolution of the commissioner's court that county has eliminated a colonia from the original colonia list in the comprehensive study or the OAG list thus indicating that the county is organized to implement the plan or would ensure that the plan is implemented. Points will be awarded if applicant is a previous recipient of a Colonia Comprehensive Planning Fund award and certifies completion of all of a colonia's needs since the colonia's problems were last studied (25 points).

         17. (xvii) TxCDBG cost per low to moderate income beneficiary (total--15 points):

             1. (I) the TxCDBG cost per low to moderate income beneficiary is at least 50 percent below the median cost per beneficiary of all eligible applicants (15 points); or
             2. (II) the TxCDBG cost per low to moderate income beneficiary is at or below the median cost per beneficiary of all eligible applicants (10 points); or
             3. (III) the TxCDBG cost per low to moderate income beneficiary is below 150 percent of the median cost per beneficiary of all eligible applicants (7 points); or
             4. (IV) the TxCDBG cost per low to moderate income beneficiary is 150 percent or greater than the median cost per beneficiary of all eligible applicants (5 points).
         18. (xviii) the availability of grant funds to the applicant for project financing from other sources. The area would be eligible for funding under the Texas Water Development Board's Economically Distressed Areas Program (EDAP) or other programs as described in the original application (total--6 points).

         19. (xix) the applicant's past performance on prior TxCDBG contracts. An applicant can receive from zero to twelve points based on the applicant's past performance on previously awarded TxCDBG contracts. The applicant's score will be primarily based on our assessment of the applicant's performance on the applicant's two most recent TxCDBG contracts that have reached the end of the original contract period stipulated in the contract. The TxCDBG may also assess the applicant's performance on existing TxCDBG contracts that have not reached the end of the original contract period. Applicants that have never received a TxCDBG grant award will automatically receive these points. The TxCDBG will assess the applicant's performance on TxCDBG contracts up to the application deadline date. The applicant's performance after the application deadline date will not be evaluated in this assessment. The evaluation of an applicant's past performance may include, but is not necessarily limited to the following:

             1. (I) The applicant's completion of the previous two most recent contracts contract activities within the original contract period (up to 3 points).
             2. (II) The applicant's submission of the required close-out documents for aforementioned contracts within the period prescribed for such submission (up to 3 points).
             3. (III) The applicant's timely response to monitoring findings on previous TxCDBG contracts especially any instances when the monitoring findings included disallowed costs (up to 3 points).
             4. (IV) The applicant's timely response to audit findings on previous TxCDBG contracts (up to 3 points).

      4. (D) Matching funds (total--20 points). The population category under which county applications are scored is based on the actual number of beneficiaries to be served by the colonia planning activities.

         1. (i) Applicants with populations equal to or less than 1,500 according to the 2000 census:

            1. (I) match equal to or greater than 5.0% of grant request--20 points;
            2. (II) match at least 2.0% but less than 5.0% of grant request--10 points;
            3. (III) match less than 2.0% of grant request--0 points.

         2. (ii) Applicants with populations equal to or less than 3,000 but over 1,500 according to the 2000 census:

            1. (I) match equal to or greater than 10% of grant request--20 points;
            2. (II) match at least 2.5% but less than 10% of grant request--10 points;
            3. (III) match less than 2.5% of grant request--0 points.

         3. (iii) Applicants with populations equal to or less than 5,000 but over 3,000 according to the 2000 census:

            1. (I) match equal to or greater than 15% of grant request--20 points;
            2. (II) match at least 3.5% but less than 15% of grant request--10 points;
            3. (III) match less than 3.5% of grant request--0 points.

         4. (iv) Applicants with populations over 5,000 according to the 2000 census:

            1. (I) match equal to or greater than 20% of grant request--20 points;
            2. (II) match at least 5.0% but less than 20% of grant request--10 points;
            3. (III) match less than 5.0% of grant request--0 points.
      5. (E) The marginal applicant is the applicant whose score is high enough for partial funding of the applicant's original grant request. The marginal applicant may scale down the scope of the original project design, and accept the marginal amount, if the reduced project is still feasible. Any unobligated funds remaining in the Colonia Area Planning allocation will be reallocated to either fund additional Colonia Comprehensive Planning applications, Colonia Construction Component applications, or will be reallocated to other established TxCDBG fund categories.

   3. (3) Colonia comprehensive planning component (200 Total Points Maximum). The following is an outline of the selection criteria used by the Department for scoring applications for eligible planning activities under this fund. Two hundred points are available.

      1. (A) Community distress (total--25 points). All community distress factor scores are based on the unincorporated population of the applicant. An applicant that has 125% or more of the average of all applicants in the competition of the rate on any community distress factor, except per capita income, receives the maximum number of points available for that factor. An applicant with less than 125% of the average of all applicants in the competition on a factor will receive a proportionate share of the maximum points available for that factor. An applicant that has 75% or less of the average of all applicants in the competition on the per capita income factor will receive the maximum number of points available for that factor. An applicant with greater than 75% of the average of all applicants in the competition on the per capita income factor will receive a proportionate share of the maximum points available for that factor.

         1. (i) Percentage of persons living in poverty--10 points
         2. (ii) Per capita income--5 points
         3. (iii) Percentage of housing units without complete plumbing--5 points
         4. (iv) Unemployment Rate--5 points

      2. (B) Project design (total--175 points). A colonia planning fund application must receive a minimum score for the project design selection factor of at least 70 percent of the maximum number of points available under this factor to be considered for funding. A more detailed description on the assignment of points under the project design scoring is included in the application guide for this fund. Each application is scored by the Department staff using the following information submitted in the application:

         1. (i) the severity of need for the comprehensive colonia planning effort and how effectively the proposed comprehensive planning effort will result in a useful assessment of colonia populations, locations, infrastructure conditions, housing conditions, and the development of short-term and long-term strategies to resolve the identified needs;

            1. (I) Evidence of severity of need as described in originally received application (total--100 points).

            2. (II) Population (total--10 points). The change in county population from 1990 to current HUD estimate is between:

               (-a-) greater than 2% but less than or equal to 4% (2 points).

               (-b-) greater than 4% but less than or equal to 6% (4 points).

               (-c-) greater than 6% but less than or equal to 8% (6 points).

               (-d-) greater than 8% but less than or equal to 10% (8 points).

               (-e-) greater than 10% (10 points).

            3. (III) Needs are clearly identified in original application by priority through a community needs assessment (total--2 points);
            4. (IV) Evidence provided in the original application of citizen input or known citizen involvement in addressing need (total--2 points);
            5. (V) Evidence provided in the original application that the public hearings to solicit input on needs were performed as described in the application guide (total--18 points);
            6. (VI) Proposed planning efforts as described in the application are clear, concise and reasonable (total--2 points).
            7. (VII) Proposed planning efforts as described in the application match the needs in the target area (total--2 points).
            8. (VIII) Evidence in the application that the county is organized to implement the plan or would ensure that the plan is implemented (total--2 points).

            9. (IX) The description of planning activity in the original application:

               (-a-) Describes eligible activities (total--1 point).

               (-b-) Describes understanding of plan process (total--1 point).

               (-c-) Addresses identified needs (total--1 point).

               (-d-) Appears to result in solution to problems (total--1 point).

               (-e-) Indicates a strategy that can be implemented (total--1 point).

            10. (X) Considering the applicant's probable capability, the Colonia Questionnaire in the original application indicates an attempt to control problems and the original submission was complete (total--3 points).
         2. (ii) the extent to which any previous planning efforts for colonia areas have been implemented (total--5 points). Applicant was a previous recipient of Colonia Planning Funds and some implementation of previously funded activities or special or extenuating circumstances prohibiting implementation exist. Points will be awarded if applicant is not a previous recipient of a Colonia Planning Fund award. Points will not be awarded if applicant did not implement previously funded activities and no special or extenuating circumstances prohibiting implementation existed;

         3. (iii) whether the applicant provides any local matching funds for project activities. (total--12 points).

            1. (I) At least 20% of TxCDBG requested amount match--12 points.
            2. (II) At least 15% of TxCDBG requested amount but less than 20% match--9 points.
            3. (III) At least 10% of TxCDBG requested amount but less than 15% match--6 points.
            4. (IV) At least 5% of TxCDBG requested amount but less than 10% match--3 points.
            5. (V) Under 5% of TxCDBG requested amount match--0 points.

         4. (iv) the applicant's past performance on previously awarded TxCDBG contracts. An applicant can receive from zero to twelve points based on the applicant's past performance on previously awarded TxCDBG contracts. The applicant's score will be primarily based on our assessment of the applicant's performance on the applicant's two most recent TxCDBG contracts that have reached the end of the original contract period stipulated in the contract. The TxCDBG may also assess the applicant's performance on existing TxCDBG contracts that have not reached the end of the original contract period. Applicants that have never received a TxCDBG grant award will automatically receive these points. The TxCDBG will assess the applicant's performance on TxCDBG contracts up to the application deadline date. The applicant's performance after the application deadline date will not be evaluated in this assessment. The evaluation of an applicant's past performance will include, but is not necessarily limited to the following:

            1. (I) The applicant's completion of the previous contract, two most recent TxCDBG contracts contract activities within the original contract period (up to 3 points).
            2. (II) The applicant's submission of the required close-out documents for aforementioned contracts within the period prescribed for such submission (up to 3 points).
            3. (III) The applicant's timely response to monitoring findings on previous TxCDBG contracts especially any instances when the monitoring findings included disallowed costs (up to 3 points).
            4. (IV) The applicant's timely response to audit findings on previous TxCDBG contracts (up to 3 points).

6. (f) Program guidelines (colonia self-help centers legislative set-aside). The colonia self-help centers legislative set-aside is administered by the Texas Department of Housing and Community Affairs (TDHCA) under an interagency agreement with the Department. The following is an outline of the administrative requirements and eligible activities under this fund.

   1. (1) The geographic area served by each colonia self-help center shall be determined by the Department or by the TDHCA. Five colonias located in each established colonia self-help center service area shall be designated to receive concentrated attention from the center. Each colonia self-help center shall set a goal to improve the living conditions of the residents located in the colonias designated for concentrated attention within a two-year period set under the contract terms. The Department and the TDHCA have the authority to make changes to the colonias designated for this concentrated attention.
   2. (2) The Department's grant contract for each colonia self-help center is awarded and executed with the county where the colonia self-help center is located. Each county executes a subcontract agreement with a non-profit community action agency or a public housing authority.

   3. (3) A colonia advisory committee is established and not fewer than five persons who are residents of colonias are selected from the candidates submitted by local nonprofit organizations and the commissioners court of a county where a self-help center is located. One committee member shall be appointed to represent each of the counties in which a colonia self-help center is located. Each committee member must be a resident of a colonia located in the county the member represents but may not be a board member, contractor, or employee of or have any ownership interest in an entity that is awarded a contract through the TxCDBG. The advisory committee shall advise the Department and the TDHCA regarding:

      1. (A) the needs of colonia residents;
      2. (B) appropriate and effective programs that are proposed or are operated through the centers; and
      3. (C) activities that may be undertaken through the centers to better serve the needs of colonia residents.

   4. (4) The purpose of each colonia self-help center is to assist low income and very low income individuals and families living in colonias located in the center's designated service area to finance, refinance, construct, improve or maintain a safe, suitable home in the designated service area or in another suitable area. Each self-help center may serve low income and very low income individuals and families by:

      1. (A) providing assistance in obtaining loans or grants to build a home;
      2. (B) teaching construction skills necessary to repair or build a home;
      3. (C) providing model home plans;
      4. (D) operating a program to rent or provide tools for home construction and improvement for the benefit of property owners in colonias who are building or repairing a residence or installing necessary residential infrastructure;
      5. (E) helping to obtain, construct, assess, or improve the service and utility infrastructure designed to service residences in a colonia, including potable water, wastewater disposal, drainage, streets and utilities;
      6. (F) surveying or platting residential property that an individual purchased without the benefit of a legal survey, plat, or record;
      7. (G) providing credit and debt counseling related to home purchase and finance;
      8. (H) applying for grants and loans to provide housing and other needed community improvements;
      9. (I) monthly programs to educate individuals and families on their rights and responsibilities as property owners;
      10. (J) providing other eligible services that the self-help center, with the Department's approval, determines are necessary to assist colonia residents in improving their physical living conditions, including help in obtaining suitable alternative housing outside of a colonia's area;
      11. (K) providing assistance in obtaining loans or grants to enable an individual or family to acquire fee simple title to property that originally was purchased under a contract for a deed, contract for sale, or other executory contract; and
      12. (L) providing access to computers, the internet, and computer training.
   5. (5) A self-help center may not provide grants, financing, or mortgage loan services to purchase, build, rehabilitate, or finance construction or improvements to a home in a colonia if water service and suitable wastewater disposal are not available.

7. (g) Selection criteria (colonia EDAP fund). The following is an outline of the application information evaluated by Department's staff.

   1. (1) The proposed use of the colonia EDAP funds including the eligibility of the proposed activities and the effective use of the funds to provide water or sewer connections/yard lines to water/sewer systems funded through the Texas Water Development Board Economically Distressed Area Program.
   2. (2) The ability of the applicant to utilize the grant funds in a timely manner.
   3. (3) The availability of grant funds to the applicant for project financing from other sources.
   4. (4) The applicant's past performance on previously awarded TxCDBG contracts.
   5. (5) Cost per beneficiary.
   6. (6) Proximity of project site to entitlement cities or metropolitan statistical areas.

Source Note:The provisions of this §30.8 adopted to be effective May 20, 1992, 17 TexReg 3236; amended to be effective September 11, 1992, 17 TexReg 5951; amended to be effective October 13, 1993, 18 TexReg 6641; amended to be effective October 31, 1994, 19 TexReg 8107; amended to be effective March 12, 1996, 21 TexReg 1530; amended to be effective July 30, 1996, 21 TexReg 6779; amended to be effective August 5, 1997, 22 TexReg 6937; amended to be effective November 24, 1998, 23 TexReg 11795; amended to be effective August 18, 1999, 24 TexReg 6281; amended to be effective September 17, 2000, 25 TexReg 9216; transferred effective October 31,2001, as published in the Texas Register August 2, 2002, 27 TexReg 6835; amended to be effective January 26, 2003, 28 TexReg 537; amended to be effective May 4, 2003, 28 TexReg 3712; amended to be effective May 4, 2004, 29 TexReg 4144; amended to be effective November 23, 2004, 29 TexReg 10715; amended to be effective June 26, 2005, 30 TexReg 3568; amended to be effective March 4, 2007, 32 TexReg 829; amended to be effective February 28, 2008, 33 TexReg 1522; amended to be effective October 29, 2008, 33 TexReg 8763; amended to be effective March 16, 2009, 34 TexReg 1799; amended to be effective March 10, 2011, 36 TexReg 1473; amended to be effective September 11, 2011, 36 TexReg 5676; transferred effective October 1, 2011, as published in the Texas Register December 23, 2011, 36 TexReg 9011.