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Presentation, discussion, and possible action on an order proposing the repeal of sections 10 TAC §7.34 and §7.36, and an order proposing new sections at §7.34 and §7.36, and directing their publication for public comment in the Texas Register.
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RECOMMENDED ACTION
recommendation
WHEREAS, pursuant to Tex. Gov’t Code §2306.053, the Texas Department of Housing and Community Affairs (Department) is authorized to adopt rules governing the administration of the Department and its programs;
WHEREAS, the Department is proposing to repeal sections §7.34, Continuing Awards; and §7.36, General Threshold Criteria; and proposing new sections §7.34, Continuing Awards; and §7.36, General Threshold Criteria to maintain compliance with federal requirements; and
WHEREAS, upon Board approval, the proposed new rule will be submitted to the Texas Register to be published for public comment, which will be accepted from February 21, 2025, to March 21, 2025;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director and his designees be and each them hereby are authorized, empowered, and directed, for and on behalf of the Department to cause the proposed repeal of 10 TAC §7.34 and §7.36, and an order proposing new sections at §7.34 and §7.36 in the form presented to this meeting to be published in the Texas Register for public comment and, in connection therewith, make such non-substantive technical corrections as they may deem necessary to effectuate the foregoing.
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BACKGROUND
The Emergency Solutions Grants (ESG) Program rules at 10 TAC Chapter 7, Subchapter C, provide the administrative framework for the ESG Program. In the process of applying these rules, staff routinely reviews possible areas of improvement and compliance with federal regulations. During this review, staff identified the need to update sections §7.34, Continuing Awards and §7.36, General Threshold Criteria.
As recipients of HUD’s ESG funds, the Department is required to annually submit to HUD a Consolidated Annual Performance and Evaluation Report (CAPER). Department Subrecipients must report all persons assisted with ESG funding using the Homeless Management Information System (HMIS); annually, the Department requires each ESG funded Subrecipient to submit this data shortly after the end of each Program Year. To ensure the Department maintains compliance with federal reporting guidelines, staff is recommending updating the rule that governs Applicant eligibility as a threshold item for ESG funding. This update will provide a tangible incentive for Subrecipients to report their annual data in a timely manner.
Similarly, staff recommends updating the eligibility requirements for Continuing Awards to reflect an increase in the number of timely-submitted reports required to qualify for a Continuing Award. The current rule requires that Subrecipients submit four or fewer delinquent monthly reports within a six-month period; staff recommends this be updated to require Subrecipients to submit two or fewer delinquent monthly reports within a six-month period.
Specific changes to the ESG Program rules are included in the attachments. A blackline version with all changes will be available on the Department’s website during the public comment period.