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Presentation, discussion, and possible approval to authorize the issuance of the 2025 HOME American Rescue Plan Nonprofit Capacity Building and Operating Notice of Funding Availability and publication in the Texas Register
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RECOMMENDED ACTION
recommendation
WHEREAS, the Texas Department of Housing and Community Affairs (“TDHCA” or “the Department”) Second Amendment to the HOME-ARP Allocation Plan programmed additional HOME-ARP funding into nonprofit capacity building and operating (NCO) costs to support organizations in successfully carrying out HOME-ARP non-congregate shelter (NCS) development, and programmed additional funds into NCS development;
WHEREAS, in the fall of 2024, the Department submitted the HOME-ARP Allocation Plan Second Amendment to the U.S. Department of Housing and Urban Development (HUD) for approval, which stated that the NCO and NCS funds would be targeted in Texas areas with high costs of living, and that NCS funds would only be available to organizations that received NCO;
WHEREAS, the Department received confirmation from HUD that the second amendment was acceptable; and
WHEREAS, due to the reallocation and movement of underused funds from another activity, the total amount available for NCO is $750,000 and the total for NCS development is $64,005,338, as allowed in the HOME-ARP Allocation Plan, as amended;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director and his designees be and each of them hereby are authorized, empowered, and directed, for and on behalf of the Department, to release a 2025 HOME-ARP Nonprofit Capacity Building and Operating (NCO) Notice of Funding Availability (NOFA) in the amount of approximately $750,000, and to make any technical corrections or perform such other acts as may be necessary to effectuate the foregoing.
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BACKGROUND
TDHCA was allocated $132,969,147 of funds from HUD under Section 3205 of the American Rescue Plan Act, which HUD has called the HOME-ARP Program. The HOME-ARP Division programmed funds into Non-Congregate Shelter (NCS) Development, Rental Housing Development, Nonprofit Capacity Building and Operating Funds, and Administration/Planning. HUD notified TDHCA in October 2023 that the HOME-ARP allocation was reduced due to their allocation error, and in August 2024, HUD reallocated HOME-ARP funds to TDHCA that came from Bryan, Odessa, and Pasadena for a net change of $508,905. Funds from the reallocation and funds that were not fully utilized from prior releases of funds were added to NCO, NCS, and administration in the second amendment to the HOME-ARP Allocation Plan.
The TDHCA HOME-ARP Allocation Plan as amended states that non-congregate shelter (NCS) development funds will only be awarded to recipients of the nonprofit capacity building and operating funds (NCO). The NCO funds were targeted in areas that met criteria demonstrating need through high cost of housing and increase in housing costs.
With Board approval, staff requests to release the attached NCO Notice of Funding Availability for $750,000. Per the HOME-ARP Allocation Plan as amended, a successful NCO awardee must then submit an Application for NCS funds within nine months of the NCO award.
Per HUD, organizations that serve or are located in Bryan, Pasadena, or Odessa, will receive a preference, which is provided for through additional points in this competitive application. The total amount reallocated was $4,317,058 (of which the majority are directed to NCS, not NCO). If organizations request the additional points for the geographic preference in their NCO application, the total amount of the NCO award may be reduced to a maximum of $314,917 and the total anticipated NCS request associated with that geographic preference may be reduced to $4,002,141, depending on the other Applications and scores submitted. Note that Odessa, Bryan, and Pasadena, have a scoring preference and not a set-aside in this NCO NOFA. There could be award(s) in these areas if the scored Applications are high enough. Likewise, there could be no award in these areas if the scored Applications (with the extra points for serving/location in these areas) do not score high enough for an award.
Organizations in Texas Metropolitan Statistical Areas (MSAs) that already have an awardee of HOME-ARP NCO will be ineligible to apply for NCO funds under this NOFA. If more than one organization can be awarded NCO through the competitive process, the NOFA requires that the organizations be in different MSAs.
Points in the NCO NOFA include experience of the applicant in rehabilitating or converting buildings for emergency shelters, experience managing an emergency shelter, composition of the governing board with local government officials to show community support, evidence of community engagement, history of successful fundraising, collaboration with service partners, monitoring history, site control for the future NCS, and the preference for Bryan, Odessa, and Pasadena.
Attachment A is the NCO NOFA including the Electronic Filing Agreement and Intent to Apply. Once approved, HOME-ARP staff will publish the NCO NOFA on the TDHCA website and notice of the NOFA in the Texas Register. Applicants are required to submit an Intent to Apply at least five days prior to the Application due date to receive a blank Application. The Intent to Apply will ensure that Applicants are in areas that qualify for NCS funds. Organizations are encouraged to submit an Intent to Apply as soon as possible once the NCO NOFA is released.
The NCO Invitation to Apply will begin accepting applications from Monday, March 3, 2025, to Tuesday, March 31, 2025, for the first application period, and July 14, 2025, to December 15, 2025, for the second application period (if needed), unless otherwise extended, suspended, or closed by the Executive Director or his designee. Applications submitted during the first Application period may apply for up to the full allocation of NCO request. Applications submitted during the second Application period, if available, may apply for remaining NCO funds after the first Application period awards have been made.