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Presentation, discussion, and possible action regarding authorization to reissue a Notice of Funding Availability for the 2024 Reentry Activities Pilot Program funded with Community Services Block Grant Discretionary funds
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RECOMMENDED ACTION
recommendation
WHEREAS, Community Services Block Grant (CSBG) funds are awarded annually to the Texas Department of Housing and Community Affairs (the Department) by the U.S. Department of Health and Human Services (USHHS);
WHEREAS, the Department reserves 90% of the allotment for CSBG eligible entities to provide services/assistance to the low-income population in all 254 counties; up to 5% for state administration expenses; and the remaining amount for state discretionary use;
WHEREAS, at the Board meeting of June 15, 2023, the Department established a set aside of $1,775,000 for 2024 and 2025 CSBG Discretionary (CSBG-D) activities in the 2024-2025 CSBG State Plan, including $400,000 per year towards a Reentry Assistance Pilot Program, which will allow nonprofit and local government organizations with established experience in serving the reentry population to assist previously incarcerated individuals obtain rental housing through landlord incentives, payment of security deposits, and other reentry activities related to housing;
WHEREAS, at the Board meeting of July 27, 2023, the Board authorized staff to release a Notice of Funding Availability (NOFA) for 2024 CSBG-D funds seeking organizations with experience in serving the reentry population and are able to administer projects focused on mitigating barriers to securing safe and stable housing for previously incarcerated individuals;
WHEREAS, after release of the NOFA and after scoring of the applications received along with award recommendations, an appeal to the Executive Director and then to the Board was made by an applicant regarding a disagreement with categorization of costs within the NOFA;
WHEREAS, staff notified the appellant that it would be reissuing the NOFA, and the appellant withdrew their appeal from the Board’s agenda;
WHEREAS, the Executive Director directed staff to revise the NOFA to clarify the issue; and
WHEREAS, Department staff have made the appropriate revisions to the NOFA and is seeking Board authority to reissue the NOFA;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director be granted the authority to reissue the NOFA for 2024 CSBG-D funds for reentry activities;
FURTHER RESOLVED, that to the extent that subsequent revisions to the NOFA or iterations for a future NOFA with these funds are required in order to facilitate the use of the funds by the applicants, the Board also authorizes staff to make such revisions in accordance with, and to the extent limited by the CSBG federal and state regulations;
FURTHER RESOLVED, that the budget for USHHS has not yet been passed by Congress and the Department reserves the right to cancel or adjust the amount of this NOFA at its sole discretion if insufficient 2024 CSBG funding is received; and
FURTHER RESOLVED, that staff is authorized, empowered, and directed, for and on behalf of the Department to execute such documents, instruments and writings and perform such other acts as may be necessary to effectuate the foregoing.
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BACKGROUND
Each year the Department sets aside 5% (approximately $1,775,000) of its annual CSBG allocation for state discretionary use. Each year funds from CSBG-D are used for specific identified initiatives that the Department supports and other ongoing activities such as a Reentry Assistance Pilot Program to assist previously incarcerated individuals in obtaining rental housing through landlord incentives, payment of security deposits, and other reentry activities related to housing. For 2024, $400,000 has been reserved for reentry activities.
On July 27, 2023, the Board authorized staff to release a NOFA seeking organizations with experience in serving the reentry population and who are interested in administering projects focused on mitigating barriers to securing safe and stable housing for previously incarcerated individuals. But after its release, after scoring of the applications, and after the issuance of notices of award recommendations, an appeal to the Executive Director and then to the Board was made by an applicant arguing that the NOFA incorrectly categorized salary costs for Program Staff and Direct Client Support Staff, as part of Administrative costs and that their application would have been eligible using such categorizations. After careful consideration, the appeal was removed from the Board’s agenda and staff determined that it would revise the NOFA to clarify the issue, then seek Board authorization to rerelease the NOFA. Accordingly, staff has made revisions to the NOFA by combining Administrative, Management and Program Staff into a single budget category, and adding clear scoring criteria associated with the budget to incentivize applicants to expend money on direct client reentry services. Staff also adjusted language relating to geographic awards being permitted in spite of score to ensure dispersion of awardees. Staff will reissue the revised version of the NOFA once Board authorization is granted.
In the event that the Department does not have sufficient eligible applications to fund this activity, the Department may, at the discretion of the Executive Director, increase the award amounts to other applicants or reprogram the funds from this activity into another eligible discretionary activity specified in the 2024-2025 CSBG State Plan previously approved by the Board.
The Department will return to the Board at a later date with award recommendations. It is anticipated that three to five awards of $80,000 to $150,000 each will be presented to the Board Contracts will be 12 months.
The proposed NOFA and Scoring Tab B are attached for review and approval as part of this item. In the event of a tie in scoring of the applications, a tie breaking procedure will be used and is described within the NOFA. The other attachments and tabs referenced in the NOFA, Attachments A (Tabs A and C through H) and B, are submission forms of required information or certifications, and are not included within this Board Action Request.