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Presentation, discussion, and possible action on the 2027 Low Income Home Energy Assistance Program State Plan and Awards.
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RECOMMENDED ACTION
recommendation
WHEREAS, the Texas Department of Housing and Community Affairs (the Department) develops and submits a State Plan to the U.S. Department of Health and Human Services (USHHS) each year to administer the Low Income Home Energy Assistance Program (LIHEAP);
WHEREAS, the Board approved a draft 2027 LIHEAP State Plan (the Plan) on April 9, 2026, which was then made available for public comment and that public comment is addressed in Attachment A; and
WHEREAS, the final 2027 LIHEAP State Plan includes the awards to subrecipients of 2027 LIHEAP funds as recommended through the Previous Participation Review and Approval Process (PPRAP) in Attachment B;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director or his designee are hereby authorized, empowered, and directed, for and on behalf of this Board to submit the Plan to USHHS and upon USHSS approval of such Plan to contract for the awards represented in the Plan and in connection therewith to execute, deliver, and cause to be performed such amendments, documents, and other writings such as anticipated grant guidance on development of the Plan from USHHS or to make such decision and non-substantive technical corrections as they or any of them may deem necessary or advisable to effectuate the foregoing.
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BACKGROUND
The Department develops and submits a LIHEAP State Plan each year on or before September 1 to USHHS to receive its annual allotment of LIHEAP funds. For 2027, the Department expects to receive a total of approximately $180,000,000 in LIHEAP funding. LIHEAP funds, as reflected in the Plan, are utilized in the following three ways:
• The Department allocates at least 75% of the LIHEAP funds to the Comprehensive Energy Assistance Program (CEAP), which provides utility assistance to eligible households, including crisis assistance and services to reduce home energy needs.
• The Department allocates up to 15% of the LIHEAP funds to the Weatherization Assistance Program. There is generally greater flexibility with LIHEAP weatherization funds than U.S. Department of Energy (DOE) weatherization funds, so continuing to allocate some portion of these funds for this activity allows households to receive more comprehensive assistance than if they were to be served solely by DOE WAP funds.
• The Department allocates 10% of LIHEAP funds for Department and subrecipient planning and administrative costs.
The draft version of the 2027 LIHEAP State Plan was approved to be released for public comment by the Board on April 9, 2026. The public comment period was open from April 24, 2026, to May 15, 2026, and four public hearings were held at four locations throughout the state May 12-14, 2026. Public comment was received and a summary of this comment with a Department response is provided in Attachment A.
It should be noted that the Plan follows a template and series of required responses pre-determined by USHHS with character limitations and specific instructions. Also, the Plan has yet to be reviewed and approved by USHHS. In its review, it is common for USHHS to request corrections to the Plan. Staff recommends approval for staff to make such required changes to ensure USHHS approval.
The Previous Participation Rule (10 TAC, Chapter 1, Subchapter C, §1.302) requires a review of LIHEAP awards prior to recommendation to the Board. These LIHEAP awards are subject to this review and are listed in Attachment B. The review has been performed and all awards in Attachment B are recommended for award with no conditions except for South Texas Development Council and Tri-County Community Action which are recommended for award with the following conditions:
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Agency |
Condition |
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South Texas Development Council (STDC) |
This award is conditioned on the results of the SOAH hearing anticipated to convene on August 11, 2026. SOAH will issue a proposal for decision to the TDHCA Governing Board recommending whether there is cause to terminate funding to STDC. The TDHCA Governing Board will be provided the proposal for decision, and it will be considered as part of any final order by the Board in the matter. If the TDHCA Governing Board determines there is cause to terminate funding, STDC’s status as a LIHEAP subrecipient will be terminated. |
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Tri-County Community Action |
Tri-County Community Action is required to provide all documentation relating to the FYE 2025 Single Audit on or before January 1, 2027. The compliant Single Audit must also be uploaded and accepted by the Federal Audit Clearinghouse, with confirmation provided to the Department. Depending on the results of that Single Audit, the Department may impose additional conditions upon the Contract in accordance with 2 CFR §200.207. |