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Presentation, discussion, and possible action on an order adopting the repeal of sections 10 TAC §7.34 and §7.36, and an order adopting new sections at §7.34 and §7.36, and directing their publication 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 proposed repeal and replacement of 10 TAC §7.34, Continuing Awards, and 10 TAC §7.36, General Threshold Criteria, was published in the Texas Register for public comment from February 21, 2025, through March 21, 2025, and no comment was received; and
WHEREAS, staff recommends the adoption of the repeal and replacement of §7.34, Continuing Awards, and §7.36, General Threshold Criteria;
NOW, therefore, it is hereby
RESOLVED, that the proposed repeal and proposed replacement of §7.34, Continuing Awards, and §7.36, General Threshold Criteria, with the preambles presented at this meeting, are hereby adopted and approved for publication in the Texas Register; and
FURTHER 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 cause the actions to publish the adopted rules in the Texas Register, and in connection therewith, make such non-substantive technical corrections as they may deem necessary to effectuate the foregoing, including the preparation of the subchapter specific preambles.
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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. As part of the ongoing application and implementation of these rules, staff routinely reviews potential areas for improvement and ensures compliance with federal regulations. During this process, staff identified the need for updates to §7.34, Continuing Awards and §7.36, General Threshold Criteria.
The proposed updates revise the eligibility and point criteria used to evaluate ESG Funding applicants. A black line version of all the changes was made available on the Department’s website during the public comment period. Staff has summarized the changes to §7.34, Continuing Awards, and §7.36, General Threshold Criteria below.
Summary of Changes:
• Revises the eligibility criteria for a Continuing Award by reducing the number of acceptable delinquent reports from four or fewer to two or fewer.
• Adds a new eligibility criterion for a Continuing Award that requires the timely submission of annual data for SAGE reporting.
• Adds a new threshold requirement for Applicants participating in the Regional Competition who have or had an ESG Contract, requiring timely submission of the data necessary for the Department to complete the annual SAGE report to HUD.
At the Board meeting of February 6, 2025, the Board approved the proposed repeal and replacement of the rules for publication for public comment. Public comment was accepted February 21, 2025, through March 21, 2025, and no public comment was received. Staff recommends adoption of the rules with no changes from the draft approved by the Board.