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Presentation, discussion, and possible action regarding authorization to release a Notice of Funding Availability for 2026 Reentry Activities 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 12, 2025, the Department established a set aside of $1,850,000 for 2026 and 2027 CSBG Discretionary (CSBG-D) activities in the 2026-2027 CSBG State Plan, including $400,000 per year towards Reentry Assistance Activities 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; and
WHEREAS, CSBG-D funds for Reentry Assistance Activities will be made available to eligible applicants to carry out the purpose of the CSBG pursuant to 42 U.S. Code Chapter 106;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director be granted the authority to release a Notice of Funding Availability (NOFA) for 2026 CSBG-D funds for Reentry Activities;
FURTHER RESOLVED, that to the extent that subsequent revisions to the NOFA 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 2026 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 $1,850,000) 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 Reentry Assistance Activities to assist previously incarcerated individuals in obtaining rental housing through landlord incentives, payment of security deposits and other reentry activities related to housing.
In the first round of contracts for the Reentry Assistance Program (May 2024 - August 2025), four organizations provided a total of 6 previously incarcerated individuals with housing; this was not unexpected as the program was a pilot and both subrecipients and the Department were navigating a new program. Prior to the release of the second round of contracts earlier this year, program changes were made. Now, with almost half of the second round of contracts completed (only 5 months), four new organizations have thus far already provided 15 previously incarcerated individuals with housing which exceeds that of the prior (first) year. In an effort to improve performance, staff and subrecipients again met to discuss the practical issues that arise and made adjustments to this NOFA which include: 1) extending the timeframe for which previously incarcerated individuals are eligible after exiting prison from 24 months to 36 months, 2) increasing the number of allowable months for rental assistance from three months to four months, and 3) allowing Subrecipients to pay up to four months in rental arrears assistance to prevent potential formal eviction for applicable clients. Staff will continue to analyze performance and propose necessary modifications that improve the outcomes of the Reentry program funds.
For 2026, $400,000 has been reserved for up to four awardees. The funds are released competitively. The four highest scoring applicants will be offered an award. In the event that the Department does not have four sufficient eligible applications to fund this activity, the Department may, at the discretion of the Executive Director, increase the award amounts to the eligible applicants or reprogram the funds from this activity into another eligible discretionary activity specified in the 2026-2027 CSBG State Plan previously approved by the Board. Furthermore, the FFY 2026 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 2026 CSBG funding is received or if funding is delayed.
The Department’s Contract Term for Program Year 2026 CSBG-D reentry activities is anticipated to be May 1, 2026, through April 30, 2027.
The proposed NOFA and application scoring questions (Attachment B) are attached for review and approval as part of this item. The other attachments referenced in the NOFA, Attachments A and C through I, are submission forms of required information or certifications, and are not included within this Board Action Request.