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Presentation, discussion, and possible action on an order proposing the repeal of 10 TAC Chapter 7, Subchapter D, Ending Homelessness Fund, and an order proposing new 10 TAC Chapter 7, Subchapter D, Ending Homelessness Fund, and directing their publication for public comment in the Texas Register
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RECOMMENDED ACTION
recommendation
WWHEREAS, pursuant to Tex. Gov’t Code §2306.053, the Texas Department of Housing and Community Affairs (the Department) is authorized to adopt rules governing the administration of the Department and its programs;
WHEREAS, the Ending Homelessness Fund (EH Fund) is authorized by Tex. Transp. Code §502.415, which requires the Department to adopt rules governing application for grants from the EH fund and issuance of those grants;
WHEREAS, the Department is proposing to repeal all current sections of 10 TAC Chapter 7, Subchapter D, Ending Homelessness Fund and proposing all new 10 TAC Chapter 7, Subchapter D, Ending Homelessness Fund, to maintain compliance with state requirements while increasing flexibility related to administration of the EH Fund; and
WHEREAS, upon Board approval, the proposed new rule will be submitted to the Texas Register to be published for public comment, which will be accepted from October 25, 2024, to November 29, 2024;
NOW, therefore, it is hereby
RESOLVED, that the proposed repeal of 10 TAC Chapter 7, Subchapter D, Ending Homelessness Fund, and new 10 TAC Chapter 7, Subchapter D, Ending Homelessness Fund are approved for publication in the Texas Register for public comment; and
FURTHER RESOLVED, that the Executive Director and his designees be and each them hereby are authorized, empowered, and directed, for and on behalf of the Department to cause the proposed repeal of 10 TAC Chapter 7, Subchapter D, Ending Homelessness Fund, and new 10 TAC Chapter 7, Subchapter D, Ending Homelessness Fund in the form presented to this meeting to be published in the Texas Register for public comment and, in connection therewith, make such non-substantive technical corrections as they may deem necessary to effectuate the foregoing.
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BACKGROUND
The Ending Homelessness Fund (EH Fund) rules at 10 TAC Chapter 7, Subchapter D, provide the administrative framework for the EH Fund.
The purpose of repealing the EH Fund rule and proposing a new rule is to provide greater flexibility in administration of the EH Fund, while ensuring that the statutory requirements of Tex. Transp. Code §502.415 are met.
Staff recommends these changes to the rule so that program policy and direction would come through submission of a biennial EH Fund Plan to the Board for review and approval. This plan, similar to the Texas Housing Trust Fund Plan, would outline the eligible activities under the EH Fund, as well as selection criteria for subrecipients of the EH Fund.
The EH Fund is a unique fund source to the Department. Authorized by Tex. Transp. Code §502.415, the EH Fund is a donation-based fund held in trust outside of the state treasury. Donations to the fund are solicited through a request when a person registers or renews their registration for a motor vehicle. The EH Fund was created by the 85th Texas Legislature, to be effective September 1, 2017. Annual contributions to the EH Fund have been evaluated and an average of $216,269.22 was contributed annually from SFY 2018-2023, with an existing balance available for use of $332,944.63.
Since the EH Fund is a small fund source, staff recommends a funding plan created biennially that can carefully target specific projects or uses that would make the highest and best use of these flexible funds. An EH Fund Plan would be presented to the Board for approval, and published on the Department’s website. Funds would then be made available in accordance with the approved plan.
Specific changes to the EH Fund rule are included in the attachments. A black line version with all changes will be available on the Department’s website during the public comment period. The rule change implements the EH Fund Plan, which will include the eligible activities and award process.