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RULE §25.7 Colonia Self-Help Center Contract Operation and Implementation

Published: 2015

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(a) The Department shall contract with a UGLG for the
operation of a Colonia Self-Help Center. The UGLG shall subcontract
with a local nonprofit organization, local community action agency,
or local housing authority that has demonstrated the ability to carry
out all or part of the functions of a Colonia Self-Help Center.
(b) Upon award of Colonia Self-Help Center funds by
the Board, the Department shall deliver a Contract based on the scope
of work to be performed within thirty (30) days of the award date,
unless extenuating circumstances do not allow for delivery. Any Activity
funded under the Colonia Self-Help Center Program will be governed
by a written Contract that identifies the terms and conditions related
to the awarded funds. The Contract will not be effective until executed
by all parties to the Contract.
(c) Administrators are required to complete their environmental
reviews in accordance with 24 CFR Part 58 and receive the Authority
to Use Grant Funds from the Department before:
  (1) Any commitment of Community Development Block Grant
(CDBG) funds (i.e., execution of a legally binding Agreement and expenditure
of CDBG funds) for Activities other than those that are specifically
exempt from environmental review.
  (2) Any commitment of non-CDBG funds associated with
the scope of work in the Contract that would have an adverse environmental
impact (i.e., demolition, excavating, etc.) or limit the choice of
alternatives (i.e., acquisition of real property, Rehabilitation of
buildings or structures, etc.).
(d) Request for Payments. The Administrator shall submit
a properly completed request for reimbursement, as specified by the
Department, at a minimum on a quarterly basis; however, the Department
reserves the right to request more frequent reimbursement requests
as it deems appropriate. The Department shall determine the reasonableness
of each amount requested and shall not make disbursement of any such
payment request until the Department has reviewed and approved such
request. Payments under the Contract are contingent upon the Administrator's
full and satisfactory performance of its obligations under the Contract.

  (1) $2,500 is the minimum amount for a Draw to be processed,
unless it is the final Draw request. If an Administrator fails to
submit a draw within twelve (12) consecutive months the Contract will
be subject to termination for failure to meet the Contract obligations.
  (2) Draw requests will be reviewed to comply with all
applicable laws, rules and regulations. The Administrator is responsible
for maintaining a complete record of all costs incurred in carrying
out the Activities of the Contract.
  (3) Draw requests for all housing Activities will only
be reimbursed upon satisfactory completion of types of Activities
(i.e., all plumbing completed, entire roof is completed, etc.), consistent
with the construction contract.
  (4) The Administrator will be the principal contact
responsible for reporting to the Department and submitting Draw requests.

(e) Reporting. The Administrator shall submit to the
Department reports on the operation and performance of the Contract
on forms as prescribed by the Department. Quarterly Reports shall
be due no later than the tenth (10th) calendar day of the month after
the end of each calendar quarter. The Administrator shall maintain
and submit to the Department up-to-date accomplishments in quarterly
reports identifying quantity and cumulative data including the expended
funds, Activities completed and total number of Beneficiaries. If
an Administrator fails to submit Activity data within twenty-four
(24) consecutive months, the Contract will be subject to termination
for failure to meet the Contract obligations.
(f) The Department will only reimburse one (1) initial
inspection report per unit for Small Repair.
(g) Amendments. The Department's executive director
or its designee, may authorize, execute, and deliver amendments to
any Contract.
  (1) Contract Time Extensions beyond the four (4) year
Contract period will not be allowed for Colonia Self-Help Center Contracts.

  (2) Changes in beneficiaries. Reductions in contractual
deliverables and beneficiaries shall require a Contract amendment.
Increases in contractual deliverables and beneficiaries that do not
shift funds, or cumulatively shift less than ten (10) percent of total
Contract funds, shall be completed through a Contract modification.
  (3) The Department, at its discretion and in coordination
with an Administrator, may increase a Contract Budget amount and the
number of Activities and beneficiaries based on the availability of
Colonia Self-Help Center funds, the exemplary performance in the implementation
of an Administrator's current Contract, and the time available in
the four (4) year Contract period. Upon Board approval, the cap on
the maximum Contract amount may be exceeded if the terms of this paragraph
are met by the Administrator.
(h) Every New Construction, Reconstruction, or Rehabilitation
Activity exceeding $20,000 per unit that is provided by the Colonia
Self-Help Center Program shall have a recorded and enforceable lien
placed on the property secured by a deferred Forgivable Loan not shorter
than five (5) years or a repayable mortgage loan not to exceed thirty
(30) years. The Department will be a lien holder.
(i) The Administrator's initial and any revised housing
Activity guidelines shall be approved by commissioners' court and
the Department prior to implementation.
(j) Access to all Public Service Activities identified
in the Contract shall be provided at least two (2) Saturdays a month
during hours preferable to Colonia residents. In addition, access
shall be provided at least one day during the workweek after hours
for a period long enough to allow Colonia residents to utilize the
(k) The purchase of new tools, new computers and computer
equipment shall only occur within the first twenty-four (24) months
of the Contract period. Any purchases of these items after twenty-four
(24) months shall be approved by the Department prior to purchase.

Source Note: The provisions of this §25.7 adopted to be effective November 1, 2012, 37 TexReg 8500; amended to be effective August 3, 2014, 39 TexReg 5740