Texas Register, Volume 46, Number 38, Pages 5983-6306, September 17, 2021 Page: 6,019
5985-6306 p. ; 28 cm.View a full description of this periodical.
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tion in other Department programs is not required to be disclosed, and
will not be taken into consideration by EARAC.
(j) Previous Participation reviews will not be conducted for
Contract extensions. However, if the Applicant is delinquent in sub-
mission of its Single Audit, the Contract will not be extended except as
required by law, unless the submission is made, and the Single Audit
has been reviewed and found acceptable by the Department.
(k) For CSBG funds required to be distributed to Eligible En-
tities by formula, the recommendation of the Compliance Division will
only take into consideration subsection (i) of this section.
(1) Previous Participation reviews will not be conducted for
Contract Amendments that staff is authorized to approve, although fed-
eral and state requirements will still be affirmed, including but not lim-
ited to Single Audit, debarment and suspension, litigation disclosures,
and 1.21 of this chapter (relating to Action by the Department if Out-
standing Balances Exist).
'1.303. Executive Award and Review Advisory Committee (EARAC).
(a) Authority and Purpose. The Executive Award and Review
Advisory Committee (EARAC) is established by Tex. Gov't Code
2306.1112 to make recommendations to the Board regarding fund-
ing and allocation decisions related to Low Income Housing Tax Cred-
its and federal housing funds provided to the state under the Cranston
Gonzalez National Affordable Housing Act. Per Tex. Gov't Code
2306.1112(c), EARAC is not subject to Tex. Gov't Code, Chapter
2110. The Department also utilizes EARAC as the body to consider
funding and allocation recommendations to the Board related to other
programs, and to consider an awardee under the requirements of 2 CFR
200.331(b) and (c), UGMS, and TxGMS, which requires that the De-
partment evaluate an applicant's risk of noncompliance and consider
imposing conditions if appropriate prior to awarding funds for certain
applicable programs and as described in 1.403 of Subchapter D of this
chapter (relating to Single Audit Requirements). It is also the purpose
of this rule to provide for the operation of the EARAC, to provide for
considerations and processes of EARAC, and to address actions of the
Board relating to EARAC recommendations. Capitalized terms used
in this section herein have the meaning assigned in the specific chap-
ters and rules of this title that govern the program associated with the
request, or assigned by federal or state laws.
(b) EARAC may meet in person or by email to make recom-
mendations on awards, discuss deficiencies needed to make recommen-
dations, discuss Disputes, and address inquiries by Applicants or re-
sponses to a negative recommendation.
(c) EARAC Recommendation Process.
(1) A positive recommendation by EARAC represents
a determination that, at the time of the recommendation and based
on available information, EARAC has not identified a rule or statu-
tory-based impediment that would prohibit the Board from making an
award.
(2) A positive recommendation by EARAC may have con-
ditions placed on it. Conditions placed on an award by EARAC will
be limited to those conditions noted in subsection (e) of this section, or
as suggested by the Applicant and agreed upon by the Department.
(3) The Applicant will be notified of proposed conditions.
If the Applicant does not concur with the applicability of one or more
of the conditions, it will be provided an opportunity to dispute the con-
ditions as described in subsection (g) of this section, regarding EARAC
Disputes.
(4) Category 3 applicants that will be recommended for de-
nial will be notified and informed of their right to dispute the negativeEARAC recommendation as described in subsection (g) of this section,
regarding EARAC Disputes.
(5) Applications for 4% credits that do not include other
resources from TDHCA and that are only being issued a Determination
Notice are not considered awards for purposes of this rule and do not
require approval by EARAC prior to issuance of such Notice, even if
being presented to the Board in relation to public comment or possible
requests for waivers.
(d) Conditions to an award may be placed on a single Devel-
opment, a Combined Portfolio, or a portion of a Combined Portfolio
if applicable (e.g., one region of a management company is having is-
sues, while other areas are not). The conditions listed in subsection
(e) of this section may be customized to provide specificity regarding
affected Developments, Persons or dates for meeting conditions. Cate-
gory 2 or Category 3 Applications may be awarded with the imposition
of one or more of the conditions listed in subsection (e) of this section.
(e) Possible Conditions.
(1) Applicant/Owner is required to ensure that each Person
subject to previous participation review for the Combined Portfolio will
correct all applicable issues of non-compliance identified by the previ-
ous participation review on or before a specified date and provide the
Department with evidence of such correction within 30 calendar days
of that date.
(2) Owner is required to have qualified personnel or a qual-
ified third party perform a one-time review of an agreed upon percent-
age of files and complete the recommended actions of the reviewer on
or before a specified deadline for an agreed upon list of Developments.
Evidence of reviews and corrections must be submitted to the Depart-
ment upon request.
(3) The Applicant or the management company contracted
by the Applicant is required to prepare or update its internal procedures
to improve compliance outcomes and to provide copies of such new or
updated procedures to the Department upon request or by a specified
date.
(4) Owner agrees to hire a third party to perform reviews
of an agreed upon percentage of their resident files on a quarterly basis,
and complete the recommended actions of the reviewer for an agreed
upon list of Developments. Evidence of reviews and corrections must
be submitted to the Department upon request.
(5) Owner is required to designate a person or persons to
receive Compliance correspondence and ensure that this person or per-
sons will provide timely responses to the Department for and on behalf
of the proposed Development and all other Development subject to TD-
HCA LURAs over which the Owner has the power to exercise Control.
(6) Owner agrees to replace the existing management com-
pany, consultant, or management personnel, with another of its choos-
ing.
(7) Owner agrees to establish an email distribution group in
CMTS (or other Department required system), to be kept in place until
no later than a given date, and include agreed upon employee positions
and/or designated Applicant members.
(8) Owner is required to revise or develop policies regard-
ing the way that it will handle situations where persons under its control
engage in falsification of documents. This policy must be submitted to
TDHCA on or before a specified date and revised as required by the
Department.
(9) Owner or Subrecipient is required to ensure that agreed
upon persons attend and/or review the trainings listed in subparagraphsPROPOSED RULES September 17, 2021 46 TexReg 6019
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Texas. Secretary of State. Texas Register, Volume 46, Number 38, Pages 5983-6306, September 17, 2021, periodical, September 17, 2021; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1385246/m1/37/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.