Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 2 - ENFORCEMENT › Subchapter D - DEBARMENT FROM PARTICIPATION IN PROGRAMS ADMINISTERED BY THE DEPARTMENT › Section 2.401 - General

Current through Reg. 49, No. 28; July 12, 2024
(a) The Department may debar a Responsible
				  Party, a Consultant and/or a Vendor who has exhibited past failure to comply
				  with any condition imposed by the Department in the administration of its
				  programs. A Responsible Party, Consultant or Vendor may be referred to the
				  Committee for Debarment for any of the following:
(1) Refusing to provide an acceptable plan to
				  implement and adhere to procedures to ensure compliant operation of the program
				  after being placed on Modified Cost Reimbursement;
(2) Refusing to repay disallowed
				  costs;
(3) Refusing to enter into a
				  plan to repay disallowed costs or egregious violations of an agreed repayment
				  plan;
(4) Meeting any of the
				  ineligibility criteria referenced in §
											11.202 of this title (relating to
				  Ineligible Applicants and Applications) or other ineligibility criteria
				  outlined in a Program Rule, with the exception of: ineligibility related to
				  conflicts of interest disclosed to the Department for review, and ineligibility
				  identified in a previous participation review in conjunction with an
				  application for funds or resources (unless otherwise eligible for Debarment
				  under this Subchapter D);
(5)
				  Providing fraudulent information, knowingly falsified documentation, or other
				  intentional or negligent material misrepresentation or omission with regard to
				  any documentation, certification or other representation made to the
				  Department;
(6) Failing to correct
				  Events of Noncompliance as required by an order that became effective after
				  April 1, 2021, and/or failing to pay an administrative penalty as required by
				  such order, within six months of a demand being issued by the Department. In
				  this circumstance, if the Debarment process is initiated but the Responsible
				  Party fully corrects the findings of noncompliance to the satisfaction of the
				  referring division and pays the administrative penalty as required by the order
				  before the Debarment is finalized by the Board, the Debarment recommendation
				  may be cancelled or withdrawn by Committee recommendation and Executive
				  Director concurrence. This type of referral would be initiated by the
				  Secretary;
(7) Controlling a
				  multifamily Development that was foreclosed after April 1, 2021, where the
				  foreclosure or deed in lieu of foreclosure terminates a subordinate TDHCA
				  LURA;
(8) Controlling a multifamily
				  Development and allowing a change in ownership after April 1, 2021, without
				  Department approval;
(9)
				  Transferring a Development, after April 1, 2021, without regard for a Right of
				  First Refusal requirement;
(10)
				  Being involuntary removed, or replaced due to a default by the General Partner
				  under the Limited Partnership Agreement, after April 1, 2021;
(11) Controlling a multifamily Development
				  and failing to correct Events of Noncompliance before the expiration of a Land
				  Use Restriction Agreement, after the effective date of this rule;
(12) Refusing to comply with conditions
				  approved by the Board that were recommended by the Executive Award Review
				  Advisory Committee after April 1, 2021;
(13) Having any Event of Noncompliance that
				  occurs after April 1, 2021, that causes the Department to be required to repay
				  federal funds to any federal agency including, but not limited to the U.S.
				  Department of Housing and Urban Development; and/or
(14) Submitting a written certification that
				  non-compliance has been corrected when it is determined that the Event of
				  Noncompliance was not corrected. For certain Events of Noncompliance, in lieu
				  of documentation, the Compliance Division accepts a written certification that
				  noncompliance has been corrected. If it is determined that the Event of
				  Noncompliance was not corrected, a Person who signed the certification may be
				  recommended for debarment;
(15)
				  Refusing to provide an amenity required by the LURA after April 1,
				  2021;
(16) Failing to reserve units
				  for Section 811 PRA participants after April 1, 2021;
(17) Failing to notify the Department of the
				  availability of 811 PRA units after April 1, 2021;
(18) Taking "choice limiting" actions prior
				  to receiving HUD environmental clearance (24 CFR §
												58.22);
(19) Substandard construction, as defined by
				  the Program, and repeated failure to conduct required inspections;
(20) Repeated failure to provide eligible
				  match. 24 CFR §
												92.220,
				  24 CFR §
												576.201, and as required by NOFA;
(21) Repeated failure to report program
				  income. 24 CFR §
												200.80,
				  24 CFR §
												570.500,
				  24 CFR §
												576.407(c),
				  24 CFR §
												92. 503, (as applicable), and 10 TAC §
											20.9, or as defined by Program
				  Rule;
(22) Participating in
				  activities leading to or giving the appearance of "Conflict of Interest". As
				  applicable, in 2 CFR Part 215 2 CFR Part 200 .
				  24 CFR §
												93.353, §
											92.356
											24 CFR, §
												570.489,
				  24 CFR §
												576.404,
				  10 TAC §
											20.9, or as defined by Program
				  Rule;
(23) Repeated material
				  financial system deficiencies. As applicable, 2 CFR Part 200, 24 CFR
				  §§, 92.205, 92.206, 92.350, 92.505, and 92.508, 2 CFR Part 215, 2 CFR
				  Part 225 (if applicable), 2 CFR Part 230 (, 10 TAC §
											20.9, Uniform Grant Management
				  Standards, and Texas Grant Management Standards (as applicable), and as defined
				  by Program Rule.
(24) Repeated
				  violations of Single Audit or other programmatic audit requirements;
(25) Failure to remain a CHDO for Department
				  committed HOME funds;
(26)
				  Commingling of funds, Misapplication of funds;
(27) Refusing to submit a required Audit
				  Certification Form, Single Audit, or other programmatic audit;
(28) Refusing to timely respond to
				  reports/provide required correspondence;
(29) Failure to timely expend funds;
				  and
(30) A Monitoring Event
				  determines that 50% or more of the client or household files reviewed do not
				  contain required documentation to support income eligibility or indicate that
				  the client or household is not income eligible.