Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 6 - COMMUNITY AFFAIRS PROGRAMS › Subchapter D - WEATHERIZATION ASSISTANCE PROGRAM › Section 6.405 - Deobligation and Reobligation of Awarded Funds

Current through Reg. 49, No. 28; July 12, 2024
(a) A Subrecipient that does not expend more
				  than 20% of its Program Year formula allocation (excluding any additional funds
				  that may be distributed by the Department and any funds voluntarily transferred
				  to LIHEAP CEAP) by the end of the first quarter of the Contract Term following
				  the Program Year for two consecutive years will have funding recaptured. A
				  Subrecipient's Contract will be amended to reflect the average percentage of
				  funds that expended over the last two years. LIHEAP-WAP funding recapture will
				  be consistent with Tex. Gov't Code, Chapter 2105.
(b) The cumulative balance of the funds made
				  available in subsection (a) of this section will be allocated proportionally by
				  formula to Subrecipients that expended 90% of the prior year's Contract,
				  excluding adjustments made in subsection (a) of this section, by the end of the
				  original Contract Term.
(c) At any
				  time that a Subrecipient believes they may be at risk of meeting one of the
				  criteria noted in subsection (n) of this section relating to criteria for
				  Deobligation of funds, notification must be provided to the
				  Department.
(d) A written
				  "Notification of Possible Deobligation" will be sent to the Executive Director
				  and the Board of Directors or other governing body of the Subrecipient by the
				  Department as soon as the Department identifies that a criterion listed in
				  subsection (n) of this section is at risk of not being met. Written notice will
				  be sent electronically and/or by mail. The notice will include an explanation
				  of the criteria met. A Notification will not be sent, and the steps in this
				  section not triggered, if an Amendment increasing funds has been provided to
				  the Subrecipient in the prior 90 calendar days.
(e) Within 15 calendar days of the date of
				  the "Notification of Possible Deobligation" referenced in subsection (d) of
				  this section, a Mitigation Action Plan must be submitted to the Department by
				  the Subrecipient in the format prescribed by the Department.
(f) A Mitigation Action Plan is not limited
				  to but must include:
(1) Explanation of why
				  the identified criteria under this section occurred setting out all fully
				  relevant facts.
(2) Explanation of
				  how the criteria will be immediately, permanently, and adequately mitigated
				  such that funds are expended during the Contract Term. For example, if
				  production or expenditures appear insufficient to complete the Contract timely,
				  the explanation would need to address how production or expenditures will be
				  increased in the short- and long-term to restore projected full Expenditure and
				  timely execution of the contract.
(3) If applicable because of failure to
				  produce Unit Production or Expenditure targets under the existing Production
				  Schedule, a detailed narrative of how the Production Schedule will be adjusted,
				  going forward, to assure achievement of sufficient, achievable Unit Production
				  and Expenditures to ensure timely and compliant full utilization of all
				  funds.
(4) An explanation of how
				  the other criteria under this section will be mitigated. For example, if Unit
				  Production criteria for a time period were not met, then the explanation will
				  need to include how the other criteria will not be triggered.
(5) If relating to a Unit Production or
				  Expenditure criteria, a description of activities currently being undertaken
				  including an accurate description of the number of units in progress, broken
				  down by number of units in each of these categories: units that have been
				  qualified, audited, assessed, contracted, inspected, and invoiced and as
				  reflected in an updated Production Schedule.
(6) Provide any request for a reduction in
				  Contracted Funds, reasons for the request, desired Contracted Funds amount, and
				  revised Production Schedule reflecting the reduced Contracted Funds.