Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 2 - ENFORCEMENT › Subchapter B - ENFORCEMENT FOR NONCOMPLIANCE WITH PROGRAM REQUIREMENTS OF CHAPTERS 6 AND 7 › Section 2.202 - Sanctions and Contract Closeout

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Subrecipients that enter into a Contract with the Department to administer
				  programs are required to follow all Legal Requirements governing these
				  programs.
(b) If a Subrecipient
				  fails to comply with program and Contract requirements, rules, or regulations
				  and in the event monitoring or other reliable sources reveal material
				  Deficiencies or Findings in performance, or if the Subrecipient fails to
				  correct any Deficiency or Finding within the time allowed by federal or state
				  law, the Department, in order to protect state or federal funds, may take
				  reasonable and appropriate actions, including but not limited to one or more of
				  the items described in paragraphs (1) - (6) of this subsection. In so doing,
				  the Department will not take any action that exceeds what it is permitted to do
				  under applicable state and federal law. The Department, as appropriate, may
				  provide written notice of its actions and the rights of a Subrecipient to
				  appeal.
(1) Place it on Cost Reimbursement.
(2) With the exception of
				  non-Discretionary CSBG, withhold all payments from the Subrecipient (both
				  reimbursements and advances) until acceptable confirmation of compliance with
				  the rules and regulations are received by the Department;
(3) Reduce the allocation of funds to
				  Subrecipients as described in §
											RSA
				  2.203 of this subchapter (relating to
				  Termination and Reduction of Funding for CSBG Eligible Entities) and as limited
				  for LIHEAP funds as outlined in Tex. Gov't Code, Chapter 2105;
(4) With the exception of non-Discretionary
				  CSBG, suspend performance of the Contract or reduce funds until proof of
				  compliance with the rules and regulations are received by the Department or a
				  decision is made by the Department to initiate proceedings for Contract
				  termination;
(5) If permitted by
				  applicable state and federal statute and regulations, elect not to provide
				  future grant funds to the Subrecipient, either prospectively in general or
				  until appropriate actions are taken to ensure compliance; or
(6) Terminate the Contract. Adhering to the
				  requirements governing each specific program administered by the Department, as
				  needed, the Department may determine to proceed with the termination of a
				  Contract, in whole or in part, at any time the Department establishes there is
				  good cause for termination. Such cause may include, but is not limited to:
				  fraud; waste; abuse; fiscal mismanagement; not providing services to clients,
				  or failing to expend Contract funds to serve clients, as contemplated under the
				  Contract; or other serious Findings in the Subrecipient's performance. For CSBG
				  contract termination procedures, refer to §
											RSA
				  2.203 of this subchapter.