TDHCA announces a rule action relating to 10 TAC Chapter 1, Subchapter D, Uniform Guidance for Recipients of Federal and State Funds, that was approved by the TDHCA Governing Board on June 13, 2024. This rule will be released for public comment and returned to the Board for final adoption. The rule, including its preamble, is expected to be published in the Texas Register edition dated June 28, 2024, and that published version will constitute the official version for purposes of public comment and can be found at the following link: https://www.sos.texas.gov/texreg/index.shtml.

Subchapter D has been identified by staff as needing revisions. Most of the sections of this rule were last adopted or amended in 2021. Changes are summarized:

Section 1.401. Effective Date and Definitions:  Removes the definition for the Executive Award Review and Advisory Committee (EARAC); updates citations in the definition for Subrecipient; and revises the definition for Equipment to bring it into alignment with new federal changes to 2 CFR Part 200.

Section 1.402. Cost Principles and Administrative Requirements: clarifies that the policies a Subrecipient puts in place to serve as controls on separation of duties must be not only adopted, but continued for the term of the contract.  Clarified that certain CSBG subrecipients do not have to follow TXMGS.

Section 1.403. Single Audit Requirements: Revises the amount of funds handled by the Subrecipient that would trigger the requirement for a Single Audit from $750,000 to $1 million to bring this policy into  consistency with new federal changes to 2 CFR Part 200; and updates references to the previous EARAC process.

Section 1.404. Purchase and Procurement Standards: Clarifies the request process for a Subrecipient to procure a vehicle.

Section 1.405. Bonding Requirements: Adds the HOME-ARP program to the programs to which this section is applicable.

Section 1.406. Fidelity Bond Requirements: Updates the amount of fidelity bond coverage from $10,000 to 5% of the contract amount.

Section 1.407. Inventory Report: Adjusts the amount of supplies that must be reported in the inventory from $5,000 to $10,000 to comply with new federal changes to 2 CFR Part 200.

Section 1.408. Travel: clarifies that the policies a Subrecipient puts in place for travel but not only be adopted, but continued for the term of the contract.

Section 1.409. Records Retention: Adds the HOME-ARP program to the programs to which this section is applicable.

Section 1.410. Determination of Alien Status for Program Beneficiaries: Clarifies that this section does apply to vendors procured by the Department for services, if those services involve qualification of eligibility.  Added LIHWAP to programs that must follow this subsection.

Section 1.411. Administration of Block Grants under Chapter 2105 of the Tex. Gov't Code: clarifies the process for denials, and specifies 'calendar' days.

The proposed rule action can be found on the TDHCA Public Comment Center at https://www.tdhca.texas.gov/tdhca-public-comment-center.

Written comments may be submitted to the Texas Department of Housing and Community Affairs, Brooke Boston, via email to brooke.boston@tdhca.texas.gov.

ALL COMMENTS MUST BE RECEIVED BY 5 p.m., Central Time, on July 28, 2024.