To be eligible to receive funding under the TxCDBG Program, an applicant must meet the following criteria:
  (1) Grant administration. Demonstrate the ability to manage and administer the proposed project. The Department may consider the applicant's past performance and completion of previously awarded TxCDBG contracts, outstanding compliance and/or audit findings, and history of actively working with the Department to resolve any outstanding audit, monitoring, and/or reporting issues identified by the Department.
  (2) Financial capacity. Demonstrate the financial management capacity to sustain operation and maintenance of any improvements made in conjunction with the proposed project. Applications for TxCDBG funding must demonstrate financial capacity through compliance with the audit requirements in the Texas Local Government Code, as described in the RFA.
  (3) Proposed benefits. Demonstrate the ability to meet all proposed benefits identified in the application, including job creation if applicable.
  (4) Levy and collect tax. Levy and collect a local property tax or local sales tax option.
  (5) Open TxCDBG grants. If applicable, an applicant that has an open or pending TxCDBG grant must meet progress threshold requirements specified by the Department in the RFA and/or current TxCDBG action plan, including thresholds to obligate at least 50% of grant funding and to complete closeout reporting, as applicable.
  (6) Single Audits. Communities are required to comply with all federal single audit requirements, as described in the TxCDBG Project Implementation Manual, regardless of whether the required compliance is based on received funds other than TxCDBG awards. If applicable, an applicant must submit any past due audits to the Federal Audit Clearinghouse within the timeframes prescribed by the Department.
    (A) One delinquent audit. If the applicant meets threshold requirements for funding and has only one federal single audit delinquency, the Department will withhold the issuance of a grant award or grant agreement until it receives a satisfactory audit from the applicant. If the Department does not receive the applicant's delinquent audit within ninety (90) days after the application deadline, the application will be considered withdrawn by the applicant.
    (B) Multiple delinquent audits. An applicant with more than one delinquent federal single audit is ineligible to participate in the TxCDBG Program.
    (C) Delinquency of five years or more. An applicant that has been delinquent in meeting federal single audit requirements or that has failed to submit a required single audit for five years or more is ineligible to participate in the TxCDBG Program for a period of five years. After the five-year ineligibility period, the applicant may re-establish eligibility by following the program eligibility process described in Policy Issuance 12-01 or the TxCDBG Project Implementation Manual.
  (7) Other application requirements. Other threshold requirements relevant to a particular grant program may be included in the RFA.

Source Note: The provisions of this §30.6 adopted to be effective August 28, 2022, 47 TexReg 5099