Stimulus funds brought $327 million additional funds to the Texas Weatherization Assistance Program (WAP). Under the program, Texas plans to weatherize nearly 34,000 homes. The Texas Department of Housing and Community Affairs (TDHCA) is on its way toward achieving its August weatherization production goals of having 30% completed – 11,000 units.
TDHCA had difficulty getting the funding out and units weatherized in the first few months of funding. However, once TDHCA knew the rules from the federal government – published in December – TDHCA was able to move forward quickly, argues Michael Gerber, Executive Director of TDHCA, as he spoke before the House Appropriations subcommittee on Business and Economic Development. The complexities with administering WAP primarily arose from questions surrounding the Davis Bacon Act which has now been resolved.
As of last Friday, there have been 4,000 units weatherized – 6.2% of total funds have been expended.
By March 2012, all expenditures for the weatherization program will have to be made.
Gerber also noted a de-obligation policy was enacted which would enable TDHCA, if needed, to take funds from a poorly producing sub-recipient and turn the funds over to a one that is producing more effectively. He predicted there may be some de-obligation of funding occurring over the summer.
Brooke Boston, Deputy Executive for Community Based Programs, described benchmarks for de-obligation that may not trigger full de-obligation but would trigger a dialogue:
- April 15th – One unit must be completed (all sub-recipients have met that goal.)
- June 30th – have spent 15% of funds and produces 20% of total units
- August 31st – have spent 25% of funds and produces 35% of total units
- October 31st – have spent 40% of funds and produces 40% of total units
- December 31st – have spent 50% of funds and produced 50% of total units
They theory is that after the sub-recipient reaches the 50% goal in December, they are on a good track. However, on a monthly basis each sub-recipient reports their production goals for the following month to TDHCA. More than a 5% variance could trigger a de-obligation dialogue.
The next TDHCA board meeting will take place in Austin on May 12th.
