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AYBR Program Administration

Lesson 7: Records, privacy and conflicts of interest

Module 3, Protecting the program · 14 practice questions

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Most AYBR problems are not caused by a bad decision. They come from not being able to prove a good decision after the fact. A monitor, an auditor or an angry applicant will eventually ask the same question: show me. This lesson is about being able to show it, safely, and about keeping the program free of conflicts of interest so that what you show can be trusted.

Two kinds of files

The Program Manual (May 2025), page 8, sets up one Program File for the whole program and one Activity File for each applicant. The manual describes a Program File that could contain four sections: the NOFA and the Agreement, with any amendments; Accounting, which means receipts, bank statements, the draw summary and the wire memo; Procurement and Eligibility Policies; and Program Marketing. An Activity File follows the Activity File Checklist. As Lesson 5 said, the manual calls for a separate Activity File for each approved and each disapproved applicant.

The manual (page 7) also expects your files to contain the information that shows the program benefits low-income households, and data on race and ethnicity for households that applied or benefited. Build that into your intake forms so it is captured once, not reconstructed later.

GCHS procedure. Keep GCHS's IRS exemption reinstatement letter in the Program File. The IRS exemption must stay effective throughout the RSP Agreement term (10 TAC 26.23(b)(1)), so put a recurring check on the calendar for the whole term.

Where GCHS keeps what

GCHS procedure. GCHS uses two locations on purpose. Program forms and policies live in the shared AYBR Working-Files folder, where the whole team can open the current version. Applicant records, meaning Social Security numbers, income documents and citizenship documents, live only in the GCHS Restricted SharePoint library. Nothing sensitive goes in Working-Files, in email attachments that stay in an inbox, or on a desktop. If you scan a document at a copier or photograph it on a phone, move it to the Restricted library and delete the stray copy.

Why this matters

The household that hands you a Social Security card or a tax return is trusting you with the details that make identity theft possible. A separate, access-controlled library is how GCHS keeps that trust. It also makes monitoring easier, because everything for an applicant is in one known place.

The sources reviewed for this course do not set specific rules for handling Social Security numbers or for breach notification. Do not invent a rule, and do not assume there is none. Check the RSP Agreement, follow GCHS's own data security practices, and ask the Department if a situation comes up.

What the rule says about privacy and storage

10 TAC 1.409(a) requires records to be kept in a way that protects the privacy of each client. Computer files must be secured through a remote, online or managed backup service. Physical files belong in a secure space, and archived files should be kept offsite where feasible. The manual (page 7) adds that original documents may not be moved to a consultant's place of business, so keep originals under GCHS's control even when a consultant helps.

The same page says program documents must be available for public inspection by the Department, the Comptroller and the State, and it cites Government Code Chapter 552. In practice, assume that anything in a program file can be requested and read by the Department. That is a good reason to keep notes factual and professional.

How long to keep records

10 TAC 1.409(b) says records of client eligibility must be kept for five years starting from the date the household activity is completed, unless federal rules say otherwise. Under 1.409(c), other records are kept as the contract says. The manual (page 7) only points to 1.409 and gives no number, and the RSP Agreement text was not available for this course. Check the Agreement for any longer period.

RecordHow longSource
Eligibility records for a household that was servedFive years from completion of the household activity10 TAC 1.409(b)
Other program recordsAs the contract says10 TAC 1.409(c)
Reasonable accommodation requests and responsesUnder the 1.409 retention rules10 TAC 20.8(h)
Records of denied applicantsUnsettled: see below10 TAC 20.8(f)

Denied applicants are an open question. 10 TAC 20.8(f) says denial records are kept for the period described by the agreement or other sources. But no activity is ever completed for a denied household, so the five-year clock has no starting point. Until the Department answers, the conservative practice is to keep a denied applicant's Activity File for five years from the date of the denial. For example, if GCHS completes a household's activity on May 14, 2027, keep the eligibility records at least through May 14, 2032, and longer if the Agreement says so. A household denied on August 3, 2026 would stay on file through at least August 3, 2031 under the conservative practice.

How GCHS organizes AYBR records Two kinds of files. The Program File holds the NOFA and Agreement, accounting records, procurement and eligibility policies and program marketing records, with forms and policies kept in the shared AYBR Working-Files folder. An Activity File is kept for every applicant, approved or denied, and holds intake, income, disability, asset, notice and project papers, with applicant Social Security numbers, income and citizenship documents kept only in the GCHS Restricted SharePoint library. Eligibility records are kept five years from completion of the household activity and all program documents are open to Department inspection. Program File (one for the whole program)Activity File (one for every applicant)NOFA and Agreement, with amendmentsIntake application and income papersAccounting: receipts, bank statements, drawsDisability form and asset papersProcurement and eligibility policiesNotices sent and denial basisProgram marketing and outreach recordsInspection, bids and closeout papersForms and policies: shared AYBR Working-Files folderApplicant SSNs, income, citizenship papers:GCHS Restricted SharePoint library onlyEligibility records: five years from completion of the activity (10 TAC 1.409(b))Open to inspection by the Department on request
The Program File covers the whole program and each Activity File covers one applicant, with sensitive applicant papers stored only in the Restricted library.

Records you will be asked to produce

Several rules create records that are easy to forget until a monitor asks for them. Keep this short list in view.

RecordWhat to keepSource
Outreach documentationDates, times and locations of public outreach, with copies of brochures, ads and transcripts, in the Program FileProgram Manual, page 8
Language Access PlanThe current plan, ready to give to the Department on request and at monitoring10 TAC 20.8(i)(4)
Accommodation requestsEach request and GCHS's response10 TAC 20.8(h)
Denial recordsThe record of each denied applicant with the basis for denial10 TAC 20.8(f)
Walk-away lettersThe letter in the Activity File and the walk-away policy in the Program FileProgram Manual, page 7
IRS exemption letterThe reinstatement letter, with the diary of renewal checks10 TAC 26.23(b)(1)

Consider an ordinary afternoon. A made-up applicant, Mr. Reyes, drops off his latest tax return at the GCHS office. The staff member scans it straight into the Restricted library, puts the paper in the secure space, and checks the item off the Activity File checklist. Later a second staff member reviews his income. She opens the return from the library and does not ask anyone to email it. Nothing sensitive ever sat in Working-Files or in an inbox, and the file shows who received what and when. That habit, repeated for every applicant, is what a good record system looks like.

Conflicts of interest

The manual (pages 5 and 6) requires a written conflict of interest policy before you implement anything. It says that an employee, agent, consultant, officer, trustee, director, board member or official who has Housing Trust Fund responsibilities or inside information may not obtain a personal or financial interest in a Housing Trust Fund activity or contract during their tenure or for one year after. It points to Local Government Code Chapters 171 and 176.

The source of this requirement matters. No section of Chapter 20 or Chapter 26 sets a general conflict rule. Chapter 26 touches the subject only by barring rentals developed, owned or managed by the Administrator or an Affiliate (10 TAC 26.26(c)(1)). The requirement is manual procedure backed by the statutes the manual cites, so write it into your policy and follow it as binding.

Look at the one-year tail in an example. A made-up former GCHS employee leaves in March, forms a small construction company, and in November, eight months after leaving, the company bids on an AYBR job. Under the manual, that person's tenure plus one year has not passed, so the company should not be taking the job. Keep a list of departure dates with the date the one-year tail ends.

Conflicts at intake and during the job

At intake, the manual (page 11) tells you to make sure there is no conflict between an applicant household member and any Administrator staff or consultants who process the applications. If a staff member's relative applies, that staff member should step aside from the file. Let a different person handle it and note that in the Activity File. GCHS's policy should say how a staff member discloses a relationship and who decides.

The construction side has its own rule. An inspector must be excluded from consideration as a potential contractor on that activity, and so must any specialist who helps with the inspection (manual, pages 19 and 20). GCHS procedure. GCHS provides inspections, estimating and construction management, not hands-on repair labor. GCHS staff who inspect or estimate a job never bid on it, and contractors are independent firms. GCHS also charges applicants no fees.

Separation of duties

Conflicts are not only about relatives. They are also about one person holding every key. Under 10 TAC 1.402(b), no individual may have the ability to perform more than one of these functions that could release funds without appropriate controls: requisition authorization, encumbrance into software, check creation or automated payment, authorized signature, and distribution of paper checks. Under 1.402(c), an organization with fewer than five paid employees must show sufficient controls when it applies for funds and keep them in place through the term of the Contract. The RSP application also looks for fidelity bond coverage and controls, so GCHS must be able to show both.

In a small organization, this means deliberately dividing the steps. The person who approves a contractor's payment request should not also create the payment, and the person who signs should not be the person who mails the check. Write the division down by role, and put it in the Program File.

Why monitoring cares

The manual (page 29) lists "Record keeping system is established" among the items a monitoring review checks, together with marketing, fair housing, procurement and conflict of interest. Under 10 TAC 20.14(e), the Department can ask for all books and records it determines are reasonably relevant, on request. A file that is organized, complete and in the right place makes that visit routine. A file that is scattered turns every question into a search.

What to remember

  • One Program File, plus one Activity File for every applicant, approved or denied.
  • Applicant SSNs, income and citizenship papers live only in the GCHS Restricted SharePoint library.
  • Keep eligibility records at least five years from completion of the household activity, and check the RSP Agreement for any longer period.
  • No personal or financial interest in a program activity during tenure plus one year. Adopt the policy first.
  • The inspector and any helping specialist never bid. No one person controls every step of a payment.

Practice questions

1. Which set of items belongs in the Program File rather than an applicant's Activity File?

  1. Each applicant's pay stubs, bank statements, intake application and the denial letters sent to households.
  2. Each household's disability form, work write-up, final inspection report and the signed payment request.
  3. The NOFA and Agreement, accounting, policies, and program marketing records.
  4. Each contractor's lien waivers, the bills-paid affidavit and the household's warranty papers after closeout.

2. A staff member asks which AYBR rule sets the deadline for notifying households after a data breach involving Social Security numbers. What is the best answer?

  1. The sources reviewed set no specific rule, so check the RSP Agreement and GCHS's own data security practices and ask the Department.
  2. The 14-calendar-day cure period in 10 TAC 26.24(f) applies to data breaches as it does to deficient requests.
  3. The five-year retention period in 10 TAC 1.409(b) also doubles as the deadline for notifying households of a breach.
  4. There is no obligation of any kind, because AYBR program files are open to the public as public records.

3. A household completes its AYBR project on May 14, 2027. What is the minimum retention period for its eligibility records under 10 TAC 1.409(b)?

  1. Three years from the date of completion, so through May 14, 2030, unless a monitor asks for more.
  2. Until the next monitoring review ends, whenever that happens to be, and no longer than that review.
  3. Ten years from the date the Household Assistance Contract was signed, regardless of when work ended.
  4. Five years from completion, so through May 14, 2032, unless federal rules say otherwise.

4. GCHS denied an applicant on August 3, 2026. How long should it keep the denied applicant's Activity File?

  1. Exactly one year, because 10 TAC 20.8(f) sets a one-year period for denial records of every kind.
  2. Conservatively five years from the denial, through August 3, 2031, because the rule is unclear for denied applicants.
  3. Zero days, because denial records are destroyed once the denial letter has been mailed to the household.
  4. Only until the household reapplies, which closes out the old file and starts a new one.

5. Where must GCHS keep an applicant's Social Security number, income documents and citizenship documents?

  1. In the shared AYBR Working-Files folder, so any team member can open them.
  2. On the contractor's computer so that bids can be priced correctly.
  3. In each staff member's email, so they are quick to find.
  4. Only in the GCHS Restricted SharePoint library.

6. A consultant helping GCHS asks to take the original applicant files to its own office to work on them. What does the manual say?

  1. Original documents may not be moved to a consultant's place of business.
  2. This is fine as long as the consultant signs a conflict of interest statement first.
  3. This is fine for denied applicants only, because their files are closed.
  4. This is required so the consultant can complete the work write-up on time.

7. Under 10 TAC 1.409(a), how must computer files be secured?

  1. With the contractor's own backup, because contractors do most of the work.
  2. On a single local drive in the office, kept off the network at all times.
  3. Through a remote, online or managed backup service.
  4. Only on paper, printed after every update and filed in order.

8. Who is entitled to inspect AYBR program documents under the manual?

  1. Only the household named in the file, who may review it at the GCHS office on request.
  2. The Department, the Comptroller and the State, under Government Code Chapter 552.
  3. Any contractor who bids on a job, so that the contractor can see the competing bids.
  4. Nobody outside GCHS, because applicant files are private and protected from every outside review.

9. A made-up employee left GCHS in March and formed a construction company, which bids on an AYBR job in November, eight months later. What does the manual's conflict of interest rule say?

  1. The bid is not allowed, because the one-year period after leaving has not passed.
  2. The bid is allowed, because the person is no longer an employee of GCHS in any capacity.
  3. The bid is allowed if the person discloses the connection in writing to the GCHS board first.
  4. The bid is allowed if the company submits the lowest line-item price among all bidders.

10. Which of these people can be covered by GCHS's conflict of interest policy?

  1. Only the inspector, because the rule is about construction contracts and nothing else in the program.
  2. Only contractors, because they are the ones who are paid with grant funds for the work they perform.
  3. Only paid employees, because volunteers and board members never have responsibilities or any inside information.
  4. An employee, consultant, officer or board member with Housing Trust Fund responsibilities or inside information.

11. Where does the AYBR requirement for a conflict of interest policy come from?

  1. A single section of 10 TAC Chapter 26 that sets the one-year period and lists who is covered by it.
  2. The Program Manual (pages 5 and 6), citing Local Government Code Chapters 171 and 176; Chapters 20 and 26 set no general conflict rule.
  3. A single section of 10 TAC Chapter 20 that applies only to Administrators receiving federal funds.
  4. The 2026 NOFA alone, which supplies a template policy that every Administrator must copy.

12. A GCHS inspector wrote the work write-up for a home. May that inspector, or a specialist who helped with the inspection, be considered as the contractor on that job?

  1. Yes, because the exclusion applies only to the staff member who signs the final inspection report for the home.
  2. Yes, if the inspector discloses the interest in writing and the household agrees to it before the work begins.
  3. No, because an inspector, and any specialist who helps, must be excluded as a contractor on that activity.
  4. Yes, if the inspector's bid is the lowest received for the job on a line-item basis from all bidders.

13. Which assignment breaks the separation of duties in 10 TAC 1.402(b)?

  1. One person authorizes the requisition and also creates the payment.
  2. One person authorizes the requisition and another signs the check.
  3. One person creates the payment and another distributes the paper checks.
  4. One person encumbers the funds and another is the authorized signature.

14. Which kind of data does the manual say the files should support, in addition to proof of low-income benefit?

  1. Each applicant's religious affiliation, recorded at intake for the monitoring file.
  2. Race and ethnicity data for households that applied or benefited.
  3. Each applicant's credit score, pulled from a credit bureau at the time of intake.
  4. The applicant's employer's tax identification number, copied from the pay stubs.

Glossary

Program File
The one file for the whole program: NOFA and Agreement, accounting, policies and program marketing.
Activity File
The separate file for each applicant, kept whether the applicant was approved or denied.
Restricted library
The GCHS SharePoint library with limited access where applicant SSNs, income and citizenship papers are kept.
Working-Files folder
The shared AYBR folder where program forms and policies are kept for all staff.
Retention period
How long records must be kept; five years from completion of the household activity for eligibility records (10 TAC 1.409(b)).
Conflict of interest
A personal or financial interest in a program activity or contract by someone with Housing Trust Fund responsibilities.
One-year tail
The period of one year after leaving a role during which the conflict restriction still applies.
Separation of duties
Dividing key payment functions so no one person controls more than one of them (10 TAC 1.402(b)).
Affiliate
A related party of the Administrator; rentals it develops, owns or manages are ineligible.