4 - UPDATE_TO_HCV_ADMIN_PLAN_202012-01

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If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, SAHA will terminate assistance in accordance with the policies in Chapter 12 and pursue other modes of collection. Repayment Agreement [24 CFR 792.1031 The term repayment agreement refers to a formal written document signed by a tenant or owner and provided to SAHA in which a tenant or owner acknowledges a debt in a specific amount and agrees to repay the amount due at specific time periods. General Repayment Agreement Guidelines for Families Down Payment Requirement SAHA Policy Before executing a repayment agreement with a family, SAHA will generally require a down payment of 10 percent of the total amount owed unless the amount exceeds $3,500. If the amount exceeds $3,500, the family must pay the full amount that exceeds $3,500 prior to making any monthly payments on their Repayment Agreement. If the family can provide evidence satisfactory to SAHA that a down payment of 10 percent would impose an undue hardship, SAHA may, in its sole discretion, require a lesser percentage or waive the requirement. Payment Thresholds Notice PIH 2O10-19 recommends that the total amount that a family must pay each month —the family's monthly share of rent plus the monthly debt repayment amount —should not exceed 40 percent of the family's monthly adjusted income. However, a family may already be paying 40 per cent or more of its monthly adjusted income in rent. Moreover, Notice PIH 2O10-19 acknowledges that PHAs have the discretion to establish "thresholds and policies" for repayment agreements with families [24 CFR 982.552(c)(1)(vii)]. SAHA Policy SAHA has established the following thresholds for repayment of debts: The maximum amount for which SAHA will enter into a repayment agreement with a family is $3,500.00. Debts larger must be paid down prior to making payments on the repayment agreement. • The maximum length of time SAHA will enter into a repayment agreement with a family is 36 months. The minimum monthly payment amount for any repayment agreement is $10.00. If a family can provide evidence satisfactory to SAHA that the threshold applicable to the family's debt would impose an undue hardship, SAHA may, in its sole discretion, determine that a lower monthly payment amount is reasonable. In making its determination, SAHA will consider all relevant information, including the following: • The amount owed by the family 4-53