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<br /> <br />Page 8 of 9 <br /> <br />Pre-HAP contract inspections of the completed contract units shall be completed by the host <br />PHA in adherence to 24 CFR 983.103, the executed AHAP, when applicable, and the MOA (2017 <br />Agreement). The host PHA must inform the issuing PHA within seven (7) calendar days whether <br />the work has been completed in accordance with regulation, the AHAP and/or MOA. In the <br />event the host PHA is unable to meet the established deadline, the host PHA will allow the <br />issuing PHA to inspect the completed contract units in order to limit delays in development. <br />If the host PHA determines that work deficiencies exist, the host PHA shall notify the developer <br />of the affordable housing project within seven (7) calendar days of the extent of the <br />deficiencies and the requirements and procedures for correction of the contract units. <br />Upon receipt of an inspection request for a turnover inspection or a Biennial inspection for <br />contract units from an issuing PHA, the host PHA will complete the inspection and all related <br />documentation, per 24 CFR 983.103 and FR Notice 6/25/14, within seven (7) calendar days of <br />the date of the issuing PHA’s request. <br />5. Initial Rent <br /> <br />Estimated initial rent to owner shall be established within a period consistent with the MOA <br />(2017 agreement) by the host PHA. The initial contract rents for each unit shall not exceed the <br />amount authorized per 24 CFR 983.301. The standards of the host PHA’s Payment Standards, <br />Utility Allowances, Rent Reasonableness Standards, and HQS will apply. <br />The Parties agree that the project developer shall maintain separate and distinct AHAP and HAP <br />agreements for each participating PHA. <br />6. Tenant Selection <br /> <br />The Parties agree that the awarded number of project-based vouchers from the <br />awarding/issuing PHA is directly connected to a number of units within the project. To that <br />end, the awarded project-based vouchers must remain available to the issuing PHA for use <br />upon tenant turnover. <br />Tenant selection determined by issuing PHA criteria. <br />7. Post Move in Activities <br /> <br />MOA (2017 agreement) rules regarding Payment Standards, Utility Allowances, Rent <br />Reasonableness Standards, and Housing Quality Standards (HQS) shall remain unchanged when <br />applied to the use of Project Based Vouchers for Housing Choice Voucher recipients and/or for <br />Special Purpose program voucher recipients in the host PHA’s jurisdiction. <br />EXHIBIT 2