04 - HAADMIN PLAN 2 - Laserfiche WebLink

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Insufficient Funding [24 CFR 982.454] SAHA may terminate HAP contracts if SAHA determines, in accordance with HUD requirements, that funding under the consolidated ACC is insufficient to support continued assistance for families in the program. SAHA will determine whether there is sufficient funding to pay for currently assisted families according to the policies in Part VIII of Chapter 16. If SAHA determines there is a shortage of funding, prior to terminating any HAP contracts, SAHA will determine if any other actions can be taken to reduce program costs. If after implementing all reasonable cost cutting measures there is not enough funding available to provide continued assistance for current participants, SAHA will terminate HAP contracts as a last resort. Prior to terminating any HAP contracts, SAHA will inform the local HUD field office. SAHA will terminate the minimum number needed in order to reduce HAP costs to a level within SAHA's annual budget authority. If SAHA must terminate HAP contracts due to insufficient funding, SAHA will do so in accordance with the following criteria and instructions: SAHA will terminate HAP contracts on a last-in, first-out basis. These families will be placed at the top of the waiting list and as funding becomes available they will be reinstated to the program if all eligibility criteria is still met. PART II: APPROACH TO TERMINATION OF ASSISTANCE 12-ILA. OVERVIEW SAHA is required by regulation to terminate a family's assistance if certain program rules are violated. For other types of offenses, the regulations give SAHA the discretion to either terminate the family's assistance or to take another action. This part discusses the various actions SAHA may choose to take when it has discretion, and outlines the criteria SAHA will use to make its decision about whether or not to terminate assistance. It also specifies the requirements for the notice that must be provided before terminating assistance. 12-ILB. METHOD OF TERMINATION [24 CFR 982.552(a)(3)] The way in which SAHA terminates assistance depends upon individual circumstances. HUD permits SAHA to terminate assistance by: ~ Terminating housing assistance payments under a current HAP contract, ~ Refusing to approve a request for tenancy or to enter into a new HAP contract, or ~ Refusing to process a request for or to provide assistance under portability procedures. iii29iio Page 12-6