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If the family is absent from the unit for more than 18o consecutive calendar days, the family's <br />assistance will be terminated. Notice of termination will be sent in accordance with Section <br />12-II.E. <br />Insufficient Funding [24 CFR 982.454] <br />SARA may terminate HAP contracts if SARA determines, in accordance with HUD <br />requirements, that funding under the consolidated ACC is insufficient to support continued <br />assistance for families in the program. <br />SARA will determine whether there is sufficient funding to pay for currently assisted families <br />according to the policies in Part VIII of Chapter 16. If SARA determines there is a shortage of <br />funding, prior to terminating any HAP contracts, SARA will determine if any other actions can <br />be taken to reduce program costs such as decreasing payment standards and or requesting owners <br />to voluntarily reduce rents. If after implementing all reasonable cost cutting measures there is not <br />enough funding available to provide continued assistance for current participants, SARA will <br />terminate HAP contracts as a last resort. <br />Prior to terminating any HAP contracts, SARA will inform the local HUD field office. SARA <br />will terminate the minimum number needed in order to reduce HAP costs to a level within <br />SAHA's annual budget authority. <br />If SARA must terminate HAP contracts due to insufficient funding, SARA will do so in <br />accordance with the following criteria and instructions: <br />SARA will terminate HAP contracts after performing a lottery to place participants in order, <br />excluding elderly, disabled, and project based families. These families will be placed at the top <br />of the waiting list and as funding becomes available they will be reinstated to the program if all <br />eligibility criteria is still met. <br />PART II: APPROACH TO TERMINATION OF ASSISTANCE <br />12-II.A. OVERVIEW <br />SARA is required by regulation to terminate a family's assistance if certain program rules are <br />violated. For other types of offenses, the regulations give SARA the discretion to either <br />terminate the family's assistance or to take another action. This part discusses the various actions <br />SARA may choose to take when it has discretion, and outlines the criteria SARA will use to <br />make its decision about whether or not to terminate assistance. It also specifies the requirements <br />for the notice that must be provided before terminating assistance. <br />12-II.B. METHOD OF TERMINATION [24 CFR 982.552(a)(3)] <br />The way in which SARA terminates assistance depends upon individual circumstances. HUD <br />permits SARA to terminate assistance by: <br />Terminating housing assistance payments under a current HAP contract, <br />Refusing to approve a request for tenancy or to enter into a new HAP contract, or <br />Refusing to process a request for or to provide assistance under portability procedures. <br />~~02~12 Page 12-6 <br />