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Late HAP Payments [24 CFR 982.451(a)(5)] SARA is responsible for making HAP payments promptly when due to the owner, in accordance with the terms of the HAP contract. After the first two calendar months of the HAP contract term, the HAP contract provides for penalties if SARA fails to make the HAP payment on time. Penalties for late HAP payments can only be imposed if 1) the penalties are in accordance with generally accepted local rental market practices and law governing penalties for late payment by tenants; 2) it is the owner's normal business practice to charge late payment penalties for both assisted and unassisted families; and 3) the owner charges the assisted family for late payment of the family's share of the rent. SARA will pay a $25.00 or .5%, whichever is greater, late fee to the owner for housing assistance payments that are not mailed to or deposited into their bank account by the third day of the month, if requested by the owner. SARA is not required to pay a late payment penalty if HUD determines that the payment is late for reasons beyond SAHA's control. In addition, late payment penalties are not required if SARA intentionally delays or denies payment as a remedy to an owner breach of the HAP contract [HCV Guidebook p. l l -7] . Termination of HAP Payments [24 CFR 982.311(b)] SARA must continue making housing assistance payments to the owner in accordance with the HAP contract as long as the tenant continues to occupy the unit and the HAP contract is not violated. HAP payments terminate when the HAP contract terminates or when the tenancy is terminated in accordance with the terms of the lease. If the owner has initiated eviction proceedings against the family and the family continues to reside in the unit, SARA must continue to make housing assistance payments to the owner until the owner has obtained a court judgment or other process allowing the owner to evict the tenant. The owner must inform SARA when the owner has initiated eviction proceedings against the family and the family continues to reside in the unit. The owner must inform SARA when the owner has obtained a court judgment or other process allowing the owner to evict the tenant, and provide SARA with a copy of such j udgment or determination. After the owner has obtained a court judgment or other process allowing the owner to evict the tenant, SARA will continue to make HAP payments to the owner until the family actually moves from the unit or until the family is physically evicted from the unit, whichever is earlier. The owner must inform SARA of the date when the family actually moves from the unit or the family is physically evicted from the unit. 7/02/12 Page 13 -11