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Any amount owed to SARA by an HCV family must be repaid by the family. If the family is unable to repay the debt within 30 days, SARA will offer to enter into a repayment agreement in accordance with the policies below. If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, SARA will terminate assistance in accordance with the policies in Chapter 12 and pursue other modes of collection. Repayment Agreement [24 CFR 792.103] The term repayment agreement refers to a formal written document signed by a participant or owner and provided to SARA 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 Before executing a repayment agreement with a family, SARA will generally require a down payment of 10 percent of the total amount owed. If the family can provide evidence satisfactory to SARA that a down payment of 10 percent would impose an undue hardship, SARA may, in its sole discretion, require a lesser percentage or waive the requirement. Payment Thresholds Notice PIH 2010-19 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 2010-19 acknowledges that PHAs have the discretion to establish "thresholds and policies" for repayment agreements with families [24 CFR 982.552(c)(1)(vii)]. SARA has established the following thresholds for repayment of debts: The maximum amount for which SARA will enter into a repayment agreement with a family is $3,500.00/debts larger must be paid down. The maximum length of time SARA 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 SARA that the threshold applicable to the family's debt would impose an undue hardship, SARA may, in its sole discretion, determine that a lower monthly payment amount is reasonable. In making its determination, SARA will consider all relevant information, including the following: The amount owed by the family The reason for the debt, including whether the debt was the result of family action/inaction or circumstances beyond the family's control The family's current and potential income and expenses The family's current family share, as calculated under 24 CFR 982.515 o~ro2~12 Page 16-18