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to enter into HAP, all units meet HQS, and the owner has submitted all required evidence of comp etion. Term of HAP Contract [FR Notice 11/24/08] SARA may enter into a HAP contract with an owner for an initial term of no less than one year and no more than 15 years. The term of all PBV HAP contracts will be negotiated with the owner on a case-by-case basis. At any time before expiration of the HAP contract, SAHA may extend the term of the contract for an additional term of up to 15 years if SARA determines an extension is appropriate to continue providing affordable housing for low-income families or to expand housing opportunities. Subsequent extensions are subj ect to the same limitations. All extensions must be on the form and subj ect to the conditions prescribed by HUD at the time of the extension. When determining whether or not to extend an expiring PBV contract, SARA will consider several factors including, but not limited to: The cost of extending the contract and the amount of available budget authority; The condition of the contract units; The owner's record of compliance with obligations under the HAP contract and lease(s); Whether the location of the units continues to support the goals of deconcentrating poverty and expanding housing opportunities; and Whether the funding could be used more appropriately for tenant-based assistance. Termination by SAHA [24 CFR 983.205(c)J The HAP contract must provide that the term of SAHA's contractual commitment is subject to the availability of sufficient appropriated funding as determined by HUD or by SARA in accordance with HUD instructions. For these purposes, sufficient funding means the availability of appropriations, and of funding under the ACC from such appropriations, to make full payment of housing assistance payments payable to the owner for any contract year in accordance with the terms of the HAP contract. If it is determined that there may not be sufficient funding to continue housing assistance payments for all contract units and for the full term of the HAP contract, SAHA may terminate the HAP contract by notice to the owner. The termination must be implemented in accordance with HUD instructions. Termination by Owner j24 CFR 983.205(4) , FR 1Votice 11/24/08] If in accordance with program requirements the amount of rent to an owner for any contract unit is reduced below the amount of the rent to owner at the beginning of the HAP contract term, the owner may terminate the HAP contract by giving notice to SARA. In this case, families living in the contract units must be offered tenant-based assistance. At its discretion SARA may specify in the HAP contract that the maximum rent on a unit will not be less than the initial rent. o~ro2~12 Page 17-15