4-1 SUBMISSION ANNUAL ADMIN PLAN_EXHIBIT 3

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Housing Quality Standards (HQS) \[24 CFR 982.305 and 24 CFR 982.401\] In order to be eligible, the dwelling unit must be in decent, safe and sanitary condition. This local standards approved by HUD. See Chapter 8 for a full discussion of the HQS standards, as well as the process for HQS inspection at initial lease-up. Unit Size In order to be eligible, the dwelling unit must be appropriate for the number of persons in the household. A family must be allowed to lease an otherwise acceptable dwelling unit with fewer bedrooms than the number of bedrooms stated on the voucher issued to the family, provided the unit meets the applicable HQS space requirements \[24 CFR 982.402(d)\]. The family must be allowed to lease an otherwise acceptable dwelling unit with more bedrooms than the number of bedrooms stated on the voucher issued to the family. See Chapter 5 for a full discussion of subsidy standards. Rent Reasonableness \[24 CFR 982.305 and 24 CFR 982.507\] In order to be eligible, the dwelling unit must have a reasonable rent. The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See Chapter 8 for a full discussion of rent reasonableness and the rent reasonableness determination process. Rent Burden \[24 CFR 982.508\] Where a family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the adjusted monthly income. The family share rent and utilities. The gross rent for the unit minus the total housing assistance (HAP) for the unit equals the family share. See Chapter 6 for a discussion of calculation of gross rent, the use of payment standards, and calculation of family income, family share of rent and HAP. 9-I.E. LEASE AND TENANCY ADDENDUM The family and the owner must execute and enter into a written dwelling lease for the assisted unit. This written lease is a contract between the tenant family and the owner; the PHA is not a party to this contract. The tenant must have legal capacity to enter a lease under State and local law. 'Legal capacity' means that the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner \[24 CFR 982.308(a)\] Lease Form and Tenancy Addendum \[24 CFR 982.308\] If the owner uses a standard lease form for rental to unassisted tenants in the locality or the premises, the lease must be in such standard form. If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease. The HAP contract prescribed by HUD contains the owner's certification that if the owner uses a standard lease form for rental to unassisted tenants, the lease is in such standard form. 04/01/14 Page 9-5