4-1 SUBMISSION ANNUAL ADMIN PLAN_EXHIBIT 3

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any reasons for disapproval. SAHA will instruct the owner and family of the steps that are necessary to approve the tenancy. Where the tenancy is not approvable because the unit is not approvable, the family must continue to search for eligible housing within the timeframe of the issued voucher. If the tenancy is not approvable due to rent affordability (including rent burden and rent reasonableness), SAHA will attempt to negotiate the rent with the owner. If a new, approvable rent is negotiated, the tenancy will be approved. If the owner is not willing to negotiate an approvable rent, the family must continue to search for eligible housing within the timeframe of the issued voucher. 9-I.G. HAP CONTRACT EXECUTION \[24 CFR 982.305\] The HAP contract is a written agreement between the PHA and the owner of the dwelling unit occupied by a housing choice voucher assisted family. Under the HAP contract, the PHA agrees to make housing assistance payments to the owner on behalf of a specific family occupying a specific unit and obliges the owner to comply with all program requirements. The HAP contract format is prescribed by HUD. If the PHA has given approval for the family to enter into a lease for the assisted tenancy, the owner and the PHA execute the HAP contract. The term of the HAP contract must be the same as the term of the lease \[24 CFR 982.451(a)(2)\]. The PHA is permitted to execute a HAP contract even if the funding currently available does not extend for the full term of the HAP contract. The PHA must make a best effort to ensure that the HAP contract is executed before the beginning of the lease term. Regardless, the HAP contract must be executed no later than 60 calendar days from the beginning of the lease term. The PHA may not pay any housing assistance payment to the owner until the HAP contract has been executed. If the HAP contract is executed during the period of 60 calendar days from the beginning of the lease term, the PHA will pay housing assistance payments after execution of the HAP contract (in accordance with the terms of the HAP contract), to cover the portion of the lease term before execution of the HAP contract (a maximum of 60 days). Any HAP contract executed after the 60-day period is void, and the PHA may not pay any housing assistance payment to the owner. SAHA Policy The owner and the assisted family will execute the dwelling lease and the owner must provide a copy to SAHA. SAHA will ensure that both the owner and the assisted family receive copies of the dwelling lease. The owner and SAHA will execute the HAP contract. SAHA will not execute the HAP contract until the owner has submitted IRS form W-9. SAHA will ensure that the owner receives a copy of the executed HAP contract. Payment will not be made until SAHA has received all required paperwork and HAP contract is fully executed. See Chapter 13 for a discussion of the HAP contract and contract provisions. 04/01/14 Page 9-9