4-1 SUBMISSION ANNUAL ADMIN PLAN_EXHIBIT 3

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If the PHA determines that a breach of the HAP contract has occurred, it may exercise any of its rights and remedies under the HAP contract. rights and remedies against the owner under the HAP contract include recovery of any HAP overpayment, suspension of housing assistance payments, abatement or reduction of the housing assistance payment, termination of the payment or termination the HAP contract. The PHA may also obtain additional relief by judicial order or action. The PHA must notify the owner of its determination and provide in writing the reasons for the determination. The notice may require the owner to take corrective action by an established deadline. The PHA must provide the owner with written notice of any reduction in housing assistance payments or the termination of the HAP contract. SAHA Policy Before SAHA invokes a remedy against an owner, SAHA will evaluate all information and documents available to determine if the contract has been breached. If it is determined that the owner has breached the contract, SAHA will consider all of the relevant factors including the seriousness of the breach, the effect on the family, the violations. 13-II.E. HAP CONTRACT TERM AND TERMINATIONS The term of the HAP contract runs concurrently with the term of the dwelling lease \[24 CFR 982.451(a)(2)\], beginning on the first day of the initial term of the lease and terminating on the last day of the term of the lease, including any lease term extensions. The HAP contract and the housing assistance payments made under the HAP contract terminate if \[HCV Guidebook pp.11-4 and 11-5, pg. 15-3\]: The owner or the family terminates the lease; The lease expires; The PHA terminates the HAP contract; The PHA terminates assistance for the family; The family moves from the assisted unit. In this situation, the owner is entitled to keep the housing assistance payment for the month when the family moves out of the unit. 180 calendar days have elapsed since the PHA made the last housing assistance payment to the owner; The family is absent from the unit for longer than the maximum period permitted by the PHA; The Annual Contributions Contract (ACC) between the PHA and HUD expires The PHA elects to terminate the HAP contract. SAHA Policy SAHA may elect to terminate the HAP contract in each of the following situations: Page 13-12 04/01/14