4-1 SUBMISSION ANNUAL ADMIN PLAN_EXHIBIT 3

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Available program funding is not sufficient to support continued assistance for families in the program \[24 CFR 982.454\]; The unit does not meet HQS size requirements due to change in family composition \[24 CFR 982.403\] see chapter 8; The unit does not meet HQS \[24 CFR 982.404\] see chapter 8; The family breaks up \[HUD Form 52641\] see chapter 3; The owner breaches the HAP contract \[24 CFR 982.453(b)\] see Section 13-II.D. If PHA terminates the HAP contract, the PHA must give the owner and the family written notice. The notice must specify the reasons for the termination and the effective date of the termination. Once a HAP contract is terminated, no further HAP payments may be made under that contract \[HCV Guidebook pg.15-4\]. SAHA Policy In all cases, the HAP contract terminates 30 days following SAHA written notice to the owner. The owner is not entitled to any housing assistance payment after this period, and must return to SAHA any housing assistance payment received after this period. If the family moves from the assisted unit into a new unit, even if the new unit is in the same building or complex as the assisted unit, the HAP contract for the assisted unit terminates. A new HAP contract would be required for the new unit \[Housing Choice Voucher Guidebook (HCV GB), p. 11-17\]. When the family moves from an assisted unit into a new unit, the term of the HAP contract for the new unit may begin in the same month in which the family moves out of its old unit. This is not considered a duplicative subsidy \[HCV GB, p. 8-22\]. 13-II.F. CHANGE IN OWNERSHIP / ASSIGNMENT OF THE HAP CONTRACT \[HUD-52641\] The HAP contract cannot be assigned to a new owner without the prior written consent of the PHA. An owner under a HAP contract must notify the PHA in writing prior to a change in the legal ownership of the unit. The owner must supply all information as requested by the PHA. Prior to approval of assignment to a new owner, the new owner must agree to be bound by and comply with the HAP contract. The agreement between the new owner and the former owner must be in writing and in a form that the PHA finds acceptable. The new owner must provide the PHA with a copy of the executed agreement. Assignment of the HAP contract will be approved only if the new owner is qualified to become an owner under the HCV program according to the policies in Section 13-I.D. of this chapter. SAHA Policy SAHA must receive a signed, written request from the existing owner stating the name and address of the new HAP payee and the effective date of the assignment in order to change the HAP payee under an outstanding HAP contract. Page 13-13 04/01/14