4-1 SUBMISSION ANNUAL ADMIN PLAN_EXHIBIT 3

Home Browse Search

owner in writing whether the assignment may take place. The new owner must provide a written certification to SAHA that includes: A copy of the escrow statement or other document showing the transfer of title and recorded deed; -9, Request for Taxpayer Identification Number and Certification, or the social security number of the new owner; The effective date of the HAP contract assignment; A written agreement to comply with the terms of the HAP contract; and Confirmation that the new owner is not a prohibited relative. If the new owner does not agree to an assignment of the HAP contract, or fails to provide the documents, SAHA will terminate the HAP contract with the old owner. If the new owner wants to offer the family a new lease, and the family elects to stay with continued assistance, SAHA will process the leasing in accordance with the policies in chapter 9. 13-II.G. FORECLOSURE \[HUD-52641 and Notice PIH 2010-49\] Families receiving HCV assistance are entitled to certain protections set for the under the Protecting Tenants at Foreclosure Act (PTFA). Specifically, the HAP contract now contains language stating that in the case of any foreclosure, the immediate successor in interest in the property pursuant to the foreclosure will assume such interest subject to the lease between the prior owner and the tenant, and to the HAP contract between the prior owner and the PHA for the occupied unit. This provision of the HAP contract does not affect any state or local law that provides longer time periods or other additional protections for tenants. If the PHA learns that a property is in foreclosure, it must take the following actions: Make all reasonable efforts to determine the status of the foreclosure and ownership of the property. (Further guidance on how to obtain this information can be found in Notice PIH 21010-49.) Continue to make payments to the original owner until ownership legally transfers in accordance with the HAP contract. Attempt to obtain a written acknowledgement of the assignment of the HAP contract from the successor in interest. The written agreement should include a request for the owner information, such as a tax identification number, and payment instructions from the new owner. Even if the new owner does not acknowledge the assignment of the HAP contract in writing, the assignment is still effective by operation of law. Inform the tenant that they must continue to pay rent in accordance with the lease, and if the successor in interest refuses to accept payment or cannot be identified, the tenant should pay rent into escrow. Failure to pay rent may constitute an independent ground for eviction. Page 13-14 04/01/14