3 - PUBLIC HEARING ANNUAL ACTION PLAN

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Administrative Plan 4/1/2016 Page 13-9 PART II. HAP CONTRACTS 13-II.A. OVERVIEW The HAP contract represents a written agreement between SAHA and the owner of the dwelling unit occupied by a HCV assisted family. The contract spells out the owner’s responsibilities under the program, as well as SAHA’s obligations. Under the HAP contract, SAHA agrees to make housing assistance payments to the owner on behalf of the family approved by SAHA to occupy the unit. The HAP contract is used for all HCV program tenancies except for assistance under the Section 8 homeownership program, and assistance to families that own a manufactured home and use their assistance to lease the space for the manufactured home. See chapter 15 for a discussion of any special housing types included in SAHA’s HCV program. When SAHA has determined that the unit meets program requirements and the tenancy is approvable, SAHA and owner must execute the HAP contract. See chapter 9 for a discussion of the leasing process, including provisions for execution of the HAP contract. 3-II.B. HAP CONTRACT CONTENTS The HAP contract format is required by HUD, specifically Housing Assistance Payment (HAP) Contract, Form HUD-52641. The HAP contract contains three parts. Part A of the contract includes basic contract information: the names of the tenant and all household members, the address of the contract unit, start and end dates of initial lease term, the amount of initial monthly rent to owner, the amount of initial housing assistance payment, the utilities and appliances to be supplied by owner and tenant, and the signatures of SAHA representative and owner [HCV Guidebook, pp. 11-10 and 11-11]. In general, the HAP contract cannot be modified. However, PHAs do have the discretion to add language to Part A of the HAP contract which prohibits the owner from collecting a security deposit in excess of private market practices or in excess of amounts charged to unassisted tenants. SAHA policy on the amount of security deposit an owner may collect is found in Chapter 9. PHAs also have the discretion to add language to Part A of the HAP contract that defines when the housing assistance payment by SAHA is deemed received by the owner (e.g., upon mailing by SAHA or actual receipt by the owner). SAHA Policy SAHA has not adopted a policy that defines when the housing assistance payment by SAHA is deemed received by the owner. Therefore, no modifications to the HAP contract will be necessary. Part B is the body of the contract. It describes in detail program requirements affecting the owner and owner roles and responsibilities under the HCV program. Most of the requirements 3-305