3 - PUBLIC HEARING ANNUAL ACTION PLAN

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Administrative Plan 4/1/2016 Page 17-18 For existing housing, the HAP contract will be executed within 30 business days of SAHA determining that all units pass HQS. For rehabilitated or newly constructed housing, the HAP contract will be executed within 30 days of SAHA determining that the units have been completed in accordance with the Agreement to Enter into a HAP Contract, all units meet HQS, and the owner has submitted all required evidence of completion. Term of HAP Contract [24 CFR 983.205] SAHA may enter into a HAP contract with an owner for an initial term of no less than one year and no more than 15 years for each contract unit. The length of the term of the HAP contract for any contract unit may not be less than one year, nor more than 15 years. In the case of SAHA- owned units, the term of the HAP contract must be agreed upon by SAHA and the independent entity approved by HUD [24 CFR 983.59(b)(2)]. SAHA Policy The term of all PBV HAP contracts will be negotiated with the owner on a case-by-case basis. At the time of the initial HAP contract term or any time before expiration of the HAP contract, SAHA may extend the term of the contract for an additional term of up to 15 years if SAHA determines an extension is appropriate to continue providing affordable housing for low-income families. A HAP contract extension may not exceed 15 years. A PHA may provide for multiple extensions; however, in no circumstances may such extensions exceed 15 years, cumulatively. Extensions after the initial extension are allowed at the end of any extension term, provided that not more than 24 months prior to the expiration of the previous extension contract SAHA agrees to extend the term, and that such extension is appropriate to continue providing affordable housing for low-income families or to expand housing opportunities. Extensions after the initial extension term shall not begin prior to the expiration date of the previous extension term. Subsequent extensions are subject to the same limitations. All extensions must be on the form and subject to the conditions prescribed by HUD at the time of the extension. In the case of SAHA-owned units, any extension of the term of the HAP contract must be agreed upon by SAHA and the independent entity approved by HUD [24 CFR 983.59(b)(2)]. SAHA Policy When determining whether or not to extend an expiring PBV contract, SAHA will consider several factors including, but not limited to: o The cost of extending the contract and the amount of available budget authority; o The condition of the contract units; o The owner’s record of compliance with obligations under the HAP contract and lease(s); o Whether the location of the units continues to support the goals of de- concentrating poverty and expanding housing opportunities; and o Whether the funding could be used more appropriately for tenant-based assistance. 3-406