3 - PUBLIC HEARING ANNUAL ACTION PLAN

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Administrative Plan 4/1/2016 Page 17-19 Termination by PHA [24 CFR 983.205(c)] The HAP contract must provide that the term of SAHA’s contractual commitment is subject to the availability of sufficient appropriated funding as determined by HUD or by SAHA in accordance with HUD instructions. For these purposes, sufficient funding means the availability of appropriations, and of funding under the ACC from such appropriations, to make full payment of housing assistance payments payable to the owner for any contract year in accordance with the terms of the HAP contract. If it is determined that there may not be sufficient funding to continue housing assistance payments for all contract units and for the full term of the HAP contract, SAHA may terminate the HAP contract by notice to the owner. The termination must be implemented in accordance with HUD instructions. Termination by Owner [24 CFR 983.205(d)] If in accordance with program requirements the amount of rent to an owner for any contract unit is reduced below the amount of the rent to owner at the beginning of the HAP contract term, the owner may terminate the HAP contract by giving notice to SAHA. In this case, families living in the contract units must be offered tenant-based assistance. Statutory Notice Requirements: Contract Termination or Expiration [24 CFR 983.206] Not less than one year before the HAP contract terminates, or if the owner refuses to renew the HAP contract, the owner must notify SAHA and assisted tenants of the termination. The notice must be provided in the form prescribed by HUD. If the owner does not give timely notice, the owner must permit the tenants in assisted units to remain in their units for the required notice period with no increase in the tenant portion of their rent, and with no eviction as a result of the owner's inability to collect an increased tenant portion of rent. An owner may renew the terminating contract for a period of time sufficient to give tenants one-year advance notice under such terms as HUD may require. Remedies for HQS Violations [24 CFR 983.208(b)] SAHA may not make any HAP payment to the owner for a contract unit during any period in which the unit does not comply with HQS. If SAHA determines that a contract does not comply with HQS, SAHA may exercise any of its remedies under the HAP contract, for any or all of the contract units. Available remedies include termination of housing assistance payments, abatement or reduction of housing assistance payments, reduction of contract units, and termination of the HAP contract. SAHA Policy SAHA will abate and terminate PBV HAP contracts for non-compliance with HQS in accordance with the policies used in the tenant-based voucher program. These policies are contained in Section 8-II.G., Enforcing Owner Compliance. 17-V.C. AMENDMENTS TO THE HAP CONTRACT Substitution of Contract Units [24 CFR 983.207(a)] 3-407