ADMINISTRATIVE PLAN - San Antonio Housing Authority

enter into HAP, all units meet HQS, and the owner has submitted all required evidence ofcompletion.Term of HAP Contract [24 CFR 983.205]The PHA may enter into a HAP contract with an owner for an initial term of no less than oneyear and no more than thirty years, including an initial term of up to fifteen years and anextension of up to fifteen years. The extension may be included in the initial HAP contract,subject to the PHA's determination that the owner is in compliance with the HAP contract andother legal requirements, in situations where the PHA determines that the extension isappropriate to achieve long-term affordability of the housing or to expand housing opportunities.The term of all PBV HAP contracts will be negotiated with the owner on a case-by-case basis.The PHA also may extend the term of the contract for additional terms of up to fifteen years,subject to the PHA's determination that the owner is in compliance with the HAP contract andother legal requirements, in situations where the PHA determines that the extension isappropriate to achieve long-term affordability of the housing or to expand housing opportunities.All extensions must be on the form and subject to the conditions prescribed by HUD at the timeof the extension.When determining whether or not to extend an expiring PBV contract, the PHA may considerseveral factors including, but not limited to:The cost of extending the contract and the amount of available budget authority;The condition of the contract units;The owner’s record of compliance with obligations under the HAP contract and lease(s) ;Whether the location of the units continues to support the goals of deconcentratingpoverty and expanding housing opportunities; andWhether the funding could be used more appropriately for tenant-based assistance.Termination by PHA [24 CFR 983.205(c)]The HAP contract must provide that the term of the PHA’s contractual commitment is subject tothe availability of sufficient appropriated funding as determined by HUD or by the PHA inaccordance with HUD instructions. For these purposes, sufficient funding means the availabilityof appropriations, and of funding under the ACC from such appropriations, to make full paymentof housing assistance payments payable to the owner for any contract year in accordance withthe terms of the HAP contract.If it is determined that there may not be sufficient funding to continue housing assistancepayments for all contract units and for the full term of the HAP contract,the PHA may terminatethe HAP contract by notice to the owner. The termination must be implemented in accordancewith 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 unitis reduced below the amount of the rent to owner at the beginning of the HAP contract term, theowner may terminate the HAP contract by giving notice to the PHA. In this case, families livingin the contract units must be offered tenant-based assistance.© Copyright 2008 Nan McKay & Associates, Inc. 18-21Revised/Approved 04/08/10 (Eff: 07/01/10)Unlimited copies may be made for internal use.