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Changes effective 12/2/24 and earlier: If the PHA does choose to reduce the payment standard <br />for families currently under HAP contract, the initial reduction to the payment standard may not <br />be applied any earlier than the effective date of the family’s second regular reexamination <br />following the effective date of the decrease in the payment standard amount. <br />Changes effective 12/3/24 and later: If the PHA does choose to reduce the payment standard <br />for families currently under HAP contract, the initial reduction to the payment standard may not <br />be applied any earlier than two years following the effective date of the decrease in the payment <br />standard and only with proper written notice to the family in accordance with 24 CFR <br />982.505(c)(3)(iii). <br />At that point, the PHA may either reduce the payment standard to the current amount in effect on <br />the PHA’s payment standard schedule or may reduce the payment standard to another amount <br />that is higher than the normally applicable amount on the schedule. The PHA may also establish <br />different policies for designated areas within their jurisdiction (e.g., different zip code areas). <br />In any case, the PHA must provide the family with at least 12 months’ notice that the payment <br />standard is being reduced before the effective date of the change. In the written notice, the PHA <br />must state the new payment standard amount, explain that the family’s new payment standard <br />amount will be the greater of the amount listed in the current written notice or the new amount (if <br />any) on the PHA’s payment standard schedule at the end of the 12-month period, and make clear <br />where the family will find the PHA’s payment standard schedule. The PHA’s policy on <br />decreases in the payment standard during the term of the HAP contract apply to all families <br />under HAP contract at the time of the effective date of the decrease in the payment standard <br />within the designated area. <br />SAHA Policy <br />If SAHA changes its payment standard schedule resulting in a lower payment standard <br />amount, during the term of a HAP contract, SAHA will apply the reduced payment <br />standard at the family’s second regular reexamination following the reduction in the <br />payment standard amount. <br />Increases [24 CFR 982.505(c)(4) and Notice PIH 2024-34] <br />For new HAP contracts, the PHA applies the payment standard in effect at the time of HAP <br />contract execution. <br />Changes effective 12/2/24 and earlier: If the payment standard is increased during the term of <br />the HAP contract, the increased payment standard will be used to calculate the monthly housing <br />assistance payment for the family beginning on the effective date of the family’s first regular <br />reexamination on or after the effective date of the increase in the payment standard. <br />Families requiring or requesting interim reexaminations will not have their HAP payments <br />calculated using the higher payment standard until their next annual reexamination [HCV GB, <br />p. 7-8]. <br />EXHIBIT 1