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Administrative Plan 7/1/2025 Page 12-10 <br />Insufficient Funding [24 CFR 982.454] <br />The PHA may terminate HAP contracts if the PHA determines, in accordance with HUD <br />requirements, that funding under the consolidated ACC is insufficient to support continued <br />assistance for families in the program. <br />SAHA Policy <br />SAHA will determine whether there is sufficient funding to pay for currently assisted <br />families according to the policies in Part VIII of Chapter 16. If SAHA determines there is <br />a shortage of funding, prior to terminating any HAP contracts, SAHA will determine if <br />any other actions can be taken to reduce program costs. Those include but are not limited <br />to the following: <br />o Deny portability to higher payment standard areas <br />o Lower payment standards <br />o Request landlords to reduce or delay rent increase requests <br />If after implementing all reasonable cost cutting measures there is not enough funding <br />available to provide continued assistance for current participants, SAHA will terminate <br />HAP contracts as a last resort. <br />Prior to terminating any HAP contracts, SAHA will inform the local HUD field office. <br />SAHA will terminate the minimum number needed in order to reduce HAP costs to a <br />level within SAHA’s annual budget authority. <br />If SAHA must terminate HAP contracts due to insufficient funding, SAHA will do so in <br />accordance with the following criteria and instructions: <br /> <br />The following program-type priority order will first be applied: <br />1. Housing Choice Voucher (HCV), including Non-Elderly Disabled <br />2. Special Purpose Vouchers (FYI and VASH) Tenant-Based <br />3. Project-Based Vouchers including Special Purpose Vouchers <br /> <br />For each program type the following order will then be followed: <br />1. SAHA will stop selection from the waiting list (or referral list), discontinue the <br />issuance of initial vouchers, and put previously issued initial vouchers on hold <br />until funding is available. <br /> <br />2. Families who have been assisted in the program the longest will be the first to be <br />terminated, excluding elderly or disabled families, and families with minor children or <br />disabled dependent. <br /> <br />3. SAHA will terminate participants based on highest income (lowest housing assistance <br />needed), excluding elderly and disabled families and families with minor children or <br />disabled dependent. <br /> <br />EXHIBIT 1