Laserfiche WebLink
Administrative Plan 7/1/2025 Page 13-16 <br />13-II.D. BREACH OF HAP CONTRACT [24 CFR 982.453] <br />Any of the following actions by the owner constitutes a breach of the HAP contract: <br /> If the owner violates any obligations under the HAP contract including failure to maintain the <br />unit in accordance with NSPIRE standards <br /> If the owner has violated any obligation under any other HAP contract under Section 8 <br /> If the owner has committed fraud, bribery or any other corrupt or criminal act in connection <br />with any federal housing program <br /> For projects with mortgages insured by HUD or loans made by HUD, if the owner has failed <br />to comply with the regulation for the applicable program; or if the owner has committed <br />fraud, bribery or any other corrupt or criminal act in connection with the mortgage or loan <br /> If the owner has engaged in drug-related criminal activity <br /> If the owner has committed any violent criminal activity <br />If the PHA determines that a breach of the HAP contract has occurred, it may exercise any of its <br />rights and remedies under the HAP contract. <br />The PHA rights and remedies against the owner under the HAP contract include recovery of any <br />HAP overpayment, suspension of housing assistance payments, abatement or reduction of the <br />housing assistance payment, termination of the payment or termination of the HAP contract. The <br />PHA may also obtain additional relief by judicial order or action. <br />The PHA must notify the owner of its determination and provide in writing the reasons for the <br />determination. The notice may require the owner to take corrective action by an established <br />deadline. The PHA must provide the owner with written notice of any reduction in housing <br />assistance payments or the termination of the HAP contract. <br />SAHA Policy <br />Before SAHA invokes a remedy against an owner, SAHA will evaluate all information <br />and documents available to determine if the contract has been breached. <br />If relevant, SAHA will conduct an audit of the owner’s records pertaining to the tenancy <br />or unit. <br />If it is determined that the owner has breached the contract, SAHA will consider all of the <br />relevant factors including the seriousness of the breach, the effect on the family, the <br />owner’s record of compliance and the number and seriousness of any prior HAP contract <br />violations. <br />EXHIBIT 1