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Administrative Plan 7/1/2025 Page 16-47 <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 level <br />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 and <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 and <br />disabled dependent. <br /> <br />4. SAHA will terminate remaining participants based on highest income (lowest housing <br />assistance needed), including families with minor children and disabled dependent, <br />disabled, and then elderly families (in that order). <br /> <br />When SAHA resumes issuing vouchers, SAHA will issue vouchers first to the special <br />purpose voucher families on its waiting list until it has reached the required number of <br />special purpose vouchers, when applicable. <br />Due to contractual obligations, Project-Based Vouchers will be the last to be terminated <br />due to insufficient funds. <br /> <br /> <br />EXHIBIT 1