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Administrative Plan 7/1/2025 Page 17-11 <br /> <br />Units that No Longer Qualify as Excepted Units or Units under the Increased Program <br />Cap [24 CFR 983.262(b)] <br />In order to qualify as either excepted units or units under the increased program cap, units must <br />be occupied by a family that meets the exception criteria applicable to the unit. Once the family <br />vacates the unit, the PHA must select a new family from the waiting list via an admission <br />preference, and the unit must be made available to and occupied by a family that meets the <br />applicable exception. <br />The PHA must specify in its administrative plan which of the options below the PHA will take if <br />a unit is no longer qualified due to circumstances beyond the control of the family (e.g., death of <br />an elderly family member or long-term permanent hospitalization or nursing care). <br />The unit may continue to count as an excepted unit or unit on the increased program cap as long <br />as the family resides in the unit. However, the requirements on wrong-sized units apply. <br />If the PHA chooses not to exercise this discretion, the unit is no longer considered excepted or a <br />unit under the increased program cap (as applicable) and the family is not required to move from <br />the unit. The PHA must specify which of the following actions it will take if the unit is no longer <br />qualified: <br /> Substitute the unit for another unit if it is possible to do so in accordance with 24 CFR <br />983.207(a), so that the overall number of excepted units or units under the increased program <br />cap in the project is not reduced. The PHA may, in conjunction with such substitution, add <br />the original unit to the HAP contract if it is possible to do so in accordance with 24 CFR <br />983.207(b), including that such addition does not cause the PHA to exceed the program cap <br />or become non-compliant with the project cap. <br /> Remove the unit from the PBV HAP contract. In conjunction with the removal, the PHA may <br />provide the family with tenant-based assistance, if the family is eligible for tenant-based <br />assistance. The family and the owner may agree to use the tenant-based voucher in the unit; <br />otherwise, the family must move from the unit with the tenant-based voucher. If the family <br />later vacates the unit, the PHA may add the unit to the PBV HAP contract in accordance with <br />24 CFR 983.207. <br />EXHIBIT 1