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EXHIBIT 1 In -Place Families [24 CFR 983.251(b)] A family residing in a proposed contract unit on the proposal or project selection date is considered an in place family. If an in -place family is determined to be eligible prior to placement of the family's unit on the HAP contract, the in -place family must be placed on the PHA's waiting list (if the family is not already on the list). Once the family's continued eligibility is determined (the PHA may deny assistance to an in -place family for the grounds specified in 24 CFR 982.552 and 982.553), the family must be given an absolute selection preference and the PHA must refer families to the applicable project owner for an appropriately sized PBV unit in the specific project. Admission of eligible in -place families is not subject to income targeting requirements. During the initial term of the lease under the tenant -based tenancy, an in -place tenant -based voucher family may agree, but is not required, to mutually terminate the lease with the owner and enter into a lease and tenancy under the PBV program. If the family chooses to continue the tenant -based assisted tenancy, the unit may not be added to the PBV HAP contract. The owner may not terminate the lease for other good cause during the initial term unless the owner is terminating the tenancy because of something the family did or failed to do in accordance with 24 CFR 982.3 1 0(d)(2). The owner is expressly prohibited from terminating the tenancy during the initial term of the lease based on the family's failure to accept the offer of a new lease or revision, or for a business or economic reason. If, after the initial term, the owner chooses not to renew the lease or terminates the lease for other good cause (as defined in 24 CFR 982.310(d)) to end the tenant -based assisted tenancy, the family would be required to move with continued tenant -based assistance or relinquish the tenant -based voucher and enter into a new lease to receive PBV assistance in order to remain in the unit. 025 City Council 5 — 810 5 2 25