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Administrative Plan 7/1/2025 Page 9-9 <br />Term of Assisted Tenancy <br />The initial term of the assisted dwelling lease must be for at least one year [24 CFR 982.309]. <br />The initial lease term is also stated in the HAP contract. <br />The HUD program regulations permit the PHA to approve a shorter initial lease term if certain <br />conditions are met. <br />SAHA Policy <br />SAHA will approve an initial lease term of less than one (1) year if SAHA determines <br />that: <br /> Such shorter term would improve housing opportunities for the tenant; and <br /> Such shorter term is the prevailing local market practice <br />During the initial term of the lease, the owner may not raise the rent to owner [24 CFR 982.309]. <br />Any provisions for renewal of the dwelling lease will be stated in the dwelling lease [HCV <br />Guidebook, pg. 8-22]. There are no HUD requirements regarding any renewal extension terms, <br />except that they must be stated in the dwelling lease if they exist. <br />The PHA may execute the HAP contract even if there is less than one year remaining from the <br />beginning of the initial lease term to the end of the last expiring funding increment under the <br />consolidated ACC. [24 CFR 982.309(b)]. <br />Security Deposit [24 CFR 982.313 (a) and (b)] <br />The owner may collect a security deposit from the tenant. The PHA may prohibit security <br />deposits in excess of private market practice, or in excess of amounts charged by the owner to <br />unassisted tenants. However, if the PHA chooses to do so, language to this effect must be added <br />to Part A of the HAP contract [Form HUD-52641]. <br />SAHA Policy <br />SAHA will allow the owner to collect any security deposit amount the owner determines is <br />appropriate and legal under California tenant-landlord law. Therefore, no modifications to the <br />HAP contract will be necessary. <br />EXHIBIT 1