4-1 SUBMISSION ANNUAL ADMIN PLAN_EXHIBIT 3

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The PHA will inspect each contract unit before execution of the HAP contract. The PHA may not enter into a HAP contract covering a unit until the unit fully complies with HQS. Turnover Inspections \[24 CFR 983.103(c)\] Before providing assistance to a new family in a contract unit, the PHA will inspect the unit. The PHA may not provide assistance on behalf of the family until the unit fully complies with HQS. Annual Inspections \[24 CFR 983.103(d)\] At least annually during the term of the HAP contract, the PHA will inspect a random sample, consisting of at least 20 percent of the contract units in each building to determine if the contract units and the premises are maintained in accordance with HQS. Turnover inspections are not counted toward meeting this annual inspection requirement. If more than 20 percent of the annual sample of inspected contract units in a building fails the initial inspection, the PHA must re-inspect 100 percent of the contract units in the building. Other Inspections \[24 CFR 983.103(e)\] The PHA will inspect contract units whenever needed to determine that the contract units comply with HQS and that the owner is providing maintenance, utilities, and other services in accordance with the HAP contract. The PHA must take into account complaints and any other information coming to its attention in scheduling inspections. The PHA will conduct follow-up inspections needed to determine if the owner (or, if applicable, the family) has corrected an HQS violation, and must conduct inspections to determine the basis for exercise of contractual and other remedies for owner or family violation of HQS. In conducting supervisory quality control HQS inspections, the PHA will include a representative sample of both tenant-based and project-based units. PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS 17-IV.A. OVERVIEW \[24 CFR 983.151\] There are specific requirements that apply to PBV assistance for newly constructed or rehabilitated housing that do not apply to PBV assistance in existing housing. This part describes the requirements unique to this type of assistance. Housing selected for this type of assistance may not at a later date be selected for PBV assistance as existing housing. 17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT In order to offer PBV assistance in rehabilitated or newly constructed units, the PHA must enter into an agreement to enter into HAP contract (Agreement) with the owner of the property. The Agreement must be in the form required by HUD \[24 CFR 983.152(a)\]. 04/01/14 Page 17-13