PASADENA COMMUNITY DEVELOPMENT COMMISSION SECTION 8 RENTAL CERTIFICATE/VOUCHER PROGRAM STATEMENT OF POLICIES

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1 PASADENA COMMUNITY DEVELOPMENT COMMISSION SECTION 8 RENTAL CERTIFICATE/VOUCHER PROGRAM STATEMENT OF POLICIES INTRODUCTION The original Section 8 Housing Assistance Payments Program was enacted as part of the United States Housing Act of The revised Section 8 Rental Certificate and Voucher Programs (Section 8 Program) were re-enacted as part of the Housing and Community Development Act of 1974, and continue to be amended from time to time. This federally funded program is administered by the U. S. Department of Housing and Urban Development (HUD) and participating local housing authority/agencies (HA) under the Code of Federal Regulations, Title 24, Subtitle B - Housing and Urban Development, Parts (24 CFR ) and other applicable federal and local regulations. The City of Pasadena s Section 8 Program serves the jurisdiction within the city boundaries and is administered under the authority of the Pasadena Community Development Commission (PCDC) which is the designated local housing authority/agency (HA) established by the City in April, The former Pasadena Housing Authority was consolidated with the Redevelopment Agency as the PCDC, a single operating entity and board, created under the Section of the State of California Health and Safety Code. The City Council acts as the PCDC and exercises all the rights, powers, duties, and responsibilities of the housing agency. As such, the PCDC actively participates in other HUD Programs which provide housing assistance in a manner very similar to the Section 8 Program but with certain provisions for special needs housings. The HUD rental assistance programs covered by the Rental Assistance Program (RAP) Administrative Plan include Family Self- Sufficiency (FSS), Housing Opportunity for People With AIDS (HOPWA), Shelter Plus Care, Federal Emergency Management Assistance (FEMA), Supportive Housing and the HOME Investment Partnership Act (HOME). The City of Pasadena Housing and Development Department - Housing Division manages the Section 8 Program and the other HUD housing assistance programs on behalf of the PCDC and the City of Pasadena. SECTION 8 RENTAL CERTIFICATE AND VOUCHER PROGRAM [24 CFR 982,983] The HUD Section 8 Rental Certificate/Voucher Program provides housing assistance payments (rental subsidies) to eligible low income families so that these families can afford to rent decent, safe and sanitary housing. By participation in the Section 8 Program or other city sponsored HUD rental subsidy programs, eligible families are assisted with the selection and lease of rental units that meet federal housing quality standards (HQS) and local housing codes. If the PCDC approves the physical condition of the unit along with the lease for the unit, the PCDC will contract with the local property owner to make housing assistance payments on behalf of the assisted family. The PCDC will not contract for a unit unless the proposed lease is approved, the rent is reasonable, all property ownership information is provided, and the unit passes the HQS inspection. In the Rental Certificate Program, the monthly housing assistance payment is based on PCDC rental certificate payment standards which are generally the actual rent of the unit to be leased by the assisted family. However, the rent of the unit to be leased may not exceed the effective HUDpublished fair market rents (FMRs) for rental units in the local housing market. In the Rental Voucher Program, the housing assistance payment is based on the PCDC rental voucher payment 1

2 standards, and not the actual rent of the unit to be leased. The PCDC rental voucher payment standards are pre-determined at % of the HUD-published FMRs. In the Rental Certificate Program, the housing assistance payment most families receive is the difference between the unit rent and 30 percent of their adjusted monthly income. In the Rental Voucher Program, the housing assistance payment families receive is the difference between 30 percent of their adjusted monthly income and rental voucher payment standards. However, rental voucher holders are provided flexibility to lease units with rents higher than the FMR. If the unit rent is less than the rental voucher payment standard, the family pays a smaller share, but if the unit rent is more than the payment standard, the family pays a larger share of the rent. RENTAL ASSISTANCE PROGRAM ADMINISTRATIVE PLAN [24 CFR ] The purpose of the Pasadena Community Development Commission (PCDC) Rental Assistance Program (RAP) Administrative Plan is to establish the policies and procedures for carrying out its housing assistance programs in a manner consistent with HUD requirements and local housing objectives. The Rental Assistance Program objectives are: 1. To provide decent, safe and sanitary housing for very low income families while maintaining their rent payments at an affordable level, 2. To promote freedom of housing choice and spatial de-concentration of very low income families of all races and ethnic backgrounds, 3. To provide an incentive to private property owners to rent to very low income families by offering timely assistance payments, 4. To assist the local economy by increasing the occupancy rate and the amount of money flowing to the community, 5. To encourage self sufficiency, including homeownership, of participating families, 6. To comply fully with all federal, State and local nondiscrimination regulations and laws governing Fair Housing and Equal Opportunity in housing and employment. The RAP Administrative Plan covers both admission and continued participation in these programs. The PCDC is responsible for complying with all changes in HUD regulations pertaining to the housing assistance programs. If such changes conflict with the RAP Administrative Plan, HUD regulations will have precedence. The RAP Administrative Plan and any future changes shall be approved by the Board of Directors of the Pasadena Community Development Commission and a copy provided to HUD. The RAP Administrative Plan is available for review and/or purchase at the Housing and Development Department - Housing Division office located at 100 North Garfield Avenue, Room 101 Pasadena, California The Housing Division s office hours are 7:30 am to 5:30 p.m. Monday thru Thursday and 7:30 am to 4:30 p.m. every other Friday. The telephone number of the Housing Division is (626) OBLIGATIONS OF THE FAMILY [24 CFR ] A. When the family s unit is approved and the HAP Contract executed, the family must follow the rules of the PCDC Administrative Plan as listed below in order to continue participating in the Section 8 Rental Certificate/Voucher Program. The family must: 1. Supply any information that the PCDC or HUD determines to be necessary, 2. Disclose/verify social security numbers & sign consent forms for information, 3. Supply any information requested by the PCDC to verify the family is living in unit, 2

3 4. Promptly notify the PCDC in writing when the family will be away from the subsidized unit for thirty (30) days or more, 5. Allow PCDC to inspect the unit at reasonable times after PCDC has given reasonable notice, 6. Submit to the PCDC a written ninety (90) day advance request to move for PCDC approval before serving a written sixty (60) day notice of lease termination to the property owner, 7. Use the assisted unit only for residence of the family as approved by the PCDC. Unit must be the family s only place of residence, 8. Notify PCDC in writing of the birth, adoption, or court-awarded custody of a child within fifteen (15) days of the change, 9. Request PCDC s written approval to add other member(s) as unit occupant(s) prior to the person(s) moving into the unit, 10. Notify PCDC in writing within fifteen (15) days of the change if any family member no longer lives in the unit, 11. Provide the PCDC a copy of any notices served to you by the property owner. Families must fully disclose all details regarding the notices, 12. Pay utility bills and supply appliances that property owner is not required to pay or supply under the terms of the lease, 13. Responsible for any HQS breach caused by the family, 14. Notify the PCDC within fifteen (15) days of the change in writing all changes in household composition, income, assets, etc., 15. Timely move to another unit when the PCDC determines that the family has become too large or too small for the subsidized unit that the family is presently occupying, 16. Obtain and provide the PCDC written approval from the property owner if the family engages in legal profitmaking activities in the subsidized unit, B. Any information the family supplies must be true and complete. C. The family must not: 1. Own or have any interest in the unit, 2. Commit any serious or repeated violation of the lease, 3. Commit fraud, bribery or any other corrupt or criminal act in connection with the program, 4. Participate in illegal drug or violent criminal activity, 5. Sublease or let the unit or assign the lease or transfer the unit, 6. Receive Section 8 tenant-based rental program while receiving another housing subsidy, for the same unit under any other Federal, State or local housing assistance program, 7. Damage the unit or premises or permit any guest to damage the unit or premises, 8. Give the property owner any unauthorized side payments, 9. Engage in any acts of violent behavior or threats of violent behavior against PCDC personnel. SUBSIDY STANDARDS [24 CFR ] The PCDC has established subsidy standards (family unit size) that determine the number of bedrooms needed and the amount of housing assistance to be provided for families of different sizes and compositions. The appropriate family unit size shall be determined for each family and entered on the rental certificate or voucher issued. The family unit size shall then be used to determine the maximum housing assistance available to the family. For the Rental Certificate Program, the PCDC shall always apply the actual rent for the unit, however, units cannot be leased 3

4 under the Rental Certificate Program for more than the FMR for the family unit size selected. But under the Rental Voucher Program, the PCDC established rental voucher payment standard shall be used. Under the Rental Voucher Program, units with comparable rents higher than the FMR may also be leased but the family will be required to pay the amounts in excess of the determined housing assistance. Upon approval by the PCDC, families may also lease an otherwise acceptable unit with fewer or with more bedrooms than the determined family unit size. However, the amount of housing assistance will not be changed. DISCLOSURE OF INFORMATION [24 CFR (b), (d)(7)] The PCDC shall provide prospective property owners whom program applicant or participant families may wish to lease a unit from the following information: 1. If the family has been determined eligible or ineligible for the housing assistance payments and issued or not issued a rental certificate or voucher, 2. The family s current address as shown in the PCDC records, and 3. The name and telephone number (if available) of the landlord at the family s current or prior address. No additional information shall be provided to other parties without written consent of the head of household for the applicant/participant family, with the exception of request for information from HUD, other federal agencies, federal, regional or municipal government agencies, and/or other housing agencies in who s jurisdiction the applicant/participant family wishes to reside. RENTAL CERTIFICATE/VOUCHER EXTENSION AND SUSPENSION [24 CFR , (d)(11)] EXTENSION OF TERM The PCDC issues rental certificates and/or rental vouchers with an initial term of sixty (60) days. If an assisted family is unable to locate a suitable rental unit within the initial term, the PCDC may grant an extension of the term for an additional thirty (30) day term based on a written request from the assisted family no less than two weeks prior to the date of expiration of the initial term. The assisted family must provide documentation to support the reason(s) for the requested extension. The initial term plus any extension may not exceed a total maximum of ninety (90) calendar days from the date of issuance of the rental certificate or rental voucher. Families meeting the disability and hard-to-house (four bedrooms +) requirements may receive a maximum term of one hundred and twenty (120) calendar days. Similarly, in the case of move or portability, the PCDC may grant an extension to the term of a pending termination of the Housing Assistance Payment Contract with the property owner of the rental unit the assisted family currently occupies. Such extension may be provided if the PCDC issued a termination notice to the property owner based on the family s notice of termination of their lease agreement for the unit. The extension of the termination may be for an additional thirty (30) day term based on a written request from the assisted family no less than two weeks prior to the HAP Contract termination date. The initial period for the termination plus any extension may not exceed a total maximum of ninety (90) calendar days from the date of the family s notice of lease termination. The PCDC reserves the right to deny any request for extension if the assisted family can not demonstrate good faith efforts to find or an acceptable cause for not seeking another rental unit. 4

5 SUSPENSION OF TERM A suspension of term shall mean to stop counting the time remaining on the term of a family s Rental Certificate or Rental Voucher upon receipt by the Housing Division of the completed and signed Request for Lease Approval issued to the assisted family from a property owner for a rental unit located in the city of Pasadena. REQUEST FOR LEASE APPROVAL AND CONTRACT EXECUTION [24 CFR (d), (b),306,307,308,353] After families are issued a rental certificate or voucher, they may search for a unit anywhere within the jurisdiction of the PCDC, or outside of the PCDC's jurisdiction if they qualify for portability. The family must find a unit eligible under the program rules, with a property owner/landlord who is willing to enter into a Housing Assistance Payments (HAP) Contract with the PCDC. The Request for Lease Approval (RLA), Inspection Checklist and a copy of the proposed Lease must be submitted by the family during the term of the rental certificate or voucher. The RLA must be signed by both the property owner and rental certificate/voucher holder. The PCDC will review the documents to determine whether or not they are acceptable. The RLA will be approved if: 1. The unit is an eligible type of housing 2. The unit meets HUD's Housing Quality Standards (HQS) and local housing codes and any additional criteria identified in the Administrative Plan 3. The rent is reasonable 4. The security deposit amount is acceptable. 5. The proposed lease complies with HUD and PCDC requirements as well as State and Local Law. 6. The property owner is acceptable, and there are no conflicts of interest. Upon approval of the RLA the PCDC will prepare the Housing Assistance Payment (HAP) Contract for execution. The family and the property owner will execute the lease agreement, and the property owner and the PCDC will execute the HAP Contract. The lease may be executed up to sixty (60) days prior to HAP Contract execution but cannot be executed without approval of the PCDC. The PCDC shall make every effort to execute the HAP Contract before the commencement of the lease term. However, the HAP Contract will not be executed after more than sixty (60) days from beginning of the lease term and no payments will be made until the HAP Contract has been executed. If the PCDC determines that the RLA cannot be approved for any reason, the property owner and the family will be notified in writing. The PCDC will instruct the property owner and family of the steps that are necessary to approve the RLA. The property owner will be given a maximum fifteen (15) calendar days to submit an acceptable RLA from the date of disapproval. When, an RLA is not approved, the PCDC will furnish another RLA form to the family along with the notice of disapproval so that the family can continue to search for eligible housing. The time limit on the rental certificate or voucher will be suspended while the RLA is being processed. HOUSING QUALITY STANDARDS AND INSPECTIONS [24 CFR ,982.54(d)(14)] Housing Quality Standards (HQS) are the HUD minimum quality standards for tenant-based rental assistance programs. HQS compliance is required both at initial occupancy and during the term of the lease. HQS apply to the building and premises, as well as the unit. These minimum HQS have 5

6 been enhanced by the PCDC to include compliance with the City of Pasadena Municipal Building and Housing Code. All units must meet the minimum standards set forth in the City of Pasadena Municipal Building and Housing Codes. The use of the term "HQS" refers to the combination of both HUD and PCDC requirements. The property owner and family must allow the PCDC to inspect the unit at reasonable times with reasonable notice. The PCDC will conduct inspections weekly, Monday through Friday, between the hours of 9:00 a.m. and 4:00 p.m., unless otherwise requested by the family and property owner. The PCDC shall conduct an initial HQS inspection of the unit at the time of lease-up and an annual HQS inspection no later than ninety (90) days prior to the anniversary month of the executed HAP Contract. Special HQS inspections, as required, may also be scheduled between anniversary dates. At the time of inspection all utilities must be in service and the stove and refrigerator must be present regardless of who is supplying these appliances. If the unit fails the initial HQS inspection, the property owner will be given up to ten (10) days to correct items noted as deficiencies. The property owner will be allowed only one re-inspection for repair work. If the time period given to correct the repairs has elapsed or the unit failed re-inspection, the family must select another unit. HQS deficiencies which cause a unit to fail must be corrected by the property owner unless during the inspection it is determined that it is a deficiency for which the family is responsible. However, the family is only responsible for HQS deficiencies which are caused by: 1. Non-payment of utilities paid by the family, 2. Not providing, or failing to maintain, appliances not provided by the property owner, and 3. Damages to the unit or premises caused by a family member or guest which is beyond normal wear and tear. The PCDC will contact the property owner prior to the initial inspection. In the case of an annual inspection, the family and property owner are both notified of the date and time of the inspection appointment by mail. If the family or property owner are unable to be present, they must reschedule the appointment in advance so that the inspection is completed within fifteen (15) days. If, however, they are not present for the inspection a notice shall be placed at the entry to the unit or in the unit s mail box advising the property owner and/or family of the missed inspection and requesting a reinspection be scheduled. If the property owner or family does not contact the PCDC to schedule the re-inspection, or if the family or property owner misses two (2) inspection appointments, the PCDC will consider the family to have violated the Rental Certificate or Voucher Obligation of the Family, the RLA will be canceled and the housing assistance to the family will be subject to denial or termination. RENT REASONABLENESS [24 CFR (b), (a)(b),982.4] The PCDC must ensure that the rents charged by property owners under Section 8 Program are reasonable based upon objective comparables in the rental market. Rent reasonableness determinations are therefore required when units are placed under a new HAP Contract for the first time, when property owners request annual or special contract rent adjustments under the Rental Certificate Program, and when a property owner requests a rent increase under the Rental Voucher Program. For the Rental Certificate and Rental Voucher Programs, the PCDC must determine and document on a case-by-case basis that the approved rent: 6

7 1. Does not exceed rents currently charged on new leases by the same property owner for an equivalent assisted or unassisted unit in the same building or complex, and 2. Is reasonable in relation to rents currently charged by other property owners for comparable units in the unassisted market. At least two (2) comparable units will be used for each rent determination, one of which must be from the first category above, if possible. All comparables must be based on the rent that the unit would command if leased in the current market. Leased in the current market means that the unit has been leased within the last thirty (30) days. In the Rental Certificate Program, the rent of the unit to be leased may not exceed the HUD-published fair market rent (FMR) for rental units in the local housing market. In the Rental Voucher Program, the rent may be higher than the FMR but must still meet the rent reasonableness determination. ANNUAL RE-EXAMINATION/RE-CERTIFICATION [24 CFR (a), ] HUD requires that PCDC re-certify the income and household composition of all families at least annually. In addition, PCDC is required to inspect the assisted unit as least annually to ensure continued compliance with HQS and process the property owner s request for rent adjustments. These activities must be coordinated to ensure that they are completed in accordance with the federal regulations and the PCDC RAP Administrative Plan. Both the assisted family and property owner shall be notified by mail of the applicable scheduled dates and times of the family interview appointment, if required, and the on-site unit inspection, no less than one hundred and twenty (120) days in advance of the anniversary month. MOVES WITH CONTINUED ASSISTANCE [24 CFR , ] HUD regulations permit families to move with continued housing assistance to another unit within the PCDC s jurisdiction, or to a unit outside of the PCDC s jurisdiction under the portability procedures. PCDC allows a family to move to a new unit if: 1. The assisted lease for the existing unit has terminated because the PCDC has terminated the HAP Contract for breach or the lease was terminated by mutual agreement of the property owner and the family, 2. The property owner has given the family a notice to vacate, or has commenced an action to evict the tenant, or has obtained a court judgment or other process allowing the property owner to evict the family, 3. The family has given proper notice of lease termination Moves within the PCDC s jurisdiction shall be treated as a new rental certificate/voucher issuance and totally coordinated by the PCDC. A ninety (90) day advance written request must be provided to the PCDC prior to the move. The PCDC shall conduct a pre-move interview for those families who express an interest in moving. It is preferred that moves take place at the time of the family s anniversary month. Families may not be permitted to move during the initial 12 month period after lease of their existing unit, or if the family is in violation of the Obligations of the Family, and/or if the family owes money to the PCDC. PORTABILITY [24 CFR , 354, 355] Portability applies to families moving out of the PCDC s jurisdiction but within the United States and its territories or moving into the jurisdiction of the PCDC. Under portability, families are eligible to receive housing assistance to lease a unit outside of the initial PCDC s jurisdiction. A ninety (90) day 7

8 advance written request must be provided to the PCDC prior to the move. The request must specify the area to which the family wants to move. Generally, families will not be permitted to exercise portability during the initial 12 month period after the lease of their existing unit in the PCDC s jurisdiction, or if the family is in violation of the Obligations of the Family, and/or if the family owes money to the PCDC. For outgoing portability, the PCDC will conduct pre-portability interview for those families who express an interest in moving outside the PCDC jurisdiction. The PCDC will determine if the family s eligibility is within the very low or low income limit of the housing agency in who s jurisdiction the family wishes to move and transmit the family s records accordingly. However, the family shall be principally responsible for coordinating their move with the Receiving Housing Agency, including determination of eligibility, request for lease approval including allowable family unit size and amount of continued housing assistance. Incoming portability, families moving into the PCDC jurisdiction, shall be generally treated as a new rental certificate/voucher issuance and totally coordinated by the PCDC in association with the prior housing agency. DENIAL AND TERMINATION OF ASSISTANCE [24 CFR ] The PCDC may deny or terminate housing assistance to a family because of the family s action or failure to act. Denial of assistance to an applicant family may include but is not limited to: 1. Denial of placement on the PCDC waiting list, 2. Denial or withdrawal of a rental certificate or rental voucher, 3. Refusal to enter into a HAP Contract or approve a lease, 4. Refusal to process or provide assistance under portability or move procedure, 5. If any member of the family fails to sign and submit HUD or PCDC required consent forms for obtaining information, 6. No member of the family is a U.S. citizen or eligible immigrant, 7. Family is leased under a HAP Contract and 180 days have elapsed since the PCDC s last housing assistance payment was made, etc. Similarly, the PCDC may at any time terminate program assistance for a participant family for any of the following reasons: 1. The family violates any Obligation of the Family under the Section 8 Program as listed in 24 CFR , 2. Any member of the family has ever been evicted from public housing, 3. Any family member has engaged in drug-related or violent criminal activity within the last five (5) years, 4. The family currently owes rent or other amounts to the PCDC or to another housing agency in connection with the Section 8 Program or public housing assistance offered under the Housing Act of 1937, 5. The family has not reimbursed any housing agency for amounts paid to an owner under a HAP Contract for rent, damages to the unit, or other amounts owned by the family under the lease, 6. The family breaches an agreement with a housing agency to pay amounts owed to a housing agency or amounts paid to an owner by a housing agency, 7. The family has engaged in or threatened verbal as well as physical abusive or violent behavior toward the PCDC personnel, 8. The family fails to fulfill the obligations and conditions of its Family Self Sufficiency Contract, 8

9 In deciding whether to deny or terminate housing assistance because of action or failure to act by the members of the family, the PCDC has discretion to consider all of the circumstances in each case. As such, the PCDC may impose, as a condition of continued assistance, certain added requirements. The PCDC will provide each family with a written notice which states the reason for the termination, the effective date of the termination, and the family s rights to request an informal review or informal hearing before the proposed action is taken. A statement of the Obligation of the Family under the Section 8 Program, the grounds under which the PCDC can deny or terminate housing assistance, and the PCDC s informal review/informal hearing procedures shall also be made available at the time the PCDC notifies the family of denial or termination of housing assistance. If a applicant family or participant family, respectively, disagrees with the PCDC decision to deny or terminate housing assistance an informal review or informal hearing, as applicable, shall be conducted as outlined below. INFORMAL REVIEW AND INFORMAL HEARING [24 CFR , 555] The PCDC shall give an applicant/participant family prompt notice of a decision to deny or terminate housing assistance. The notice shall contain a brief statement of the reasons for the PCDC s decision and also state that the applicant or participant family may request an informal review or informal hearing, respectively. An informal review shall be provided to applicants for program participation and an informal hearing shall be provided to existing program participants. The informal review may be conducted by any person or persons designated by the PCDC, other than a person who made or approved the decision under review or a subordinate of this person. The applicant family will be given an opportunity to present written or oral objections to the PCDC decision. After the review, the PCDC will notify the applicant of the final decision including the reasons for the final determination. When an informal hearing is required, the PCDC shall promptly notify the participant family of its decision to deny or terminate housing assistance. The notice shall contain a brief statement of reasons for the decision, state that if the family does not agree with the determination, the family may request an informal hearing on the decision, and the deadline for the family to request an informal hearing. Both the participant family and PCDC must be given the opportunity to examine at least ten (10) days before the informal hearing, PCDC and family documents that are directly relevant to the hearing. If the requested documents are not made available to the respective parties said documents may not be relied on at the hearing. The informal hearing shall be conducted by any person or persons designated by the PCDC, other than a person who made or approved the decision under review or a subordinate of this person. The informal hearing shall be conducted in accordance with the PCDC hearing procedures. The PCDC and family will have the opportunity to present evidence, and question any witnesses. The person who conducts the hearing must issue a written decision, stating briefly the reasons for the decision. Factual determinations relating to the individual circumstances of the family shall be based on a preponderance of the evidence presented at the hearing. A copy of the hearing decision shall be furnished promptly to the family. However, the PCDC shall not be bound by a decision contrary to HUD regulations or requirements, or otherwise contrary to federal, State, or local law. TERMINATION OF HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACTS [24 CFR , 454, 455] The Housing Assistance Payments (HAP) Contract is the contract between the property owner and the PCDC which defines the responsibilities of both parties and the amount of housing assistance paid on behalf of the participant family. The term of the HAP Contract is the same as the term of the lease. The HAP Contract may be terminated by the PCDC, or by the property owner or if the 9

10 participant family terminates the lease. No future housing assistance payments on behalf of the participant family will be made by the PCDC to the property owner after the month in which the HAP Contract is terminated. The property owner shall reimburse the PCDC for any subsidies paid by the PCDC for any period after the HAP Contract termination date. The HAP Contract may be terminated for the following reasons: 1. Violation of the Housing Quality Standards (HQS) space requirements, 2. Failure to maintain the unit in accordance with HQS, 3. Property owner s violation of any obligations under the HAP Contract for the participant family s unit or other any HAP Contracts, 4. Property owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program, 5. Property owner has engaged in drug-trafficking, 6. Participant family and/or property owner terminate the lease, 7. The HAP Contract automatically terminates 180 days after the last housing assistance payment to the property owner, REPAYMENT/RECOVERY OF OUTSTANDING DEBTS [24 CFR , (b)(6-8)] When assisted families or property owners owe money to the PCDC, the PCDC will make every effort to collect it. The PCDC will use a variety of collection tools to recover debts including, but not limited to; request for lump sum payments, civil suits, abatements, reductions, collection agencies, credit bureaus, income tax set-off programs, repayment agreements. The PCDC Repayment Agreement is a document entered into between the PCDC and a family who owes a debt to the PCDC. It is similar to a promissory note, but contains more details regarding the nature of the debt, the terms of repayment, any special circumstances and the remedies available to the PCDC upon default of the agreement. Rev. #1 04/01/98 10

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