Part K - Termination of the HAP by AHFC

  1. Legal Obligations

    AHFC has the option to deny participation by Operator if any of the following has occurred.
    • Collected side payments. Money paid by the Section 8 participant cannot exceed the approved amounts as stated in the Lease Agreement for rent, damage deposits, utilities, or audits.
    • Collected Housing Assistance Payments for units not occupied by Section 8 participants.
    • A record of chronic poor maintenance including failing to complete needed repairs for required by HQS and the provisions of the Housing Contract.
    • Failed to report Program abuse of which it is aware.
    • Falsified documentation required by AHFC.
    • Submitted fraudulent vacancy loss or damage claims.
    • If the Operator has engaged in or threatened abusive or violent behavior toward a participant or AHFC personnel.
    • Not paid State or local real estate taxes, fines, assessments, or repaid AHFC for overpayments on Section 8 assisted units.
    • Failed to provide effective property management and maintenance, leading to noncompliance with program rules or unsafe conditions.
    • Overcharged Section 8 Program participants by renting unassisted, comparable units at lower amounts.
    • Violated obligations under the Section 8 HAP Contract.
  2. Other Operator Obligations

    The Operator shall comply with all the obligations contained in the HAP, this Administrative Plan and the regulations governing the Moderate Rehabilitation SRO Program contained in 24 CFR Part 882, Subpart H.

    The Operator must notify AHFC, within ten (10) business days, of all changes in unit occupancies, including move-ins and move-outs.

  3. Remedies in the Event of Operator Breach

    If it is determined the Operator has breached the contract, AHFC may implement one or more of the following sanctions: recovery of overpayments, abatements or other reduction of housing assistance; termination of housing assistance; issuance of tenant-based housing subsidy, and/or termination of the HAP Contract.

    The HAP Contract may also be terminated if AHFC determines, in accordance with HUD requirements, that funding under its Consolidated Annual Contributions Contract is insufficient to support continued assistance for families in the Program.

    The participant is not a party to or third party beneficiary, of the HAP Contract. The participant may not exercise any right or remedy against the Operator under the HAP Contract. Even if the participant continues to occupy the unit, AHFC may exercise any right or remedy against the Operator under the HAP Contract.