afford to pay

per month toward the rent chargeable by the Owner. The LHA will pay on behalf of the Family a housing assistance payment in the amount of $which represents the difference between the rent chargeable by the Owner and that portion of said rent payable by the Family. The amount of housing assistance payment and the amount of rent payable by the Family shall be subject to change by reason of changes in the Family income or composition, as determined by the LHA, effective as of the date stated in a notification of such change by the LHA to the Family and Owner. However, any increase in the amount payable by the Family shall be offset by a corresponding decrease in the amount of housing assistance payment; and any decrease in the amount payable by the Family shall be offset by a corresponding increase in the amount of housing assistance payment, but not in excess of the amount available with respect to this assisted unit out of the aggregate amount pledged in the Annual Contributions Contract (ACC) for all dwelling units under the ACC (see Section 2.3(b)).

b. Housing assistance payments shall be made by the LHA to the Owner, under the terms and conditions of this Contract, only for the period during which the assisted unit is leased by the Family under the lease for the dwelling unit approved by the LHA ("Lease"). Should the Family vacate its unit in violation of the provisions of its Lease, the Owner may continue to receive housing assistance payments in accordance with the terms of the Contract, not beyond the term of the Lease, but only if the Owner (1) immediately upon leasing of the vacancy, has taken all feasible action to fill it, including, but not limited to, contacting families on his waiting list, requesting the LHA to refer eligible families, and advertising the availability of the unit; (2) has promptly (within 30 days of the date the Family vacated the unit) notified the LHA of the vacancy: and (3) has not rejected, except for good cause acceptable to the LHA, any substitute family provided by the LHA.

c. Neither the LHA nor the United States of America, (hereinafter referred to as the "Government") has assumed any obligation whatsoever for the amount of rent payable by the Family or the satisfaction of any claim by the Owner against the Family. The financial obligation of the LHA is limited to making housing assistance payments on behalf of the Family in accordance with this Contract.

d. (1) The Owner shall submit a monthly request to the LHA for the housing assistance payment. Upon the determination of the LHA that the amount of the request is correct and that the Owner is in compliance with the provisions of this Contract, the

LHA shall pay to the Owner the amount requested.

(2) If the Owner receives any excessive payment, the LHA, in addition to any other rights to recovery, may deduct the amount from any subsequent payment or payments.

(3) The Owner's monthly requests for housing assistance payments shall be made subject to penalty under 18 U.S.C. 1001, which provides, among other things, that whoever knowingly and willfully makes or uses a document or writing containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any department or agency of the United States shall be fined not more than $10,000 or imprisoned for not more than five years or both.

1.3. Maintenance, operation and inspection. a. The term "Premises", as used in this Contract, means the dwelling unit leased by the Family and areas, facilities and grounds which are for its benefit or use.

b. The Owner agrees (1) to maintain and operate the Premises so as to provide decent, safe, and sanitary housing, and (2) to provide all maintenance and services as contained in the Lease. If, at any time during the term of this Contract, the Owner fails to comply with the obligation in (1), housing assistance payments on behalf of the Family shall be wholly abated and if the Owner fails to comply with the obligation in (2), housing assistance payments on behalf of the Family shall be abated in whole or in part. Any abatement under this paragraph b shall be effective upon written notification to the Owner, and shall continue until such time as the obligation is complied with. The LHA shall promptly notify the Family of any such abatement.

c. The LHA will inspect, or cause to be inspected, at least annually, the Premises to determine that they are in decent, safe, and sanitary condition.

1.4. Term of contract. The term of this Contract shall be The Contract shall terminate upon expiration or termination of the Lease and shall be subject to termination in accordance with the provisions of Section 2.5 of this Contract.

1.5. Eviction. The Owner shall not evict the Family unless the Owner complies with the requirements of local law, if any, and of this Section. The Owner shall give the Family a written notice of the proposed eviction, stating the grounds and advising the Family that it has 10 days (or such greater number, if any, that may be required by local law) within which to respond to the Owner. The Owner must obtain the LHA's authorization for an eviction; accordingly, a copy of the notice shall be furnished simultaneously to the LHA, and the notice shall also state that the Family may, within the same time period, present its ob

jections to the LHA in writing or ir. person. The LHA shall forthwith examine the grounds for eviction and shall authorize the eviction unless it finds the grounds to be insufficient under the Lease. The LHA shall notify the Owner and the Family of its determination within 20 days of the date of receipt of the notice by the Family, whether or not the Family has presented objections to the LHA.

1.6. Owner-family lease. The Lease between the Owner (Lessor) and the Family (Lessee) shall contain the following provisions:

notify the Lessor and the Lessee of its determination within 20 days of the date of receipt of the notice by the Lessee whether or not the Lessee has presented objections to the LHA.

"d. The Lessor shall not discriminate against the Lessee in the provision of services, or in any other manner, on the grounds of race, color, creed, religion, sex, or national origin.

"e. This Lease has been signed by the parties on the condition that the LHA will promptly execute a Housing Assistance Payments Contract with the Lessor. Accordingly, this Lease shall not become effective unless the LHA has executed such Contract by the first day of occupancy specified in the Lease. "LessorDate

In

By

per month),

shall be payable by the Housing Authority (LHA) as housing assistance payments on behalf of the Lessee and $shall be payable by the Lessee. These amounts shall be subject to change by reason of changes in the family income or composition, as determined by the LHA, effective as of the date stated in a notification of such change by the LHA to the Lessee and Lessor.

"b. The Lessor shall provide the following services (including security) and mainte

nance:

[Here specify all services to be provided by the Lessor, which shall include all services customarily supplied to tenants of this type of housing in the locality. In preparing this list, provisions contained in form HUD52505A, Guide for Lease Provisions for Maintenance and Security Services, shall be included except to the extent modifications are approved by the LHA.]

"c. The Lessor shall not evict the Lessee unless the Lessor complies with the requirements of local law, if any, and of this provision. The Lessor shall give the Lessee a written notice of the proposed eviction, stating the grounds and advising the Lessee that he has 10 days (or such greater number, if any, that may be required by local law) within which to respond to the Lessor. Because the Lessor must obtain the LHA's authorization for an eviction, a copy of the notice shall be furnished simultaneously to the LHA, and the notice shall also state that the Lessee may, within the same time period, present his objections to the LHA in writing or in person. The LHA shall forthwith examine the grounds for eviction and shall authorize the eviction unless it finds the grounds to be insufficient under the Lease. The LHA shall

Lessee

Date

1.7. Relocation certification. 8. The Owner hereby certifies that the dwelling unit was vacant on the date that he executed the Request for Lease Approval with the Family. If the unit was not vacant on that date, the Owner hereby certifies that it was or will be vacated (check applicable box):

as a result of voluntary decision of occupant,

Das a result of action by Owner for cause, or for reasons clearly unrelated to leasing of the unit by the Family under the Housing Assistance Payments Program, and the Owner further certifies that the specific circumstances were as follows:

This certification is made subject to penalty under 18 U.S.C. 1001, which provides, among other things, that whoever knowingly or willfully makes or uses a document or writing containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any department or agency of the United States, shall be fined not more than $10,000 or imprisoned for not more than five years, or both.

b. The Government has determined that satisfactory commitments have been made for the funding of relocation costs pursuant to the Uniform Relocation Assistance Real Property Acquisition Policies Act of 1970, as follows:

c. If paragraph b is inapplicable, the Owner agrees to hold harmless and to indemnify the LHA for any cost incurred under said Act in connection with vacation of said units, and the Owner further agrees that the LHA shall have the right to be reimbursed for any such costs by withholding from housing assistance payments payable to the Owner.

1.8. Entire Agreement. This Contract, including Part II hereof, contains the entire

agreement between the parties hereto, and neither party is bound by any representations or agreements of any kind except as contained herein. No changes in this Contract shall be made except in writing signed by both the Owner and the LHA.

1.9. Legal interest. The Owner warrants that he has the legal right to execute this Contract and to lease the dwelling unit covered by this Contract.

Local Housing Authority

By:

Owner:

By:

SECTION 23 HOUSING ASSISTANCE PAYMENTS PROGRAM EXISTING HOUSING

HOUSING ASSISTANCE PAYMENTS CONTRACTPART II

2.1 Nondiscrimination in housing. a. Neither the Owner nor the LHA shall, in the selection or approval of Families, in the provision of services, or in any other manner, discriminate against any person on the grounds of race, color, creed, religion, sex, or national origin. No person shall be automatically excluded from participation in or be denied the benefits of the Housing Assistance Payments Program because of membership in a class such as unmarried mothers, recipients of public assistance, etc.

b. The Owner shall comply with all requirements imposed by Title VIII of the Civil Rights Act of 1968, Public Law 90-284, 82 Stat. 73 and any rules and regulations pursuant thereto.

c. The Owner shall comply with all requirements imposed by Title VI of the Civil Rights Act of 1964, Public Law 88-352, 78 Stat. 241; the regulations of the Department of Housing and Urban Development issued thereunder, 24 CFR, Subtitle A, Part 1, Section 1.1, et seq.; the requirements of said Department pursuant to said regulations; and Executive Order 11063 to the end that, in accordance with that Act, the regulations and requirements of said Department thereunder, and said Executive Order, no person in the United States shall, on the ground of race, color, creed, religion or national origin, be excluded from participation in, or be denied the benefits of, the Housing Assistance Payments Program, or be otherwise subjected to discrimination. This provision is included pursuant to the regulations of the Department of Housing and Urban Development, 24 CFR, Subtitle A, Part 1, Section 1.1, et seq.; issued under Title VI of the said Civil Rights Act of 1964, and the requirements of said Department pursuant to said regulations; and the obligation of the Owner to comply therewith inures to benefit of the Government, the said Department, and the LHA any of which shall be entitled to invoke any remedies available by

law to redress any breach thereof or to compel compliance therewith by the Owner. 2.2. Cooperation in equal opportunity compliance reviews. The LHA and the Owner shall cooperate with the Government in the conducting of compliance reviews and complaint investigations pursuant to all applicable civil rights statutes, Executive Orders, and rules and regulations pursuant thereto.

2.3. Annual Contributions Contract

a. The LHA has entered into an Annual Contributions Contract dated with

the Government, with respect to Project No.-("ACC"), under which the Government will provide financial assistance to the LHA pursuant to Section 23 of the United States Housing Act of 1937, for the purpose of making housing assistance payments, which ACC shall be provided by the LHA to the Owner upon request.

b. The LHA hereby pledges such annual contributions payable under Section 1.3(b)(1) of Part I of the ACC to the payment of housing assistance payments pursuant to this and other Housing Assistance Payments Contracts entered into as a part of said Project.

2.4. LHA and government access to premises and owner's records. The Owner shall permit the LHA and the Government, or any of their duly authorized representatives, to have access to the Premises and, for the purpose of audit and examination, to have access to any books, documents, papers and records of the Owner that are pertinent to compliance with this Contract, including the verification of information pertinent to the monthly requests to the LHA for housing assistance payments.

2.5. Default by the owner. a. A Default by the Owner under this Contract shall result if:

(1) the Owner has violated or failed to comply with any provisions of this Contract or of the Owner-Family Lease; or

(2) The Owner has failed to perform any of its obligations under this Contract or under the Owner-Family Lease; or

(3) The Owner has asserted or demonstrated an intention not to perform some or all of his obligations under this Contract or under the Owner-Family Lease.

b. Upon the determination by the LHA that a Default has occurred, the LHA may notify the Owner that the LHA is terminating the Contract effective 30 days from the date of notice, unless within that period the Owner cures any non-compliance, or initiates a course of corrective action which will cure the non-compliance within such minimum additional time as may be necessary and agreed to by the LHA. If the LHA so notifies the Owner, it shall also send a copy of such notice to the Family, together with information regarding continued assistance.

2.6. Remedies not exclusive and nonwaiver of remedies. Any remedy provided for herein shall not be exclusive or preclude any party from exercising any other remedy available under this Contract or under any provisions of law, nor shall any action taken in the exercise of any remedy be deemed a waiver of any other rights or remedies available to the parties. Failure on the part of any party to exercise any right or remedy shall not constitute a waiver of that or any other right or remedy, nor operate to deprive any party of the right thereafter to take any remedial action for the same or any subsequent default.

2.7. Disputes. a. Except as otherwise provided herein, any dispute concerning a question of fact arising under this Contract which is not disposed of by agreement of the LHA and Owner may be submitted by either party to the U.S. Department of Housing and Urban Development field office director who shall make a decision and shall mail or otherwise furnish a written copy thereof to the Owner and the LHA.

b. The decision of the field office director shall be final and conclusive unless, within 30 days from the date of receipt of such copy, either party mails or otherwise furnishes to the field office director a written appeal addressed to the Secretary of Housing and Urban Development. The decision of the Secretary or his duly authorized representative for the determination of such appeals shall be final and conclusive, unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this Section, the appellant shall be afforded an opportunity to be heard and to offer evidence in support of his appeal. Pending final decision of a dispute hereunder, both parties shall proceed diligently with the performance of the Contract and in accordance with the decision of the field office director.

c. This Section does not preclude consideration of questions of law in connection with decisions rendered under paragraphs a and b of this Section; Provided, however, That nothing herein shall be construed as making final the decision of any administrative official, representative, or board on a question of law.

2.8. Interest of members, officers, or employees of LHA, members of local governing body, or other public officials. No member, officer, or employee of the LHA, no member

of the governing body of the locality (city and county) in which the Premises are situated, no member of the governing body of the locality in which the LHA was activated, and no other public official of such locality or localities who exercises any functions or responsibilities with respect to the Premises, during his tenure or for one year thereafter, shall have any interest, direct or indirect, in this Contract or in any proceeds or benefits arising from it.

2.9. Interest of member of or delegate to Congress. No member of or delegate to the Congress of the United States of America or resident commissioner shall be admitted to any share or part of this Contract or to any benefits which may arise therefrom.

2.10. Nonassignability. a. The Owner agrees that he has not made, and will not make any sale, assignment, or conveyance or transfer in any other form, of this Contract, or any of his interest therein, except with the prior consent of the LHA. The assignment by the Owner of the Contract to a limited partnership of which the Owner is the general partner shall not be considered an assignment herein.

b. For the purpose of this Section, a transfer of stock in the Owner in whole or in part by a party holding ten percent or more of the stock of said Owner, or a transfer by more than one stockholder or the Owner of ten percent or more of the stock of said Owner or any other similarly significant change in the ownership of such stock or in the relative distribution thereof in or with respect to the parties in control of the Owner or the degree thereof, by any other method or means, whether by increased capitalization, merger with another corporation, corporate or other amendments, issuance of new or additional stock or classification of stock or otherwise, shall be deemed an assignment, conveyance, or transfer with respect to this Contract. The Owner agrees to notify the LHA promptly of any such proposed action and to request the written consent of the LHA in regard thereto. The Owner and the party signing this Contract on behalf of said Owner, represent that they have the authority of all of the existing stockholders of the Owner to agree to this paragraph on behalf of said stockholders and to bind them with respect thereto.

NOTE: Appendix X is not included herein but does appear in the HUD Existing Housing Handbook.

ing Authority

3 HOUSING ASSISTANCE PAYMENTS OGRAM EXISTING HOUSING

SSISTANCE PAYMENTS CONTRACT-
PART II

Escrimination in housing. a. Neiwner nor the LHA shall, in the approval of Families, in the proervices, or in any other manner, e against any person on the race, color, creed, religion, sex, origin. No person shall be autoxcluded from participation in or he benefits of the Housing Asayments Program because of in a class such as unmarried cipients of public assistance, etc. wner shall comply with all reimposed by Title VIII of the Act of 1968, Public Law 90-284, and any rules and regulations ereto.

wner shall comply with all reimposed by Title VI of the Civil of 1964, Public Law 88-352, 78 he regulations of the Departusing and Urban Development under, 24 CFR, Subtitle A, Part .1, et seq.; the requirements of ment pursuant to said regulaxecutive Order 11063 to the end rdance with that Act, the regurequirements of said Departnder, and said Executive Order, the United States shall, on the ace, color, creed, religion or na, be excluded from participation ied the benefits of, the Housing ayments Program, or be othered to discrimination. This provided pursuant to the regulations rtment of Housing and Urban t, 24 CFR, Subtitle A, Part 1, et seq.; issued under Title VI of | Rights Act of 1964, and the reof said Department pursuant to ons; and the obligation of the mply therewith inures to beneGovernment, the said Departhe LHA any of which shall be voke any remedies available by

law to redress any breach thereof or to compel compliance therewith by the Owner. 2.2. Cooperation in equal opportunity compliance reviews. The LHA and the Owner shall cooperate with the Government in the conducting of compliance reviews and complaint investigations pursuant to all applicable civil rights statutes, Executive Orders, and rules and regulations pursuant thereto.

2.3. Annual Contributions Contract

a. The LHA has entered into an Annual Contributions Contract dated

with the Government, with respect to Project No.-("ACC"), under which the Government will provide financial assistance to the LHA pursuant to Section 23 of the United States Housing Act of 1937, for the purpose of making housing assistance payments, which ACC shall be provided by the LHA to the Owner upon request.

b. The LHA hereby pledges such annual contributions payable under Section 1.3(b)(1) of Part I of the ACC to the payment of housing assistance payments pursuant to this and other Housing Assistance Payments Contracts entered into as a part of said Project.

2.4. LHA and government access to premises and owner's records. The Owner shall permit the LHA and the Government, or any of their duly authorized representatives, to have access to the Premises and, for the purpose of audit and examination, to have access to any books, documents, papers and records of the Owner that are pertinent to compliance with this Contract, including the verification of information pertinent to the monthly requests to the LHA for housing assistance payments.

2.5. Default by the owner. a. A Default by the Owner under this Contract shall result if:

(1) the Owner has violated or failed to comply with any provisions of this Contract or of the Owner-Family Lease; or

(2) The Owner has failed to perform any of its obligations under this Contract or under the Owner-Family Lease; or

(3) The Owner has asserted or demonstrated an intention not to perform some or all of his obligations under this Contract or under the Owner-Family Lease.

b. Upon the determination by the LHA that a Default has occurred, the LHA may notify the Owner that the LHA is terminating the Contract effective 30 days from the date of notice, unless within that period the Owner cures any non-compliance, or initiates a course of corrective action which will cure the non-compliance within such minimum additional time as may be necessary and agreed to by the LHA. If the LHA so notifies the Owner, it shall also send a copy of such notice to the Family, together with information regarding continued assistance.