Terminations (24 C.F.R

982.552(b), 982.310, 982.455, AND 982.354). (1) General Information. (a) HUD regulations specify the reasons for which the THDA may and must terminate a participant’s assistance and the ways in which such termination is processed. HUD also allows the THDA to establish local policies for termination of assistance. (b) HUD regulations also dictate the circumstances under which an owner may terminate the tenancy of an assisted household under the HAP contract. Tenancy may be terminated by the owner, initiated by the tenant, or terminated by mutual agreement between the tenant and owner. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (c) The Housing Assistance Payments (HAP) Contract may end automatically, the THDA may initiate the termination, or the owner may initiate the termination. (d) Consideration of Circumstances. In determining whether to terminate assistance because of action or failure to act by members of the family: 1. The THDA will consider all relevant circumstances such as the seriousness of the case, the extent of participation or culpability of individual family members, mitigating circumstances related to the disability of a family member, and the effects of denial or termination of assistance on other family members who were not involved in the action or failure. 2. The THDA may impose, as a condition of continued assistance for other family members, a requirement that other family members who participated in or were culpable for the action or failure will not reside in the unit. The THDA may permit the other members of a participant family to continue receiving assistance. (2) Termination of Assistance (24 C.F.R. 982.552(b)). (a) Involuntary Termination of Assistance Related to a Violation of the Family Obligations (24 C.F.R. 982.551, 982.552, 982.553, and 982.404). 1. The family obligations are listed on the voucher given to the household at initial move-in and relocation/portability in the Grounds for Denial/Termination, Notice of the Family Obligations form given to the household at initial move-in and each recertification, in this Plan and in the federal regulations. A violation of the family obligations not only subjects the participant family to termination, but also to a three-year (3) sanction from participation in the HCV Program. 2. A participant family may be involuntarily terminated from the HCV Program for any of the following family obligation violations by any one of the household members, including: (i) Fraud or abuse in any federal housing assistance program; (ii) Failure to sign and submit consent forms for obtaining information in accordance with program regulations within required time frames; (I) This violation includes failure to attend appointments as per the THDA’s missed appointment policy when the appointment is for the purpose of receiving signatures and collecting required paperwork; (iii) Failure to promptly notify and provide the THDA (within 30 days) with documentation of the birth, adoption, court-awarded custody of a child, or a new spouse; (iv) Failure to promptly notify the THDA (within 30 days), in writing, that a household member no longer lives in the assisted unit; (v) Failure to promptly notify the THDA in writing that the entire household will be away from the unit for more than 14 days, consecutively; (vi) Failure to report a required change of any type; (vii) Failure to request written approval to add any other occupant of the unit as a household member. A person is considered a household member if they HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 stay overnight in the unit more than fourteen (14) days annually, not consecutively; (viii) Failure to supply information timely, usually 14 calendar days unless otherwise specified, as requested by the THDA for use in a regularly scheduled reexamination or interim reexamination of household income or composition. This violation includes: (I) The failure to attend appointments as per the THDA’s appointment policy when the appointment is for the purpose of collecting required paperwork; (II) The refusal to sign necessary forms and documents; and (III) Other refusals to cooperate. (ix) The failure to disclose, verify or sign and submit consent forms for obtaining social security numbers; (x) The failure to supply information requested to verify that the family is living in the assisted unit or information related to family absence from the unit; (xi) The refusal to reimburse the program in full for overpayment of subsidy for unreported income or change in family status or refusal to enter into a Repayment Agreement; (xii) The family defaults under a plan of repayment as defined by the Repayment Agreement; (xiii) The family received Housing Choice Voucher assistance while residing in a unit owned by a parent, child, grandparent, grandchild, sister or brother of any member of the family where no member of the family is a person with disabilities; (xiv) The family subleases the assisted unit to another family; (xv) A household member owns or has a financial interest in the assisted unit (excluding Homeownership Voucher Program participants); (xvi) A household member received Housing Choice Voucher assistance while receiving another housing subsidy for the same unit or a different unit under any other Federal, State or local housing assistance program; (xvii) The failure of the family to use the assisted unit for residence by the household or as their only residence; (xviii) A family breach of HQS by failing to make any repairs that are the responsibility of the family in a timely manner; (xix) The failure of the family to allow the THDA or its agent to inspect the unit at reasonable times and after reasonable notice. This violation includes missed appointments as per the THDA appointment policy when the THDA or its agent schedules an appointment to inspect the assisted unit and the family fails to attend the appointment; HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (xx) The failure of the family to pay for any utilities or other amounts owed under the lease that the owner is not required to pay for, but which are to be paid by the tenant; (xxi) The failure of the family to provide and maintain any appliances that the owner is not required to provide, but which are to be provided by the family; (xxii) The failure of the family to provide the THDA with an owner eviction notice or notice to vacate/lease termination within 14 calendar days; (xxiii) The family seriously or repeatedly violates a lease; (I) Serious and repeated lease violations may include, but are not limited to, the following: I. Eviction of the family from housing by a court action for a serious lease violation; II. The family is asked to vacate the unit by the owner for a lease violation; III. The family moves without a proper written notice, either thirty (30) days or as required by the lease, to the landlord or housing agency; IV. The family fails to make timely rent payments or any other amounts owed to an owner under a lease (utilities, etc.); V. A member of the household or guest damages the dwelling unit or premises beyond ordinary wear and tear resulting in a cost to the owner that exceeds the security deposit; or VI. Certain criminal activity by a household member or guest of the household. (II) When deciding if a serious or repeated violation of the lease will result in termination of assistance, the THDA will consider the following requirements. I. The owner must provide the participant and the THDA with proper notice of any serious or repeated lease violations in accordance with the lease terms, HAP terms, and HUD regulations. The notice must state the specific actions which resulted in the violations, the authority on which they are based (lease, HAP C, state law), and what remedy the owner is seeking; II. The owner must also provide the THDA with available evidence, such as notices to the participant from the owner regarding the violations, police reports, neighborhood complaints or other third-party information; and III. If the owner is seeking termination of the tenancy, the owner must evict the participant through court-ordered eviction and provide the THDA with verification of the court action. The HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 participant is ineligible to relocate or port when an owner has given proper notice of serious or repeated lease violations. IV. Court-Ordered Evictions. A. Court-ordered eviction will be presumed to be for serious lease violations, unless the participant can prove by a preponderance of the evidence that it was not. B. If a court action results in a court-ordered eviction for a serious lease violation as defined by this Plan, then the THDA will terminate the participant’s assistance. If a judgment is entered by agreement of the parties for possession only, then the participant will be allowed to remain on the Program and a relocation voucher will be issued. C. Judgments in favor of the owner for unpaid rent, other amounts owed under the lease, and damages support the finding of an eviction for a serious lease violation. However, if the landlord accepts rent without reservation and with knowledge of a tenant default, the landlord by such acceptance condones the default and thereby waives such landlord’s right and is stopped from terminating the rental agreement as to that breach. D. The participant may appeal the THDA’s finding of an eviction due to a serious lease violation, but must do so by requesting an informal hearing by the deadline, in which the participant will have the burden of proving by a preponderance of the evidence that the eviction was not due to a serious lease violation by the THDA’s definition. (III) Relocation. See § 0770-01-05-.25. (IV) Repayment Agreements. The THDA will not arbitrate unpaid rent or damage claims between the participant and the owner. If the owner chooses to enter into a plan of repayment or accept repayment from the participant as a remedy for unpaid rent or damages, the THDA will consider any repayment as an appropriate remedy in lieu of termination, as long as the unit is in compliance with HQS. If the participant defaults on the repayment agreement, whether the participant has relocated or not, the owner must provide the THDA with a court order in the owner’s favor for the THDA to terminate assistance at the new unit. (V) The THDA does not consider an accidental fire a serious or repeated lease violation, regardless of the terms of the lease. The owner of the property should carry suitable insurance to cover accidental losses. (VI) The Tennessee Code Annotated (66-28-517) allows a three (3)-day notice of termination of the lease when the tenant, or any other person on the premises with the tenant’s consent, willfully or intentionally commits a violent act or behaves in a manner which constitutes or threatens to be a real and present danger to the HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 health, safety, or welfare of the life or property of other tenants or persons on the premises. I. Some landlords also will terminate the lease with a 3-day notice for drug-related criminal activity by a household member, guest, or person under the tenant’s control. II. In the case of a three (3)-day termination, the THDA will follow the same protocol as the section on Termination of Tenancy for Lease Violations. The participant will not be eligible to relocate, the owner must evict by court order, and the THDA will continue to pay through the eviction proceedings, unless there is a separate cause for the THDA to terminate. III. In some cases, the THDA will also initiate a termination of assistance for any violent criminal activity. IV. If the participant is evicted by court order, then the participant’s assistance is terminated, they will be given the regular time period to appeal the termination, but the THDA will be unable to continue the HAP Contract or payment at the current unit due to the lease termination. A. If the family appeals, they will be issued a voucher to relocate through the hearing period. (xxiv) The family engages in or threatens any type of threatening, abusive, or violent behavior toward the THDA’s personnel. Threatening, abusive, or violent behavior towards the THDA’s personnel includes verbal as well as physical abuse, violence, or threat of violence. Use of expletives that are generally considered insulting, racial epithets, or other language, written or oral, which is customarily used to insult or intimidate may be cause for denial of assistance; (xxv) The family or guest participates in, is arrested, or is convicted of certain criminal activities. See next section on Termination for Criminal Activity; or (xxvi) Failure to secure housing before the expiration of the search voucher. (b) Termination for Criminal Activity. (24 C.F.R. 982.553). In order to preserve the integrity of the program and the welfare of the community where a family resides, a family will be terminated from the program if a household member or a guest of the family has engaged in certain criminal activities. 1. Mandatory Terminations. A family must be terminated when: (i) A family includes a household member that is subject to a lifetime registration requirement under a state sex offender registration program since such individuals are always prohibited from receiving Section 8 rental assistance. (ii) A family includes a household member who has ever been convicted of a drug-related criminal activity involving the manufacture or production of methamphetamine on the premises of federally assisted housing. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 2. Other Terminations for Criminal Activity. HUD regulations allow the THDA local discretion in establishing additional grounds for termination when the THDA determines that any household member is currently engaged in certain criminal activities. (i) Termination of assistance will result if the THDA receives information that shows there is a record of drug-related criminal activity, severe alcohol abuse, violent criminal activity or other criminal activity that is a threat to the health and safety of the neighborhood if: (I) Any household member has been convicted of a felony drug-related, alcohol-related, violent criminal activity or other criminal activity; (II) Any household member has been convicted of two (2) or more misdemeanor drug-related, alcohol-related, violent criminal activity, or other criminal activity; (III) Any household member has one or more convictions for a felony sex offense in the past ten (10) years or any conviction for a felony or misdemeanor sex offense involving a minor; (IV) Any household member, guest, or other person under the participant’s control, with their knowledge, or within their supervision, participates in or is convicted of a drug-related or violent criminal activity that allegedly occurred in the immediate vicinity of the assisted unit at any time during the family’s program participation. This would also be a serious lease violation; or (V) Any household member participates in criminal activity that is considered by a preponderance of the evidence to present a threat to the health and safety of the THDA’s employees, including but not limited to, illegal weapon possession, verbal threats, physical threats, or assault of a neighbor, owner, or a THDA employee; but (VI) If an allegation of or an arrest for a criminal act, or any of the above acts, has not resulted in a conviction, then the allegation or arrest is not sufficient in and of itself to establish by a preponderance of the evidence that the act was committed, and therefore cannot support a termination. In such cases, there must be other corroborative proof, which establishes by a preponderance of the evidence that the criminal act occurred. Such other corroborative proof should be such proof that a reasonable person would rely on and may include, but is not limited to arrests, police reports, incident reports, convictions for a lesser offense, or any other evidence that a reasonable person would rely on. (ii) Termination of Assistance may be waived if one of the following conditions is met: (I) The criminal activity is drug-related and involves the use or possession for personal use of a controlled substance and the household member who engaged in the drug-related activity demonstrates successful completion of a supervised drug or alcohol rehabilitation program approved by the THDA; HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 I. A supervised drug or alcohol rehabilitation program does not include Alcoholics Anonymous, Narcotics Anonymous or other self-help treatment programs. II. The family member must provide verification of the completion of a drug or alcohol rehabilitation program. III. Termination of assistance may not be waived when the drug- related criminal activity involves the illegal manufacture, sale, distribution or the possession with intent to manufacture, sell, or distribute a controlled substance. (II) The circumstances leading to eviction no longer exist (e.g. the criminal household member has died, is imprisoned, or is removed from the household). 3. Definitions. (i) Criminal Conviction. A criminal conviction occurs when on the date of final judgment, for felony or misdemeanor offenses, a verdict or finding of guilty, a plea of guilty, or a plea of nolo contendre is entered and does not include a final judgment that has been expunged by pardon, reversed, set aside or otherwise rendered nugatory. (I) Pre-trial Diversion. A judgment of pre-trial diversion will be treated as a judgment that is rendered nugatory. (II) Post-trial Diversion. Families that include a member with a criminal disposition of post-trial diversion following a criminal conviction are not eligible to receive assistance until the terms of diversion are met; record expunged; or the family becomes eligible otherwise. (ii) Drug-Related Criminal Activity. The illegal manufacture, sale, distribution, use, or the possession with intent to manufacture, sell or distribute or use a controlled substance, as defined in the Controlled Substance Act. (iii) Violent Criminal Activity. Any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force against the person or property of another. (iv) Alcohol-Related Criminal Activity. Any pattern of abuse of alcohol by a household member that may interfere with the health, safety or right to peaceful enjoyment of persons residing in the immediate vicinity of the applicant household. (v) Sex Offense. Any act defined in Tennessee Code Annotated § 40-39-202. (vi) Other Criminal Activity. Any criminal activity that is determined by the THDA’s staff to threaten the health, safety, or right to peaceful enjoyment of persons residing in the immediate vicinity of the household. 4. Screening for Criminal Activity after Admission. The head of household, spouse, or co-head completes a Personal Declaration each year that includes a certification regarding criminal activity of every adult household member. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (i) The THDA will screen the Personal Declaration each year for information regarding criminal activity. (ii) Additionally, the THDA also may receive information from other sources regarding a participant’s criminal history, such as newspaper or television reports, landlord lease violation notices or other information provided by the landlord, complaints from neighbors, etc. (iii) If the THDA discovers that a criminal act has occurred through any source that the THDA determines legitimate, the family will be terminated for criminal activity in accordance with this Plan. (iv) If the THDA receives information about criminal activity by a household member and needs additional information to verify the record, the THDA will use legitimate sources of information concerning a person’s criminal record, such as police reports from local agencies or copies of police reports provided by the property owner/manager. (v) The THDA will conduct a criminal background check after admission only when other legitimate sources or methods of verification are unavailable. (vi) The THDA may require the family member to provide documents also. If the family member fails to cooperate, it may be grounds for an additional termination cause (e.g. failure to supply information requested by the THDA in a timely manner.) (c) Termination of Assistance for Non-program Violations-End Participation. Other causes of termination of assistance, which are not the result of a program violation, will not result in a three (3)-year penalty from program participation. 1. Voluntary Withdrawal. A family that wishes to voluntarily withdraw and end their participation in the HCV program must do so in writing to the local THDA office. (i) The family will not be removed from the program until the THDA receives the notice in writing. (ii) Since the THDA must allow the owner a thirty-day (30) notice of termination of the HAP Contract, the THDA will not end the family’s participation until at least 30 days from their written request. (iii) If the family moves out of the assisted unit without written notice, they will be considered in violation of the Family Obligations and will then be subject to the three (3)-year prohibition on readmission to the program if the family reapplies. (iv) If a family wants to voluntarily withdraw during an initial lease term and remain in good standing and not be subject to the 3-year prohibition on readmission to the program due to a violation of the family obligations, they must secure a mutual lease termination with the owner. 2. There is no member of the household age eighteen (18) or older who can serve as head of household. 3. Declaration of citizenship or eligible immigration status is not submitted by specified date, or evidence is submitted but Department of Homeland Security HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 primary and secondary verification does not verify eligible immigrant status, and one of the following conditions apply: (i) The family does not pursue Homeland Security appeal or informal hearing rights; or (ii) Homeland Security appeal and hearing rights are pursued, but final appeal or decisions are decided against the family member. 4. The family is under contract and one hundred eighty (180) days have elapsed since the last housing assistance payment was made (“zero HAP” period ends). (d) Termination of Assistance Requirements for the Written Notice and Notice Period. 1. For all terminations of assistance, the participant family is given a written 30-day notice of intent to terminate the rental assistance, except in cases where the family has vacated the unit without notice to the THDA, death of the only remaining household member, and tenant caused HQS emergency repairs. At the same time the Notice of Termination of Assistance is mailed to the tenant, a Termination of HAP Contract notice is mailed to the owner to ensure proper notice is given. (i) The Termination of Assistance notice states the following: (I) The specific reason(s) for the termination (the act or failure to act), including who did what, where, and when; (II) The effective date of the termination; (III) The authorities the termination is based on, including citations from the CFRs and this Plan; (IV) The family’s right to request an informal review or hearing when applicable; and (V) The family’s responsibility to pay the rent in full if they remain in the unit. (ii) A copy of the notice is filed in the tenant’s file. (iii) The termination notice will be sent by regular United States Postal Service mail delivery to the last known address of the client. Delivery of the notice by mail is complete upon deposit in a mailbox or upon posting. If the participant requests proof of delivery, the delivery may be established prima facie by affidavit or certificate of service of mailing by the staff person who mailed the notice. (I) Mail Policy. Notices are served by placing the notice in the U.S. mail via first class mail to the address the THDA has been provided by the participant. (II) The participant shall bear the burden of proof where it is alleged that the address to which the THDA mailed the notice was not the proper address, or where the participant argues that the notice was not received due to circumstances beyond the participant’s control. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (III) Sufficient proof shall include, but not be limited to, an affidavit, sworn and notarized, from the postmaster for the local post office responsible for delivering the mail to the participant’s address that there have been problems with delivery that might have caused the notice to not be properly delivered. 2. Request for Hearing. If the THDA receives a timely request for hearing, the termination action is placed on hold until the appeals process is complete. In this case, the owner is sent a Termination of HAP Contract Hold Notice informing them that the termination action is on hold during the appeals process and payments will continue. At the conclusion of the appeals process, if the termination action is upheld, the owner will be sent a Termination of HAP Contract with a final contract and payment end date. 3. Death of the Only Remaining Household Member. In the case of the death of the only remaining household member, the HAP contract will terminate automatically upon the death of a single member household. (i) The THDA is required to comply with the administrative processes related to termination of HAP payments to the landlord during the month in which the death occurred. For example, a single household member expires on June 5, and then the contract should terminate on June 30. This policy also applies to households with a live-in aide. 4. Move without Notice or HQS Emergency Repairs. For move without notice and outstanding HQS emergency repairs, the termination is effective at the end of the current month. (i) In the case of a move without notice, if the THDA has cause to believe the owner failed to properly notify the agency of the move in a timely manner, the THDA may retroactively terminate the assistance to the end of the month when the move-out occurred. (ii) If the family moves without notice and requests a timely hearing, the family will be issued a voucher during the appeals period to ensure the assistance continues through the appeals process. (iii) If the family is terminated for not completing HQS emergency repairs and a hearing is requested timely, the THDA will restart the payment if the family notifies the THDA that repairs are complete and the unit passes HQS during the appeals process. (3) Termination of HAP Contract. The Housing Assistance Payments (HAP) Contract may end automatically, the THDA may initiate the termination, or the owner may initiate the termination. Termination of the Housing Assistance Payment Contract means no further subsidy payments are made for a particular unit on the participant’s behalf and no further payments are made to an owner. It does not necessarily mean the tenant’s eligibility for rental assistance is terminated. (a) Automatic Termination of HAP Contract. The following situations warrant the automatic termination of HAP Contract. 1. Moves without notice. If a family moves without notice to the THDA or the owner, the contract is automatically terminated at the end of the current month. The family has violated both the lease and the family obligations. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (i) The owner may keep the HAP for the month in which the tenant moved out. (I) However, if the THDA finds that the owner failed to properly notify the agency of the move in a timely manner, the HAP Contract may retroactively terminate to the end of the month when the move-out occurred. In this case, the THDA will deduct the overpayment if the owner has other HAP Contracts with the THDA or will request reimbursement from the owner if there are no other HAP Contracts. (ii) The family may not be eligible for future assistance under the program due to the violation of the family obligations. 2. Moves with notice. If a family gives a written notice to vacate to the THDA and the owner, and they are eligible to relocate at that time, a Termination of HAP Contract will be prepared and mailed to the tenant and owner. (i) HAP will be paid to the owner through the effective date of the notice. (ii) Tenants who plan to relocate with continued assistance are encouraged not to give notice until they have located new housing. (iii) If the tenant changes their mind after the notice to vacate is given, and both parties agree to rescind the notice to vacate, the tenant must provide the THDA with documentation that both parties have rescinded the notice. (I) If the lease termination, or vacate notice end date, has not passed and the client has not signed a lease for a new unit, the family must sign a Rescission of the Mutual Lease Termination with the landlord no later than the day before the lease termination is effective, and this notice must be sent to the THDA. I. A retroactive payment will be made when the paperwork is received. II. The THDA is not responsible for late fees associated with a late payment due to processing the rescission. (II) If the lease termination, vacate notice end date, has passed, but the client has not signed a lease for a new unit, the THDA will work with the tenant to execute a new lease and HAP Contract for the current unit. The tenant is responsible for the full rent until all necessary paperwork is processed. (III) If the family has signed a lease at a new unit or the THDA has executed a HAP Contract for a new unit, the family is not eligible to change their mind and stay in place, unless the new landlord is willing to terminate the lease agreement and HAP Contract without penalty. 3. Lease Termination at the End of a Period. When the lease automatically expires or the owner terminates the lease at the end of a period and the owner does not renew the lease or allow the lease to roll over to a month-to-month periodic tenancy, the HAP Contract automatically terminates. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 (i) The HAP stops on the lease termination date unless the tenant decides to “holdover” past the vacate date and proceed to court for an eviction decision. (ii) If the owner initiates a court action, the THDA will reinstate HAP and pay through the court eviction date. 4. Court-Ordered Eviction. The owner seeks to terminate and tenancy and evict the family from the unit for cause. (i) The owner must provide the participant and the THDA with proper notice seeking termination of the tenancy for serious or repeated lease violations in accordance with the lease terms, HAP terms, and HUD regulations. (I) The notice must state the specific actions which resulted in the violations and the authority on which they are based (lease, HAP C, state law); (II) A copy of a detainer warrant is considered sufficient notification. (ii) The owner must also provide the THDA with available evidence, such as notices to the participant from the owner regarding the violations, police reports, neighborhood complaints or other third-party information; and (iii) The owner must evict the participant through court-ordered eviction and provide the THDA with verification of the court action. The participant is ineligible to relocate or port when an owner has alleged serious or repeated lease violations. The THDA will continue to pay the HAP during the eviction proceedings. (iv) The owner may keep the HAP for the month in which the tenant was evicted from the unit by the court. 5. Mutual Lease Termination. Both the owner and tenant agree through mutual agreement to terminate the lease after the initial lease term. The HAP Contract terminates the same date as the lease termination date. The HAP payment continues only through the effective date of the mutual lease termination, the date agreed to by the family and the owner. 6. Death of Head of Household. The HAP Contract terminates automatically upon the death of a single member household. (i) Termination of Housing Assistance Payments to the landlord/owner will take place during the month in which the death occurred. (I) For example, if a single household member expires on June 5th, the HAP contract should terminate on June 30. This policy also applies to households with a live-in aide. (II) If the THDA finds that the death occurred in a prior month and the owner was aware of the death and failed to properly notify the agency of the death in a timely manner, the HAP Contract may retroactively terminate to 30 days from the date of death. In this case, the THDA will deduct the overpayment if the owner has other HAP Contracts with the THDA or request reimbursement from the owner if there are no other HAP Contracts. HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 7. Burn-Out. When a unit burns to the degree that it is uninhabitable, the HAP Contract is terminated. (i) Due to the HQS regulations, which prohibit a HAP payment for a unit that fails to meet HQS standards, the HAP Contract is terminated and HAP payments end the day following the fire, regardless of the date the fire is reported to the THDA. 8. Zero HAP for 180 Days. When a family’s income increases so that their Total Tenant Payment is equal to or greater than the gross rent, and there is no Housing Assistance Payment, the situation is called “zero HAP.” (i) The family is notified of their right to remain on the Program at zero assistance for 180 days. (I) Regular recertifications and inspections are conducted at the normal annual recertification time. (II) If the household income changes, an interim recertification is conducted and notices sent to the family and the owner. If the change in income results in a Housing Assistance Payment again, the family is no longer “zero HAP.” (III) If the family chooses to move to another unit during this period, a HAP Contract may be executed for a zero housing assistance payment. The unit must be the appropriate size and pass Housing Quality Standards. (ii) During the “zero HAP” period, an owner may request a rent increase at the lease anniversary date. If the increased rent results in a HAP payment, the “zero HAP” period ends. (iii) The family remains on the program for 180 days from the effective date of zero assistance. If the family remains at zero assistance for 180 days, a notice of termination of assistance is sent to the family 30 days prior to the end of the zero HAP period, or on day 150. The family must reapply if their circumstances change at a later date. (I) The owner should be sent a Termination of HAP Contract 30 days prior to the end of the zero HAP period, or on day 150 of the zero HAP period. 9. Physical/Verbal Abuse of THDA Staff. (i) If a landlord/owner engages in threatening verbal or physical abusive behavior toward the THDA’s personnel, the HAP Contract may be terminated. (ii) If an applicant or participant engages in threatening verbal or physical abusive behavior toward the THDA’s personnel, the family’s assistance, and thus the HAP Contract, may be terminated. (iii) Abusive or violent behavior towards the THDA’s personnel includes verbal as well as physical abuse or violence. Use of expletives that are generally considered insulting, racial epithets, or other language, written or oral, HOUSING CHOICE VOUCHER PROGRAM CHAPTER 0770-01-05 which is customarily used to insult or intimidate may be cause for termination or denial of assistance. (b) Owner Termination of HAP Contract. The owner may terminate the HAP Contract when he wishes to remove the unit from the program, except during the initial term of the Contract. Proper procedures must be followed. (c) The THDA Termination of HAP Contract. 1. A Contract may be terminated by the THDA for one of more of the following reasons: (i) The owner refuses to bring the unit into compliance with Housing Quality Standards (HQS); (ii) The owner is out of compliance with other terms of the Contract; (iii) The owner has committed fraud; (iv) The THDA bans the owner from participation in the HCV Program; (v) The THDA terminates assistance to the family; or (vi) The family is required to move from the unit because of overcrowding or under-occupied conditions. 2. In all cases, a 30-day notice must be given to the tenant and owner. (d) Notices Required for Termination of HAP Contract. A Notice of Termination of Housing Assistance Payment Contract is sent to the owner any time subsidy for a particular unit terminates. 1. A minimum of 30 days’ notice will be given when a HAP Contract is terminated even when the tenant notifies the THDA of their desire no longer to receive rental assistance except in the following cases: (i) HQS abatement or burn-out (see HQS chapter); (ii) The tenant moves without notice; and (iii) Mutual lease termination. 2. The THDA will mail a Notice of Termination of HAP Contract that states the following: (i) The reason(s) for the termination; (ii) The effective date of the termination; and (iii) The family’s responsibility to pay the full rent if they remain in the unit. 3. If assistance is also terminated, the tenant is sent a termination letter. A copy of the letter is placed in the tenant file.