13-1. HUD’S REFUSAL TO RENEW A SECTION 8 HAP CONTRACT

Under Sections 516 and 524(a)(2) of MAHRA:

• A. HUD may refuse to renew a Section 8 HAP contract if it is determined that:

  1. The owner or purchaser of the project has engaged in material adverse financial or managerial actions or omissions regarding such project;

  2. The owner or purchaser of the project has engaged in material adverse financial or managerial actions or omissions regarding other projects of such owner or purchaser that are federally assisted or financed with a loan from, or mortgage insured or guaranteed by, an agency of the Federal Government;

  3. The owner or purchaser of the project materially failed to follow the procedures and requirements of MAHRA after receipt of notice and opportunity to cure.

• B. Material adverse financial or managerial actions or omissions include:

  1. Materially violating any Federal, State, or local law or regulation regarding the project, or any other federally assisted project, after receipt of notice and an opportunity to cure, including, but not limited to, failure to adhere to a judicial or administrative order to comply with a requirement under a nondiscrimination or equal opportunity authority;

  2. Materially breaching a Section 8 HAP contract for assistance under Section 8 of the United States Housing Act of 1937, as amended, after receipt of notice and an opportunity to cure;

  3. Materially violating any applicable regulatory or other business agreement with the Secretary or a participating administrative entity, after receipt of notice and an opportunity to cure, including, but not limited to, failure to implement a provision of a voluntary compliance agreement to address a finding that the project violated a nondiscrimination or equal opportunity authority or failure to implement a provision of a conciliation agreement to address a charge of a violation of the Fair Housing Act;

  4. Repeatedly and materially violating any Federal, State, or local law or regulation regarding the project or any other federally assisted project;

  5. Repeatedly and materially breaching a Section 8 HAP contract for assistance under Section 8 of the United States Housing Act of 1937, as amended;

Chapter Thirteen – Published March 2023

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6. Repeatedly and materially violating any applicable regulatory or other agreement with the Secretary or a participating administrative entity;

7. Repeatedly failing to make mortgage payments at times when project income was sufficient to maintain and operate the project;

8. Materially failing to maintain the project according to The Uniform Physical Condition Standards (UPCS) of 24 CFR Part 5 Subpart G and 24 CFR Part 200 Subpart P after receipt of notice and a reasonable opportunity to cure; or

9. Committing any actions or omissions that would warrant suspension or debarment by the Secretary.