Rules & Regulations of the State of Tennessee
Title 0770 - Housing Development
Chapter 0770-03-02 - Development and Operation
Section 0770-03-02-.11 - REDUCTION OF NUMBER OF UNITS COVERED BY CONTRACT

(a) Owners may not lease any of the assisted units under Contract to ineligible families. Failure on the part of Owner to comply with prohibition is a violation of the Contract and grounds for all available legal remedies, including suspension or debarment from Agency HUD programs and reduction of the number of units under the Contract, as set forth in Rule 0770-3-2-.11(2). Once the Agency has determined that a violation exists, the Agency will notify HUD of its determination and the suggested remedy(ies).

(a) If, at any time beginning six months after the effective date of the Contract, the Owner fails for a continuous period of six months to have at least 90 percent of the assisted units leased or available for leasing by Eligible Families, because families occupying units who were initially eligible have become ineligible, the Agency may, on at least 30 days' notice, reduce the number of units covered by the Contract. The Agency may reduce the number of units to the number of units actually leased or available for leasing plus 10 percent (rounded up). If the Owner has only one unit under Contract and if one year has elapsed since the date of the last housing assistance payment, the Contract may be terminated with the consent of the Owner.

(a) Tennessee Housing Development Agency will agree to an amendment of the Contract, to provide for subsequent restoration of any reduction made pursuant to Rule 0770-3-2-.11(2):