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HUD-52537
March 1976

(3) The Owner has violated or failed to comply with any provision of or obligation under the Regulatory Agreement.

b. Upon a determination by the Government that the Owner is in non-compliance under the Contract, the Government shall notify the Owner of (1) the nature of the non-compliance, (2) the actions required to be taken and the remedies to be applied on account of the non-compliance (including actions by the Owner to cure the noncompliance and, where appropriate, abatement of housing assistance payments in whole or in part and recovery of overpayments), and (3) the time within which the Owner shall respond with a showing that he has taken all the actions required of him. If the Owner fails to respond or take action to the satisfaction of the Government, the Government shall have the right to terminate this Contract in whole or in part or to take other corrective action to achieve compliance.

c.

The availability of any remedy under this Contract shall not preclude the exercise of 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. Failure to exercise any right or remedy shall not constitute a waiver of the right to exercise that or any other right or remedy at any time.

2.8 Financial Default.

In the event of a financial default under the mortgage, the Government reserves the right to assign assistance payments directly to a lender, including the Government as lender, in satisfaction of any obligations under the mortgage.

2.9 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 between the Department of Housing and Urban Development field office and the Owner may be submitted by the Owner to the Secretary of Housing and Urban Development. The decision of the Secretary or duly authorized representative for the resolution of such disputes shall be final and conclusive, unless determined by a court of competent jurisdiction to have been fraudulant, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any proceeding under this Section, the Owner shall be afforded an opportunity to be heard and to offer evidence in support of his position.

b. This Section does not preclude consideration of questions of law in connection with the decision rendered under paragraph a 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.

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HUD-52537
March 1976

2.10 Interest of Members, Officers, or Employees of PHA, Members of Local Governing 3ody or Other Public Officials.

No member, officer, or employee of the PHA, no member of the governing body of the locality (city and county) in which the project is situated, no member of the governing body of the locality in which the PHA was activated, and no other public official of such locality or localities who exercises any functions or responsibilities with respect to the project, 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 therefrom.

2.11 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.

2.12 Sales or Foreclosures.

In the event of foreclosure, including foreclosure by the Government, or in the event of any assignment or sale agreed to by the Government or made to the Government, assistance payments shall continue in accordance with the terms of the Contract.

WARNING: 18 U.S.C. 1001 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.

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FROM: Joseph F. Gelletich, Assistant General Counsel
Assisted Housing Division, GCH

SUBJECT: Amy Jo Manor

Mt. Morris Township, Michigan

розек

This is in response to your February 26, 1986 memorandum in
which you asked whether it would be legally possible to use
excess section 8 payments to assist additional units in the
captioned project. We understand from a telephone conversation
with Peggy Cockrell of your staff that currently $210,150 in Loan
Management Set Aside contract authority is provided for 91 units,
while only $144,000 is actually needed for the 91 units and an
additional 25 units could be assisted with the excess.

Provided that the additional units would be within the
limits established by Congress, and the Owner and HUD agree to
the contract modification through an amendment to the current HAP
contract, the change would be legally acceptable.

4/15

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