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<br />BAAHA Scope of Services Contract Year 2025/26 | P a g e 9 <br />Program Default Management <br /> <br />BAAHA monitoring activities will be focused on assessing if any restriction covenant violations <br />have been incurred by the PHAP owners and/or PDALP borrowers. <br /> <br />Violations will usually fall within a Financial or Technical violation. <br /> <br />Financial Violations– are incurred by PHAP owners and/or PDALP borrowers who have: <br /> Not paid their financial obligation on time and/or have ceased making payments. The <br />Lender should notify the City regarding late and non-payments by a PHAP borrower <br />and/or PDALP borrowers through a Notice of Default. <br /> Secured a loan that is subordinate to 1st loan. This includes lines of credit and 2nd <br />mortgages (outside of the Pleasanton PDALP). <br /> Over-financed their property by securing a loan(s) that is(are) over the deed restricted <br />value of the property. <br /> Incurred judgments and liens voluntarily or involuntarily placed against the property. <br /> <br />Technical Violations – can occur when a PHAP homeowner does not adhere to the provisions <br />outlined in their Resale Agreement executed at the time of purchase of the PHAP property. The <br />most common forms of technical default that BAAHA will be looking for include (and are not <br />limited to): <br /> Ineligible and non-City approved change in title, including ineligible inheritance. <br /> Rental of the property, including vacation and Airbnb rentals. <br /> Deferred maintenance and/or health and safety issues associated with the property. <br /> <br />General steps BAAHA will take to address and cure a violation will include (and not be limited to): <br /> Advise the PHAP owner of the violation. <br /> Provide details and a timeline on steps to take to cure the default. <br /> Take appropriate action to relinquish the violation, if cured <br /> Start appropriate foreclosure and default proceedings if the default is not cured. <br /> <br />Newsletter and Announcements <br /> <br />A newsletter and additional supporting notifications will be sent to PHAP owners. A newsletter <br />will be supplied to the PHAP Owners at least annually. The newsletter will: <br /> Inform owners regarding important updates and developments (if any) pertaining to their <br />BMR ownership. <br /> Remind owners regarding their responsibilities, requirements, and restrictions associated <br />with PAHP ownership. <br /> <br />Distribution of special notices will also be conducted on an as needed basis. These notifications <br />will address announcements regarding commonly encountered issues. <br /> <br />PHAP Participant Workshop <br /> <br />BAAHA will conduct an annual two-hour public workshop for PHAP owners. This workshop <br />will be focused on reviewing key guidelines and restrictions of PHAP ownership with an <br />emphasis on navigating through activities such as refinances, title transfers, and resales. <br />BAAHA will provide a PHAP ownership manual to the attendants of this workshop, which will <br />also be made available to all PHAP owners. <br />Docusign Envelope ID: 214AA125-B9A3-49B6-B526-E3722E6242D7Docusign Envelope ID: 5B4696E6-28B9-475F-84C2-EBE17D94B7CC