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I <br />B. Establishment of Lower hlitial Contract Rent. <br />1 Excessive Rent. Where the initial Contract Rent for any unit would otherwise <br />exceed the amount authorized in accordance with HUD regulations and require- <br />ments, the PHA shall establish a lower initial Contract Rent in accordance with <br />such regulations and requirements. Such lower rent shall be established at the <br />amount determined by HUD, <br />2. Changes in the Work. <br />(a) The Owner must obtain prior PHA approval for any change from the <br />work specified in Exhibit B which would alter the design or quality of <br />the rehabilitation or constmction. The PHA is not required to approve <br />any changes requested by the Owner. PHA approval of any change may <br />be conditioned on establishment of lower initial Contract Rents at the <br />amounts determined by HUD, <br />(b) If the Owner makes any changes in the work without prior PHA ap- <br />proval, the PHA may establish lower initial Contract Rents at the <br />amounts determined by HUD,. <br />3, Insured or coinsured Morteaee. When a HUD insured or a HUD coinsured <br />multifamily mortgage is used, the PHA shall establish lower initial Contract <br />Rent, in the amounts determined by HUD to reflect any reduction in the amount <br />necessary to amortize the insured or coinsured mortgage, <br />C List of Vacancies, At least sixty days prior to the scheduled completion of the work <br />described in Exhibit B (where completion in stages is provided, sixty days prior to <br />completion of each stage), the Owner shall notify the PHA in writing of any unit(s) <br />expected to be vacant at the anticipated effective date of the Contract.. The PHA shall <br />refer to the Owner appropriate-sized families from the PHA waiting list. When the <br />Contract is executed, the Owner shall notify the PHA which units are vacant. <br />D, Prohibition Against Displacement of Residential Tenants from Assisted Units. The <br />Owner agrees that work on any unit to be subsidized with assistance under this Contract <br />shall not result in the displacement of residential tenants from the units to be subsidized.. <br />If a residential tenant is displaced through a waiver of <br />Page 5 of 15 form HUD•52531•A (4/90) <br />reF Handbook 7420 8 <br />