Rights of Owner if Agency defaults under Agreement or Contract. The ACC, the Agreement and the Contract will provide that, in the event of failure of the Agency to comply with the Agree- ment or Contract with the owner, the owner will have the right, if he/she is not in default, to demand that HUD in- vestigate. HUD will first give the Agen- cy a reasonable opportunity to take corrective action. If HUD determines that a substantial default exists, HUD will assume the Agency’s rights and obligations under the Agreement or Contract and meet the obligations of the Agency under the Agreement or Contract including the obligation to enter into the Contract.
