The hearing examiner may not deny or dismiss an appeal unless one of the following occurs:

1. (1) The appeal is not received by the local agency within the time limit in § 1111.4 (relating to time for appeal of a local agency decision).
2. (2) The appeal is withdrawn in writing by the applicant, participant or authorized representative.
3. (3) The applicant, participant or authorized representative fails, without good cause, to appear at the scheduled hearing.