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GlossaryAffordable housing

HAP Contract

A HAP contract is the agreement under which a housing agency or HUD pays part of a resident's rent directly to the owner each month.

Also called: Housing Assistance Payments contract, HAP agreement, housing assistance payment contract, HAP

In Practice

HAP stands for Housing Assistance Payments. A HAP contract is the legal agreement between an owner and a public housing agency, or in some programs HUD itself, under which the agency pays a portion of the rent for eligible households. The resident pays the rest.

In the Housing Choice Voucher program, the owner signs a HAP contract for each voucher household after the unit passes inspection and the rent is approved. The lease and a tenancy addendum sit alongside it. In project-based programs, the contract covers specific units in the building for a set term. Either way, the agency's payment is due monthly, and you track it separately from the resident's portion.

Example: the agency approves a rent of $1,200 and the resident's share is $400. The agency pays $800 each month by direct deposit, and the resident pays $400. If the resident's income changes, the agency issues a new notice and you update the ledger on the effective date.

The common mistakes are charging the resident for the agency's share, missing the tenancy addendum, accepting rent changes without agency approval, and not tracking rent changes through recertification. A HAP contract also carries duties such as keeping the unit up to program standards. Read the contract and your agency's rules, and ask your compliance contact or counsel before acting on a dispute.

HAP Contract: Common Questions

Who signs a HAP contract?

The owner and the housing agency sign for voucher units. In some project-based programs, the contract is between the owner and HUD.

Who pays rent under a HAP contract?

The agency pays its share to the owner each month, and the resident pays the rest. Charging the resident for the agency's share is generally not allowed.

Can a landlord raise rent under a HAP contract?

Rent changes usually need agency approval and follow program rules, so check the contract and the agency's process.

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