What Is HAP Contract
A Housing Assistance Payments contract is the legal agreement between a Public Housing Authority and a landlord that establishes the terms of the Section 8 subsidy for a specific rental unit. The PHA commits to paying the landlord a fixed monthly amount on behalf of eligible tenants, while the landlord agrees to maintain the property in compliance with Housing Quality Standards and rent at or below the Fair Market Rent for the area.
Key Terms of HAP Contract
- Subsidy Amount: The monthly payment the PHA makes directly to the landlord. This amount is calculated based on the Fair Market Rent for the unit's bedroom size and location, minus the tenant's contribution (typically 30% of adjusted income).
- Lease Term: HAP contracts are usually 12 months, renewable annually. Both the PHA and landlord must agree to renewal.
- HQS Compliance: The landlord must pass an initial NSPIRE inspection before the contract begins and maintain compliance throughout the contract term. Failure results in the PHA withholding payments until repairs are completed.
- Rent Limits: The unit rent cannot exceed the FMR established by HUD for that area and bedroom size. The PHA will not subsidize amounts above this limit.
- Tenant Protections: The HAP contract requires the underlying lease to include all HUD-mandated protections. Landlords cannot impose additional restrictions on Section 8 tenants beyond what applies to other residents.
- Termination Provisions: Either party can terminate with 30 days' notice (except for cause), but the PHA can terminate immediately if the unit fails inspection or the landlord violates program rules.
Landlord and Tenant Obligations
- Landlord Must: Maintain the unit to HQS standards, make repairs within specified timeframes, provide essential services (heat, water, electricity), not discriminate, and accept tenants regardless of source of income.
- Tenant Must: Pay their portion of rent on time, maintain the unit in good condition, report repairs needed to the landlord, and notify the PHA of changes in household composition or income.
- PHA Must: Pay the landlord within specified timeframes (usually within 2 business days of receipt of rent), conduct annual inspections, and process payments for the contract term.
Common Questions
- What happens if my unit fails inspection? The PHA stops payments until you complete repairs and pass re-inspection. For non-life-threatening issues, you typically have 14 days. For serious health and safety violations, HUD allows 24 hours.
- Can I raise rent while under HAP contract? Only if the new rent doesn't exceed the FMR and you've submitted a lease modification to the PHA for approval. The PHA must approve any rent increase before it takes effect.
- What's the difference between HAP contract and a regular lease? The HAP contract is between you and the PHA. The lease is between you and the tenant. Both must align, but they're separate documents with different requirements.