Housing Assistance Payments Contract U.S. Of Housing .

Housing Assistance Payments Contract(HAP Contract)Section 8 Tenant-Based AssistanceHousing Choice Voucher ProgramU.S. Department of Housingand Urban DevelopmentOffice of Public and Indian HousingPart B of HAP Contract: Body of Contract1.Purposea. This is a HAP contract between the PHA and the owner.The HAP contract is entered to provide assistance forthe family under the Section 8 voucher program (seeHUD program regulations at 24 Code of FederalRegulations Part 982).b. The HAP contract only applies to the household andcontract unit specified in Part A of the HAP contract.c. During the HAP contract term, the PHA will payhousing assistance payments to the owner in accordancewith the HAP contract.d. The family will reside in the contract unit withassistance under the Section 8 voucher program. Thehousing assistance payments by the PHA assist thetenant to lease the contract unit from the owner foroccupancy by the family.2.e.f.g.Lease of Contract Unita. The owner has leased the contract unit to the tenant foroccupancy by the family with assistance under the Section 8 voucher program.b. The PHA has approved leasing of the unit in accordancewith requirements of the Section 8 voucher program.c. The lease for the contract unit must include word-forword all provisions of the tenancy addendum requiredby HUD (Part C of the HAP contract).d. The owner certifies that:(1)The owner and the tenant have entered into alease of the contract unit that includes allprovisions of the tenancy addendum.(2)The lease is in a standard form that is used inthe locality by the owner and that is generallyused for other unassisted tenants in thepremises.(3)The lease is consistent with State and local law.e. The owner is responsible for screening the family’sbehavior or suitability for tenancy. The PHA is notresponsible for such screening. The PHA has no liabilityor responsibility to the owner or other persons for thefamily’s behavior or the family’s conduct in tenancy.3.d.HAP contract. The PHA may not exercise suchremedies against the owner because of an HQS breachfor which the family is responsible, and that is notcaused by the owner.The PHA shall not make any housing assistance payments if the contract unit does not meet the HQS, unlessthe owner corrects the defect within the period specifiedby the PHA and the PHA verifies the correction. If adefect is life threatening, the owner must correct thedefect within no more than 24 hours. For other defects,the owner must correct the defect within the periodspecified by the PHA.The PHA may inspect the contract unit and premises atsuch times as the PHA determines necessary, to ensurethat the unit is in accordance with the HQS.The PHA must notify the owner of any HQS defectsshown by the inspection.The owner must provide all housing services as agreedto in the lease.4.a. Relation to lease term. The term of the HAP contractbegins on the first day of the initial term of the lease,and terminates on the last day of the term of the lease(including the initial lease term and any extensions).b. When HAP contract terminates.(1) The HAP contract terminates automatically if thelease is terminated by the owner or the tenant.(2) The PHA may terminate program assistance forthe family for any grounds authorized inaccordance with HUD requirements. If the PHAterminates program assistance for the family,the HAP contract terminates automatically.(3) If the family moves from the contract unit, theHAP contract terminates automatically.(4) The HAP contract terminates automatically 180calendar days after the last housing assistancepayment to the owner.(5) The PHA may terminate the HAP contract if thePHA determines, in accordance with HUDrequirements, that available program funding isnot sufficient to support continued assistance forfamilies in the program.(6) The HAP contract terminates automatically uponthe death of a single member household,including single member households with a livein aide.(7) The PHA may terminate the HAP contract if thePHA determines that the contract unit does notprovide adequate space in accordance with theHQS because of an increase in family size or achange in family composition.(8) If the family breaks up, the PHA may terminatethe HAP contract, or may continue housingassistance payments on behalf of familymembers who remain in the contract unit.Maintenance, Utilities, and Other Servicesa. The owner must maintain the contract unit and premisesin accordance with the housing quality standards (HQS).b. The owner must provide all utilities needed to complywith the HQS.c. If the owner does not maintain the contract unit inaccordance with the HQS, or fails to provide all utilitiesneeded to comply with the HQS, the PHA may exerciseany available remedies. PHA remedies for such breachinclude recovery of overpayments, suspension ofhousing assistance payments, abatement or otherreduction of housing assistance payments, terminationof housing assistance payments, and termination of thePrevious editions are obsoleteTerm of HAP ContractPage 4 of 13form HUD-52641 (7/2019)

(9) The PHA may terminate the HAP contract if thePHA determines that the unit does not meet allrequirements of the HQS, or determines that theowner has otherwise breached the HAP contract.5.Provision and Payment for Utilities and Appliancesa. The lease must specify what utilities are to be providedor paid by the owner or the tenant.b. The lease must specify what appliances are to be provided or paid by the owner or the tenant.c. Part A of the HAP contract specifies what utilities andappliances are to be provided or paid by the owner orthe tenant. The lease shall be consistent with the HAPcontract.6.Rent to Owner: Reasonable Rentb.a. During the HAP contract term, the rent to owner may atno time exceed the reasonable rent for the contract unitas most recently determined or redetermined by thePHA in accordance with HUD requirements.b. The PHA must determine whether the rent to owner isreasonable in comparison to rent for other comparableunassisted units. To make this determination, the PHAmust consider:(1) The location, quality, size, unit type, and age ofthe contract unit; and(2) Any amenities, housing services, maintenanceand utilities provided and paid by the owner.c. The PHA must redetermine the reasonable rent whenrequired in accordance with HUD requirements. ThePHA may redetermine the reasonable rent at any time.d. During the HAP contract term, the rent to owner maynot exceed rent charged by the owner for comparableunassisted units in the premises. The owner must givethe PHA any information requested by the PHA on rentscharged by the owner for other units in the premises orelsewhere.7.c.d.e.PHA Payment to Ownera. When paid(1)During the term of the HAP contract, the PHAmust make monthly housing assistancepayments to the owner on behalf of the familyat the beginning of each month.(2)(3)The PHA must pay housing assistance paymentspromptly when due to the owner.If housing assistance payments are not paidpromptly when due after the first two calendarmonths of the HAP contract term, the PHA shallpay the owner penalties if all of the followingcircumstances apply: (i) Such penalties are inaccordance with generally accepted practicesand law, as applicable in the local housingmarket, governing penalties for late payment ofrent by a tenant; (ii) It is the owner’s practice tocharge such penalties for assisted and unassistedtenants; and (iii) The owner also charges suchpenalties against the tenant for late payment offamily rent to owner. However, the PHA shallnot be obligated to pay any late payment penaltyif HUD determines that late payment by thePHA is due to factors beyond the PHA’scontrol. Moreover, the PHA shall not bePrevious editions are obsoletef.obligated to pay any late payment penalty ifhousing assistance payments by the PHA aredelayed or denied as a remedy for owner breachof the HAP contract (including any of thefollowing PHA remedies: recovery ofoverpayments, suspension of housing assistancepayments, abatement or reduction of housingassistance payments, termination of housingassistance payments and termination of thecontract).(4)Housing assistance payments shall only be paidto the owner while the family is residing in thecontract unit during the term of the HAPcontract. The PHA shall not pay a housingassistance payment to the owner for any monthafter the month when the family moves out.Owner compliance with HAP contract Unless theowner has complied with all provisions of the HAPcontract, the owner does not have a right to receivehousing assistance payments under the HAP contract.Amount of PHA payment to owner(1)The amount of the monthly PHA housingassistance payment to the owner shall bedetermined by the PHA in accordance withHUD requirements for a tenancy under thevoucher program.(2)The amount of the PHA housing assistancepayment is subject to change during the HAPcontract term in accordance with HUDrequirements. The PHA must notify the familyand the owner of any changes in the amount ofthe housing assistance payment.(3)The housing assistance payment for the firstmonth of the HAP contract term shall be prorated for a partial month.Application of payment The monthly housingassistance payment shall be credited against the monthlyrent to owner for the contract unit.Limit of PHA responsibility(1)The PHA is only responsible for makinghousing assistance payments to the owner inaccordance with the HAP contract and HUDrequirements for a tenancy under the voucherprogram.(2)The PHA shall not pay any portion of the rent toowner in excess of the housing assistancepayment. The PHA shall not pay any otherclaim by the owner against the family.Overpayment to owner If the PHA determines that theowner is not entitled to the housing assistance paymentor any part of it, the PHA, in addition to other remedies,may deduct the amount of the overpayment from anyamounts due the owner (including amounts due underany other Section 8 assistance contract).8. Owner CertificationDuring the term of this contract, the owner certifies that:a. The owner is maintaining the contract unit and premisesin accordance with the HQS.b. The contract unit is leased to the tenant. The leaseincludes the tenancy addendum (Part C of the HAPcontract), and is in accordance with the HAP contractPage 5 of 13form HUD-52641 (7/2019)

c.d.e.f.g.and program requirements. The owner has provided thelease to the PHA, including any revisions of the lease.The rent to owner does not exceed rents charged by theowner for rental of comparable unassisted units in thepremises.Except for the rent to owner, the owner has not receivedand will not receive any payments or otherconsideration (from the family, the PHA, HUD, or anyother public or private source) for rental of the contractunit during the HAP contract term.The family does not own or have any interest in thecontract unit.To the best of the owner’s knowledge, the members ofthe family reside in the contract unit, and the unit is thefamily’s only residence.The owner (including a principal or other interestedparty) is not the parent, child, grandparent, grandchild,sister, or brother of any member of the family, unlessthe PHA has determined (and has notified the owner andthe family of such determination) that approving rentalof the unit, notwithstanding such relationship, wouldprovide reasonable accommodation for a familymember who is a person with disabilities.b.c.d.e.9.Prohibition of Discrimination. In accordance with applicableequal opportunity statutes, Executive Orders, and regulations:a. The owner must not discriminate against any personbecause of race, color, religion, sex, national origin, age,familial status, or disability in connection with the HAPcontract. Eligibility for HUD’s programs must be madewithout regard to actual or perceived sexual orientation,gender identity, or marital status.b. The owner must cooperate with the PHA and HUD inconducting equal opportunity compliance reviews andcomplaint investigations in connection with the HAPcontract.c. Violence Against Women Act. The owner must complywith the Violence Against Women Act, as amended,and HUD’s implementing regulation at 24 CFR part 5,Subpart L, and program regulations.f.11. PHA and HUD Access to Premises and Owner’s Recordsa. The owner must provide any information pertinent tothe HAP contract that the PHA or HUD may reasonablyrequire.b. The PHA, HUD and the Comptroller General of theUnited States shall have full and free access to thecontract unit and the premises, and to all accounts andother records of the owner that are relevant to the HAPcontract, including the right to examine or audit therecords and to make copies.c. The owner must grant such access to computerized orother electronic records, and to any computers, equipment or facilities containing such records, and mustprovide any information or assistance needed to accessthe records.10. Owner’s Breach of HAP Contracta. Any of the following actions by the owner (including aprincipal or other interested party) is a breach of theHAP contract by the owner:(1)If the owner has violated any obligation underthe HAP contract, including the owner’sobligation to maintain the unit in accordancewith the HQS.(2)If the owner has violated any obligation underany other housing assistance payments contractunder Section 8.(3)If the owner has committed fraud, bribery orany other corrupt or criminal act in connectionwith any Federal housing assistance program.(4)For projects with mortgages insured by HUD orloans made by HUD, if the owner has failed tocomply with the regulations for the applicablemortgage insurance or loan program, with themortgage or mortgage note, or with theregulatory agreement; or if the owner hascommitted fraud, bribery or any other corrupt orPrevious editions are obsoletecriminal act in connection with the mortgage orloan.(5)If the owner has engaged in any drug-relatedcriminal activity or any violent criminal activity.If the PHA determines that a breach has occurred, thePHA may exercise any of its rights and remedies underthe HAP contract, or any other available rights andremedies for such breach. The PHA shall notify theowner of such determination, including a brief statementof the reasons for the determination. The notice by thePHA to the owner may require the owner to takecorrective action, as verified or determined by the PHA,by a deadline prescribed in the notice.The PHA’s rights and remedies for owner breach of theHAP contract include recovery of overpayments,suspension of housing assistance payments, abatementor other reduction of housing assistance payments,termination of housing assistance payments, andtermination of the HAP contract.The PHA may seek and obtain additional relief byjudicial order or action, including specific performance,other injunctive relief or order for damages.Even if the family continues to live in the contract unit,the PHA may exercise any rights and remedies forowner breach of the HAP contract.The PHA’s exercise or non-exercise of any right orremedy for owner breach of the HAP contract is not awaiver of the right to exercise that or any other right orremedy at any time.12. Exclusion of Third Party Rightsa. The family is not a party to or third party beneficiary ofPart B of the HAP contract. The family may not enforceany provision of Part B, and may not exercise any rightor remedy against the owner or PHA under Part B.b. The tenant or the PHA may enforce the tenancyaddendum (Part C of the HAP contract) against theowner, and may exercise any right or remedy against theowner under the tenancy addendum.c. The PHA does not assume any responsibility for injuryto, or any liability to, any person injured as a result ofthe owner’s action or failure to act in connection withmanagement of the contract unit or the premises or withimplementation of the HAP contract, or as a result ofany other action or failure to act by the owner.d. The owner is not the agent of the PHA, and the HAPcontract does not create or affect any relationshipbetween the PHA and any lender to the owner or anysuppliers, employees, contractors or subcontractors usedPage 6 of 13form HUD-52641 (7/2019)

by the owner in connection with management of thecontract unit or the premises or with implementation ofthe HAP contract.(2)A court or administrative agency has determinedthat the owner or proposed new owner violatedthe Fair Housing Act or other Federal equalopportunity requirements.e. The HAP contract may not be assigned to a new ownerif the new owner (including a principal or otherinterested party) is the parent, child, grandparent,grandchild, sister or brother of any member of thefamily, unless the PHA has determined (and has notifiedthe family of such determination) that approving theassignment, notwithstanding such relationship, wouldprovide reasonable accommodation for a familymember who is a person with disabilities.f. The PHA may deny approval to assign the HAP contractif the owner or proposed new owner (including aprincipal or other interested party):(1)Has violated obligations under a housingassistance payments contract under Section 8;(2)Has committed fraud, bribery or any othercorrupt or criminal act in connection with anyFederal housing program;(3)Has engaged in any drug-related criminalactivity or any violent criminal activity;(4)Has a history or practice of non-compliancewith the HQS for units leased under the Section8 tenant-based programs, or non-compliancewith applicable housing standards for unitsleased with project-based Section 8 assistance orfor units leased under any other Federal housingprogram;(5)Has a history or practice of failing to terminatetenancy of tenants assisted under any Federallyassisted housing program for activity engaged inby the tenant, any member of the household, aguest or another person under the control of anymember of the household that:(a) Threatens the right to peaceful enjoymentof the premises by other residents;(b) Threatens the health or safety of otherresidents, of employees of the PHA, or ofowner employees or other persons engagedin management of the housing;(c) Threatens the health or safety of, or theright to peaceful enjoyment of theirresidents by, persons residing in theimmediate vicinity of the premises; or(d) Is drug-related criminal activity or violentcriminal activity;(6)Has a history or practice of renting units that failto meet State or local housing codes; or(7)Has not paid State or local real estate taxes,fines or assessments.g. The new owner must agree to be bound by and complywith the HAP contract. The agreement must be inwriting, and in a form acceptable to the PHA. The newowner must give the PHA a copy of the executedagreement.13. Conflict of Interesta. “Covered individual” means a person or entity who is amember of any of the following classes:(1)Any present or former member or officer of thePHA (except a PHA commissioner who is aparticipant in the program);(2)Any employee of the PHA, or any contractor,sub-contractor or agent of the PHA, whoformulates policy or who influences decisionswith respect to the program;(3)Any public official, member of a governingbody, or State or local legislator, who exercisesfunctions or responsibilities with respect to theprogram; or(4)Any member of the Congress of the UnitedStates.b. A covered individual may not have any direct or indirectinterest in the HAP contract or in any benefits orpayments under the contract (including the interest of animmediate family member of such covered individual)while such person is a covered individual or during oneyear thereafter.c. “Immediate family member” means the spouse, parent(including a stepparent), child (including a stepchild),grandparent, grandchild, sister or brother (including astepsister or stepbrother) of any covered individual.d. The owner certifies and is responsible for assuring thatno person or entity has or will have a prohibited interest,at execution of the HAP contract, or at any time duringthe HAP contract term.e. If a prohibited interest occurs, the owner shallpromptly and fully disclose such interest to the PHAand HUD.f. The conflict of interest prohibition under this sectionmay be waived by the HUD field office for good cause.g. No member of or delegate to the Congress of theUnited States or resident commissioner shall beadmitted to any share or part of the HAP contract or toany benefits which may arise from it.14. Assignment of the HAP Contracta. The owner may not assign the HAP contract to a newowner without the prior written consent of the PHA.b. If the owner requests PHA consent to assign the HAPcontract to a new owner, the owner shall supply anyinformation as required by the PHA pertinent to theproposed assignment.c. The HAP contract may not be assigned to a new ownerthat is debarred, suspended or subject to a limited denialof participation under HUD regulations (see 24 Code ofFederal Regulations Part 24).d. The HAP contract may not be assigned to a new ownerif HUD has prohibited such assignment because:(1)The Federal government has instituted anadministrative or judicial action against theowner or proposed new owner for violation ofthe Fair Housing Act or other Federal equalopportunity requirements, and such action ispending; orPrevious editions are obsolete15. Reserved16. Written Notices Any notice by the PHA or the owner inconnection with this contract must be in writing.Page 7 of 13form HUD-52641 (7/2019)

17. Entire Agreement: Interpretationa. The HAP contract contains the entire agreementbetween the owner and the PHA.b The HAP contract shall be interpreted and implementedin accordance with all statutory requirements, and withall HUD requirements, including the HUD programregulations at 24 Code of Federal Regulations Part 982.Previous editions are obsoletePage 8 of 13form HUD-52641 (7/2019)

U.S. Department of Housingand Urban DevelopmentOffice of Public and Indian HousingHousing Assistance Payments Contract(HAP Contract)Section 8 Tenant-Based AssistanceHousing Choice Voucher ProgramPart C of HAP Contract: Tenancy Addendum1.Section 8 Voucher Programa.The owner is leasing the contract unit to the tenant foroccupancy by the tenant’s family with assistance for atenancy under the Section 8 housing choice voucherprogram (vouc

Initial Rent to Owner Enter the amount of the monthly rent to owner during the initial lease term. The PHA must determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. During the initial lease term, the owner may not raise the rent to owner. Section 7. Housing Assistance Payment