Housing Assistance Payments (HAP) Contract
The contract under which a public housing agency or HUD pays a private landlord the difference between a unit's approved rent and the share an eligible tenant pays under the Section 8 program.
What Is a HAP Contract?
A housing assistance payments (HAP) contract is the agreement that makes Section 8 rental assistance flow to a private landlord. The tenant signs a lease with the owner and pays a share of the rent based on income. The HAP contract obligates the government side to pay the rest directly to the owner.
Two kinds are common:
| Voucher (tenant-based) | Project-based | |
|---|---|---|
| Parties | Public housing agency and owner | HUD or a public housing agency, and owner |
| What it covers | One unit, one family | Specific units in a property |
| Term | Same as the lease | Multi-year, renewable |
How It Works
In the Housing Choice Voucher Program, a family finds a unit and the agency approves it. Before signing a HAP contract, the agency must confirm the unit is eligible and passes inspection, the rent is reasonable, and the lease includes HUD’s tenancy addendum. Federal rules at 24 CFR 982.451 require the HUD form of contract and set its term equal to the lease. If the family moves out, payments to that owner stop, and the family can generally take its voucher to another unit.
The tenant’s share and the subsidy together cannot exceed the rent to owner. The family is not responsible for the part the agency pays, and the owner may not charge the tenant extra.
In project-based rental assistance, the subsidy stays with the building. Contract administrators, which may be HUD offices, state housing finance agencies, or public housing agencies, manage these contracts. A project-based voucher contract between an agency and an owner may last up to 20 years, subject to available funding.
Why It Matters for Preservation
Many project-based contracts were signed decades ago, and Congress stopped funding new project-based Section 8 contracts in 1983. When a contract nears its end, the owner can renew or leave the program. Federal law requires at least one year’s written notice to HUD and tenants before ending a contract. Tenants who would be displaced generally receive enhanced vouchers, which can cover a higher rent so they can stay. Whether owners renew is a central question in expiring use and preservation policy.
Sources
- 24 CFR § 982.451 — Housing assistance payments contract (Cornell LII) (opens in a new tab)
- 24 CFR § 982.305 — PHA approval of assisted tenancy (Cornell LII) (opens in a new tab)
- 24 CFR § 982.311 — When assistance is paid (Cornell LII) (opens in a new tab)
- 42 U.S. Code § 1437f — Low-income housing assistance (Cornell LII) (opens in a new tab)
- Congressional Research Service — An Overview of the Section 8 Housing Programs (RL32284, February 7, 2014) (opens in a new tab)
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