Housing Voucher Programs - Policy and Procedures Manual

Chapter XXII Sections

1. Selection of Properties
2. Ineligible Properties
3. Public Notification Methods
4. Housing Assistance Payments (HAP) Contract Term
5. Selection of Agents to Administer PBV
6. Administering Project Based Vouchers
7. Waiting List Procedures
8. Family Eligibility Requirements
9. Tenant Moves
10. Termination of Assistance
11. Annual Rent Increases
12. One Year Notice of HAP Contract Expiration
13. Elite Data System
14. Applicable Forms List

Chapter XXII: Project Based Voucher Program

Section D: Housing Assistance Payment (HAP) Contract Term (24 CFR 983.202 and 983.205)

MSHDA enters into a HAP Contract (HUD 52530A New Construction projects or HUD-52530B for Existing Projects) with the owner of the property selected to have a PBV program in the format required by HUD headquarters. The initial term of the HAP contract may be executed for a period of up to fifteen years for each contract unit. The length of the term of the HAP contract for any contract unit may not be less than one year, nor more than fifteen years. Within one year before expiration, MSHDA may agree to extend the term of the HAP contract for an additional term of up to fifteen years if it is determined an extension is appropriate to continue providing affordable housing to extremely low income families. Any extensions must be on the appropriate form and subject to conditions set by HUD at the time of the extension.

At the time the HAP Contract is executed, the owner will identify the specific units that will be assisted under the Contract. A copy of the HAP contract will be required in a tenant file. Each tenant will have a lease with the owner for the specified unit.

1. Additional HAP Contract Requirements

The HAP Contract must specify the following:

1. Total number of contract units by number of bedrooms;
2. Specific contract units in each building;
3. Owner supplied services, maintenance, and/or equipment without charges in addition to the rent;
4. Utilities available to the contract unit;
5. Initial rent to owner (first twelve months on the HAP contract term);
6. Accessibility features provided to comply with Section 504 of the Rehabilitation Act of 1973;
7. HAP contract term; and
8. Number of units that exceed the 25% per building set-aside cap if applicable.

The HAP contract will not be expected until each unit has been inspected and complies with HQS requirementms.