Housing Assistance Payment (HAP) Contract

What is the HAP Contract

HAP stands for Housing Assistance Payment. The HAP contract is the legal contract between the PHA and the unit landlord, and allows for the program to pay the agreed amount of subsidy to the landlord on the behalf of the participant.

The HAP contract is divided into 3 (three) parts:

Part A (pages 1 and 2) –

Part A identifies the participant’s name, including all household members, the unit address, the contract rent amount, the subsidy amount at the time the contract begins, which party is responsible for the utilities and appliances, and contains the signatures of both the PHA supervisor and the landlord or landlord’s agent.

Part B (pages 3 – 7) –

Part B details the responsibilities of the landlord. This section includes, but is not limited to, defining the term of the contract, as well as reasonable rent, the payment to landlord, overpayments to landlord, and defines landlord breach of contract.

Part C (pages 8 – 10) –

Part C encompasses the Tenancy Addendum. The Tenancy Addendum is required for EVERY program participant’s lease. A copy of this addendum should be attached to every lease and provided to the program participant.

Term of the HAP Contract

The term of the HAP contract begins on the first day of the initial term of the lease agreement and terminates on the last day of the term of the lease agreement. This is including the initial lease term and any extensions.

When Does the HAP Contract Terminate?

It is important for landlords to understand that the HAP contract can be terminated at any time, regardless of whether or not the lease is at or nearing expiration, if any of the following conditions apply:

  • if the lease is terminated by the landlord or the tenant.
  • if the household has failed to comply with program requirements. If the Municipality of Trujillo Alto Housing Authority terminates assistance for the household, the HAP contract AUTOMATICALLY terminates.
  • if the renter moves from the contracted unit.
  • if the tenant is responsible for 100% of the contract rent – the HAP contract shall be terminated after 180 calendar days of the last payment to the landlord.
  • if available program funding is not sufficient to support continued assistance for families in the program.
  • if the contract unit no longer provides adequate space, in accordance with Housing Quality Standards, for the household. This is usually due to an increase in household size or a change in household composition.
  • if there is a change in household composition, such as a member moving our or divorce, the HAP contract MAY be terminated. Additionally, the PHA may elect to continue payments on behalf of the remaining household members.
  • If the contract unit does not meet all requirements of the Housing Quality Standards (HQS) or if the PHA determines that the landlord has otherwise breached the HAP Contract.

When Will You Receive Your First Payment?

It may take some time for landlords to receive their first payment from the program. The agency must first approve the lease and the HAP contract will be required to be signed by both the landlord and the housing authority. Once these steps are both completed, the agency will then process the first payment to the landlord. The first payment typically includes a lump sum payment in the full amount you are owed as of the first date of the lease. The tenant is required to pay their portion directly to you, as agreed, each month.