HUD HCV Guidebook § 1

The Housing Assistance Payment (HAP) contract is the contractual agreement between the PHA and
the owner of a unit occupied by a Housing Choice Voucher (HCV) program participant. Under the HAP
contract, the Public Housing Agency (PHA) agrees to make housing assistance payments to the
owner on behalf of a specific family leasing a specific unit. The HAP contract must1 be in the form
prescribed by the U.S. Department of Housing and Urban Development (HUD), which is form HUD-
52641. The monthly HAP amount to the owner is determined by the PHA in accordance with HUD
requirements for a tenancy under the voucher program.

Prior to PHA approval of the assisted tenancy and the execution of a HAP contract, the PHA must2
ensure that the following program requirements have been met:
     Owner is eligible;
     Unit is eligible;
     Unit has been inspected by the PHA and meets HQS;
     Lease includes the tenancy addendum;
     The rent charged by the owner is reasonable; and
     At the time a family initially receives tenant-based assistance for occupancy of a dwelling unit,
        and where the gross rent of the unit exceeds the applicable payment standard for the family,
        the family share does not exceed 40% of the family’s monthly adjusted income.3

1 24 CFR § 982.451(a)(1)
2 24 CFR § 982.305(a)
3 24 CFR § 982.306(a)

Upon approval of the assisted tenancy, the owner and the PHA can execute the HAP contract.
The PHA cannot pay any housing assistance payment to the owner until the HAP contract has been
executed. During the term of the HAP contract, the PHA must4 make monthly housing assistance
payments to the owner on behalf of the family at the beginning of each month.

The initial amount of the housing assistance payment by the PHA to the owner is reflected on the
HAP contract at the time of HAP contract execution. The amount of the monthly housing assistance
payment may change during the term of the HAP contract based on changes to the family’s income,
household composition, or other changes affecting the housing assistance payment amounts.