HUD HCV Guidebook § 4

The PHA must make housing assistance payments to the owner in accordance with the terms of the
HAP contract, and the owner must15 comply with the provisions of the HAP contract in order to
receive such payments. The HAP contract specifies that payments are to be made monthly, at the
beginning of each month. Housing assistance payments must16 be made only during the lease term
and while the family is residing in the unit. When a lease term begins after the first of the month, the
housing assistance payment for the first month is pro-rated for a partial month.

14 24 CFR § 982.54
15 24 CFR § 982.451(a)(1)
16 24 CFR § 982.311(a)

The PHA determines the amount of housing assistance payment to the owner in accordance with
HUD regulations and other requirements. The amount of housing assistance payment is subject to
change during the term of the HAP contract. The PHA must17 notify both the owner and tenant of any
changes in the housing assistance payment in writing.

The monthly housing assistance payment by the PHA is credited toward the monthly rent to owner
under the family’s lease. The total of the rent paid by the tenant plus the PHA housing assistance
payment may not be more than the rent to owner. The owner must18 immediately return any excess
HAP payment to the PHA.

The part of the rent to owner that the tenant pays may not be more than the difference between the
rent to owner and the housing assistance payment. The owner may not demand or accept any rent
payment from the tenant in excess of this maximum and must19 immediately return any excess rent
payment to the tenant. The family is not responsible for payment of the portion of rent to owner
covered by the housing assistance payment. Likewise, the PHA is not responsible for any portion of
the family share, including family rent to owner. Payment of the family share is the responsibility of
the family.