HUD HCV Guidebook § 4.2

A PHA’s analysis may indicate that the payment standards are too high, in which case, the PHA should lower
its payment standard to an appropriate amount within the basic range. For new HAP contracts, the PHA
applies the payment standard in effect at the time of HAP contract execution. For decreases in payment
standard amount during the HAP contract term, when the decreased payment standard is applied depends on
the PHA’s policy. See Section 5.2 of this chapter, which provides guidance on how to apply a decrease in
payment standard amounts during the HAP contract term.