HUD HCV Guidebook § 6.3
Payment Standard and HAP Calculation (HUD HCV Guidebook)
Operative Text
The payment standard for a cooperative housing unit is the payment standard for units of the same bedroom size on the PHA’s payment standard schedule. 43 24 CFR § 982.619(b)(1) 44 24 CFR § 982.619(d)(2) 45 24 CFR § 982.619(d)(2) 46 24 CFR § 982.619(d)(2) The HAP for a cooperative housing unit is the lower of the PHA’s payment standard minus the TTP or the gross rent (carrying charge plus any utility allowance), minus the TTP. In cooperative housing, the rent to owner is the monthly carrying charge under the occupancy agreement/lease between the member and the cooperative. The monthly carrying charge includes the member’s share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. The carrying charge does not include down- payments or other payments to purchase the cooperative unit or to amortize a loan made to the family for this purpose.
Under HUD Housing Choice Voucher Guidebook § 6.3, the Housing Assistance Payment (HAP) for a cooperative housing unit is calculated using the same general framework as other voucher units, but with one key distinction: the 'rent to owner' is defined as the monthly carrying charge rather than a traditional rent payment. The carrying charge covers the member's share of debt service, operating expenses, and reserve fund contributions. Importantly, any down-payments or loan amortization costs tied to purchasing the cooperative unit are excluded from this calculation.
Plain English — not legal advice.
Cooperative housing operators participating in the Housing Choice Voucher program under HUD Housing Choice Voucher Guidebook § 6.3 generally document the monthly carrying charge clearly in the occupancy agreement or lease, breaking out debt service, operating expenses, and reserve fund contributions. The HAP a cooperative receives is the lower of the payment standard minus the Total Tenant Payment (TTP) or the gross rent (carrying charge plus any applicable utility allowance) minus the TTP. Compliant operators take care not to include purchase-related costs such as down-payments or loan amortization in the carrying charge submitted to the PHA.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under HUD Housing Choice Voucher Guidebook § 6.3, voucher holders living in cooperative housing have the right to have their HAP calculated based on the monthly carrying charge, which should reflect only operating costs, debt service, and reserve contributions — not purchase costs. If a tenant believes the carrying charge has been improperly inflated with purchase-related fees, they may raise this concern with their local Public Housing Authority (PHA). Tenants can also consult a tenant-rights organization or HUD's resources to better understand how the payment standard and TTP interact to determine their share of housing costs.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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