24 C.F.R. § 880.502
§ 880.502 Term of contract. (24 CFR Part 880)
Operative Text
(a) Term (except for Manufactured Home Parks). The term of the contract will be as follows: (1) For assisted units in a project financed with the aid of a loan insured or co-insured by the Federal government or a loan made, guaranteed or intended for purchase by the Federal government, the term will be 20 years. (2) For assisted units in a project financed other than as described in paragraph (a)(1) of this section, the term will be the lesser of (i) the term of the project's financing (but not less than 20 years), or (ii) 30 years, or 40 years if (A) the project is owned or financed by a loan or loan guarantee from a state or local agency, (B) the project is intended for occupancy by non-elderly families and (C) the project is located in an area designated by HUD as one requiring special financing assistance. (b) Term for Manufactured Home Parks. For manufactured home units or spaces in newly constructed manufactured home parks, the term of the Contract will be 20 years. (c) Staged Projects. If the project is completed in stages, the term of the Contract must relate separately to the units in each stage. The total Contract term for the units in all stages, beginning with the effective date of the Contract for the first stage, may not exceed the overall maximum term allowable for any one unit under this section, plus two years.
Section 880.502 establishes how long a Housing Assistance Payments (HAP) contract remains in effect for federally assisted housing projects. For most projects backed by federal loans or insurance, the contract runs for 20 years, while projects with other financing structures may have terms ranging from 20 to 40 years depending on ownership, financing source, and the intended resident population. Manufactured home parks carry a fixed 20-year term, and projects built in stages must track contract terms separately per stage, with the combined duration capped at the maximum allowable term for any single unit plus two years.
Plain English — not legal advice.
Owners and managers of federally assisted housing projects subject to 24 CFR Part 880 § 880.502 generally ensure that their HAP contracts reflect the correct term at execution — whether 20, 30, or 40 years — based on the project's financing structure, ownership type, and HUD area designations. For staged developments, compliant operators maintain separate contract term records for each stage and monitor the aggregate timeline to confirm it does not exceed the ceiling set by § 880.502(c). Keeping thorough documentation of the financing instruments and any HUD area designations that affect term length is a standard practice for operators managing long-term compliance under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents living in housing covered by 24 CFR Part 880 § 880.502 benefit from knowing that their project's HAP contract has a federally defined duration, which governs how long rental assistance is contractually obligated to remain in place. If a tenant believes a contract term is being misrepresented or that assistance is being withdrawn before the term established under § 880.502 has expired, they may raise that concern with the local HUD field office or a tenant-rights organization familiar with federal assisted-housing programs. Understanding the applicable contract term can be relevant when evaluating housing stability, and tenants can request information about their project's HAP contract through HUD's public resources.
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 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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