24 C.F.R. § 882.807
§ 882.807 Housing assistance payments contract. (24 CFR Part 882)
Operative Text
(a) Time of execution. Upon PHA acceptance of the unit(s) and certifications pursuant to § 882.507, the Contract will be executed by the Owner and the PHA. The effective date must be no earlier than the PHA inspection which provides the basis for acceptance as specified in § 882.507(e). (b) Term of contract. The contract for any unit rehabilitated in accordance with this program must be for a term of 10 years. The contract must give the HA the option to renew the contract for an additional 10 years. (c) Changes in contract rents from agreement. The contract rents may be higher or lower than those specified in the Agreement, in accordance with § 882.805(d). (d) Unleased unit(s). At the time of execution of the Contract, the Owner will be required to submit a list of dwelling unit(s) leased and not leased as of the effective date of the Contract. (e) Contract rents at end of rehabilitation loan term. For a contract in which the initial contract rent was based upon a loan term shorter than 10 years, the contract must provide for reduction of the contract rent effective with the rent for the month following the end of the term of the rehabilitation loan. The amount of the reduction will be the monthly cost of amortization of the rehabilitation loan. This reduction should result in a new contract rent equal to the base rent plus all subsequent adjustments.
Section 882.807 governs the housing assistance payments contract between a property owner and a Public Housing Authority (PHA) under this rehabilitation program. The contract takes effect no earlier than the date of the qualifying PHA inspection, runs for a mandatory 10-year term, and includes an option for the HA to renew for an additional 10 years. Contract rents may differ from those set in the original Agreement, and if the initial rent was calculated using a loan term shorter than 10 years, the rent must be reduced once that loan is paid off to reflect the elimination of amortization costs.
Plain English — not legal advice.
Under § 882.807, owners executing a Housing Assistance Payments contract should be prepared to sign the contract only after the PHA has formally accepted the unit(s) following inspection, and to submit a complete list of leased and unleased units at that time. Compliant operators maintain awareness of their rehabilitation loan term, because if that term is shorter than 10 years, the contract rent is automatically reduced at loan payoff by the monthly amortization amount. Operators generally keep detailed records of the original Agreement rents, subsequent adjustments, and loan schedules so that the transition to a reduced contract rent at § 882.807(e) can be documented and verified accurately.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 882.807 establishes that the housing assistance payments contract governing your unit must run for at least 10 years, with a possible 10-year renewal option held by the housing authority, providing a degree of program continuity for residents in rehabilitated units. Tenants benefit from knowing that contract rents under § 882.807(e) are required to decrease once a short-term rehabilitation loan is retired, which can affect the overall rent structure for the unit. If you have questions about whether your unit is covered by a properly executed contract or whether a rent change complies with this provision, tenant-rights organizations and local rent boards can be useful starting points for understanding your options.
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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