24 C.F.R. § 983.205
§ 983.205 Term of HAP contract. (24 CFR Part 983)
Operative Text
(a) Initial term. The PHA may enter into a HAP contract with an owner for an initial term of up to 20 years for each contract unit. The length of the term of the HAP contract for any contract unit may not be less than one year, nor more than 20 years. (b) Extension of term. The PHA and owner may agree at any time before expiration of the HAP contract to execute one or more extensions of the HAP contract term. The following conditions apply: (1) Each extension executed must have a term that does not exceed 20 years; (2) At no time may the total remaining term of the HAP contract, with extensions, exceed 40 years; (3) Before agreeing to an extension, the PHA must determine that the extension is appropriate to continue providing affordable housing for low-income families or to expand housing opportunities; and (4) Each extension must be on the form and subject to the conditions prescribed by HUD at the time of the extension.
Under 24 CFR Part 983 § 983.205, a Housing Assistance Payments (HAP) contract between a Public Housing Authority (PHA) and a property owner in the Project-Based Voucher program must run for at least one year and no more than 20 years at the outset. Before the contract expires, the parties may agree to extend it one or more times, provided each extension does not exceed 20 years and the total remaining contract term never surpasses 40 years at any point. Any extension requires the PHA to affirmatively determine that continuing or expanding affordable housing for low-income families is the purpose, and each extension must follow the form and conditions HUD prescribes at the time it is executed.
Plain English — not legal advice.
Owners participating in the Project-Based Voucher program under 24 CFR Part 983 § 983.205 generally structure their initial HAP contract for a term between one and 20 years, aligning the length with their financing and property planning needs. When approaching contract expiration, compliant operators engage the PHA well in advance to explore extensions, ensuring that any agreed extension is documented on the current HUD-prescribed form and that the cumulative remaining term does not exceed the 40-year ceiling. Keeping records of each executed extension and the PHA's written determination of affordability purpose supports a clear compliance trail under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in units covered by a HAP contract governed by 24 CFR Part 983 § 983.205, the term limits and extension rules directly affect how long project-based rental assistance is available at a given property. If a HAP contract is set to expire or an extension is being considered, tenants may have an interest in understanding whether the PHA has made the required determination that the extension serves affordable housing goals for low-income families. Tenants who have questions about the status of a HAP contract at their property can contact their local PHA, reach out to a HUD-approved housing counseling agency, or connect with a tenant-rights organization for general information about their 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.
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