HUD Handbook 4350.3 § 1-4
Contract Administrators (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. Subsidy contract administration involves a broad range of responsibilities,
including program compliance functions to ensure that HUD-subsidized
properties are serving eligible families at the correct level of assistance, and
asset management functions to ensure the physical and financial health of HUD
properties.
B. HUD has primary responsibility for contract administration but has assigned
portions of these responsibilities to other organizations that act as Contract
Administrators for HUD. These Contract Administrators are generally housing
agencies, such as State Housing Finance Agencies or local housing authorities.
There are two types of Contract Administrators that assist HUD in performing
contract administration functions.
1. Traditional Contract Administrators. These Contract Administrators have
been used for over 20 years and have Annual Contributions Contracts
(ACCs) with HUD. Under their ACCs, Traditional Contract Administrators
are responsible for asset management functions and HAP contract
compliance and monitoring functions. They are paid a fee by HUD for
their services.
2. Performance-Based Contract Administrators (PBCAs). The use of
PBCAs began as an initiative in 2000. Under a performance-based ACC,
the scope of responsibilities of a Contract Administrator is more limited
than that of a Traditional Contact Administrator. A PBCA’s
responsibilities focus on the day-to-day monitoring and servicing of
Section 8 HAP contracts. PBCAs are generally required to administer
contracts on a statewide basis and have strict performance and reporting
requirements as outlined in their ACC.HUD Handbook 4350.3 REV-1 CHG-4 § 1-4 establishes the framework for administering subsidy contracts on HUD-assisted properties. While HUD retains primary responsibility, it delegates portions of that work to Contract Administrators — either Traditional Contract Administrators operating under long-standing Annual Contributions Contracts or Performance-Based Contract Administrators (PBCAs) introduced in 2000. Traditional Contract Administrators handle both asset management and HAP contract compliance, while PBCAs focus more narrowly on day-to-day Section 8 HAP contract monitoring, typically on a statewide basis.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 1-4, owners and managers of HUD-subsidized properties interact with Contract Administrators — either Traditional or Performance-Based — who act on HUD's behalf to monitor HAP contract compliance and property performance. Compliant operators generally maintain accurate records, respond promptly to monitoring requests, and understand whether their assigned Contract Administrator is a Traditional CA or a PBCA, since the scope of each differs. Knowing which type of Contract Administrator oversees a given property helps operators understand the reporting channels and compliance expectations they will encounter.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 1-4 explains that the oversight of HUD-subsidized housing — including ensuring that eligible families receive the correct level of assistance — is carried out by Contract Administrators working under HUD's authority. Tenants living in properties covered by Section 8 HAP contracts may have concerns addressed through the PBCA or Traditional Contract Administrator assigned to their building, as these bodies are responsible for day-to-day compliance monitoring. Tenants who believe a property is not meeting program requirements can contact the U.S. Department of Housing and Urban Development directly or reach out to a local tenant-rights organization to understand available 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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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