HUD HCV Guidebook § 6

When the process for requesting tenancy approval is completed, the PHA notifies the owner and the
family of the approval or disapproval of the tenancy.

If the PHA determines that all applicable program requirements have been met and approves the
tenancy, the PHA prepares the HAP contract. The PHA compares information in Part A to the lease,
ensuring that the tenant name, unit address, household composition, term of the lease, and initial
rent to owner are correct. The PHA computes the family rent to owner, utility reimbursement (if any),
and the housing assistance payment, entering the amount of the housing assistance payment on the
HAP contract.

The family and owner execute the lease. The owner and the PHA then execute the HAP contract. The
effective date of the HAP contract is the same as the effective date of the lease. For families that are
leasing in place, the family and owner must execute a new lease to meet the requirement that the
effective date of the HAP contract is the same date as the effective date of the lease.

The PHA should not execute the HAP contract until the contract has been executed by the owner or
owner’s representative. Both the PHA and the owner must65 execute the HAP contract no later than
60 calendar days from (i.e. after) the beginning of the lease term. Any HAP contract executed after
the 60-day period is void, and the PHA cannot make any housing assistance payments to the owner.
The PHA must66 not make any housing assistance payments to the owner until the HAP contract has
been executed.

It is considered a best practice to execute the HAP contract prior to or as close to the beginning of
the lease term as possible. It is a good business practice to assign responsibility to designated staff to
ensure that the PHA executes HAP contracts in a timely fashion and to monitor compliance with the
60-day execution deadline.

If the HAP contract is executed after the beginning of the lease term, the initial housing assistance
payment would include the retroactive amount due to the owner from the effective date of the lease
and HAP contract.

It is important that both the family and the owner fully understand the requirements contained in the
HAP contract and tenancy addendum, particularly those requirements related to their rights and

65 24 CFR § 982.305(c)(1)
66 24 CFR § 982.305(c)(2)

responsibilities under the HCV program. Some PHAs choose to meet with the owner and family
together to review the HAP contract, tenancy addendum, and owner and family obligations under the
program. Other PHAs use the family briefing to explain these requirements to the family and invite
new owners to an orientation to discuss their roles and responsibilities. In conducting such meetings
and briefings, PHAs must ensure effective communication with individuals with disabilities and
ensure meaningful program access for persons with Limited English Proficiency (LEP).

It is equally important that PHA staff fully understands the provisions of the HAP contract, since the
HAP contract is the binding agreement that governs the relationship between the PHA and the owner.
Staff should be able to clearly and consistently explain HAP contract provisions to its owners,
families, and community groups.