5898 5898-RAD_PRAC_PBV_HAP_Part-I_Final

OMB Approval No.

(exp. xx/xx/xxxx)

U.S. Department of Housing and Urban Development
Office of Public and Indian Housing

Rental Assistance Demonstration (RAD) for the Conversion of
Section 202 Project Rental Assistance Contracts (PRAC) to the
Section 8 Project-Based Voucher Program

EXISTING HOUSING

PART 1 OF HAP CONTRACT

Public reporting burden for this collection of information is estimated to average 2 hours.  This includes the time for collecting, reviewing and reporting the data.  The information is being collected as required by 24 CFR 983.202, which requires the PHA to enter into a HAP contract with the owner to provide housing assistance payments for eligible families. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collection displays a valid OMB control number. Assurances of confidentiality are not provided under this collection.

Privacy Act Statement. HUD is committed to protecting the privacy of individuals’ information stored electronically or in paper form, in accordance with federal privacy laws, guidance, and best practices. HUD expects its third-party business partners, including Public Housing Authorities, who collect, use maintain, or disseminate HUD information to protect the privacy of that information in Accordance with applicable law.

1. CONTRACT INFORMATION

a. Parties

This housing assistance payments (HAP) contract is entered into between:

____________________________________________________ ( PHA) and

____________________________________________________ (owner).

b. Contents of contract

The HAP contract consists of Part 1, Part 2, and the contract exhibits listed in paragraph c.

c. Contract exhibits

The HAP contract includes the following exhibits:

EXHIBIT A: TOTAL NUMBER OF UNITS IN PROJECT COVERED BY THIS HAP CONTRACT; INITIAL RENT TO OWNER; AND DESCRIPTION OF THE CONTRACT UNITS. (See 24 CFR 983.203 for required items.)

EXHIBIT B: SERVICES, MAINTENANCE AND EQUIPMENT TO BE PROVIDED BY THE OWNER WITHOUT CHARGES IN ADDITION TO RENT TO OWNER

EXHIBIT C: UTILITIES AVAILABLE IN THE CONTRACT UNITS, INCLUDING A LISTING OF UTILITIY SERVICES TO BE PAID BY THE OWNER (WITHOUT CHARGES IN ADDITION TO RENT TO OWNER) AND UTILITIES TO BE PAID BY THE TENANTS

EXHIBIT D: FEATURES PROVIDED TO COMPLY WITH PROGRAM ACCESSIBILITY FEATURES OF SECTION 504 OF THE REHABILITATION ACT OF 1973

EXHIBIT E: SUPPORTIVE SERVICES FOR THE ELDERLY. THE OWNER MUST LIST THE SUPPORTIVE SERVICES IT WILL PROVIDE CONSISTENT WITH SECTION 1.g OF THIS HAP CONTRACT.

ADDITIONAL EXHIBITS

d. Effective date and term of the HAP contract

1. Effective date

a. The PHA may not enter into a HAP contract for any contract unit until the PHA (or an independent entity, as applicable) has determined that the unit meets the project-based voucher program inspection requirements.

b. For all contract units, the effective date of the HAP contract is:

________________________________.

c. The term of the HAP contract begins on the effective date.

d. The HAP contract may only be effective at the expiration of the Section 202 PRAC. In addition, all other requirements in section 4.5.A of the RAD Notice (or any successor provision) must be complied with in order for the HAP contract to become effective.

2. Length of initial term

a. Subject to paragraph 2.b, the initial term of the HAP contract for all contract units is:

________________________________.

b. The initial term of the HAP contract shall be for twenty years.

3. Extension of term

a. The PHA and owner may agree to enter into an extension of the HAP contract at the time of initial HAP contract execution, or any time prior to expiration of the contract. Any extension, including the term of such extension, must be in accordance with HUD requirements. A PHA must determine that any extension is appropriate to achieve long-term affordability of the housing or expand housing opportunities.

b. Subject to the provisions in sections 3.a, 4.a and 4.b of this contact, the PHA shall offer to extend the initial HAP contract term, and the Owner shall accept each extension offer, during term of the Elderly Housing Use Agreement, so that the HAP contract expires no earlier than the expiration date of the Elderly Housing Use Agreement.

4. Requirement for sufficient appropriated funding

a. The length of the initial term and any extension term shall be subject to availability, as determined by HUD, or by the PHA in accordance with HUD requirements, of sufficient appropriated funding (budget authority), as provided in appropriations acts and in the PHA's annual contributions contract (ACC) with HUD, to make full payment of housing assistance payments due to the owner for any contract year in accordance with the HAP contract.

b. The availability of sufficient funding must be determined by HUD or by the PHA in accordance with HUD requirements. If it is determined that there may not be sufficient funding to continue housing assistance payments for all contract units and for the full term of the HAP contract, the PHA has the right to terminate the HAP contract by notice to the owner for all or any of the contract units. Such action by the PHA shall be implemented in accordance with HUD requirements.

e. Occupancy and payment

1. Payment for occupied unit

During the term of the HAP contract, the PHA shall make housing assistance payments to the owner for the months during which a contract unit is leased to and occupied by an eligible family. If an assisted family moves out of a contract unit, the owner may keep the housing assistance payment for the calendar month when the family moves out (“move-out month”). However, the owner may not keep the payment if the PHA determines that the vacancy is the owner’s fault.

2. Vacancy payment

THE PHA HAS DISCRETION WHETHER TO INCLUDE THE VACANCY PAYMENT PROVISION, OR TO STRIKE THIS PROVISION FROM THE HAP CONTRACT FORM.

a. If an assisted family moves out of a contract unit, the PHA may provide vacancy payments to the owner for a PHA-determined vacancy period extending from the beginning of the first calendar month after the move‑out month for a period not exceeding two full months following the move-out month.

b. The vacancy payment to the owner for each month of the maximum two-month period will be determined by the PHA, and cannot exceed the monthly rent to owner under the assisted lease, minus any portion of the rental payment received by the owner (including amounts available from the tenant’s security deposit). Any vacancy payment may cover only the period the unit remains vacant.

c. The PHA may make vacancy payments to the owner only if:

1. The owner gives the PHA prompt, written notice certifying that the family has vacated the unit and the date when the family moved out (to the best of the owner’s knowledge and belief);

2. The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant during the period for which payment is claimed;

3. The owner certifies that it has taken every reasonable action to minimize the likelihood and length of vacancy; and

4. The owner provides any additional information required and requested by the PHA to verify that the owner is entitled to the vacancy payment.

d. The PHA must take every reasonable action to minimize the likelihood and length of vacancy.

e. The owner may refer families to the PHA and recommend selection of such families from the PHA waiting list for occupancy of vacant units.

f. The owner must submit a request for vacancy payments in the form and manner required by the PHA and must provide any information or substantiation required by the PHA to determine the amount of any vacancy payments.

3. PHA is not responsible for family damage or debt to owner

Except as provided in this paragraph e (Occupancy and Payment), the PHA will not make any other payment to the owner under the HAP contract. The PHA will not make any payment to the owner for any damages to the unit, or for any other amounts owed by a family under the family’s lease.

f. Leasing of Units to Elderly Families

HAP Contract units may only be leased to eligible Elderly Families by the Owner.

g. Owner’s Obligation to Provide Supportive Services and Employ Service Coordinator

1. Throughout the initial term and any extension of the HAP contract, the Owner shall provide the supportive services listed in Exhibit E of the HAP Contract for Elderly Families residing in the project and shall:

☒Employ or otherwise retain the services of one or more individuals to coordinate the provision of such services.

☒Use at least _____ of project funds per unit per month to aid in paying for the supportive services.

3. The Owner may request that the PHA periodically revise Exhibit E as needed for the Owner to accommodate the needs of such Elderly Families, as such needs may change from time to time.

4. If the PHA agrees to the requested revision(s), the PHA shall provide the Owner a revised Exhibit E that specifies the supportive services that the Owner is required to provide and the date on which Exhibit E, as revised, shall take effect. When the PHA provides a revised Exhibit E to the Owner, the revised Exhibit E shall automatically constitute an amendment to the HAP contract.

5. The Owner may not require any Elderly Family to accept any of the supportive services.

h. Statutory Authority

This HAP contract is entered pursuant to the Consolidated and Further Continuing Appropriations Act, 2012, Pub. L. No. 112-55, 125 Stat. 552, 673 – 675 (Nov. 18, 2011); as amended by the Consolidated Appropriations Act, 2014, Pub. L. No. 113-76, 128 Stat. 5, 635 (Jan. 17, 2014); as further amended by the Consolidated and Further Continuing Appropriations Act, 2015, Pub. L. No. 113-235, 128 Stat. 2130, 2757 – 2758 (Dec. 6, 2014); as further amended by the Consolidated Appropriations Act, 2016, Pub. L. No. 114-113, 129 Stat. 2242, 2897 (Dec. 18, 2015); as further amended by the Consolidated Appropriations Act, 2017, Pub. L. No. 115-31, 131 Stat. 135, 789 (May 5, 2017); as further amended by the Consolidated Appropriations Act, 2018, Pub. L. No. 115-141, 132 Stat. 348, 1038 – 1039 (Mar. 23, 2018), as further amended from time to time; section 8 of the United States Housing Act of 1937 (Act), 42 U.S.C. 1437 et seq.; and the Department of Housing and Urban Development Act, 42 U.S.C. 3531 et seq.

Under this authority, Section 202 PRAC projects are converted to section 8 project-based voucher projects.

EXECUTION OF HAP CONTRACT FOR EXISTING HOUSING

PUBLIC HOUSING AGENCY (PHA)

Name of PHA (Print)

By:

Signature of authorized representative

Name and official title (Print)

Date

OWNER

Name of Owner (Print)

By:

Signature of authorized representative

Name and official title (Print)

Date

Previous editions are obsolete

Form HUD xxx (xx/2020) Page - 0 of Part 1