Tap to get financing
Apartment Loans
Fannie Mae
Fannie MaeMultifamily Small Loan ProgramFannie Mae DUS Loans
Freddie Mac
Freddie MacSmall Balance LoansAffordable Housing Express Loans
FHA/HUD
HUD LEAN Loan ProcessingHUD 232/223(a)(7) Refinancing LoansHUD 232/223(f) LoansHUD 241(a) Supplemental LoansHUD 232 LoansHUD 223(a)(7) Refinancing LoanHUD 223(f) LoansHUD 221(d)(4) LoansHUD Apartment Loans
Non-agency
Life Company Apartment LoansHard Money Apartment LoansApartment Bridge LoansMezzanine FinancingSmall Apartment LoansBank LoansConstruction LoansCMBS Loans
Resources
BlogApartment Building InsuranceYield Maintenance CalculatorLoan Repayment CalculatorNOI CalculatorGross Rent Multiplier CalculatorDebt Service Coverage Ratio (DSCR) CalculatorDebt Yield CalculatorCash on Cash Return CalculatorCap Rate CalculatorBreak Even Ratio CalculatorApartment Mortgage CalculatorLoan To Value and Loan To Cost RatiosApartment Finance Due Diligence ResourcesHow to Purchase an Apartment Property
For Brokers
About us
TeamLeadership
(561) 556-9997
Get financing →
Newly Published
Jul 11 at Apartment Loans
Apartment Building Insurance: Comprehensively Protect Your Property
Nov 1 at Apartment Loans
What is Conduit Financing?
Sep 9 at Apartment Loans
Operating Expense Ratio Explained
Explore the Janover Network
May 26 at HUD Loans
Construction Lender Red Flags: When to Walk Away
May 23 at HUD Loans
Top Questions to Ask Your Construction Lender Early On
May 21 at HUD Loans
How Construction Draw Processes Vary by Lender
Was This Article Helpful?
Apartment Loans Secrets
2 min read
by Content Team

HAP Contracts

In this article:
  1. What Are HAP Contracts?
  2. HAP Contract Eligibility Requirements
  3. Does a HAP Contract Expire?
  4. Can Ownership of a HAP Contract Be Transferred?
  5. Related Questions
  6. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!

What Are HAP Contracts?

Housing Assistance Payments contracts, more commonly known as HAP contracts, are agreements between public housing agencies (PHA) and property owners that define the number of units eligible for rental subsidies through the Department of Housing and Urban Development Section 8 Program.

Based on the terms of the agreement, HUD subsidizes the difference between the approved or contract rent and the tenants’ contributions. Standard tenant contributions are typically capped at 30% of a household’s adjusted income.

Property owners are required to lease the specified units to Section 8-eligible families or individuals in exchange for the subsidy. They are also required to maintain the property to all relevant sanitation and safety standards. HAP contracts also detail reporting requirements and the prohibition of any discrimination in the operation of the properties and resident selection.

HAP Contract Eligibility Requirements

To enter a HAP contract agreement, property owners must be approved by the public housing agency relevant to the target property. In regards to eligibility, the PHA will determine if the owner has previously been suspended from participation in the program, and request information from HUD to identify if the owner has any administrative or legal actions related to housing – like violations of the Fair Housing Act or other similar legislation.

Does a HAP Contract Expire?

While there are ways HAP contracts can be terminated ahead of schedule, they typically run in concurrence with a related lease agreement. Generally, If a lease is extended, the HAP contract is extended alongside it. Similarly, if the agreement is terminated by either the owner or renter, the HAP contract also ceases. An early termination of a HAP contract typically comes into play if the property owner violates the terms of the agreement — or if the PHA halts payment assistance.

Can Ownership of a HAP Contract Be Transferred?

If a property owner with a HAP contract decides to sell the asset, information must be submitted to the public housing agency in a timely manner before the sale, and the PHA must agree to the transfer of the contract. Additionally, the buyer of the property is usually required to provide forms for tax purposes if the HAP contract is to continue.

Related Questions

What is a HAP contract?

Housing Assistance Payments contracts, often referred to as HAP contracts, are agreements between a public housing agency (PHA) and the owner of a property to define the number of units eligible for Section 8 rental subsidies. Based on the agreement, the Department of Housing and Urban Development provides rental subsidies to the owner of a property to cover the difference between the approved or contract rent and residents’ contributions. Renter contributions are typically capped at 30% of a household’s adjusted income.

In exchange for this subsidization, property owners are required to lease those units to Section 8-eligible families or individuals, maintaining them to all relevant sanitation and safety standards. The contract also includes reporting requirements and the prohibition of any discrimination in the operation of the properties and resident selection.

What are the benefits of a HAP contract?

The primary benefit of a HAP contract is that it provides rental subsidies to the owner of a property to cover the difference between the approved or contract rent and residents’ contributions. Renter contributions are typically capped at 30% of a household’s adjusted income. This helps to ensure that the property owner is able to receive a steady income from the property, while also providing affordable housing to those who need it.

In addition, HAP contracts also provide property owners with the assurance that their property will be maintained to all relevant sanitation and safety standards, and that they will not be subject to any discrimination in the operation of the properties and resident selection.

What are the requirements for a HAP contract?

In order to enter into a HAP contract, owners must be approved by the relevant public housing agency. The PHA will determine if the owner has previously been suspended from participation and will request information from HUD to identify any administrative or legal actions related to housing, such as violations of the Fair Housing Act or other similar legislation.

If the owner of a property with a HAP contract decides to sell the asset, information must be submitted to the public housing agency in advance of the sale, and the PHA must agree to the assignment of the contract. A PHA will usually require that the buyer of the property provide forms for tax purposes if the HAP contract will continue.

Sources:

  • apartment.loans/posts/hap-contracts
  • www.hud.loans/hap-contracts

What are the risks associated with a HAP contract?

The risks associated with a HAP contract include the possibility of the contract being terminated early if the property owner violates the terms of the agreement or if the PHA halts payment assistance. Additionally, the property owner must be approved by the relevant public housing agency and must not have any administrative or legal actions related to housing, such as violations of the Fair Housing Act or other similar legislation.

Sources:

  • apartment.loans/posts/hap-contracts
  • www.hud.loans/hap-contracts

How can I find a lender that offers HAP contracts?

You can find lenders that offer HAP contracts by searching online for "HAP contract lenders" or "HAP contract financing." You can also contact the relevant public housing agency to inquire about lenders that offer HAP contracts. Additionally, you can contact the Department of Housing and Urban Development (HUD) for more information about lenders that offer HAP contracts.

For more information about HAP contracts, please visit the following websites:

  • www.hud.loans/hap-contracts
  • apartment.loans/posts/hap-contracts
In this article:
  1. What Are HAP Contracts?
  2. HAP Contract Eligibility Requirements
  3. Does a HAP Contract Expire?
  4. Can Ownership of a HAP Contract Be Transferred?
  5. Related Questions
  6. Get Financing
Tags
  • HAP
  • Housing Assistance Payment
  • LIHTC
  • HUD
  • HAP Contract
  • Affordable Housing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →

Janover: Your Partner in Growth

At Janover, we offer a wide range of services tailored to your unique needs. From commercial property loans and LP management to business loans and services for lenders, we're here to help you succeed.

Learn more about Janover →
Commercial Property Loans

Get the best CRE financing on the market.

Explore Financing Options →
LP Management

Syndicate deals on autopilot with Janover Connect.

Discover LP Management →
Business Loans

Match with the right kind of loan, in record time.

Find Business Loans →
For Lenders

Supercharge your loan pipeline. Unlock more deals.

Boost Your Loan Pipeline →
Apartment Loans

Apartment Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Commercial Real Estate Loans, SBA7a Loans, HUD Loans, Janover Insurance, Janover Pro, Janover Connect, and Janover Engage.

Janover Tech Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-9997 
hello@apartment.loans

Loan Types

Bank Loans
CMBS
Construction Loans
Fannie Mae
Freddie Mac
HUD/FHA Apartment Loans
Commercial Loan Rates
For Commercial Mortgage Brokers

Site Information

Privacy Policy
Terms of Use


For Commercial Mortgage Brokers

This website is owned by a company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

This website utilizes artificial intelligence technologies to auto-generate responses, which have limitations in accuracy and appropriateness. Users should not rely upon AI-generated content for definitive advice and instead should confirm facts or consult professionals regarding any personal, legal, financial or other matters. The website owner is not responsible for damages allegedly arising from use of this website's AI.

Copyright © 2025 Janover Tech Inc. All rights reserved.

+

Fill out the form below and get the pricing and terms banks can't compete with.