[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR983.151]

[Page 652-653]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 983--SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM--Table of Contents
 
             Subpart D--Housing Assistance Payments Contract
 
Sec. 983.151  Housing assistance payments contract (HAP contract).


    (a) Required form. The HA must enter into a HAP contract with the 
owner in the form prescribed by HUD for assistance provided under this 
part 983.
    (b) Term of HAP contract. (1) The initial HAP contract term may not 
be less than one year nor more than five years, and may not extend 
beyond the ACC expiration date for the funding source from which the HAP 
contract is to be funded.
    (2) The contract authority for the funding source must exceed the 
estimated annual housing assistance payments for all tenant-based and 
project-based HAP contracts funded from the funding source.
    (3) Within these limitations, the HA has the sole discretion to 
determine the HAP contract term.
    (c) Renewal of HAP contracts. With HUD field office approval and at 
the sole option of the HA, HAs may renew expiring HAP contracts for such 
period or periods as the HUD field office determines appropriate to 
achieve long-term affordability of the assisted housing, provided that 
the term does not extend beyond the ACC expiration date for the funding 
source. HAs must identify the funding source for renewals; different 
funding sources may be used for the initial term and renewal terms of 
the HAP contract. In addition to assessing whether the HAP contract 
should be renewed to achieve long term affordability, HUD will review an 
HA's renewal request to determine that the requirements listed in 
Sec. 983.3(a) will be satisfied, and to determine if a rent reduction is 
warranted pursuant to 24 CFR part 12. The owner and owner's successors 
in interest must accept all HAP contract renewals agreed to by the HA 
and approved by HUD.
    (d) Time of execution. The HA must execute the HAP contract if the 
HA accepts the unit(s) under Sec. 983.104. The effective date of the HAP 
contract may not be earlier than the date of HA inspection and 
acceptance of the unit(s).
    (e) Units under lease. After commencement of the HAP contract term,

[[Page 653]]

the HA must make the monthly housing assistance payments in accordance 
with the HAP contract for each unit occupied under lease by a family.

(Approved by the Office of Management and Budget under control number 
2577-0169)

[60 FR 34717, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 63 
FR 23871, Apr. 30, 1998]