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pdfU.S. Department Of Housing And Urban Development
Office of Housing
PROJECT-BASED ASSISTANCE
HOUSING ASSISTANCE PAYMENTS CONTRACT
For Previous Mod Rehab Projects
OMB Control #2502-0587
Exp. (09/30/2014)
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The information is being collected for obtaining a signature on legally binding documents and will be used to enforce contractual obligations. Response to this
request for information is required in order to receive the benefits to be derived. This agency may not collect this information, and you are not required to
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PREPARATION OF HAP CONTRACT
Instructions on preparation of the HAP Contract are attached at the end of the
HAP Contract text. Reference numbers in the text of section 1 of the contract
refer to notes at the end of the contract text.
1
Previous editions are obsolete
Form HUD-9644
Project-based Voucher Program
HAP Contract (10/09)
Attachment 18
PROJECT-BASED ASSISTANCE
HOUSING ASSISTANCE PAYMENT CONTRACT
TABLE OF CONTENTS
HAP CONTRACT
PART 1
1. CONTRACT INFORMATION ................................................................................................. 1
A. PROJECT ..................................................................................................................................................... 1
B. CONTENTS OF CONTRACT .............................................................................................................. 1
C. CONTRACT EXHIBITS ......................................................................................................................... 2
D. EFFECTIVE DATE, TERM, AND FUNDING OF HAP CONTRACT ............................... 2
i.
ii.
Effective date ............................................................................................................................................. 2
Length of term and funding ..................................................................................................................... 2
E.
PARTIES TO HAP CONTRACT ....................................................................................................... 3
PART 2
2. DEFINITIONS ........................................................................................................................................ 1
3. PURPOSE .................................................................................................................................................... 3
4. OCCUPANCY AND PAYMENT............................................................................................. 3
A. PAYMENT FOR OCCUPIED UNITS ................................................................................................ 3
B. OCCUPANCY BY ELIGIBLE FAMILIES......................................................................................... 4
C. VACANCY PAYMENT .......................................................................................................................... 4
D. COMPENSATION FOR DAMAGES, UNPAID RENT AND OTHER
AMOUNTS DUE UNDER THE LEASE .................................................................................................. 5
5. HOUSING ASSISTANCE PAYMENTS ........................................................................... 5
A. HUD RENT REQUIREMENTS ......................................................................................................... 5
B. CA PAYMENT TO OWNER ............................................................................................................... 5
6. CONTRACT RENT............................................................................................................................. 6
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A.
INITIAL CONTRACT RENTS ........................................................................................................... 6
B. CONTRACT RENT ADJUSTMENTS ............................................................................................. 6
C. OWNER COMPLIANCE WITH HAP CONTRACT ................................................................ 9
7. OWNER RESPONSIBILITY ....................................................................................................... 9
8. OWNER CERTIFICATION ....................................................................................................... 10
9. CONDITION OF UNITS ............................................................................................................. 11
A. OWNER MAINTENANCE AND OPERATION ......................................................................... 11
B. CA INSPECTION .................................................................................................................................. 11
C. VIOLATION OF PCS ......................................................................................................................... 11
D. MAINTENANCE AND REPLACEMENT -- OWNER'S
STANDARD PRACTICE .............................................................................................................................. 12
10. LEASING CONTRACT UNITS ........................................................................................ 12
11. TENANCY............................................................................................................................................ 12
A. LEASE ......................................................................................................................................................... 12
B. TERMINATION OF TENANCY ....................................................................................................... 12
C. FAMILY PAYMENT .............................................................................................................................. 12
D. OTHER OWNER CHARGES ............................................................................................................ 13
E. SECURITY DEPOSIT ............................................................................................................................ 13
12. RESERVE FOR REPLACEMENTS ................................................................................. 13
13. OVERCROWDED AND UNDEROCCUPIED UNITS ................................. 14
14. PROHIBITION OF DISCRIMINATION ................................................................. 14
15. REDUCTION OF CONTRACT UNITS ..................................................................... 14
16. OWNER DEFAULT AND CA REMEDIES ............................................................. 15
A. OWNER DEFAULT ............................................................................................................................... 15
B. CA REMEDIES ....................................................................................................................................... 16
C. CA REMEDY IS NOT WAIVED ...................................................................................................... 16
17. OWNER DUTY TO PROVIDE INFORMATION AND
ACCESS REQUIRED BY HUD OR CA .................................................................................... 16
A. REQUIRED INFORMATION ............................................................................................................ 16
B. CA AND HUD ACCESS TO PROJECT ..................................................................................... 16
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18.
CA AND OWNER RELATION TO THIRD PARTIES ................................. 17
A. INJURY BECAUSE OF OWNER ACTION OR FAILURE TO ACT .................................... 17
B. LEGAL RELATIONSHIP ..................................................................................................................... 17
C. EXCLUSION OF THIRD PARTY CLAIMS .................................................................................. 17
D.
OWNER’S CLAIMS AGAINST HUD .................................................................................... 17
19. CONFLICT OF INTEREST ................................................................................................... 17
A. PROHIBITED INTEREST ................................................................................................................... 17
B. DEFINITIONS......................................................................................................................................... 18
C. DISCLOSURE.......................................................................................................................................... 18
D. HUD WAIVER....................................................................................................................................... 19
E. INTEREST OF MEMBER OF CONGRESS .................................................................................. 19
20. EXCLUSION FROM FEDERAL PROGRAMS..................................................... 19
A. FEDERAL REQUIREMENTS ............................................................................................................. 19
B. DISCLOSURE.......................................................................................................................................... 19
21. TRANSFER OF THE CONTRACT, PROPERTY, AND
OWNERSHIP ENTITY ............................................................................................................................ 20
A. WHEN CONSENT IS REQUIRED................................................................................................... 20
B. TRANSFEREE ASSUMPTION OF HAP CONTRACT ......................................................... 21
C. EFFECT OF CONSENT TO TRANSFER........................................................................................ 21
D. WHEN TRANSFER IS PROHIBITED ............................................................................................ 21
22. OWNER DISCLOSURE OF OTHER GOVERNMENT
ASSISTANCE.................................................................................................................................................. 21
23. OWNER LOBBYING CERTIFICATIONS ............................................................... 22
24. NOTICES AND OWNER CERTIFICATIONS..................................................... 22
25. HUD REQUIREMENTS .......................................................................................................... 23
26. STATUTORY CHANGES DURING TERM .......................................................... 23
27. PHA DEFAULT ............................................................................................................................... 23
28. ENTIRE AGREEMENT ............................................................................................................ 23
Form HUD-9644
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Attachment 18
HAP Contract Number:
U.S. Department Of Housing and Urban Development
Office of Housing
PROJECT-BASED SECTION 8
HOUSING ASSISTANCE PAYMENTS
RENEWAL CONTRACT
PART 1
1. CONTRACT INFORMATION1
a. Project
Section 8 Project Number
FHA Project Number (if applicable)
Project Name:
Project Description2
b. Contents of contract
This is a housing assistance payments renewal contract (hereinafter “HAP Contract”)
between HUD and the Owner. The HAP Contract consists of Part 1, Part 2 and the
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Attachment 18
contract exhibits listed in paragraph c.
c. Contract exhibits
The HAP Contract includes the following exhibits:
EXHIBIT A
DESCRIPTION OF CONTRACT UNITS
THIS EXHIBIT SPECIFIES THE NUMBER OF CONTRACT UNITS
BY UNIT SIZE (NUMBER OF BEDROOMS), APPLICABLE
INITIAL CONTRACT RENTS, AND (IF THE HAP CONTRACT IS A
STAGED CONTRACT) THE EFFECTIVE DATE OF EACH STAGE. 3
EXHIBIT B
SERVICES, MAINTENANCE AND UTILITIES TO BE
PROVIDED BY THE OWNER
ADDITIONAL EXHIBITS:4
d. Effective date, term, and funding of HAP Contract
i. Effective date
1) If the HAP Contract is not a staged contract, the effective date for all contract units is:
.
2) If the HAP Contract is a staged contract, the effective date for each stage is set forth on
Exhibit A attached hereto.
ii. Length of term and funding
1) The term of the HAP Contract for all contract units shall end on
.
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2) Execution of the HAP Contract is an obligation by HUD of
$
, an amount sufficient to provide housing assistance payments for
approximately
months of the first annual increment of the HAP Contract term.
3) HUD will provide additional funding for the remainder of the first annual increment
and for subsequent annual increments, including for any remainder of such subsequent
annual increments, subject to the availability of sufficient appropriations. When such
appropriations are available, HUD will obligate additional funding and provide the
Owner written notification of (i) the amount of such additional funding, and (ii) the
approximate period of time within the remainder of the term to which it will be
applied.
4) Owner hereby acknowledges and agrees that it will accept any offer of renewal of the
HAP Contract if the offer is in accordance with the terms and conditions specified in
the Restructuring Commitment.
e. Parties to HAP Contract
Name of Contract Administrator:
Address of Contract Administrator:
Name of Owner:
Address of Owner
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EXECUTION OF HAP CONTRACT
CONTRACT ADMINISTRATOR
(CA)
By:
Signature of authorized representative
Name and official title (Print)
Date
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(HUD)
By:
Signature of authorized representative
Name and official title (Print)
Date
OWNER
Name of Owner (Print)
By:
Signature of authorized representative
Name and title (Print)
Date
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Attachment 18
U.S. Department Of Housing and Urban Development
Office of Housing
PROJECT-BASED ASSISTANCE
HOUSING ASSISTANCE PAYMENTS
RENEWAL CONTRACT
PART 2
2. DEFINITIONS
CA. Contract administrator. The agency that has entered into the HAP Contract with the
Owner. The agency is HUD or a public housing agency as defined in the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(6)).
Contract rent. The total monthly rent payable to the Owner for a contract unit, including
the tenant rent. Contract rent includes payment for any housing services, maintenance and
utilities to be provided by the Owner in accordance with the HAP Contract.
Contract units. The housing units covered by this HAP Contract. The contract units are
described in Exhibit A by unit size (number of bedrooms) and applicable initial contract
rents.
Family. The persons selected by the Owner in accordance with HUD Requirements to
reside in a contract unit with Section 8 assistance.
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HAP Contract. This housing assistance payments contract between the CA and the
Owner. The contract consists of Part 1, Part 2, and the contract exhibits (listed in
paragraph 1.c of the HAP Contract).
HUD. U.S. Department of Housing and Urban Development.
HUD requirements. HUD regulations and other requirements, including changes in HUD
regulations and other requirements during the term of the HAP Contract.
MAHRA. The Multifamily Assisted Housing Reform and Affordability Act of 1997 (Title
V of Public Law No.105-65, October 27, 1997, 111 Stat. 1384ff), as amended by section
531 of the Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2000 (Public Law No. 106-74, October 20,
1999,113 Stat. 1109ff).
OCAF. An operating cost adjustment factor established by HUD.
PHA. A public housing agency (as defined and qualified in accordance with the United
States Housing Act of 1937. 42 U.S.C. 1437 et seq.).
Physical condition standards (PCS). The HUD minimum physical condition standards
for dwelling units occupied by families receiving Section 8 project-based assistance.
Principal or interested party. This term includes a management agent and other persons
or entities participating in project management, and the officers and principal members,
shareholders, investors, and other parties having a substantial interest in the HAP Contract,
or in any proceeds or benefits arising from the HAP Contract.
Project. The housing designated in paragraph 1.a of the HAP Contract.
Restructuring Commitment. That certain Restructuring Commitment, entered into
between the Owner and HUD, as part of the Mark-to-Market Process, setting forth the
terms of the restructuring for the Project involving a section 8 housing assistance payments
contract renewal with debt restructuring, and which incorporates a Restructuring Plan
containing the information required by the Regulations at 24 CFR 401.404.
Section 8. Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).
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Tenant rent. The portion of the contract rent payable by the family, as determined by the
Owner in accordance with HUD requirements. The CA is not responsible for paying any
part of the tenant rent, except with respect to vacancy and similar payments made under
Section 4.c.
3. PURPOSE
a.
The HAP Contract is entered pursuant to section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f), section 515(a) of the MAHRA, and pursuant to the
terms of the Restructuring Commitment.
b.
Previously, the CA and the Owner had entered into a housing assistance payments
contract ("expiring contract") to make Section 8 housing assistance payments to the
Owner for eligible families living in the Project. The term of the expiring contract
will expire or terminate prior to the beginning of the term of this HAP Contract.
c.
The purpose of the HAP Contract is to provide housing assistance payments on
behalf of eligible families who lease and occupy contract units that comply with the
HUD PCS. Housing assistance payments shall only be paid to the Owner for
contract units occupied by eligible families who lease contract units from the
Owner in accordance with statutory requirements, and with all HUD regulations
and other HUD requirements.
d.
The HAP Contract is entered into pursuant to the terms of the Restructuring
Commitment setting forth the terms of the restructuring for the Project involving a
section 8 housing assistance payments contract renewal with debt restructuring.
e.
The CA must make housing assistance payments to the Owner in accordance with
the HAP Contract for contract units leased and occupied by eligible families during
the HAP Contract term.
4. OCCUPANCY AND PAYMENT
a. Payment for occupied units
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During the term of the HAP Contract, the CA 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 as determined in accordance with HUD requirements. If an assisted family moves out
of a contract unit, the Owner may keep the housing assistance payment for the month when
the family moves out.
b. Occupancy by eligible families
During the contract term, the Owner shall lease all of the contract units to eligible families.
Eligibility shall be determined in accordance with HUD requirements.
c. Vacancy payment
1) The Owner shall receive housing assistance payments for so much of the month in
which the family moves out of a contract unit as the contract unit remains vacant.
2) If the unit remains vacant, the Owner may receive a housing assistance payment in the
amount of 80 percent of the contract rent for a vacancy period not to exceed an
additional month after the month when the family moves out. However, if the Owner
collects any of the tenant rent for this month, the payment for the vacancy period must
be reduced to an amount which, when added to the family’s payments, does not exceed
80 percent of the contract rent.
3) The Owner shall not receive any vacancy payment under this paragraph iii, unless the
Owner:
4)
a) Immediately upon learning of the vacancy, has notified the CA of the vacancy, or
prospective vacancy, and the reason for the vacancy,
b) Takes all feasible actions to fill the vacancy, including contacting applicants on the
Owner’s waiting list, conducting appropriate outreach for eligible families, and
advertising the availability of the unit;
c) Has not rejected any eligible applicant, except for good cause acceptable to the CA;
and
d)
Did not cause the vacancy by violating the lease, the HAP Contract, or any
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applicable law.
d. Compensation for Damages, Unpaid Rent and Other Amounts
Due Under the Lease
If a family vacates a contract unit and owes rent, other amounts due under the lease, or has
left damages in excess of normal wear and tear, the Owner may request reimbursement
from HUD for such items so long as the Owner: (1) has collected a security deposit in an
amount permitted by HUD; and (2) has completed the move-in and move out inspections
required by HUD. The amount of reimbursement will be calculated in accordance with
HUD regulations and administrative procedures.
5. HOUSING ASSISTANCE PAYMENTS
a. HUD rent requirements
Notwithstanding any other provisions of the HAP Contract, the contract rent may in no
event exceed the amount authorized in accordance with HUD requirements.
b. CA payment to Owner
1) Each month the CA must make a housing assistance payment to the Owner for a unit
under lease to and occupied by an eligible family in accordance with the HAP
Contract.
2) The monthly housing assistance payment to the Owner for a contract unit is equal to
the amount by which the contract rent exceeds the tenant rent.
3) Payment of the tenant rent is the responsibility of the family. The CA is not
responsible for paying any part of the tenant rent, or for paying any other claim by the
Owner against a family, except with respect to vacancy and similar payments made
under Section 4.c. The CA is only responsible for making housing assistance payments
to the Owner on behalf of a family in accordance with the HAP Contract.
4) The Owner will be paid the housing assistance payment under the HAP Contract on or
about the first day of the month for which payment is due, unless the Owner and the
CA agree on a later date.
5) The Owner will notify the CA promptly of any change of circumstances that would
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affect the amount of the monthly housing assistance payment, and will return any
payment that does not conform to the changed circumstances.
6. CONTRACT RENT
a. Initial Contract Rents
At the beginning of the HAP Contract term, and until contract rents for units in the Project
are adjusted in accordance with section 6b, the contract rent for each bedroom size
(number of bedrooms) shall be the initial contract rent amount listed in Exhibit A, which
is attached to and, by this reference, is hereby made a part of the HAP Contract.
b. Contract Rent Adjustments
1)
OCAF -During the term of the HAP Contract the Contract Administrator shall annually, on
the anniversary date of the HAP Contract, adjust the amounts of the monthly contract
rents in accordance with HUD requirements by using an OCAF.
2)
Procedure for Rent Adjustments During HAP Contract Term
a)
To adjust contract rents during the term of the HAP Contract, the Contract
Administrator shall give the Owner notice with a revised Exhibit A that
specifies the adjusted contract rent amounts.
b)
The revised Exhibit A shall specify the adjusted contract rent amount for
each bedroom size as determined by the Contract Administrator in
accordance with this section. The adjustment notice by the Contract
Administrator to the Owner shall specify when the adjustment of contract
rent is effective.
c)
If this box is checked
, the initial contract rent, as stated in Exhibit A,
constitutes an exception rent based on the actual and projected costs of
operating the Project, as provided under section 514(g)(3) of MAHRA.
Actual market rents are:
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1br:
2br:
3br:
4br:
Should the Project anytime during the term of the Renewal
Contract receive other government assistance, including but not
limited to any loan, grant, credit, tax benefit, or any other form
of direct or indirect assistance such as tax credits under Federal,
State or local law, the Owner shall provide HUD with written
notice, no more than 30 days following receipt of notification
from the governmental authority issuing the assistance that such
assistance has been or will be awarded. The written notice will
identify the type and amount of the assistance awarded, the
government entity providing such assistance, and the date of the
award. HUD will review the underwriting projections resulting
from the receipt of other government assistance, and if HUD
determines that Project operating expenses, debt service, and/or
required replacement reserve contributions will decrease as a
result of the Project’s receipt of other government assistance,
HUD may adjust the contract rents downward to the greatest of
the following:
Actual market rents as noted above, adjusted upwards
using the appropriate OCAF adjustment factor,
compounded annually from the origination date of the
renewal contract, per HUD guidelines;
Revised exception rent after applying the other
government assistance, which is determined to
decrease operating expenses, debt service, and/or
required replacement reserve contribution; and
Market rents that reflect improvements to the Project
(as improved rents) resulting from the application of
the additional government assistance, not to exceed the
contract rent then in effect. The owner must submit to
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HUD a rent comparability study (RCS) prepared (at the
owner’s expense) in accordance with HUD
requirements. HUD will have sole discretion to review
and adjust the rents provided in the RCS to eliminate
upward adjustments attributable to improvements that
exceed the M2M Program’s non-luxury standard. The
rent comparability study must be submitted to HUD
along with the notification of the award of the other
governmental assistance.
IF THE ADDITIONAL GOVERNMENT ASSISTANCE IS
PROVIDED IN CONJUNCTION WITH A TRANSACTION
REQUIRING PRIOR HUD APPROVAL, SUCH AS, AN
ASSUMPTION/SUBORDINATION OF MARK-TO-MARKET
DEBT, A TPA, OR THE APPROVAL OF A NEW FHA INSURED
FIRST MORTGAGE, THE OWNER MUST NOTIFY THE HUD
OFFICIAL APPROVING THAT TRANSACTION OF THE
REQUIREMENTS OF THIS SECTION. NO ADDITIONAL
NOTIFICATION OF HUD OR THE SECTION 8 CONTRACT
ADMINISTRATOR STAFF WILL BE REQUIRED.
IF NEW SECURED DEBT AND/OR TAX CREDIT EQUITY IS
INVOLVED, THE OWNER SHALL SUBMIT PRO-FORMA
ESTIMATES OF THE OPERATING EXPENSES, DEBT
SERVICE, AND REPLACEMENT RESERVES THAT WILL BE
REQUIRED AFTER THE APPLICATION OF THE ADDITIONAL
GOVERNMENT ASSISTANCE. THESE ESTIMATES WILL BE
REVIEWED BY HUD IN ITS PROCESS OF DETERMINING A
POSSIBLE CONTRACT RENT ADJUSTMENT.
d)
3)
Notice of rent adjustment by the Contract Administrator to the Owner shall
automatically constitute an amendment of the HAP Contract.
No other adjustments
Except for contract rent adjustments in accordance with this section, there shall not
be any other adjustments of the contract rents during the term of the HAP Contract.
Special adjustments shall not be granted.
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c. Owner compliance with HAP Contract
The CA shall not approve, and the Owner shall not receive, any increase of contract rent
for any contract unit which does not comply with the PCS, and/or where the Owner has not
complied with the terms of the assisted lease.
7. OWNER RESPONSIBILITY
a.
The Owner is responsible for:
1)
Performing all management and rental functions for the contract units.
2)
Selecting tenants.
3)
Determining tenant eligibility.
4)
Performing an initial examination, interim examinations, and annual
reexaminations of family income.
5)
Calculating amount of the tenant rent and the housing assistance payment in
accordance with the HAP Contract and HUD requirements.
6)
Entering a lease with each assisted tenant.
7)
Enforcing tenant obligations under the lease.
8)
Paying for utilities and housing services (unless paid by the tenant in
accordance with the HAP Contract).
9)
Collecting from the tenant:
a) Any security deposit.
b) The tenant rent.
c) Any charge for unit damage by the family.
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b.
10)
Paying the family any applicable utility reimbursement for tenant-paid
utilities (where the amount of the utility allowance exceeds the amount of
the tenant rent).
11)
Submitting monthly requests for payment in the form and manner required
by HUD and the CA.
12)
Abiding by all terms and conditions of the Restructuring Commitment.
The Owner shall perform all Owner responsibilities in accordance with HUD
requirements.
8. OWNER CERTIFICATION
The Owner certifies that at all times during the term of the HAP Contract:
1) All contract units are in good and tenantable condition. The Owner will maintain the
Project and all contract units in accordance with the PCS.
2) The Owner is providing all the services, maintenance and utilities as agreed to under
the HAP Contract and the leases with assisted families.
3) Each contract unit for which the Owner is receiving housing assistance payments is
leased to an eligible family, and the lease is in accordance with the HAP Contract and
HUD requirements.
4) To the best of the Owner's knowledge, the contract unit is leased to and occupied by an
eligible Family and is used solely for residence by the Family and as the Family’s
principal place of residence.
5) The Owner (including a principal or other interested party) is not the parent, child,
grandparent, grandchild, sister, or brother of any member of a family residing in a
contract unit.
6) The amount of the housing assistance payment is the correct amount due under the
HAP Contract.
7) Except for the housing assistance payment and the tenant rent as provided under the
HAP Contract, the Owner has not received and will not receive any payments or other
consideration (from the family, the CA, HUD, or any other public or private source) for
rental of the contract unit.
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8) The family does not own, or have any interest in the contract unit. If the Owner is a
cooperative, the family may be a member of the cooperative.
9) Owner has complied and will comply with all Owner’s obligations under the
Restructuring Commitment.
9. CONDITION OF UNITS
a. Owner maintenance and operation
1) The Owner must maintain and operate the contract units and Project to provide decent,
safe and sanitary housing in accordance with the PCS, including timely performance of
ordinary and extraordinary maintenance.
2) The Owner must provide all the services, maintenance and utilities set forth in
Exhibit B, and in the lease with each assisted family.
b. CA inspection
The CA may inspect the contract units and the Project annually, and any time the CA
deems necessary to assure that the contract units and Project are in accordance with the
PCS, and that the Owner is providing the maintenance, utilities, and other services in
accordance with the leases and the HAP Contract. The CA shall give the Owner
reasonable notice of any and all such inspections.
c. Violation of PCS
1) If the CA determines that a contract unit is not in accordance with the PCS, the CA
may exercise any of its remedies under the HAP Contract. Such remedies include
termination, and suspension or reduction of housing assistance payments. The CA may
exercise any such contractual remedy respecting a contract unit even if the family
continues to occupy the unit.
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2) The CA shall not make any housing assistance payment for a dwelling unit that fails to
meet the PCS, unless the Owner corrects the defect within the period specified by the
CA and the CA verifies the correction. If a defect is life threatening, the Owner must
correct the defect within no more than 24 hours. For other defects, the Owner must
correct the defect within no more than 30 calendar days (or any CA-approved
extension).
d. Maintenance and replacement -- Owner's standard practice
Maintenance and replacement (including redecoration) must be in accordance with the
standard practice for the building concerned as established by the Owner.
10. LEASING CONTRACT UNITS
a. During the term of the HAP Contract, the Owner must lease all contract units to
eligible families.
b. The Owner must determine family eligibility in accordance with HUD requirements.
c. The contract unit leased to each family must be appropriate for the size of the family as
determined in accordance with HUD requirements.
d. The Owner is responsible for screening and selecting tenants.
11. TENANCY
a. Lease
The lease between the Owner and each assisted family must be in accordance with HUD
requirements. The lease must include word-for-word all provisions required by HUD.
b. Termination of tenancy
The Owner may only terminate a tenancy in accordance with the lease and HUD
requirements.
c. Family payment
1) The portion of the contract rent payable by the family will be determined by the Owner
in accordance with HUD requirements. The amount of the tenant rent is subject to
change during the term of the HAP Contract.
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2) The amount of the tenant rent as determined by the Owner in accordance with HUD
requirements is the maximum amount the Owner may charge the family for rent of a
contract unit, including all housing services, maintenance and utilities to be provided
by the Owner in accordance with the HAP Contract and the lease.
3) The Owner may not demand or accept any rent payment from the tenant in excess of
the tenant rent. The Owner must immediately return any excess rent payment to the
tenant.
4) The family is not responsible for payment of the portion of the contract rent covered by
the housing assistance payment under the HAP Contract. The Owner may not
terminate the tenancy of an assisted family for nonpayment of the housing assistance
payment where such nonpayment is the result of failure by the Owner to fulfill its
obligations under the HAP Contract.
d. Other Owner charges
The Owner may not charge the tenant or family members extra amounts for items set forth
in Exhibit B.
e. Security deposit
1) The Owner may collect a security deposit from the family.
2) The Owner must comply with HUD and CA requirements, which may change from
time to time, regarding security deposits from a tenant.
3) When the family moves out of the contract unit, the Owner, subject to State and local
law, may use the security deposit, including any interest on the deposit, in accordance
with the lease, as reimbursement for any unpaid tenant rent, damages to the unit or
other amounts which the family owes under the lease. The Owner must give the family
a written list of all items charged against the security deposit and the amount of each
item. After deducting the amount used as reimbursement to the Owner, the Owner
must promptly refund the full amount of the balance to the family.
4) If the security deposit is not sufficient to cover amounts the family owes under the
lease, the Owner may seek to collect the balance from the tenant.
RESERVE FOR REPLACEMENTS
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Intentionally deleted.
OVERCROWDED AND UNDEROCCUPIED UNITS
If a contract unit is not decent, safe and sanitary because of an increase in the family size
which causes the unit to be overcrowded, or a contract unit is larger than appropriate for
the size of the family in occupancy, the Owner must offer the family a suitable unit as soon
as one becomes vacant and ready for occupancy, and the Owner must require the family to
move.
14. PROHIBITION OF DISCRIMINATION
a.
The Owner may not refuse to lease contract units to, or otherwise discriminate
against any person or family in leasing of a contract unit, because of race, color,
creed, religion, sex, national origin, disability or familial status (i.e., because the
family includes children).
b.
The Owner must comply with all applicable Federal requirements, including but
not limited to the following: The Fair Housing Act (42 U.S.C. 3610 - 3619) and
implementing regulations at 24 CFR parts 100, et seq.; Executive Orders 11063,
12259, and 12892 (Equal Opportunity in Housing) and implementing regulations at
24 CFR part 107; title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d 2000d-4) (prohibition of discrimination in Federally-assisted programs) and
implementing regulations at 24 CFR part 1; the Age Discrimination Act of 1975
(42 U.S.C. 6101 - 6107) and implementing regulations at 24 CFR part 146; section
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) (prohibition of
discrimination because of disability) and implementing regulations at 24 CFR
part 8; title II of the Americans with Disabilities Act (42 U.S.C. 12101, et seq.)
(prohibition of employment discrimination because of disability) and the fair
housing advertising poster guidelines at 24 CFR part 110.
c.
The CA and the Owner must cooperate with HUD in the conducting of compliance
reviews and complaint investigations pursuant to all applicable civil rights statutes,
Executive Orders, and all related rules and regulations.
15. REDUCTION OF CONTRACT UNITS
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If the Owner fails for a continuous period of six months to have at least 90 percent of the
assisted units leased or available for leasing to eligible families, the contract administrator
may, on thirty calendar days notice to the Owner, reduce the number of contract units to
not less than the number of units actually under lease to eligible families at the day of such
notice, plus 10 percent (rounded up).
16. OWNER DEFAULT AND CA REMEDIES
a. Owner default
Any of the following is a default by the Owner under the HAP Contract:
1) The Owner has failed to comply with any obligation under the HAP Contract, including
the Owner's obligations to maintain all contract units in accordance with the PCS.
2) The Owner has violated any obligation under any other housing assistance payments
contract under Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).
3) The Owner has committed any fraud or made any false statement to the CA or HUD in
connection with the HAP Contract.
4) The Owner has committed fraud, bribery or any other corrupt or criminal act in
connection with any Federal housing assistance program.
5) If the property where the contract units are located is subject to a lien or security interest
securing a HUD loan or a mortgage insured by HUD:
a) The Owner has failed to comply with the regulations for the applicable mortgage
insurance or loan program, with the mortgage or mortgage note, or with the
regulatory agreement, or
b) The Owner has committed fraud, bribery or any other corrupt or criminal act in
connection with the HUD loan or HUD-insured mortgage.
6) If the Owner has engaged in any drug-related criminal activity or any violent criminal
activity.
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7) The Owner has violated any obligation under the Restructuring Commitment.
b. CA remedies
1) If the CA determines that a breach has occurred, the CA may exercise any of its rights or
remedies under the HAP Contract.
2) The CA must notify the Owner in writing of such determination. The notice by the CA to
the Owner may require the Owner to take corrective action (as verified by the CA) by a
time prescribed in the notice.
3) The CA's rights and remedies under the HAP Contract include recovery of overpayments,
termination or reduction of housing assistance payments, and termination of the HAP
Contract.
c. CA remedy is not waived
The CA's exercise or non-exercise of any remedy for Owner breach of the HAP Contract is
not a waiver of the right to exercise that remedy or any other right or remedy at any time.
17. OWNER DUTY TO PROVIDE INFORMATION AND ACCESS
REQUIRED BY HUD OR CA
a. Required information
The Owner must prepare and furnish any information pertinent to the HAP Contract as may
reasonably be required from time to time by the CA or HUD. The Owner shall furnish such
information in the form and manner required by the CA or HUD.
b. CA and HUD access to Project
The Owner must permit the CA or HUD or any of their authorized representatives to have
access to the Project during normal business hours, and, for the purpose of audit and
examination, to have access to any books, documents, papers and records of the Owner to the
extent necessary to determine compliance with the HAP Contract, including the verification
of information pertinent to the housing assistance payments or the HAP Contract.
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18. CA AND OWNER RELATION TO THIRD PARTIES
a. Injury because of Owner action or failure to act
The CA has no responsibility for or liability to any person injured as a result of the
Owner's action or failure to act in connection with the implementation of the HAP
Contract, or as a result of any other action or failure to act by the Owner.
b. Legal relationship
The Owner is not the agent of the CA. The HAP Contract does not create or affect any
relationship between the CA and any lender to the Owner or any suppliers, employees,
contractors or subcontractors used by the Owner in connection with the implementation of
the HAP Contract.
c. Exclusion of third party claims
Nothing in the HAP Contract shall be construed as creating any right of a family or other
third party (other than HUD) to enforce any provision of the HAP Contract, or to assert
any claim against HUD, the CA or the Owner under the HAP Contract.
d. Owner’s claims against HUD
If the contract administrator is a PHA acting as contract administrator pursuant to an
annual contributions contract (“ACC”) between the PHA and HUD, the contract
administrator is not the agent of HUD and the HAP Contract does not create any
relationship between HUD and any suppliers, employees, contractors or subcontractors
used by the contract administrator to carry out functions or responsibilities in connection
with contract administration under the ACC.
19. CONFLICT OF INTEREST
a. Prohibited interest
1) No covered individual or entity may have any direct or indirect interest in the HAP
Contract.
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2) Direct or indirect interest includes the interest of an immediate family member.
b. Definitions
1)
“Immediate family member” means the spouse, parent, child, grandparent,
grandchild, sister, or brother of any covered individual.
2)
“Covered individual or entity” means an individual or entity that is a member of
any of the following classes:
a) A member, officer or director of the CA, or other CA official with administrative
functions or responsibility concerning contract administration under the Annual
Contributions Contract (“ACC”) between HUD and the CA.
b) If the CA is an instrumentality of a governmental body:
i) A member, officer or director of such governmental body.
ii) A member, officer or director of any entity that holds a direct or indirect
interest in the instrumentality entity.
c) An employee of the CA.
d) A CA contractor, subcontractor or agent with administrative functions or
responsibility concerning contract administration under the ACC, or a principal or
other interested party of such contractor, subcontractor or agent.
e) An individual who has administrative functions or responsibility concerning
contract administration under the ACC, including an employee of a CA contractor,
subcontractor or agent.
f) A public official, member of a governing body, or State or local legislator, who
exercises functions or responsibilities concerning contract administration under the
ACC.
c. Disclosure
1) A individual or entity with a prohibited interested under section 19 must disclose his,
her or its interest or prospective interest in the HAP Contract, or any other contract,
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subcontract or other arrangement in connection with contract administration under the
ACC to the CA and HUD.
2) The Owner certifies that it has fully disclosed to the CA and HUD any interest that
would be a violation of the conflict of interest requirements (paragraph 19 of the HAP
Contract), and that it will fully and promptly update such disclosures.
d. HUD waiver
1) HUD may waive the conflict of interest requirements for good cause.
2) Any covered individual or entity for whom a waiver is granted may not execute any
contract administration functions or responsibility concerning a HAP Contract under
which such individual is or may be assisted, or with respect to a HAP Contract in
which such individual or entity is a party or has any interest.
e. Interest of member of Congress
No member of or delegate to the Congress of the United States of America or resident
commissioner shall be admitted to any share or part of the HAP Contract or to any benefits
which may arise from it.
20. EXCLUSION FROM FEDERAL PROGRAMS
a. Federal requirements
The Owner must comply with and is subject to requirements of 24 CFR Part 24,
concerning debarment, suspension, and limited denial of participation.
b. Disclosure
The Owner certifies that:
1) The Owner has disclosed to the CA the identity of the Owner and any principal or
interested party.
2) Neither the Owner nor any principal or interested party is listed on the U.S. General
Services Administration list of parties excluded from Federal procurement and
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nonprocurement programs; and none of such parties are debarred, suspended or subject
to a limited denial of participation under 24 CFR part 24.
21. TRANSFER OF THE CONTRACT, PROPERTY, AND
OWNERSHIP ENTITY
a. When consent is required
1) The Owner agrees that the HAP Contract shall not be transferred without the advance
written consent of the CA in accordance with HUD requirements.
2) The Owner agrees that the Project may not be transferred without the advance written
consent of HUD.
3) The Owner agrees that no beneficial rights in the Owner itself shall be sold, transferred
or conveyed without the advance written consent of HUD.
4) “Transfer” or “transferred” includes:
a) Any sale or assignment or other transfer of ownership, in any form, of the HAP
Contract or the property;
b) The transfer of any right to receive housing assistance payments that may be payable
pursuant to the HAP Contract;
c) The creation of a security interest in the HAP Contract or the property;
d) Foreclosure or other execution on a security interest; or
e) A creditor’s lien, or transfer in bankruptcy.
5) If the Owner is a corporation, partnership, limited liability company, trust or joint
venture, the Owner is not required to obtain advance consent of HUD pursuant to
Section 21.a.3) for conveyance, assignment or transfer of less then a substantial interest
in such Owner. For purposes of this section, the term “substantial interest” means (i)
the interest of any general partner, or any limited partner or any non-managing member
having a 25 percent or more interest in the Owner; and (ii) any ownership interest of
any stockholder having a 10 percent or greater interest in the Owner. Further, HUD
consent is not required for the transfer of any non-managing member interest in any
limited partners of the Owner or any interest either as a member or a manager in any
limited liability company which is a non-managing member of a limited partner of the
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Owner.
b. Transferee assumption of HAP Contract
No transferee (including the holder of a security interest, the security holder’s transferee or
successor in interest, or the transferee upon exercise of a security interest) shall have any right
to receive any payment of housing assistance payments pursuant to the HAP Contract, or to
exercise any rights or remedies under the HAP Contract, unless the CA has consented in
advance, in writing to such transfer, and the transferee has agreed in writing, in a form
acceptable to the CA in accordance with HUD requirements, to assume the obligations of the
Owner under the HAP Contract, and to comply with all the terms of the HAP Contract.
c. Effect of consent to transfer
1) The creation or transfer of any security interest in the HAP Contract is limited to
amounts payable under the HAP Contract in accordance with the terms of the HAP
Contract.
2) The CA’s consent to transfer of the HAP Contract does not change the terms of the
HAP Contract in any way, and does not change the rights or obligations of the CA or
the Owner under the HAP Contract.
3) The CA’s consent to transfer of the HAP Contract to any transferee does not constitute
consent to any further transfers of the HAP Contract, including further transfers to any
successors or assigns of an approved transferee.
d. When transfer is prohibited
The CA will not consent to the transfer if any transferee, or any principal or interested party is
debarred, suspended or subject to a limited denial of participation under 24 CFR part 24, or is
listed on the U.S. General Services Administration list of parties excluded from Federal
procurement or nonprocurement programs.
22. OWNER DISCLOSURE OF OTHER GOVERNMENT
ASSISTANCE
The Owner must disclose to the CA in accordance with HUD requirements information
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regarding any related assistance from the Federal Government, a State, or a unit of general
local government, or any agency or instrumentality thereof that is made available or is
expected to be made available with respect to the contract units. Such related assistance
includes, but is not limited to, any loan, grant, guarantee, insurance, payment, rebate,
subsidy, credit, tax benefit, or any other form of direct or indirect assistance.
23. OWNER LOBBYING CERTIFICATIONS
a.
b.
The Owner certifies, to the best of Owner's knowledge and belief, that:
1)
No Federally appropriated funds have been paid or will be paid, by or on
behalf of the Owner, to any person for influencing or attempting to
influence an officer or employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a Member of Congress
in connection with the awarding of the HAP Contract, or the extension,
continuation, renewal, amendment, or modification of the HAP Contract.
2)
Owner has complied and will comply with all applicable federal lobbying
reporting standards.
This certification by the Owner is a prerequisite for making or entering into this
transaction imposed by 31 U.S.C. 1352.
24. NOTICES AND OWNER CERTIFICATIONS
a.
Any notice by the Contract Administrator or the Owner to the other party pursuant
to the HAP Contract shall be given in writing.
b.
A party shall give notice at the other party’s address specified in section 1 of the
HAP Contract, or at such other address as the other party has designated by a
contract notice. A party gives a notice to the other party by taking steps reasonably
required to deliver the notice in ordinary course of business. A party receives notice
when the notice is duly delivered at the party’s designated address.
c.
Any certification or warranty by the Owner pursuant to the HAP Contract shall be
deemed a material representation of fact upon which reliance was placed when this
transaction was made or entered into.
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25. HUD REQUIREMENTS
The HAP Contract shall be construed and administered in accordance with all statutory
requirements, the Restructuring Commitment, and with all HUD regulations and other
requirements, including changes in HUD regulations and other requirements during the
term of the HAP Contract. However, any changes in HUD requirements that are
inconsistent with the provisions of the HAP Contract, including the provisions of section 6
(contract rent), shall not be applicable.
26. STATUTORY CHANGES DURING TERM
If any statutory change during the term of the HAP Contract is inconsistent with section 6
of the HAP Contract, and if HUD determines, and so notifies the CA and the Owner, that
the CA is unable to carry out the provisions of section 6 because of such statutory change,
then the CA or the Owner may terminate the HAP Contract upon notice to the other party.
27. PHA DEFAULT
a.
This section of the HAP Contract applies if the CA is a PHA acting as Contract
Administrator pursuant to an annual contributions contract (“ACC”) between the
PHA and HUD. This includes a case where HUD has assigned the HAP Contract
to a PHA Contract Administrator, for the purpose of PHA administration of the
HAP Contract.
b.
If HUD determines that the PHA has committed a material and substantial breach
of the PHA’s obligation, as CA, to make housing assistance payments to the Owner
in accordance with the provisions of the HAP Contract, and that the Owner is not in
default of its obligations under the HAP Contract, HUD shall take any action HUD
determines necessary for the continuation of housing assistance payments to the
Owner in accordance with the HAP Contract.
28. ENTIRE AGREEMENT
The HAP Contract, including the exhibits, is the entire agreement between the CA and the
Owner. No changes in the HAP Contract may be made except in writing signed by both the
Owner and the CA
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EXHIBIT A
IDENTIFICATION OF UNITS BY SIZE,
APPLICABLE CONTRACT RENTS, AND
EFFECTIVE DATE OF EACH STAGE
Number
of Contract Units
Number
of Bedrooms
Contract
Rent
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Exhibit B
Services, maintenance and utilities to be provided by the owner
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INSTRUCTIONS
PREPARATION OF HAP CONTRACT.
The HAP Contract consists of Part 1, Part 2, and the contract exhibits. The exhibits are listed in
paragraph 1.b of Part 1.
Part 1 contains section 1 of the HAP Contract.
Part 2 contains sections 2 to 25 of the HAP Contract.
Part 1 includes fill-in items, and a list of the contract exhibits. Fill out part 1 to prepare the HAP
Contract for execution.
The form of HAP Contract must be used word-for-word, and may not be modified.
CONTRACT EXECUTION
Part 1 is signed by the CA, HUD, and the Owner of the housing.
ENDNOTES
1
Enter all contract information.
2
Enter a description of the housing that will be covered by the HAP Contract. The
description must clearly identify the Project by providing the Project’s name, street
address, city, county, state and zip code, block and lot number (if known), and any
other information necessary to clearly designate the covered Project.
If necessary, attach an exhibit with a site plan, legal description or other
descriptive information. Enter a reference to the attached exhibit.
3
If required by the CA, the HAP Contract may include additional information
describing the physical condition, location and plans of the contract units.
4
List any additional exhibits.
Page 1
Instructions for contract preparation
Form HUD-9644
10/09
| File Type | application/pdf |
| Author | Michael A. Sharkey |
| File Modified | 2014-01-20 |
| File Created | 2011-06-17 |