What is the purpose of the HAP contract?

The Housing Assistance Payment (HAP) contract is the contractual agreement between EDEN and the owner of a unit occupied by an EDEN participant. It specifies how much EDEN and the participant will pay monthly. Under the HAP contract, EDEN agrees to make housing assistance payments to the owner on behalf of a specific household leasing a specific unit.

The monthly amount paid to the owner is determined by EDEN in accordance with HUD requirements for a tenancy under the applicable subsidy program.

Prior to EDEN approval of the assisted tenancy and the execution of a HAP contract, EDEN must ensure that the following program requirements have been met:

• The property owner is eligible;
• The unit is eligible;
• The unit has been inspected by EDEN and meets minimum safety requirements;
• The lease includes the tenancy addendum; and
• The rent charged by the owner is reasonable.

Upon approval of the assisted tenancy, the owner and EDEN can execute the HAP contract.

EDEN cannot pay any housing assistance payment to the owner until the HAP contract has been executed. During the term of the HAP contract, EDEN must make monthly housing assistance payments to the owner on behalf of the family at the beginning of each month.

The initial amount of the housing assistance payment is reflected on the HAP contract at the time of its execution. This amount may change during the term of the contract based on changes to the family's income, household composition, or other changes affecting the housing assistance payment amounts. (Housing Choice Voucher Program Guidebook, "HAP Contracts," July 2021, p. 2)

Are EDEN's HAP contracts different than those used by other public housing agencies?

EDEN administers several different rental assistance programs. While EDEN only uses the HUD Housing Choice Voucher (HCV) HAP contract for its Mainstream HCV Program, the HAP contracts used for the Continuum of Care (CoC) Programs and the Rapid Re-Housing (RRH) Programs generally adopt the same requirements. There are minor deviations from the HCV regulations (some are removed from this document as they do not apply across all programs), so please read the language of your HAP contract carefully.

What documents does EDEN need in order to process a HAP contract?

EDEN requires a signed copy of the executed lease agreement prior to generating a HAP contract for payment. This is to ensure that the dates on the lease agreement and HAP contract match (which is a HUD requirement).

How long will it take to receive the first payment?

EDEN generally processes HAP contracts within 30 days of receiving the lease agreement. Often, a property owner receives the HAP contract much sooner. Once the signed HAP contract is sent back to EDEN, the finance department is notified and payment will be made on the next date EDEN releases payments during that month.

When are HAP payments effective if it takes EDEN time to generate the contract?

EDEN will start payment on a unit from the date it passes inspection or the effective date of the lease agreement, whichever is last. The HAP contract start date will match whichever is applicable. EDEN will always pay retroactively to the effective date determined by the information above.

I have not received EDEN's HAP payment. Can I charge that to my tenant?

Property owners cannot penalize tenants for EDEN's failure to pay HAP. The proper course of action is to contact EDEN to determine why HAP was not released.

Is there an expiration of the HAP contract?

The HAP contract follows the lease agreement. The term of the HAP contract begins on the first day of the lease term and ends on the last day of the lease term, including any extensions of the lease term. Therefore, if your lease with a participant reverts to a month-to-month lease after the initial lease term, the HAP contract will then become a month-to-month contract. Similarly, if the lease is not renewed, the HAP contract will terminate when the lease agreement terminates.

What other situations can lead to the termination of the HAP contract?

The HAP contract and the housing assistance payments made under the HAP contract terminate automatically in each of the following situations:

• The owner or the tenant terminate the lease;
• EDEN terminates the HAP contract;
• EDEN terminates assistance for the family;
• Upon the death of a single member of a household, including single-member households with a live-in aide;
• If the family is absent from the unit for longer than 180 calendar days;
  • In this case, the owner must reimburse EDEN for any housing assistance payment for the period after the termination;
• When 180 calendar days have elapsed since EDEN made the last housing assistance payment to the owner. (Housing Choice Voucher Program Guidebook, "HAP Contracts," July 2021, p. 5)

EDEN also has the discretion to terminate the HAP contract in each of the following situations:

• If EDEN determines that available program funding is not sufficient to support continued assistance for families in the program;
• If EDEN determines that the unit does not meet Housing Quality Standards (HQS) size requirements due to a change in family composition;
• The unit does not meet annual inspection requirements; and/or
• The owner breaches the HAP contract. (Housing Choice Voucher Program Guidebook, "HAP Contracts," July 2021, p. 6)

Who do I contact if I have additional questions?

You can contact our Property Owner Hotline at 216-503-6369 or email EdenLandlordInfo@edencle.org. We will be happy to discuss any concerns or questions you may have.

Communicate with us!

We value our partnership with you. EDEN cannot fulfill its mission of providing housing solutions to people facing the challenges of housing insecurities and homelessness without the support of property owners and managers like you. If you have any concerns, please reach out to our Community Housing Agents at the information line 216-503-6369 or email EdenLandlordInfo@edencle.org and we will do our best to offer solutions or refer you to the person at EDEN who can help.

 



 

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