What is the HAP Contract?

The HAP contract is a legal binding agreement between a public housing agency (EDEN) and the owner of a property that the voucher holder has signed a lease for. Until the HAP has been executed, no monthly payments can be made on behalf of the tenant.

What are the steps to implementing a successful HAP?

1. The RFLA/RFTA (Request for Lease Approval/Request for Tenancy Approval) is completed by both the prospective tenant and the landlord. The RFLA/RFTA is not a lease nor a HAP contract. It is submitted by the voucher holder when they have located a suitable unit that they are interested in leasing. It is a document that begins the review process of market rent reasonable.

2. The prospective tenant submits the completed RFLA/RFTA to EDEN.

3. An EDEN Specialist reviews the RFLA/RFTA for required documents, signatures and date.

4. If all documents are present, a Rent Reasonable Valuation (RRV) is conducted. Rent Reasonable Valuations are a HUD regulation per 24 CFR 982.507. The proposed rent must be reasonable and similar to other homes in the marketplace. The proposed rent cannot be higher than other unassisted tenants are paying on the premises. RRVs are performed through Affordable Housing and uses Rent Comparables. Rent comparables are units similar in bedroom size, type, location, bathroom count and square footage, maintenance, asking rent, and other amenities. Three comparables from the same county and city are analyzed within a selected radius.

5. The input of this information produces a comparable breakdown and provides EDEN with a rent range.

6. If there is a discrepancy in the amount requested from the owner and what RRV has suggested, EDEN will then communicate with the owner/property management to negotiate a fair rent offer. Should this not be accepted, the tenant will be advised to continue their search for another unit.

7. If the requested rent amount does fall within the range that the Rent Reasonable Valuation suggested, the inspection department will reach out to the owner/management company to establish a date and time for the NSPIRE inspection. The home should be move-in ready.

8. If the unit fails the NSPIRE inspection, you will receive a list of the failed items. There will be a re-inspection only after all the corrections have been fully addressed and rectified. The owner/management company must contact the listed inspector for a new inspection date and time once this is done.

9. When the unit successfully passes inspection, you and the tenant will be notified. You should meet with the tenant to sign the lease agreement and provide EDEN with a signed copy.

10. After EDEN receives a copy of the signed lease, we will create a Rent Approval amount according to the income the tenant has. Depending on the voucher program that the tenant is on, the head of household will pay between 30%-40%. EDEN's subsidy will cover the remaining amount. If the tenant does not have any income, the subsidy pays the full amount.

11. Both the owner and tenant will receive written documentation on who is responsible for paying each rent portion (tenant rent/EDEN subsidy) to the owner/management company.

12. EDEN will create a HAP contract, which is a written agreement between EDEN and the owner/management company. It contains the location of the unit, tenant, beginning of the term, household members, utilities, appliances, contract rent and housing assistance payment per month. Under the HAP contract, the owner can only charge the approved rent. Side payments are not permitted.

13. The HAP must be reviewed and signed by you or your representative and returned to EDEN. EDEN cannot issue payment, and the tenant should not move into the unit, until the signed HAP contract has been returned.

14. The property must be maintained to meet NSPIRE standards for inspections, and the owner must treat the tenant as they would a cash paying tenant by following fair housing and eviction laws.

Where can I learn more?

Please see these EDEN eNewsletters:

a. The Importance of the HAP Contract

b. Understanding the RFLA: Request for Lease Approval

c. Frequently Asked Questions About HAP Contracts

d. EDEN Switches to NSPIRE Inspection Standards

The Bottom Line

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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We want to partner with you!

EDEN has a robust program to help property owners and managers to attract and retain renters for their properties. We encourage you to reach out to us if you have any questions or want additional information. Click here to email our Community Housing Agents or call the property owner hotline at 216-503-6369.