Assign/Assume Section 8 Contracts 

Assignment or Assumption of Section 8 Housing Assistance Payment (HAP) Contracts

An Assignment or Assumption of Housing Assistance Payments (HAP) Contract is required when the property being sold is subject to a HAP contract, with or without mortgage insurance. The HAP rents are set by a variety of factors, so it's important to understand how the rents may change from year to year before purchasing a property.  

• A number of Housing Assistance Payment contracts which expired in 1997 and 1998 were given new contracts in accordance with Section 405(a) of the appropriations Act of 1998 (P.L. 105-65, 111 Stat.1344 approved 10/27/97. Under Section 405(a), the contracts were replaced (i.e. not renewed) with these new contracts. The 405a contracts have a requirement for audited Annual Financial Statement requirements and restrict admission for occupancy to Very Low Income residents. Potential purchasers often look to the original HAP and last HAP of record when researching property requirements. However, because the 405(a) contracts were essentially new initial in 1997-98, these documents need to be reviewed thoroughly by any potential purchaser and referenced in the HAP assignment and assumption agreement.

Click Here to view an Assignment & Assumption letter from HUD

If you need assistance in preparing a Proposal, contact me at 301-277-3465, or by email at alvinl.sutherlin@verizon.net