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.

If you are a potential Buyer of a HUD Housing Assistance Payments (HAP) Contract, i.e., Section 8, property, Consulting Services can be provided for HUD Section 8 Program and HUD HAP Occupancy Compliance paper work. This also includes Proposals submitted to HUD Field Office for required submission of documentation through HUD Online Secure Systems and approval of new Management Agent who has no experience managing HUD rental assisted properties.

See Assignment and assumption of Section 8 Contract