HAP Pass-Throughs and HAP Contract Transfers prohibited in PBV program

Earlier today, HUD issued guidance clarifying that Housing Assistance Payment (HAP) pass-throughs and HAP contract transfers are prohibited under current rules for project-based vouchers (PBVs) under the housing choice voucher (HCV) program.

A HAP pass-through would allow the use of HAP to “provide assistance to tenants who are displaced from . . . HAP contract units due to a disaster or rehabilitation in another building or project.” Although HUD envisions guidance that may allow this in the future, at this time PHAs may not make these payments to the owners of unoccupied units  for the purpose of rehousing families.

A HAP contract transfer would allow project-based voucher contracts to be transferred from one project to a separate and distinct project. This is different from the sale, assignment, or transfer of ownership of the HAP contract–which is allowable, if done following the appropriate PBV regulations. Contract transfers of HAP are not allowable (with some Rental Assistance Demonstration exceptions), though future guidance may change this.

The full guidance document can be found here.