A RAD PBV HAP contract runs at least 15 years and renewal is mandatory on both sides

rad_pbv.affordability_period.contract_term_and_renewal · v1.0.0

A Covered Project converting to PBV has an initial HAP contract term of at least 15 years, extendable to 20 years on the Project Owner's request with the administering Voucher Agency's approval. The Project Owner must make the contracted number of assisted units available for occupancy by eligible tenants and may not reduce that number without written HUD approval. At or before expiration of the initial contract and of each renewal contract, the administering Voucher Agency must offer and the Project Owner must accept renewal, on the terms applicable at renewal and subject to appropriations. Renewal is therefore not discretionary on either side, which is why section 8(o)(13)(G) of the Act and 24 CFR 983.205(b) do not apply to the extent they make renewal discretionary. After a 20-year initial term the renewal contract is on a HUD-approved form that requires rents to be redetermined under 24 CFR 983.301 and 983.302; if the contract was renewed or extended earlier, redetermination begins in the 20th year after execution of the original RAD PBV HAP contract.

Confidence

high

Effective from

2019-09-05

Last reviewed

2026-08-31