A RAD PBV family whose TTP reaches gross rent stays on the contract and pays a capped rent that yields to any tighter LIHTC or HOME rent limit

rad_pbv.tenant_payment.zero_hap_rent_cap · v1.0.0

Because RAD contract rents are derived from former public housing subsidy, a current resident's total tenant payment can equal or exceed the gross rent. HUD therefore establishes the alternative requirement that the unit of a family whose TTP equals or exceeds gross rent must be placed on the PBV HAP contract and the family admitted to the PBV programme, with all PBV and RAD family obligations and protections. While the family's TTP is at or above gross rent, the family pays the lower of its TTP less the utility allowance, subject to any required rent phase-in, or the Zero-HAP Rent Cap. The Zero-HAP Rent Cap is itself the lower of 110 percent of the applicable fair market rent less the utility allowance, or, where the units carry more restrictive rent-setting requirements under the LIHTC or HOME programmes or another programme HUD has approved project-specifically, the rent to owner set to comply with those requirements. Once the family has paid the Zero-HAP Rent Cap for 180 days the PHA removes the unit from the HAP contract and the family's PBV participation ends, though the family may return to the programme if its income later falls.

Confidence

high

Effective from

2019-09-05

Last reviewed

2026-08-31