Section 8 Moderate Rehabilitation Program; Executing or Terminating Leases on Moderate Rehabilitation Units When the Remaining Term of the Housing Assistance Payments (HAP) Contract is for Less Than One Year

The current program regulations for the Section 8 Moderate Rehabilitation Program state that the initial lease term between an owner and a family must be for at least one year. The regulation is silent on the requisite lease term when the Housing Assistance Payments (HAP) contract term expires in less than one year. The purpose of this interim rule is to implement the statutory language that requires that any initial lease term not extend beyond the term of the HAP contract. This interim rule also revises the program regulation to allow an owner and a public housing agency (PHA) to mutually agree to terminate a unit from the HAP contract if a unit becomes vacant and the term of the HAP contract is for less than one year.