Posted by Nate on November 01, 2000 at 16:24:03:
I do a lot of work w/ subsidized housing and see this frequently. HAP means Housing Assistance Payment. Basically it is a Section 8 contract for your entire property.
Many of the contracts that were written in the 1970s and 1980s are now expiring or are on annual renewals (i.e. could go away within a year). As Mark found out the hard way, HUD is not obligated to renew these contracts, and if they do renew, they can “mark to market” meaning if you have above-market rents at present, you will lose them.
The main reason people are interested in selling these properties right now is because the HAP contract has expired or is about to expire. If that is the case, I could not recommend that you get involved in the property without having someone involved with some prior experience in subsidized housing, both for the purposes of knowing what your various options are and how to navigate them.