Housing Assistance Payments (HAP) is paid on the first of each month to property owners with active HAP contracts that have been executed by the owner, HUD and KHC. In order for the owner to be paid timely they must transmit all tenant data and an acceptable monthly voucher billing to KHC by the 10th calendar day of each month prior to the month for which payment is requested. Please refer to the TRACS Automation Rule on HUD's website and The MAT Guide
All information must be electronically transmitted through HUD's Secure System - TRACS (Tenant Rental Assistance Certification System) where the tenant data is compared to the voucher request to determine the project's compliance percentage. HUD requires that all voucher transmissions meet a minimum of 90% compliance in order to receive payment. Per HUD's MAT Guide, Chapter 4.36, "It is required that owner/agents monitor TRACS transmissions to ensure that they are recorded correctly, and it is required that O/As address TRACS discrepancies. This process is monitored by the Contract Administrator."
KHC reviews, verifies, and approves all of the vouchers submitted each month as required by HUD to ensure payment to the owner is accurate. Payment is sent no earlier than the first business day of the month and no later than the first business day of the month as long the HAP contract is in effect and HUD funds have been made available to KHC.