What Section 8 Landlord Need to Know: Late Penalties

[April Adams]

Many landlords participating in the Section 8 Housing Choice Voucher Program are unaware that they may be entitled to late payment penalties if their first Housing Assistance Payment (HAP) is delayed. Under federal guidelines, specifically HUD Form 52641—the Housing Assistance Payments Contract—landlords have the right to collect late penalties from the public housing authority (PHA) if the initial HAP is not paid within a timely manner.

Let’s break it down: once a Request for Tenancy Approval (RFTA/RTA) has been submitted, the unit has passed inspection, and the contract is executed, then the tenancy officially begins. According to the HAP contract, Section 7(a)(3), ‘If housing assistance payments are not paid promptly when due after the first two calendar months of the HAP contract term, the PHA shall pay the owner penalties’. Late penalties must be legal in your jurisdiction and customary in your business practice and the amount is included on the lease.

In simpler terms, if your contract started on April 17, 2025, the PHA has until June 17, 2025 to issue that first HAP. If the payment is not received by then, you may request a late penalty—just as you would from a tenant who pays rent late under a private lease agreement. This applies for each month that the HAP becomes more than 2 calendar months old.

Unfortunately, many landlords leave these funds unclaimed, either because they’re unaware of the rule or too overwhelmed with other property management tasks. This rule is a crucial protection for landlords who are often burdened by delays that are outside their control. It’s also a provision that many owners either forget or simply don’t know exists. The local statute of limitations may apply.