A project rental assistance contract (PRAC) is an agreement entered by the owner of a house and the Department of Housing and Urban Development of the US government laying out the rights and responsibilities of the parties related to a project and payments under PRAC. PRAC funds are used to cover the difference between the rent paid by affordable housing residents and the HUD-approved cost to drive the project for a fixed period of time.
Sample Project Rental Assistance Contract:
This contract is made on September 23, 2011 between the programme administrator and John Wesley of Louisiana, who owns the property at West Baker Street, Louisiana. The name of the Tenant is Charles Michael of Bakerville, Louisiana, and the contract is only applicable to the Tenant family.
- The term of the contract is effective from September 23, 2011 to March 23, 2012.
- The program administrator will pay a security deposit of $5000 to the Owner and the Owner will keep this security deposit during the period the Tenant occupies the premises.
- The Owner agrees to all laws related to interest payments on security deposits.
- After the Tenant has moved from premises, the Owner may use the security deposit as reimbursement for rent.
- The Owner must inform the program administrator immediately if the Tenant moved from the premises.
- The total monthly rent to be paid to the Owner for 6 months is $1800.
- The programme administrator must give a month’s notice to both the Owner and the Tenant to vacate the premises.
Signature: Programme administrator
Signature: John Wesley