Single crystals of HfAs1.7Se0.2 are grown by chemical transport reaction and their chemical composition characterized in detail by various analytical methods. Chemical analyses and crystal structure investigations by single-crystal X-ray diffraction as well as powder diffraction with synchrotron radiation reveal a tetragonal PbFCl structure type with strong disorder caused by a significant arsenic deficiency (As0.9) on the 2a site and mixed occupancy of the 2c site (As0.8Se0.2). HfAs1.7Se0.2 is a diamagnetic metal which transforms into a superconducting state at Tc=0.52 K. Similar to other PbFCl-type arsenide selenides, the title compound displays a magnetic-field-independent −AT1/2 term in the low-temperature electrical resistivity. This unusual term presumably originates from the electron scattering of structural two-level systems. According to the experimental results, HfAs1.7Se0.2 appears to be a rare example of a nonmagnetic Kondo material.