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Q

Does the execution of a lease-purchase agreement meet the requirement to sell the HOME-assisted unit within 9 months? 

Date Published: November 2013

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A

Yes. Under the 2013 Final Rule requirements, if the participating jurisdiction (PJ) has an established lease-purchase program and an income-eligible tenant/homebuyer executes a lease-purchase agreement for a homebuyer unit within the 9-month deadline, the property is considered to be under contract and in compliance with this requirement. The agreement must comply with the HOME lease-purchase requirements specified at §92.254(a)(5)((ii)(A)(7). The unit must be purchased by the tenant/homebuyer within 36 months of signing the lease-purchase agreement with the PJ. The PJ has 42 months after project completion to transfer the property to a homebuyer or it must convert the unit to rental housing and follow the HOME rental housing rules under §92.252.

HUD will issue additional guidance on lease-purchase programs in the near future.


Tags: HOME Homebuyer Assistance - Lease-Purchase

FAQ ID:

2301