Is a lease-purchase tenant who cannot meet the eligibility requirements to buy a house at the end of the lease term entitled to relocation assistance?

Date Published: October 2012

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The lease-purchase tenant is not eligible for relocation assistance as long as two conditions are met:

  • The lease-purchase tenant must be a "subsequent tenant" in accordance with the URA, that is, the tenant must not have been an occupant of the house at the time of the Initiation of Negotiations (ION) for acquisition, demolition, rehabilitation, or conversion of the unit; and
  • Before agreeing to occupy the house, the grantee must provide the tenant with a Move-in Notice (per 24 CFR 570.606(b)(2)(ii)(B)) that advises the tenant that he will be occupying an NSP-funded project for a lease purchase program and that, if he is unable to meet the eligibility requirements to buy the house within the program's time limit, then he will not be eligible for relocation assistance as a displaced person under either the URA and/or Section 104(d).

For more information about relocation assistance eligibility, see HUD Handbook 1378: Tenant Assistance, Relocation and Real Property Acquisition. Appendix 29 contains a sample Move-in Notice.

Note: Relocation and tenant protection can be a difficult subject for many grantees and mistakes can lead to costly findings. It is recommended that grantees contact their regional relocation specialist or HUD field office for guidance.

Tags: NSP Real Estate Acquisition and Relocation (URA and Other Requirements)

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