Date Published: October 2012
Generally, a grantee will not be required to provide relocation assistance to a tenant who does not qualify to purchase the property at the end of the lease-purchase agreement term, if the following conditions are met:
Note that the eviction for cause standards in the URA (49 CFR Part 24.206) applies. Whether the grantee can pursue a lawful eviction may depend on the specific provisions in the lease-purchase agreement that relate to down payment or other program eligibility requirements, and whether or not local law considers the failure to meet those lease terms by some specified point in time to be “material,” and the breach of these provisions to be “serious” or “repeated,” and, therefore, grounds for eviction.
It is critical that the grantee properly structure its program and its lease-purchase agreement in accordance with Federal, State, and local law. Further, the grantee should adequately pre-screen lease-purchase homebuyers before entering into an agreement with them to ensure that prospective homebuyers will be financially able to meet the terms of the lease-purchase program.