Single Family Lease Purchase FAQ

An 'As-Is' clause in a purchase and sales contract means that the home is being sold based only on the warranties of the work written in (or a part of) the purchase and sales contract itself.

In accordance with MHC SFLP homeownership conversion policy, two types of inspections will be performed on each home to be sold: A Uniform Physical Condition Inspection and a Physical Needs Inspection. Findings (i.e., areas in need of repair/replaced) that involve structural defects, building code violations, safety issues, or other repairs related to the roof, electrical systems, plumbing lines, HVAC, etc. must be repaired/replaced at the expense of the Seller BEFORE a home is cleared by MHC to close. Repairs due to reasonable wear and tear or deliberate/negligent actions of the tenant will not be required of a Seller before a Buyer (tenant) can purchase his/her home.

Examples of normal wear and tear are: small tears/stains in the carpet, lightly chipped paint, minor dents or scuffs/scratches on the wall, loose door handles, etc.

As a resident of a Lease-Purchase LIHTC community, you are NOT required to accept/sign the right of first refusal. By NOT signing the acceptance of the offer to purchase your home, you are telling the Seller you are not interested in purchasing your home at said time. You MAY POSSIBLY BE relinquishing your right/ability to purchase the home at a discount/reduced price and any equity in the home. Note: you cannot be evicted or asked to vacate your home based solely on your decision to not accept the first right refusal (regardless of the reason).

If you choose NOT to purchase your home at the time it is first offered, the opportunity to purchase the home at a later date may or may not be an option. After the initial offer, any subsequent offer to sell the home is at the sole decision of the development's owner.

Yes, as long as you remain a tenant in good standing with the housing community and the community is a LIHTC participant, you will be able continue to rent your home. Typically, good standing means your rent is current and you are complying with the Community rules and regulations.

As long as the development is a LIHTC participant and you remain a tenant in good standing with the housing community, you will be able to continue to rent your home. Once a development is no longer LIHTC affordable, an owner may operate the property without LIHTC restrictions. A typical LIHTC community remains affordable for a minimum of 30 years. Note: To be in good standing means your rent is current and you are complying with the Community rules and regulations.

It Depends. Repairs of normal wear and tear (e.g., slight damage associated with regular use) will not be required to be completed by the Seller prior to the sale of the home. However, repairs attributed to a Seller's neglect or deferred maintenance will be required to be completed by the Seller prior to the sale of the home.

Repairs identified as a result of the UPCS and/or Physical Needs Assessment that involves major systems or is deemed a health & safety concern must be addressed (e.g., repaired or replaced) before MHC will approve the home to be sold. Satisfactory evidence of completion can be submitted by the Seller to MHC at any time prior to closing.

Yes. There are numerous agencies offering first time homebuyers assistance with closing cost. Closing cost assistance programs are intended to help buyers reduce their financial burden by providing funds or grants to offset some or all of these closing costs. The specifics and availability of such programs may differ depending on location and program. Reach out to your lender (or perform a quick google search) for a list of all options available to you.