§4121 Definitions of qualified and priority purchaser and related party rule

Summary

Defines who may be treated as a "priority purchaser" or a "qualified purchaser" and blocks sellers and their related companies from qualifying, with one limited exception for property managers. Priority purchaser: a resident council buying under an approved resident homeownership program, or a nonprofit or state/local agency that promises to keep the housing affordable for its remaining useful life (see section 4112(c)). Qualified purchaser: any buyer who agrees to keep the housing affordable for its remaining useful life, including for-profits and priority purchasers. Buyers owned, controlled by, or financially tied to the selling owner cannot qualify; the Secretary must make rules to enforce this. A qualified purchaser may keep a management company owned by the seller only if that retention was not required for the sale, was not paid for as part of the sale, and the management contract was negotiated at arm’s length.