§4121 Definitions of Qualified and Priority Purchaser and Related Party Rule

Summary

Tells who can get priority to buy HUD housing, who counts as an acceptable buyer, and some limits on ties to the seller. A "priority purchaser" is either a resident council set up to buy the housing under an approved resident homeownership program or a nonprofit or state/local agency that promises to keep the homes affordable for the rest of their usable life (see section 4112(d)). A "qualified purchaser" is anyone who agrees to keep the housing affordable for the rest of its usable life (see section 4112(c)); that includes for-profit buyers and priority purchasers. Buyers that are owned, controlled by, or financially tied to the selling owner, or share control with the seller, are not allowed to be qualified or priority purchasers, and the Secretary will make rules to enforce that. A qualified purchaser may still hire a property manager owned or controlled by the seller if the manager was not required for the sale, was not paid as part of the sale, and the management contract was negotiated fairly.