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

Summary

Defines who can buy certain housing and the rules about related buyers. A "priority purchaser" is a residents’ council set up to buy under the resident homeownership program and certain nonprofits or state/local agencies that promise to keep the homes affordable for the remaining useful life (as set in section 4112(c)). A "qualified purchaser" is any buyer who makes that same affordability promise. For-profit groups and priority purchasers count as qualified purchasers. Buyers that are owned or controlled by the seller, under common control with the seller, or have financial ties to the seller are not allowed to be qualified or priority purchasers. The Secretary must write rules to enforce this. One exception lets a qualified purchaser keep a property manager owned by the seller only if keeping that manager was not part of the sale or payment and the management contract was negotiated at arm’s length.