 |
D.C. Municipal Regulations (Last Updated: September 13, 2017) |
 |
Title 14. HOUSING |
|
Chapter 14-92. HOUSING CHOICE VOUCHER/HOME OWNERSHIP ASSISTANCE PROGRAM (HCV/HOAP) |
Section 14-9217. LEASE-PURCHASE AGREEMENTS
-
9217.1The HCV/HOAP may be provided to a household that rents a home with an option to buy the home under a lease-purchase agreement. In most cases, the monthly rent includes an amount referred to as a homeownership premium, which is an increment of value attributed the lease-purchase right or agreement such as an extra monthly payment to accumulate a down-payment or reduce the purchase price.
9217.2If a household who holds a housing choice voucher, or is currently receiving rental assistance under the housing choice voucher assistance program would like to enter into a lease-purchase agreement with the property owner, the household may do so. However, the household shall not be subject to the HCV/HOAP regulatory requirements until the household is ready to exercise the home purchase option. At that time, the HCV/HOAP shall determine if the household is eligible for participation.
9217.3Lease-purchase agreements are considered rental agreements and all the normal tenant-based HCVP rules are applicable. Therefore, the HCV/HOAP shall not make a housing assistance payment for a lease-purchase unit that may exceed the amount that would be paid on behalf of the household, if the rental unit were not subject to a lease-purchase agreement.
9217.4The household shall absorb any homeownership premium or extra monthly payment towards a down payment related to the lease-purchase agreement. Families are permitted to pay any extra amount out of pocket to the owner for purchase-related expenses. Therefore, when HCV/HOAP determines whether or not the rent on a lease-purchase agreement is reasonable, any homeowner premium is excluded.
9217.5The household shall meet all of the initial HCV/HOAP eligibility requirement before being approved to enter the HCV/HOAP program. Therefore, if the household purchases or takes title to a home before being approved by the HCV/HOAP program, the household shall be determined ineligible for HOAP Subsidy.
9217.6When a household has leased a unit under a lease-purchase agreement that is approved for participation in the HCV/HOAP, at the time the Applicant Family chooses to exercise the purchase option, the household shall complete the following:
(a)Meet all initial and continued annual eligibility requirements for participation in the HCV/HOAP;
(b)Complete the homeownership and housing counseling sessions;
(c)Secure mortgage financing and obtain approval of the finance terms by HCV/HOAP or its designee; and
(d)Arrange for an independent professional home inspection and provide the HCV/HOAP with a copy of the inspection report;
(e)Ensure that all required purchase process steps are satisfied within the allotted time;
9217.7Upon approval to enter into the HCV/HOAP, the lease-purchase household shall be processed pursuant to the established HCV/HOAP procedures outlined in this Chapter.