Homeownership Conversion

Section 42 of the IRS Code allows homeownership opportunities for residents of low-income housing rental developments by allowing the owners to sell to residents following the completion of the initial compliance period. To be eligible for Homeownership Conversion, a project must consist of single-family, duplexes, or townhomes. If owners elect Homeownership Conversion at the time of application, the following forms will need to be reviewed.

These forms are generic in nature and not deal specific.

• Addendum to restrictive covenants to establish homeownership conversion requirements
• Owner certificate to be executed prior to implementation or homeownership
• Partial release of restrictive covenants to be recorded lot-by-lot as lots are sold