The conditions and terms of sale of a CROWN unit are outlined in the Low Income Housing Tax Credit Land Use Restriction Agreement, which the project owner agrees to prior to award of the tax credits.
Transition to Homeownership
Upon satisfaction of the tax credit period, the home is sold to the tenant for a sales price determined by the regulations and guidelines of the Low Income Housing Tax Credit program. The tenant homebuyer will receive accumulated equity in the property, which may be required to be repaid if the home is re-sold within a certain period of time.
During the leasing period, a Homeownership Assistance Fund is used to provide the tenant a means of regular savings to prepare for unexpected repairs or maintenance, or to accumulate funds for a down payment for purchase of the home at the end of the rental period. A portion of tenant rent is set aside in a reserve account to establish the fund. At the end of the rental period, the balance remaining in the Homeownership Assistance Fund may be used by the homebuyer as a down payment toward the purchase of the home.