{"identifier":"/us/usc/t12/s4121","title":12,"num":"\u00a7\u202f4121.","heading":"Definitions of qualified and priority purchaser and related party rule","text":"\u00a7\u202f4121.\nDefinitions of qualified and priority purchaser and related party rule\n(a)\nPriority purchaser\nThe term \u201cpriority purchaser\u201d means (A) a resident council organized to acquire the housing in accordance with a resident homeownership program that meets the requirements of section 4121\n1\n1 So in original. Probably should be section \u201c4116\u201d.\n2\n2 So in original. Probably should be section \u201c4112(c)\u201d.\n(b)\nQualified purchaser\nThe term \u201cqualified purchaser\u201d means any entity that agrees to maintain low-income affordability restrictions for the remaining useful life of the housing (as determined under\nsection 4112(c) of this title\n(c)\nRelated parties\nExcept as provided in subsection (d), the terms \u201cqualified purchaser\u201d and \u201cpriority purchaser\u201d do not include any entity that, either directly or indirectly, is wholly or partially owned or controlled by the owner of the housing being transferred under this subchapter, is under whole or partial common control with such owner, or has any financial interest in such owner or in which such owner has any financial interest. The Secretary shall issue any regulations appropriate to implement the preceding sentence.\n(d)\nManagement exception\nA qualified purchaser shall not be precluded from retaining as a property management entity a company that is owned or controlled by the selling owner or a principal thereof if retention of the management company is neither a condition of sale nor part of consideration paid for sale and the property management contract is negotiated by the qualified purchaser on an arm\u2019s length basis.","url":"https://projectusc.org/usc/t12/s4121.html","content":[{"t":"sec","id":"/us/usc/t12/s4121","children":[{"t":"num","text":"\u00a7\u202f4121."},{"t":"heading","text":"Definitions of qualified and priority purchaser and related party rule"},{"t":"subsec","id":"/us/usc/t12/s4121/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Priority purchaser"},{"t":"content","children":[{"t":"p","text":"The term \u201cpriority purchaser\u201d means (A) a resident council organized to acquire the housing in accordance with a resident homeownership program that meets the requirements of section 4121\u202f","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be section \u201c4116\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be section \u201c4116\u201d.","tail":" of this title; and (B) any nonprofit organization or State or local agency that agrees to maintain low-income affordability restrictions for the remaining useful life of the housing (as determined under section 4112(d)\u202f"},{"t":"ref","text":"2"},{"t":"num","text":"2","tail":"\u202fSo in original. Probably should be section \u201c4112(c)\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be section \u201c4112(c)\u201d.","tail":" of this title)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s4121/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Qualified purchaser"},{"t":"content","children":[{"t":"p","text":"The term \u201cqualified purchaser\u201d means any entity that agrees to maintain low-income affordability restrictions for the remaining useful life of the housing (as determined under ","children":[{"t":"ref","text":"section 4112(c) of this title","href":"/us/usc/t12/s4112/c","tail":"), and includes for-profit entities and priority purchasers."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s4121/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Related parties"},{"t":"content","children":[{"t":"p","text":"Except as provided in subsection (d), the terms \u201cqualified purchaser\u201d and \u201cpriority purchaser\u201d do not include any entity that, either directly or indirectly, is wholly or partially owned or controlled by the owner of the housing being transferred under this subchapter, is under whole or partial common control with such owner, or has any financial interest in such owner or in which such owner has any financial interest. The Secretary shall issue any regulations appropriate to implement the preceding sentence.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s4121/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Management exception"},{"t":"content","children":[{"t":"p","text":"A qualified purchaser shall not be precluded from retaining as a property management entity a company that is owned or controlled by the selling owner or a principal thereof if retention of the management company is neither a condition of sale nor part of consideration paid for sale and the property management contract is negotiated by the qualified purchaser on an arm\u2019s length basis.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}