The Right to Buy Public Housing Act Exposed

The Right to Buy Public Housing Act was included in ALEC's 1995 Sourcebook of American State Legislation, however, it does not include adoption or approval information. ALEC has attempted to distance itself from this piece of legislation after the launch of ALECexposed.org in 2011, but it has done nothing to get it repealed in the states where it previously pushed for it to be made into law.

CMD's Bill Summary

This bill gives public housing tenants the option to buy their public housing unit, perhaps with the goal of removing government from the housing market.

ALEC Bill Text

Summary

This act would require local housing authorities to provide residents of the housing projects the opportunity to purchase dwelling units, provided they meet certain requirements.

Model Legislation

Section 1. {Title}

Section 2.

(A) Subject to the approval of the (insert Appropriate state housing agency) in the case of a state project, or, in the case of dwelling units operated as public or Indian housing, pursuant to the provisions of the United States Housing Act of 1937, as amended, each local housing authority shall provide to those residents of a project the opportunity to purchase dwelling units in such project provided that such resident:

(1) is determined to be capable of assuming the responsibilities of homeownership; and

(2) complies with such additional requirements as the state may establish in a case of a state project.

(B) (Insert appropriate reference to state local housing authority enabling statute) is amended to provide each resident with a right to buy units as provided for by this Act.

Section 3.

Any resident meeting the requirements of Section 2 may purchase his dwelling unit directly from the authority if the authority determines that such purchase will not interfere with the rights of other residents residing in the project or harm the efficient operation of such project. Said purchase of a dwelling unit by a resident shall also include a fixed percentage of the common elements of the project as determined by the authority. The price for any such purchase shall not be more than the fair market value of the dwelling unit involved as determined by the authority and shall be set at a level that is affordable to low-income families.

Section 4.

For the purpose of assisting any purchase by a resident under this subdivision, the authority involved or any subsidiary corporation of such authority involved may make a loan on the security of the property involved to such purchasing resident at a rate of interest determined by the authority to be appropriate.

Section 5.

If any resident purchases a dwelling unit before the expiration of the promissory note period of Title III (HOPE) or Section 5(H) of Title II of the United States Housing Act of 1937, such purchaser shall pay the remaining balance according to the terms of the outstanding promissory note.

Section 6.

The state and the authority involved shall provide such training, technical assistance, and education as may be necessary to prepare the resident organizations to undertake the management and maintenance of such project and to prepare the residents for the responsibility of homeownership.

Section 7.

This Act shall take effect immediately.

Section 8. {Severability clause.}

Section 9. {Repealer clause.}

Section 10. {Effective date.}

1995 Sourcebook of American State Legislation