Educate Buyers on Program Requirements
Every program should provide written materials and training to help buyers understand program requirements and should actively verify homeowners’ understanding prior to sale.
- Homebuyer Orientation: Each program should provide in-person orientation sessions in which potential buyers receive a clear explanation of the program’s key requirements and restrictions and discuss the risks they would face in the event of market price declines. The potential buyers would also review clear financial models illustrating the program’s price restrictions or recapture provisions
- Plain Language Disclosure: In addition to providing buyers with complete legal documents, each program should provide each buyer with a one to two page plain language disclosure document which highlights key affordability requirements including any owner occupancy requirements, price restrictions, purchase options or loan repayment requirements.
- Verify Understanding: Programs should actively verify that buyers actually understand affordability requirements through an interview, test or meeting with an independent lawyer or advisor.
- Post Purchase Education: Every program should engage in some level of ongoing post purchase education to help assisted owners understand program requirements as well as the public purposes behind the rules. Every program should provide written materials and training to help buyers understand program requirements and should actively verify homeowners’ understanding prior to sale.