Buying and Leasing a Freddie Mac Homestep (first look) purchase?

[Tom Kaider]

My friend asked if she could buy a condo under the Freddie Mac Homestep program, with cash, but then immediately install tenants.  

My mind tells me that when she tries to apply for parking stickers, the HOA Board of Directors may take notice and take some sort of action. However, they may not. They may not know or care how some new buyer acquires a condo.

That brings us to the real question, which is: Are there any government violations, fines, etc. if it is discovered that the purchaser is not owner-occupying the unit?

Has anyone on BP bought a condo during the Freddie Mac Homestep first look period and then immediately leased out the unit?