Land Use Restriction Agreement Across 3 Multis

[Ed Osowski]

Hi everyone,

I've come across a situation I have no experience with. We're currently trying to buy two LIHTC properties. They're in decent shape, located neighborhood we really like. Current owner is open to a sale.

The only problem is the seller wants to include a third property in the deal. We don't want the third one. The three properties are subject to the same LURA, put in place with the financing. 

Seller believes the LURA is a barrier to selling except as a package. It seems that the properties can be split off, just that seller worries the process is too expensive/time consuming. 

To be clear, we do not want to remove the LURA from any of the properties. We just want to buy 2 out of 3 subject to the LURA. 

Anyone know what is involved to break off the properties we want? All properties are located in Richmond, VA.

Ed