CHFA Contract expiring on potential acquisition
My buisiness partner and I are looking at a portfolio of properties where the CHFA contracts (60%) on them are expiring for the next few years. My my question is when it expires (Let's say on a 4-plex) what happens to the tenants? If they get assistance do they not any longer? If rents are raised my guess is they no longer will qualify and would have to find a new place? Any input around this would be appreciated.
Thanks
Quote from @Justin Snyder:
My buisiness partner and I are looking at a portfolio of properties where the CHFA contracts (60%) on them are expiring for the next few years. My my question is when it expires (Let's say on a 4-plex) what happens to the tenants? If they get assistance do they not any longer? If rents are raised my guess is they no longer will qualify and would have to find a new place? Any input around this would be appreciated.
Thanks
First, BiggerPockets has users from around the country and we're not all familiar with acronyms like CHFA. I assume it's a form of welfare/housing subsidy?
If so, the tenants should have a written contract with CHFA that you can review. There should be a caseworker assigned to them or a general number you can call to get answers. You should be set up with them as the Landlord to receive payments or sign contracts. Talk to them to see what their process is. It's best to do this as early as possible because they sometimes have processes that can take 90 days or more.
