The Albany Community Land Trust (ACLT) uses lease-purchase arrangements to assist low-income families who face modest obstacles in obtaining affordable mortgage financing in buying an ACLT home. The lease-purchase arrangement allows a potential homebuyer to move into an ACLT home as a tenant while completing the financial arrangements to obtain a mortgage.

The ACLT Board of Directors must approve all potential homebuyers interested in buying an ACLT house, including lease-purchase tenancies. ACLT's lease-purchase tenancies are intended to be for less than one year, but may be extended for a longer period depending upon individual circumstances.

There are 3 significant factors in determining the length of a lease-purchase tenancy:

1. the requirement of ACLT funding sources that buildings must be sold to low-income homebuyers within a limited time period after rehabilitation is completed.
2. the progress that a potential homebuyer is making towards obtaining an affordable mortgage.
3. the potential homebuyer's qualification for government subsidies used in the rehabilitation of the ACLT home for sale.

Potential home buyers interested in participating in a lease-purchase arrangement in an ACLT home must complete the following steps:

• Complete an interview with ACLT staff;
• Complete a written ACLT Homeowner/Leaseholder application;
• Visit the ACLT house for sale at least twice (ACLT recommends potential homebuyers compare ACLT homes with other houses for sale in the area);
• Complete an interview with an Affordable Housing Partnership financial counselor;
• Complete an interview with ACLT Resident Selection Committee.

The ACLT Board of Directors will consider a lease-purchase arrangement with a potential homebuyer based upon positive recommendations from ACLT staff, an Affordable Housing Partnership financial counselor, and the ACLT Resident Selection Committee. The ACLT Board will determine the terms of a lease-purchase tenancy (monthly rent, length of tenancy, participation in homeowner training programs and ongoing financial counseling) based on these recommendations and ACLT's requirements with the ACLT home for sale.

ACLT's lease-purchase arrangement is not renting with an option to buy - it is a commitment to buy a specific ACLT home. ACLT will be responsible for major repairs, but lease-purchase tenants are expected to learn and apply home maintenance skills during a lease-purchase tenancy. Unless otherwise stipulated ACLT lease-purchase tenants are not "buying a home with their rent."