The Math

Total Cost

Total Cost is the price Payed for the home, closing costs, make ready and repairs/maintenance costs. Total Cost is used to determine the resident's Right to Purchase prices. A sample is highlighted below:


Purchase Price                                                                               $200,000

Closing Costs                                                                               *$3,000

Make Ready and Repairs/Maintenance Costs                            $7,000

Total Cost                                                                                       $210,000


* Includes costs such as transfer taxes, attorneys' fees, title insurance, other acquisition costs, etc.

Monthly Rent Increases

Each year, a resident's Monthly Rent increases by no more than 3.75% over the previous year’s Monthly Rent.

For example, if the Monthly Rent for Year 1 is $1,400 per month, the increase for the next year is $50/month (i.e., $1,400 x 1.0375)*.

Monthly Rent

Year 1$1,400

Year 2$1,450

Year 3$1,500

Year 4$1,560 

Year 5$1,620 

Right to Purchase Price Increases

Each year, the Right to Purchase Price increases by 3.5%-5% (depending on the region).

In the example, if the Total Cost of the home is $210,000 and if the Right to Purchase increases by 5% (i.e., Prior Year Purchase Right Price x 1.05)* then the Purchase Right Price for Years 1-5 is as follows:


Year 1$220,500

Year 2$231,500

Year 3$243,100

Year 4$255,300 

Year 5$268,000 

There are additional costs that the resident will incur if they exercise the Right to Purchase such as closing costs to purchase the home, including transfer taxes, attorneys' fees, title insurance, and the cost of a mortgage loan. As a result, actual total costs to exercise the Right to Purchase will vary.

* Rent will round to the nearest $10. Right to Purchase Price will round to the nearest $100.