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Form HUD-51971-1, Offer of Sale of Real Property Form HUD-51971-11, Purchase Agreement Purpose: A Public Housing Agency (PHA) is responsible for selecting a site or property for its proposed public housing project under the conventional and acquisition methods. As stated in the form HUD-51971-I, Offer of Sale of Real Property (Offer of Sale), the offer is voluntary and the PHA will not use its power of eminent domain to acquire lhe property if the seller and the PHA are unable to reach an amicable agreement on the purchase price. Paragraph 1 of the Purchase Agreement indicates the amount HUD believes is the fair market value of the property. As a consequence of these disclosures, the purchase is not subject to any of the policies of Title III (Uniform Real Property Policy) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA) and the seller is .not eligible for relocation assistance. Renter-occupants of the prop- erty are, however, eligible for relocation assistance under Title II (Uniform Relocation Assistance) of the URA. All documentation evidencing the voluntary nature o fthe wausactlon, e.g., invitation, newspaper and other hstings, etc., must be retained by the PI-IA. The form HUD-51971 -I1, Purchase Agreement, is to be u seal by the PHA to indicate the mount which the PHA is authorized to pay to purchase the site or property and to identify any studies or tests required to determine if the site or property meets HUD require- ments. Prepared By: The form HUD-51971-I, Offer of Sale, is com- pleted by a prospec dve seller. The form I-ITJD-51971 -II, Purchase Agreement, is prepared by the PI-IA and executed by both the PHA and the seller. Adaptations required by state or local law may be made to forms HUD-51971-1 and HUD-51971-1I with the ap- proval of the HUD Office Counsel. 3. Number: At least three executed copies of the form HUD-51971- I, Offer of Sale. and form HUD-51971-II, Purchase Agreement. Distribution: As an attachment to ils PHA proposal, a PHA shall submit one c epy of the form HUD-51971-I to the HUD Office for each site or property comprising a public housing project to be developed under the conventional or the ac quisition methods. One copy of the forms HUD-51971-I and 51971-II shall be an attach- ment to the PHA's submission of the site acquisition documents. tf there are renter occupants on the site, and if delays in closing beyond 30 days of PI-IA execution of the Purchase Agreement are anticipated (due to zoning changes, site studies, HUD Office approvals, etc.), the PHA should submit, with its PHA Proposal, a request for HUD Office approval of an appropriate specified extension of dine for providing the required relocation notices. Bo PHA Instructions Concerning Preparation: A. Form HUD-51971-I, Offer of Sale of Real Property Paragraph 1. In the first space state the dollar amount of the consideration. In the second space state the legal name of the PHA. In the third space state the seller's asking price for the property described in paragraph 2. Paragraph 2. In the fkst space identify the city or town and county or equivalent political subdivision in which the property is" located. In the second space identify the State (or equivalent) in which the property is located. Describe the property in the large space, beginning with the street address or other specific loca- ,, tion. Also in this space identify any exceptions to the offer and list any renter occupants by name, address, and number of persons in the household. Use a continuation page if required. Paragraph 3. Insert a time period of at least 90 days taking into" consideration time necessary for any anticipated special require- ments such as site studies or zoning changes. Signature Area. The seller's signature and typed name, date and '- address should be included in this area with the signatures of two wimesses who have seen the seller sign. Space is also provided for notarization or acknowledgement if required by local law. Form HUD-51971-H, Purchase Agreement Paragraph 1. In the f~rst space state the legal name of the PHA. In the second space state the name of the seller. In the third space state the date the seller signed the Offer of Sale (form HUD- 51971-I) and attach a copy of the Offer of Sale to the Purchase Agreement. In the fourth space insert the amount authorized by the HUD Office as the purchase price. In the fifth space ind/cate the amount determined to be the fair market value of the property by HUD. If the proposed sale price in paragraph 1 of the Offer of Sale of Real Property (HUD-51971-I) is less than the HUD determined fair market value, the seller may withdraw the Offer of Sale and return the option price to the PHA. Paragraph 4. In the space provided identify any studies or tests required to be completed prior to closing to make the determina- tion that the property meets HUD requirements. Paragraph 7. The second provision, that the seller pay any out- standing assessments, is based on the assumption that the value of any improvements for which the assessment is made has been included in the HUD-approved purchase price of the property. Signature Area. The first signature is that of the authorized PHA official and signifies the PHA's acceptance of the seller's offer, with or without changes in the price and with or without the specified studies or tests. The second signature is that of the seller and con.firms that there is an agreement. Both signatures attest to the certification immediately preceding the signatm'e area. The signatures of two wimesses are required for each party to the agreement and spaces are provided for any locally required notarization or acknowledgemevt. '* U.5, C.P.O.:1993-5~2-562:80026formHUD-51971(Z~93) Paee 2 of 2