what is a LURA on units in commercial multi family property?

WHat does LURA mean on a multi family property?
In Buying Property - Asked by Luis M. - Jul 5, 2009
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James E.
Property/Asset Manager
Arleta, CA
Premium Subscriber

It means that the property you are about to buy has restricted low income component restrictions, which is probably recorded on title. Be very careful as these restrictions transfer with ownership and could cause multiple complications if you do not abide by the rules set forth in the LURA agreement. I am currently dealing with a building that has LURA in Oklahoma City, feel free to contact me with any questions.
James@gemanage.com

Jul 5, 2009
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Steve M.
Owner/Investor
Plano, TX
Premium Subscriber

LURA is Land Use Restriction Agreement. Many of the RTC properties that were bought during that time frame have them on the property. They typically set aside units in multifamily properties for Low Income and Very Low Income tenants that have to pass an income test to qualify and the rents have to be in line with the stated restrictions.
Hope that helps.
Regards,
Steve
steve@mb35.com
Texas Multifamily Investments/Syndications

Jul 9, 2009
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