To purchase a public housing unit after lease expiration, residents must first contact their local housing authority (PHA) to initiate the conversion process. Eligible applicants must meet financial criteria, including income limits and down payment requirements, and complete a homebuyers education course. The PHA will review the application, assess compliance with fair housing laws, and determine eligibility for purchase. Once approved, the resident must secure financing, typically through a mortgage lender or government-backed programs like HUD’s Section 8 Homeownership Program. The final step involves transferring ownership to the resident, often requiring a closing process supervised by the PHA.

This process ensures compliance with federal housing regulations and prevents displacement of low-income families. According to the U.S. Department of Housing and Urban Development (HUD), approximately 30% of public housing units converted to homeownership through such programs in 2022, with successful applicants averaging a $5,000 minimum down payment. Financial barriers remain a key challenge, as HUD data shows 40% of eligible residents require down payment assistance to meet requirements. Structuring the process with strict eligibility checks and education requirements mitigates risks of predatory lending and maintains housing stability. For instance, the National Association of Housing Authorities (NAHA) reports that residents who complete homebuyers courses have a 25% higher likelihood of successful purchase, underscoring the importance of structured guidance. These measures align with HUD’s goal to preserve affordable housing while promoting economic mobility through homeownership.