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The Galveston Housing Authority has begun development of its first Lease/Purchase Program. An innovative wealth building strategy for eligible families, this program will allow families with Housing Choice vouchers to build equity prior to the purchase of a home. The GHA looks forward to utilizing this model to encourage investment on Galveston Island, while also offering an exciting new option for homeownership for lower income families. 

Formally known as a Lease with option to Purchase, Lease/Purchase programs are common real estate transactions that combine elements of a traditional lease that conclude in a right of first refusal to purchase the property after a specified time period. Lease/Purchase agreements can contribute to both individual family and communal stability in areas that currently lack investment vitality. A thriving lease purchase program could become a “first in” strategy for Ike-affected neighborhoods, with private investment to follow the GHA’s lead. 

Lease/Purchase agreements typically occur over a period of 3 to 5 years. The GHA model will plan to combine family rental payments with their Housing Choice Voucher through a standard yearly lease over a rental period. Property Owners (landlords) will collect 70-80% of the payment over the course of the lease with the monthly remainder held in reserve and collected for a future down payment. After the lease period, families can exercise their exclusive option to purchase the home from the property owner if they so choose.

This type of program benefits many in the community; the Real Estate industry, through the sale of hundreds of homes; the financial institutions, through loans; the families, who are able to build equity; and the community as a whole as home ownership is increased, thereby putting homes back on the tax rolls.

The mission of the Galveston Housing Authority is to provide and professionally manage an adequate supply of safe, affordable housing of reasonable quality for low to moderate income persons while administering programs that offer opportunities for residents to advance in society; Be a leader and work in partnership with other agencies to enhance the quality of life of all persons of low to moderate income in the city.