Understanding Your Land Use Restriction Agreement (LURA)

The Land Use Restriction Agreement (LURA) can be an intimidating document for any property manager to delve into. But fear not! With just a couple of tips, you can transform this document into your ultimate tool for compliance. Think of it as your secret weapon for running a smooth, hassle-free property management operation.

First, let's break down what a LURA is. Essentially, it’s a contract between the owner/developer of the property and the Texas Department of Housing and Community Affairs. This contract outlines everything the owner/developer promised to do and provide on the property.

Today, we're zooming in on a crucial section: Required Supportive Services. This part often gets misunderstood, overlooked, or even pushed aside, but it's vital for staying compliant.

Set aside some time to read your entire LURA, but for now, head towards the end of the document. You'll find the Supportive Services section in the amendment or appendix, right after Occupancy Restrictions and Longer Use Period.

Depending on how old your LURA is, the format of Supportive Services can vary. Older LURAs might list services in a form style where boxes are checked to indicate the services the owner promised to provide. These older agreements often don’t specify how frequently services should be provided. A good rule of thumb is to offer these services at least quarterly, but more often if your residents need or request them.

Newer LURAs, however, come with a list of service options and a required number of points to achieve each month. When reviewing these lists, consider who your residents are, what they need most, what you can manage during your work hours, and the availability of community partners to help you. For example, offering 12 hours of weekly, organized on-site services for K-12 children would be fantastic, but if you don’t have a community room or you only work part-time, it would be challenging. Likewise, managing a senior property means children’s services might not make sense.

Here’s a strategy to make this easier: Go through the list of services and jot down the ones that could work for your property. Ask yourself: Who would provide this service – me or an outside partner? How much time would it take? How often will I need to provide it? What’s the cost? Where would we hold it? Will my residents benefit?

Once you have a potential list, survey your residents to see what they’re interested in and what they need. Then, check if the services on your list meet your point requirements. For example, if you need 8 points per month, and you plan to offer: Food pantry (1 point), Quarterly Financial Planning (1 point), Notary Services (1 point), twice-monthly on-site social activities (1 point), weekly home chore service (2 points), a resident-run community garden (1 point), and quarterly health and nutrition courses (1 point) – you’ve nailed your point total to stay compliant!

Stay tuned for the next steps in staying compliant once you’ve decided which supportive services you’ll be implementing on your property. Compliance doesn’t have to be a chore – with these tips, it can be a breeze!


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