Get Signed Agreement When Taking Application Deposits to Reserve Units

Requiring application deposits for tax credit units is a good way to secure applicants and get signed leases later on, especially when new or substantially rehabilitated buildings aren’t ready. But when you accept a deposit, don’t inadvertently give the applicant the impression that you’re guaranteeing him a unit. Giving the impression that the deposit is a guarantee has led to legal disputes when the applicant’s circumstances changed and he was no longer eligible when the unit was ready.