AHC only invests in California and Texas properties.

Yes, investment can be made from anywhere in the USA

AHC does not invests in condominium and apartments.

$700K.

AHC and the member are both named on the title.

The minimum payment is based on the prevalent rent which is appraised by a real‐estate professional. Once rent is appraised and agreed upon by the home owner, the minimum payment is calculated as follows:

Minimum Payment= appraised rent – 7% of the rent + $100 + $75.
o 7% deduction in rent is AHC share of home insurance and property tax.
o $100 (1 share) additional is required that goes towards paying the principal.
o $75 is the administration fee.

In this case, home owner will hire professional licensed appraiser to appraise the property at his/her own expense.  AHC will set the new rent to be the average of the two rents (i.e., AHC appraised rent & Home Owner appraised rent). Please note that references to offered rents in neighborhood as listed in newspaper or internet are not acceptable in lieu of the rent appraised by a real‐estate professional.

Rents are appraised every year by a real‐estate professional hired by AHC. Based on the appraisal rents may increase or decrease.

Yes, rent increases and decreases are capped as follows:

1) If the appraised rent is higher than the current, the new rent for a homeowner will be either newly appraised rent or existing rent + 10%, whichever is less in value.

2) If the assessed rent is lower than the current, the new rent for a homeowner will be either newly appraised rent or existing rent ‐ 10%, whichever is greater in value.

Keep in mind that above mentioned policy does NOT apply if home is remodeled to update existing structure or squarefootage is added.

AHC share of rent is adjusted beginning of the year every year with the following exceptions:

1. Home owner pays $1000 or more than the minimum monthly payment, then the AHC/Member share of rent will be adjusted from the following month. Please note that the additional amount MUST be paid before 15th of the month to affect the rent adjustment from the following month. Otherwise, the rent adjustment will begin from the2nd month.

2. If Home Owner remodels or does other home improvement, then these expenses are added to his/her equity on the completion of the work. This results in adjusting the ratio of ownership between AHC and the home owner. Please note that the member MUST get an approval from the AHC Board BEFORE any home improvement work is undertaken. Please read the AHC regulations for more details.

Regular day to day maintenance is home owner’s responsibility. For major expenses, such as roof replacement/repair, bath/kitchen upgrade etc., are added to the Home Owner’s equity upon completion of the work. Please keep in mind that all such expenses MUST be approved by AHC board BEFORE such repair/upgrade is started.  After the upgrade/remodel/repair is completed, you MUST turn in all the original receipts. Upon receiving of original receipts AHC will re‐appraise the rent and adjust the equity. Following is an example:
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Make sure to turn in all the receipts in the same year in which remodel/upgrade/repair were completed.

If a member accumulates 70% of the shares or member notifies AHC to pay‐off his/her balance in writing, whichever comes first, AHC will order an appraisal, calculate the appreciation/depreciation and then issue a final pay‐off letter to the homeowner.  The home owner must sign and return the letter back to AHC in order to finalize the agreement. AHC will not share appreciation or depreciation after 70% of the shares are accumulated.For the home owners who purchased home before March, 2009, the share accumulation is 100% or member notifies AHC to pay‐off his/her balance in writing, whichever comes first. The rest of the process is the same as described above.

First of all, there has to be legitimate reason to sell the house, e.g., moving due to change in job etc. Legitimacy is determined by the AHC board after a request to sell is received by the AHC.  

Once AHC receives a written request from the home owner to sell the house. After AHC approval, house can be sold in the open market. All expenses related to selling the house will be entirely paid by the home owner. Based on the selling price, AHC will calculate the appreciation/depreciation of the property. The appreciation or depreciation will be shared between the home owner and the AHC proportional to their equity.

All the expenses related to the sale will be paid by the Home Owner. They include, but not limited to, 3 months’ rent as“AHC processing fee”, broker fee, doc fee, etc.

Once AHC receives a written request from the home owner to sell the house. After AHC approval, house can be sold in the open market. All expenses related to selling the house will be entirely paid by the home owner.

Based on the selling price, AHC will calculate the appreciation/depreciation of the property. The appreciation or depreciation will be shared at 30%AHC and 70% home owner.In case of price appreciation, AHC will deduct the balance owed by the home owner plus the 30% of the appreciation from the selling proceeds.

The remaining balance of the sale proceed will be paid to the home owner.In case of price depreciation, AHC will deduct the balance owed by the home owner less 30% of the depreciation from th eselling proceeds. The remaining balance of the sale proceed will be paid to the home owner.

Yes, the minimum you must pay is your minimum monthly payment you were making earlier. The same applies when AHC owes money to the home owner. That is, AHC will make minimum monthly payments (rent+$175) to the home owner until the entire balance is paid off.

The profit/loss must be based on the investment of each party at the time of final assessment (appraisal), when home owners accumulate 70% of the shares, final appraisal is done. Since majority of the homeowners started with this   ratio of distribution, AHC board decided to use the same ratio.

There is no maximum time to pay off as long as minimum monthly payments are made.

No penalty if the house is paid off after 12 months from the date of purchase. There is $5000 penalty if paid within  12months from the date of purchase.

As a result of transfer/sale of a housing unit, AHC takes/pays 30% of any gain/loss realized.

Yes. The process is similar to a regular purchase.

No, we don’t allow commercial properties to be purchased by our members.

AHC’s priority is to fund members who want to acquire primary residence.  Since we always have a list of members waiting to purchase their primary residence, AHC does NOT allow investors to purchase property for the sole purpose of renting

AHC ‘may’ allow sub‐letting on a case‐by‐case basis. You MUST request, in writing, to AHC for board’s approval. The approval decision will primarily be based on available covered area, size of the home‐owner’s family and the size of the portion of the property being sub‐let.

If approved, the Home Owner

:i. Will remain single point of contact for AHC.
ii. Will take full responsibility of managing the sub‐lease.  
iii. Will be responsible of the entire rent assessed by AHC.
iv. Will assume 100% of the responsibility of any damage occurs to the property by the sub‐lessee.

Consult a tax advisor as AHC cannot advise on tax issues. Please note that AHC does not issue 1098 forms.