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b. Purchases - replacement housinq payment. If the tenant elects to purchase instead of renting, the payment shall be com- puted by determining the amount necessary to enable him to make a down payment and to cover incidental expenses on the purchase of replacement housing, as follows: (1) The down payment shall be the amount necessary to make a down payment on a comparable replacement dwelling. Determination of the amount necessary for such down payment shall be based on the amount of down payment that would be required for purchase of the dwelling using a conventional loan. (2) Incidental expenses of closing the transaction are those as described in paragraph 5.3c. (3) The maximum payment may not exceed $4,000, ex- cept that if more than $2,000 is required, the tenant must match any amount in excess of $2,000 by an equal amount in making the down payment. (4) The full amount of the replacement housing pay- ment must be applied to the purchase price and incidental costs shown on the closing statement. 6.3 Computation of replacement housing payments for certain others. a. A displaced owner-occupant who does not qualify for a replacement housing payment under Chapter 5 because of the 180- day occupancy requirement and elects to rent is eligible for a rental replacement housing payment not to exceed $4,000. The payment will be computed in the same manner as shown in paragraph 6.2a except that the present rental rate for the acquired dwelling shall be economic rent as determined by market data. b. A displaced owner-occupant who does not qualify for a re- placement housing payment under Chapter 5 because of the 180-day occupancy requirement and elects to purchase a replacement dwelling is eligible for a replacement housing down payment and closing costs not to exceed $4,000. The payment will be computed in the same manner as shown in paragraph 6.2b. II- 21