Sec.8-214d-10. Restrictions on the sale or use of the property

(a) In addition to whatever remedies exist in the contract, the nonprofit corporation shall, upon demand by the Commissioner, transfer title to the State for that land or interests in land acquired with the grant, if the Commissioner determines that:

(1) reasonable progress in the development of the property as described in Sections 8-214d-3 and 8-214d-6 above, has not been made from the date of acquisition of the land or interests in land;

(2) the property has been developed or used for purposes other than for housing to benefit low and moderate income families; or

(3) the nonprofit corporation has amended its purpose so that it no longer conforms with that originally submitted and approved.

(b) Restrictive covenants shall be included in all deeds for property for which the State has provided financial assistance. This provision may be waived if the Commissioner determines that such waiver will be in the State's best interest.

(c) If a nonprofit corporation dissolves its organization, the nonprofit corporation must convey its interests in the property to the Department or to the Department's designated receiver.

(Effective November 30, 1990)