Sec.8-216b-8. Restrictions on the sale or use of property

(a) Any real property acquired with the use of a grant under this program may be transferred for consideration which is less than cost or fair market value to:

(1) a housing authority; or

(2) a person, firm, or corporation who the Commissioner determines is subject to the regulation or supervision of operations, rents, charges, income, or sales price with respect to such real property under a regulatory agreement or other instrument which restricts occupancy of such housing predominantly to persons and families whose income does not exceed one hundred percent of the area median income, as determined by the United States Department of Housing and Urban Development.

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

(1) reasonable progress in the development of the property 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 those enumerated in the housing and community development plans as submitted and approved; or

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

(c) A lien shall be filed, unless the Commissioner determines that a waiver is in the best interest of the State, on all property for which the State has provided financial assistance. The Commissioner may subordinate the State's lien if the level of State financial assistance so warrants.

(d) If a developer dissolves its organization, the developer shall convey its interests in the property to the Department or to the Department's designated receiver.

(Effective June 26, 1989)