TITLE 42
State Affairs and Government

CHAPTER 42-11.2
Affordable Housing Opportunity

SECTION 42-11.2-7


§ 42-11.2-7 Required contract provisions.

Contracts to make rental assistance payments under this chapter shall provide that:

(1) The duration of rental assistance payments thereunder shall not exceed or extend beyond the duration of principal payments due and owing by the eligible owner upon the primary financing of the acquisition, construction, or substantial rehabilitation of the affected units.

(2) The lease between the tenant and the eligible owner shall continue indefinitely unless the tenancy is terminated as provided in subdivision (3).

(3) The eligible owner shall not terminate the tenancy during the term of any lease or at the end of any lease term except for serious or repeated violations of the terms and conditions of the lease, for violation of applicable state or local law, or for other good and substantial cause.

(4) The obligations under the lease and rental agreement survive the sale of the units and shall be binding upon the new owner of the units.

(5) The obligations under the contract between the eligible owner and the executive department shall survive the sale of the units subject to the contract and shall be binding upon any successor in interest of the eligible owner. The executive department shall cause a copy of the contract to be recorded in the land records office of the locality in which the assisted units are located within fifteen (15) days of execution of the contract.

History of Section.
(P.L. 1988, ch. 579, § 1.)