The Sponsor and the owner of each Affordable Housing Project
that involves the rental of housing Units shall enter into a Regulatory
Agreement with the allocating Agency before the Agency makes an Allocation in
connection with that Affordable Housing Project. Under the Regulatory
Agreement, the owner of the Affordable Housing Project shall be required to
adhere to the Affordable Housing Restrictions for a period equal to the
Compliance Period, and agree not to transfer the ownership, or materially
change the ownership structure of the owner of the Affordable Housing Project,
without the prior written approval of the Agency. The Regulatory Agreement
shall be recorded in the Office of the Recorder of Deeds in the county where
the Affordable Housing Project is located as a restrictive covenant on the
Affordable Housing Project. The Regulatory Agreement shall cease to apply in
the event of a foreclosure, transfer of title by deed in lieu of foreclosure or
similar event, unless the allocating Agency determines that such foreclosure,
transfer of title by deed-in-lieu of foreclosure or similar event has occurred
pursuant to an arrangement between the owner of the Affordable Housing Project
and any lenders or any other party, a purpose of which is to terminate the
occupancy restrictions set forth in the Regulatory Agreement.
