Affordability restrictions may end where housing is no longer financially viable
What the document says“``(ii) where existing affordable housing is no longer financially viable due to unforeseen acts or occurrences beyond the reasonable contemplation or control of the participating jurisdiction in which the affordable housing is located or the owner of the affordable housing that significantly impact the financial or physical condition of the affordable housing, as determined by the Secretary; and''.”
The section rewrites the exception in section 215(a)(1)(E) of the Cranston-Gonzalez National Affordable Housing Act. It keeps the existing exception for foreclosure or transfer in lieu of foreclosure and adds a second, where existing affordable housing is no longer financially viable because of unforeseen events beyond the reasonable contemplation or control of the jurisdiction or the owner that significantly affect the financial or physical condition of the housing, as the Secretary determines.
What the document actually says“``(ii) where existing affordable housing is no longer financially viable due to unforeseen acts or occurrences beyond the reasonable contemplation or control of the participating jurisdiction in which the affordable housing is located or the owner of the affordable housing that significantly impact the financial or physical condition of the affordable housing, as determined by the Secretary; and''.”
A second way out is added. It applies when the housing can no longer pay its way. The cause must be something nobody could have foreseen or controlled. The housing agency decides.
The rules keep a home affordable for a set span. The first way out is foreclosure. This adds a way out when the building cannot be kept going.
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