A recorded restrictive use agreement is required with each preservation deal
What the document says“As part of the preservation and revitalization agreement for a project, the Secretary shall obtain a restrictive use agreement that is recorded and obligates the owner to operate the project in accordance with this title.”
The new section 545 requires the Secretary of Agriculture to obtain a recorded restrictive use agreement binding the owner to run the project under title V of the Housing Act of 1949. Its term matches the restructured loan, except that with a 20-year extension of the rental assistance contract it runs for the longer of 20 years or the remaining loan term. The Secretary may end a 20-year agreement early where the matching rental assistance contract ends for reasons outside the owner's control.
What the document actually says“As part of the preservation and revitalization agreement for a project, the Secretary shall obtain a restrictive use agreement that is recorded and obligates the owner to operate the project in accordance with this title.”
The farm agency must get a written promise from the owner. It is filed in the land records. The owner must run the building under the rules of this part of the law.
A recorded promise binds later owners too. Its length follows the loan. A longer rent aid deal makes it longer.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.