Conversion of Homeownership Activities (Sites) to Rental Projects Clause Samples
The "Conversion of Homeownership Activities (Sites) to Rental Projects" clause establishes the conditions and procedures under which properties originally intended for homeownership can be repurposed as rental housing. Typically, this clause outlines the approval process required for such a conversion, including any necessary notifications to funding agencies or compliance with specific regulatory requirements. For example, if a development funded for affordable homeownership cannot find eligible buyers, the clause may allow the units to be leased as affordable rentals instead. Its core function is to provide flexibility in the use of housing resources, ensuring that properties do not remain vacant and continue to serve affordable housing goals even if market conditions or demand for homeownership change.
Conversion of Homeownership Activities (Sites) to Rental Projects. In the event that a single-family home and real estate developed under this agreement has not been sold to an eligible homebuyer, as evidenced by a ratified sales contract, within nine months of completion, the unit must be converted to a HOME rental unit that complies with all HOME requirements for the period of affordability applicable to such unit (20 years), as described in this Section IV. For purposes of this Section IV, the “Developer” shall become the “Owner”, and the following additional requirements of this Section IV shall apply: