[§201H-49]  Real property; restrictions on
use.  (a)  Real property purchased under this chapter shall be occupied by
the purchaser at all times during the ten-year restriction period set forth in
section 201H-47, except in hardship circumstances where the inability to reside
on the property arises out of unforeseeable job or military transfer, a
temporary educational sabbatical, serious illness of the person, or in other
hardship circumstances as determined by the corporation on a case-by-case
basis.



The corporation may waive the owner-occupancy
requirement for a total of not more than ten years after the purchase of the
dwelling, during which time the dwelling unit may be rented or leased.  Waivers
may be granted only to qualified residents who have paid resident state income
taxes during all years in which they occupied the dwelling, who continue to pay
resident state income taxes during the waiver period, and whose inability to
reside on the property does not stem from a natural disaster.  The ten-year owner-occupancy
requirement shall be extended by one month for every month or fraction thereof
that the owner-occupancy requirement is waived.



The corporation shall adopt rules under chapter
91 to implement the letter and spirit of this subsection and to prescribe
necessary terms and conditions.  The rules shall include:



(1)  Application and approval procedures for the
waivers;



(2)  Exceptions authorized by this subsection;



(3)  The amounts of rents that may be charged by
persons allowed to rent or lease a dwelling unit; and



(4)  Schedules of fees needed to cover administrative
expenses and attorneys' fees.



No qualified resident who fails to reoccupy a
dwelling unit after any waiver period shall receive more than the maximum to
which the person would be entitled under section 201H-47.  Any person who
disagrees with the corporation's determination under this section shall be
entitled to a contested case proceeding under chapter 91.



(b)  From time to time the corporation may
submit a verification of owner-occupancy form to the purchaser.  Failure to
respond to the verification in a timely manner or violation of subsection (a)
shall be sufficient reason for the corporation, at its option, to purchase the
unit as provided in section 201H-47(a)(1), (2), or (4), as applicable.



(c)  Any deed, lease, agreement of sale, or
other instrument of conveyance issued by the corporation shall expressly
contain the restrictions on use prescribed in this section.



(d)  The restrictions prescribed in subsection
(a) shall terminate and shall not attach in subsequent transfers of title if
the corporation releases the restrictions when the real property is financed
under a federally subsidized mortgage program.



(e)  Subsections (a) to (c) need not apply to
market-priced units in an economically integrated housing project, except as
otherwise determined by the developer of the units; provided that preference
shall be given to qualified residents in the initial sale of market-priced
units.



(f)  The corporation shall be authorized to
waive any of the restrictions set forth in this section in order to comply with
or conform to requirements set forth in federal law or regulations governing
mortgage insurance or guarantee programs or requirements set forth by federally
chartered secondary mortgage market participants. [L 2006, c 180, pt of §3]