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

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

The corporation shall adopt rules under chapter91 to implement the letter and spirit of this subsection and to prescribenecessary terms and conditions.  The rules shall include:

(1)  Application and approval procedures for thewaivers;

(2)  Exceptions authorized by this subsection;

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

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

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

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

(c)  Any deed, lease, agreement of sale, orother instrument of conveyance issued by the corporation shall expresslycontain 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 ifthe corporation releases the restrictions when the real property is financedunder a federally subsidized mortgage program.

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

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