§201H-50  Restrictions on use, sale, andtransfer of real property; effect of amendment or repeal.  (a) Restrictions on the use, sale, and transfer of real property shall be made asuniform as possible in application to purchasers of all real property, andrestrictions shall be conformed with agreement of the purchaser to reflectchange or repeal made by any subsequent legislative act, ordinance, rule, orregulation.  Purchasers shall be permitted at their election to sell ortransfer real property subject to restrictions in effect at the time of theirsale or transfer; provided that the corporation is paid its share ofappreciation in the real property as determined by rules adopted pursuant tochapter 91, as applicable.

(b)  The corporation, any department of theState, or any county housing agency maintaining restrictions, through contract,deed, other instrument, or by rule, shall notify purchasers of any substantialchange in restrictions made by law, ordinance, rule, or regulation not morethan one hundred eighty days after a change in restrictions.  The notice shallclearly state the enacted or proposed new provisions, the date or dates uponwhich they are to be effective, and offer to each purchaser of real propertyconstructed and sold prior to the effective date an opportunity to modify theexisting contract or other instrument to incorporate the most recentprovisions.  Public notice shall also be given at least three times in theState for state agencies and at least three times in a county for countyagencies.

(c)  For all purchasers of real property priorto June 25, 1990, where the restrictions on use and transfer of propertyapply for a period of time, the period of time shall not be increased beyondthe date calculated from the date of original purchase.

(d)  No purchaser shall be entitled to modifythe restrictions on use, transfer, or sale of the real property, without thewritten permission of the holder of a duly-recorded first mortgage on thedwelling unit and the owner of the fee simple or leasehold interest in the landunderlying the unit, unless the holder of the first mortgage or the owner is anagency of the State or its political subdivisions.

(e)  This section shall apply to all realproperty developed, constructed, and sold pursuant to this chapter and similarprograms in the State or its political subdivisions and which are sold on thecondition that the purchaser accepts restrictions on the use, sale, or transferof interest in the real property purchased.

(f)  The provisions of this section shall beincorporated in any deed, lease, instrument, rule, or regulation relating torestrictions on use, sale, or transfer of dwelling units, entered into afterJune 20, 1977.

(g)  The restrictions of this section shallterminate as to a particular real property and shall not attach in subsequenttransfers of title of that real property if the corporation releases therestrictions when the real property is financed under a federally subsidizedmortgage program. [L 2006, c 180, pt of §3; am L 2009, c 38, §3]