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federalUnited StatesHousing Trust Fundaffordability_period

HTF affordability must be imposed by a recorded instrument and survives repayment, refinance and transfer of ownership

htf.affordability_period.enforcement_instrument_survives_transfer · v1.0.0

The HTF affordability requirements apply without regard to the term of any loan or mortgage, repayment of the HTF investment, or the transfer of ownership. They must be imposed by a deed restriction, covenant running with the land, an agreement restricting the use of the property, or another mechanism approved by HUD under which the grantee and the beneficiaries have the right to require specific performance, and must be recorded in accordance with State recordation laws. The only stated exception is termination upon foreclosure or transfer in lieu of foreclosure. Terminating the restrictions does not terminate the grantee's repayment obligation under 24 CFR 93.403.

A payoff, a refinance or a sale is the single most common moment at which an operator assumes an HTF restriction has lapsed. 93.302(d)(2) forecloses all three. The one route out is foreclosure or a deed in lieu, and even that is qualified by 93.302(d)(4).
Confidence
high
Effective from
2016-01-01
Consequence model
agency finding with cure
Last reviewed
2026-08-31

Evidence required

  • Land use affordability covenant from an entitlement concession(exactly_one)

Citations

All sources verified within 1 day
  • Housing Trust Fund
    24 CFR 93.302(d)(2)
    regulationSource ↗verified 1d ago
  • Housing Trust Fund
    24 CFR 93.302(d)(5)
    regulationSource ↗verified 1d ago
  • Housing Trust Fund
    24 CFR 93.404(c)(2)(x)
    regulationSource ↗verified 1d ago