Vermont § 610 - Housing subsidy covenants; enforceability

§ 610. Housing subsidy covenants; enforceability

• (a) Definition. As used in this section, “housing subsidy covenant” means a covenant the purpose of
  which is to encourage the development and continued availability of affordable rental
  and owner-occupied housing for low and moderate income persons. A housing subsidy
  covenant may be created during ownership or at the time of conveyance by the owner
  of real property as a condition of: (1) an allocation of “low income housing tax credits” pursuant to regulations of the Agency
  of Commerce and Community Development; (2) a grant, loan, or contract made by an agency, instrumentality, or political subdivision
  of this State; (3) a grant, loan, or contract made by a nonprofit corporation; (4) a subsidized loan from any lending institution that makes loans for residential housing;
  or (5) a subsidized private transaction. (b) Restrictions. A housing subsidy covenant may include without limitation restrictions on the use
  of real property, restrictions on resale price, restrictions on tenant income and
  rents, and restrictions on the income of a purchaser of housing or a housing unit
  for his or her own residence. (c) Requirements. A housing subsidy covenant shall be set forth in a separate and distinct document
  and executed, acknowledged, and recorded in the manner provided by law for the execution,
  acknowledgment, and recording of deeds. (d) Duration. A housing subsidy covenant may be perpetual or may be limited to a period of time
  specified in the document and may be amended or terminated by written agreement of
  the owner of the land and all persons or entities holding the right to enforce the
  covenant. Any amendment or termination shall be executed, acknowledged, and recorded
  as provided in this section. (e) Enforceability. A covenant that complies with this section shall run with the land and shall be enforceable
  according to its terms. The covenant may include provisions for monitoring and enforcing
  compliance. The covenant may be enforced by the person or entity that provided the
  subsidy of which creation of the covenant was a condition, or by any agency, instrumentality,
  or political subdivision of the State or nonprofit corporation organized for the purpose
  of promoting affordable housing to whom the right of enforcement has been assigned. (Added 1989, No. 91, § 1; amended 1995, No. 190 (Adj. Sess.), § 1(a).)