Fillable Affordable Housing Restriction2019-09-9 Affordable Housing Restriction (Deed Rider)

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Affordable Housing Restriction2019-09-9 Affordable Housing Restriction (Deed Rider)

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MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010 © Rev. 9.9.19 (Page 1 of 16)
AFFORDABLE HOUSING RESTRICTION
For Projects in Which
Affordability Restrictions Survive Foreclosure
THIS AFFORDABLE HOUSING RESTRICTION (this “Restriction”) is:
[ ] incorporated in and made part of that certain deed (the "Deed") of certain property (the
“Property”) from
______________________________________________________________________________
____________________________________________________________________ ("Grantor")
to ______________________________________________________ ("Owner") dated
________________________, 20___; or
[ ] being granted in connection with a financing or refinancing secured by a mortgage on the
Property dated _____________, 20__. The Property is located in the City/Town of
____________________________________________________________ (the “Municipality”).
RECITALS
WHEREAS, the Owner is purchasing the Property, or is obtaining a loan secured by a
mortgage on the Property that was originally purchased, at a consideration which is at or less
than the fair market value of the Property; and
WHEREAS, the Property is part of a project which was: [check all that are applicable]
(i)  granted a Comprehensive Permit under Massachusetts General Laws
Chapter 40B, Sections 20-23, from the Board of Appeals of the Municipality or
the Housing Appeals Committee and recorded/filed with the
______________________________ County Registry of Deeds/Registry District
of Land Court (the “Registry”) in Book ________, Page ________/Document
No._____________ (the “Comprehensive Permit”); and/or
(ii)  subject to a Regulatory Agreement among _____________________
____________________________________________ (the “Developer”), [ ]
Massachusetts Housing Finance Agency (“MassHousing”), [ ] the Massachusetts
Department of Housing and Community Development] (“DHCD”) [ ] the
Municipality; and [ ] _____________________________________________
____________________________________________________________, dated
_____________________________ and recorded/filed with the Registry in Book
____________, Page __________/as Document No. ___________ (the
“Regulatory Agreement”); and/or
(iii)  subsidized by the federal or state government under ______________
__________________________________________________________________
asdfs
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010 © Rev. 9.9.19 (Page 2 of 16)
_____________________________________________________, a program to
assist construction of low or moderate income housing the “Program”); and
WHEREAS, pursuant to the Program, eligible purchasers such as the Owner are given
the opportunity to purchase residential property at or less than its fair market value if the
purchaser agrees to certain use and transfer restrictions, including an agreement to occupy the
property as a principal residence and to convey the property for an amount not greater than a
maximum resale price, all as more fully provided herein; and
WHEREAS, _____________________________________________________________
_______________________________________________________________________ (singly,
or if more than one entity is listed, collectively, the “Monitoring Agent”) is obligated by the
Program or has been retained to monitor compliance with and to enforce the terms of this
Restriction, and eligible purchasers such as the Owner may be required to pay to the Monitoring
Agent, or its successor, a small percentage of the resale price upon the Owner’s conveyance of
the Property, as set out in the Regulatory Agreement and as more fully provided herein; and
WHEREAS, the rights and restrictions granted herein to the Monitoring Agent and the
Municipality serve the public’s interest in the creation and retention of affordable housing for
persons and households of low and moderate income and in the restricting of the resale price of
property in order to assure its affordability by future low and moderate income purchasers.
NOW, THEREFORE, as further consideration for the conveyance of the Property at or
less than fair market value (if this Restriction is attached to the Deed), or as further consideration
for the ability to enter into the financing or refinancing transaction, the Owner (and the Grantor if
this Restriction is attached to the Deed), including his/her/their heirs, successors and assigns,
hereby agree that the Property shall be subject to the following rights and restrictions which are
imposed for the benefit of, and shall be enforceable by, the Municipality and the Monitoring
Agent, and, if DHCD is a party to the Regulatory Agreement and is not the Monitoring Agent, by
DHCD.
1. Definitions. In this Restriction, in addition to the terms defined above, the
following words and phrases shall have the following meanings:
Affordable Housing Fund means a fund established by the Municipality for the purpose of
reducing the cost of housing for Eligible Purchasers or for the purpose of encouraging, creating,
or subsidizing the construction or rehabilitation of housing for Eligible Purchasers or, if no such
fund exists, a fund established by the Municipality pursuant to Massachusetts General Laws
Chapter 44 Section 53A, et seq.
Applicable Foreclosure Price shall have the meaning set forth in Section 7(b) hereof.
Appropriate Size Household means a household containing a number of members equal to the
number of bedrooms in the Property plus one.
Approved Capital Improvements means the documented commercially reasonable cost of
extraordinary capital improvements made to the Property by the Owner; provided that the
Monitoring Agent shall have given written authorization for incurring such cost prior to the cost
being incurred and that the original cost of such improvements shall be discounted over the
course of their useful life.
Area means the Primary Metropolitan Statistical Area or non-metropolitan area that includes the
Municipality, as determined by HUD, which in this case is _____________________________.
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010 © Rev. 9.9.19 (Page 3 of 16)
Area Median Income means the most recently published median income for the Area adjusted
for household size as determined by HUD. If HUD discontinues publication of Area Median
Income, the income statistics used by MassHousing for its low and moderate income housing
programs shall apply.
Base Income Number means the Area Median Income for a four (4)-person household.
Chief Executive Officer shall mean the Mayor in a city or the Board of Selectmen in a town
unless some other municipal office is designated to be the chief executive officer under the
provisions of a local charter.
Closing shall have the meaning set forth in Section 5(b) hereof.
Compliance Certificate shall have the meaning set forth in Section 6(a) hereof.
Conveyance Notice shall have the meaning set forth in Section 4(a) hereof.
Eligible Purchaser means an individual or household earning no more than eighty percent
(80%) of Area Median Income (or, if checked [ ] _______________ percent (_____%) of Area
Median Income, as required by the Program) and owning assets not in excess of the limit set
forth in the Program Guidelines. To be considered an Eligible Purchaser, the individual or
household must intend to occupy and thereafter must occupy the Property as his, her or their
principal residence and must provide to the Monitoring Agent such certifications as to income,
assets and residency as the Monitoring Agent may require to determine eligibility as an Eligible
Purchaser. An Eligible Purchaser shall be a First-Time Homebuyer if required by the Program
and as specified in the Regulatory Agreement.
First-Time Homebuyer means an individual or household, of which no household member has
had an ownership interest in a principal residence at any time during the three (3)-year period
prior to the date of qualification as an Eligible Purchaser, except that (i) any individual who is a
displaced homemaker (as may be defined by DHCD) (ii) and any individual age 55 or over
(applying for age 55 or over housing) shall not be excluded from consideration as a First-Time
Homebuyer under this definition on the basis that the individual, owned a home or had an
ownership interest in a principal residence at any time during the three (3)-year period.
Foreclosure Notice shall have the meaning set forth in Section 7(a) hereof.
HUD means the United States Department of Housing and Urban Development.
Ineligible Purchaser means an individual or household not meeting the requirements to be
eligible as an Eligible Purchaser.
Maximum Resale Price means the sum of (i) the Base Income Number (at the time of resale)
multiplied by the Resale Price Multiplier, plus (ii) the Resale Fee and any necessary marketing
expenses (including broker’s fees) as may have been approved by the Monitoring Agent, plus
(iii) Approved Capital Improvements, if any (the original cost of which shall have been
discounted over time, as calculated by the Monitoring Agent); provided that in no event shall the
Maximum Resale Price be greater than the purchase price for which a credit-worthy Eligible
Purchaser earning seventy percent (70%) of the Area Median Income (or, if checked [ ]
______________________ percent (_____%) of Area Median Income, as required by the
Program) for an Appropriate Size Household could obtain mortgage financing (as such purchase
price is determined by the Monitoring Agent using the same methodology then used by DHCD
for its Local Initiative Program or similar comprehensive permit program); and further provided
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010 © Rev. 9.9.19 (Page 4 of 16)
that the Maximum Resale Price shall not be less than the purchase price paid for the Property by
the Owner unless the Owner agrees to accept a lesser price.
Monitoring Services Agreement means any Monitoring Services Agreement for monitoring
and enforcement of this Restriction among some or all of the Developer, the Monitoring Agent,
the Municipality, MassHousing and DHCD.
Mortgage Satisfaction Amount shall have the meaning set forth in Section 7(b) hereof.
Mortgagee shall have the meaning set forth in Section 7(a) hereof.
Program Guidelines means the regulations and/or guidelines issued for the applicable Program
and controlling its operations, as amended from time to time.
Resale Fee means a fee of ________% [no more than two and one-half percent (2.5%)] of the
Base Income Number (at the time of resale) multiplied by the Resale Price Multiplier, to be paid
to the Monitoring Agent as compensation for monitoring and enforcing compliance with the
terms of this Restriction, including the supervision of the resale process.
Resale Price Certificate means the certificate issued as may be specified in the Regulatory
Agreement and recorded with the first deed of the Property from the Developer, or the
subsequent certificate (if any) issued as may be specified in the Regulatory Agreement, which
sets forth the Resale Price Multiplier to be applied on the Owner’s sale of the Property, as
provided herein, for so long as the restrictions set forth herein continue. In the absence of
contrary specification in the Regulatory Agreement the Monitoring Agent shall issue the
certificate.
Resale Price Multiplier means the number calculated by dividing the Property’s initial sale
price by the Base Income Number at the time of the initial sale from the Developer to the first
Eligible Purchaser. The Resale Price Multiplier will be multiplied by the Base Income Number at
the time of the Owner’s resale of the Property to determine the Maximum Resale Price on such
conveyance subject to adjustment for the Resale Fee, marketing expenses and Approved Capital
Improvements. In the event that the purchase price paid for the Property by the Owner includes
such an adjustment a new Resale Price Multiplier will be recalculated by the Monitoring Agent
by dividing the purchase price so paid by the Base Income Number at the time of such purchase,
and a new Resale Price Certificate will be issued and recorded reflecting the new Resale Price
Multiplier. A Resale Price Multiplier of ______________is hereby assigned to the Property.
Term means in perpetuity, unless earlier terminated by (i) the termination of the term of
affordability set forth in the Regulatory Agreement or Comprehensive Permit, whichever is
longer; or (ii) the recording of a Compliance Certificate and a new Restriction executed by the
purchaser in form and substance substantially identical to this Restriction establishing a new
term.
2. Owner-Occupancy/Principal Residence. The Property shall be occupied and
used by the Owner’s household exclusively as his, her or their principal residence. Any use of
the Property or activity thereon which is inconsistent with such exclusive residential use is
expressly prohibited.
3. Restrictions Against Leasing, Refinancing and Junior Encumbrances. The
Property shall not be leased, rented, refinanced, encumbered (voluntarily or otherwise) or
mortgaged without the prior written consent of the Monitoring Agent; provided that this
provision shall not apply to a first mortgage granted on the date of the delivery of the Deed in
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010 © Rev. 9.9.19 (Page 5 of 16)
connection with the conveyance of the Property from Grantor to Owner securing indebtedness
not greater than one hundred percent (100%) of the purchase price. Any rents, profits, or
proceeds from any transaction described in the preceding sentence which transaction has not
received the requisite written consent of the Monitoring Agent shall be paid upon demand by
Owner to the Municipality for deposit to its Affordable Housing Fund. The Monitoring Agent or
Municipality may institute proceedings to recover such rents, profits or proceeds, and costs of
collection, including attorneys’ fees. Upon recovery, after payment of costs, the balance shall be
paid to the Municipality for deposit to its Affordable Housing Fund. In the event that the
Monitoring Agent consents for good cause to any such lease, refinancing, encumbrance or
mortgage, it shall be a condition to such consent that all rents, profits or proceeds from such
transaction, which exceed the actual carrying costs of the Property as determined by the
Monitoring Agent, shall be paid to the Municipality for deposit to its Affordable Housing Fund.
4. Options to Purchase. (a) When the Owner or any successor in title to the Owner
shall desire to sell, dispose of or otherwise convey the Property, or any portion thereof, the
Owner shall notify the Monitoring Agent and the Municipality in writing of the Owner’s
intention to so convey the Property (the "Conveyance Notice"). Upon receipt of the Conveyance
Notice, the Monitoring Agent shall (i) calculate the Maximum Resale Price which the Owner
may receive on the sale of the Property based upon the Base Income Number in effect as of the
date of the Conveyance Notice and the Resale Price Multiplier set forth in the most recently
recorded Resale Price Certificate together with permissible adjustments for the Resale Fee,
marketing expenses and Approved Capital Improvements (as discounted), and (ii) promptly
begin marketing efforts. The Owner shall fully cooperate with the Monitoring Agent’s efforts to
locate an Eligible Purchaser and, if so requested by the Monitoring Agent, shall hire a broker
selected by the Monitoring Agent to assist in locating an Eligible Purchaser ready, willing and
able to purchase the Property at the Maximum Resale Price after entering a purchase and sale
agreement. Pursuant to such agreement, sale to the Eligible Purchaser at the Maximum Resale
Price shall occur within ninety (90) days after the Monitoring Agent receives the Conveyance
Notice or such further time as reasonably requested to arrange for details of closing. If the
Owner fails to cooperate in such resale efforts, including a failure to agree to reasonable terms in
the purchase and sale agreement, the Monitoring Agent may extend the 90-day period for a
period commensurate with the time the lack of cooperation continues, as determined by the
Monitoring Agent in its reasonable discretion. In such event, the Monitoring Agent shall give
Owner written notice of the lack of cooperation and the length of the extension added to the 90-
day period.
(b) The Monitoring Agent shall ensure that diligent marketing efforts are made to locate
an Eligible Purchaser ready, willing and able to purchase the Property at the Maximum Resale
Price within the time period provided in subsection (a) above and to enter the requisite purchase
and sale agreement. If more than one Eligible Purchaser is located, the Monitoring Agent shall
conduct a lottery or other like procedure to determine which Eligible Purchaser shall be entitled
to enter a purchase and sale agreement with Owner and to purchase the Property. Preference
shall be given to Appropriate Size Households. The procedure for marketing and selecting an
Eligible Purchaser shall be approved as provided in the Regulatory Agreement and any
applicable Program Guidelines. If an Eligible Purchaser is located within ninety (90) days after
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010 © Rev. 9.9.19 (Page 6 of 16)
receipt of the Conveyance Notice, but such Eligible Purchaser proves unable to secure mortgage
financing so as to be able to complete the purchase of the Property pursuant to the purchase and
sale agreement, following written notice to Owner within the 90-day period the Monitoring
Agent shall have an additional sixty (60) days to locate another Eligible Purchaser who will enter
a purchase and sale agreement and purchase the Property by the end of such sixty (60)-day
period or such further time as reasonably requested to carry out the purchase and sale agreement.
(c) In lieu of sale to an Eligible Purchaser, the Monitoring Agent or the Municipality or
designee shall also have the right to purchase the Property at the Maximum Resale Price, in
which event the purchase and sale agreement shall be entered, and the purchase shall occur
within ninety (90) days after receipt of the Conveyance Notice or, within the additional sixty
(60)-day period specified in subsection (b) above, or such further time as reasonably requested to
carry out the purchase and sale agreement. Any lack of cooperation by Owner in measures
reasonably necessary to effect the sale shall extend the 90-day period by the length of the delay
caused by such lack of cooperation. The Monitoring Agent shall promptly give Owner written
notice of the lack of cooperation and the length of the extension added to the 90-day period. In
the event of such a sale to the Monitoring Agent or Municipality or designee, the Property shall
remain subject to this Restriction and shall thereafter be sold or rented to an Eligible Purchaser as
may be more particularly set forth in the Regulatory Agreement.
(d) If an Eligible Purchaser fails to purchase the Property within the 90-day period (or
such further time determined as provided herein) after receipt of the Conveyance Notice, and the
Monitoring Agent or Municipality or designee does not purchase the Property during said period,
then the Owner may convey the Property to an Ineligible Purchaser no earlier than thirty (30)
days after the end of said period at the Maximum Resale Price, but subject to all rights and
restrictions contained herein; provided that the Property shall be conveyed subject to a
Restriction identical in form and substance to this Restriction which the Owner agrees to
execute, to secure execution by the Ineligible Purchaser and to record with the Deed; and further
provided that, if more than one Ineligible Purchaser is ready, willing and able to purchase the
Property the Owner will give preference and enter a purchase and sale agreement with any
individuals or households identified by the Monitoring Agent as an Appropriate Size Household
earning more than eighty percent (80%) but less than one hundred twenty percent (120%) of the
Area Median Income.
(e) The priority for exercising the options to purchase contained in this Section 4 shall be
as follows: (i) an Eligible Purchaser located and selected by the Monitoring Agent, as provided
in subsection (b) above, (ii) the Municipality or its designee, as provided in subsection (c) above,
and (iii) an Ineligible Purchaser, as provided in subsection (d) above.
(f) Nothing in this Restriction or the Regulatory Agreement constitutes a promise,
commitment or guarantee by DHCD, MassHousing, the Municipality or the Monitoring Agent
that upon resale the Owner shall actually receive the Maximum Resale Price for the Property or
any other price for the Property.
(g) The holder of a mortgage on the Property is not obligated to forbear from exercising
the rights and remedies under its mortgage, at law or in equity, after delivery of the Conveyance.
Notice.
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010 © Rev. 9.9.19 (Page 7 of 16)
5. Delivery of Deed. (a) In connection with any conveyance pursuant to an option to
purchase as set forth in Section 4 above, the Property shall be conveyed by the Owner to the
selected purchaser by a good and sufficient quitclaim deed conveying a good and clear record
and marketable title to the Property free from all encumbrances except (i) such taxes for the then
current year as are not due and payable on the date of delivery of the deed, (ii) any lien for
municipal betterments assessed after the date of the Conveyance Notice, (iii) provisions of local
building and zoning laws, (iv) all easements, restrictions, covenants and agreements of record
specified in the deed from the Owner to the selected purchaser, (v) such additional easements,
restrictions, covenants and agreements of record as the selected purchaser consents to, such
consent not to be unreasonably withheld or delayed, (vi) the Regulatory Agreement, and (vii),
except as otherwise provided in the Compliance Certificate, a Restriction identical in form and
substance to this Restriction which the Owner hereby agrees to execute, to secure execution by
the selected purchaser, and to record with the deed. Said deed shall clearly state that it is
made subject to the Restriction which is made part of the deed. Failure to comply with the
preceding sentence shall not affect the validity of the conveyance from the Owner to the selected
purchaser or the enforceability of the restrictions herein.
(b) Said deed, including the approved Restriction, shall be delivered and the purchase
price paid (the "Closing") at the Registry, or at the option of the selected purchaser, exercised by
written notice to the Owner at least five (5) days prior to the delivery of the deed, at such other
place as the selected purchaser may designate in said notice. The Closing shall occur at such
time and on such date as shall be specified in a written notice from the selected purchaser to the
Owner, which date shall be at least five (5) days after the date on which such notice is given, and
no later than the end of the time period specified in Section 4(a) above.
(c) To enable Owner to make conveyance as herein provided, Owner may, if Owner so
desires at the time of delivery of the deed, use the purchase money or any portion thereof to clear
the title of any or all encumbrances or interests, all instruments with respect thereto to be
recorded simultaneously with the delivery of said deed. Nothing contained herein as to the
Owner’s obligation to remove defects in title or to make conveyance or to deliver possession of
the Property in accordance with the terms hereof, as to use of proceeds to clear title or as to the
election of the selected purchaser to take title, nor anything else in this Restriction shall be
deemed to waive, impair or otherwise affect the priority of the rights herein over matters
appearing of record, or occurring, at any time after the recording of this Restriction, all such
matters so appearing or occurring being subject and subordinate in all events to the rights herein.
(d) Water and sewer charges and taxes for the then current tax period shall be
apportioned and fuel value shall be adjusted as of the date of Closing and the net amount thereof
shall be added to or deducted from, as the case may be, the purchase price payable by the
selected purchaser.
(e) Full possession of the Property free from all occupants is to be delivered at the time of
the Closing, the Property to be then in the same condition as it is in on the date of the execution
of the purchase and sale agreement, reasonable wear and tear only excepted.
(f) If Owner shall be unable to give title or to make conveyance as above required, or if
any change of condition in the Property not included in the above exception shall occur, then
Owner shall be given a reasonable time not to exceed thirty (30) days after the date on which the
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010 © Rev. 9.9.19 (Page 8 of 16)
Closing was to have occurred in which to remove any defect in title or to restore the Property to
the condition herein required. The Owner shall use best efforts to remove any such defects in the
title, whether voluntary or involuntary, and to restore the Property to the extent permitted by
insurance proceeds or condemnation award. The Closing shall occur fifteen (15) days after
notice by Owner that such defect has been cured or that the Property has been so restored. The
selected purchaser shall have the election, at either the original or any extended time for
performance, to accept such title as the Owner can deliver to the Property in its then condition
and to pay therefor the purchase price without deduction, in which case the Owner shall convey
such title, except that in the event of such conveyance in accordance with the provisions of this
clause, if the Property shall have been damaged by fire or casualty insured against or if a portion
of the Property shall have been taken by a public authority, then the Owner shall, unless the
Owner has previously restored the Property to its former condition, either:
(A) pay over or assign to the selected purchaser, on delivery of the deed, all
amounts recovered or recoverable on account of such insurance or condemnation
award less any amounts reasonably expended by the Owner for any partial
restoration, or
(B) if a holder of a mortgage on the Property shall not permit the insurance
proceeds or the condemnation award or part thereof to be used to restore the
Property to its former condition or to be so paid over or assigned, give to the
selected purchaser a credit against the purchase price, on delivery of the deed,
equal to said amounts so retained by the holder of the said mortgage less any
amounts reasonably expended by the Owner for any partial restoration.
6. Resale and Transfer Restrictions. (a) Except as otherwise provided herein, the
Property or any interest therein shall not at any time be sold by the Owner, or the Owner’s
successors and assigns, and no attempted sale shall be valid, unless the aggregate value of all
consideration and payments of every kind given or paid by the selected purchaser of the Property
for and in connection with the transfer of such Property, is equal to or less than the Maximum
Resale Price for the Property, and unless a certificate (the "Compliance Certificate") is obtained
and recorded, signed and acknowledged by the Monitoring Agent which Compliance Certificate
refers to the Property, the Owner, the selected purchaser thereof, and the Maximum Resale Price
therefor, and states that the proposed conveyance, sale or transfer of the Property to the selected
purchaser is in compliance with the rights, restrictions, covenants and agreements contained in
this Restriction, and unless there is also recorded a new Restriction executed by the selected
purchaser, which new Restriction is identical in form and substance to this Restriction.
(b) The Owner, any good faith purchaser of the Property, any lender or other party taking
a security interest in such Property and any other third party may rely upon a Compliance
Certificate as conclusive evidence that the proposed conveyance, sale or transfer of the Property
to the selected purchaser is in compliance with the rights, restrictions, covenants and agreements
contained in this Restriction, and may record such Compliance Certificate in connection with the
conveyance of the Property.
(c) Within ten (10) days of the closing of the conveyance of the Property from the
Owner to the selected purchaser, the Owner shall deliver to the Monitoring Agent a copy of the
Deed of the Property, including the Restriction, together with recording information. Failure of
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010 © Rev. 9.9.19 (Page 9 of 16)
the Owner, or Owner’s successors or assigns to comply with the preceding sentence shall not
affect the validity of such conveyance or the enforceability of the restrictions herein.
7. Survival of Restrictions Upon Exercise of Remedies by Mortgagees. (a) The
holder of record of any mortgage on the Property (each, a “Mortgagee”) shall notify the
Monitoring Agent, the Municipality and any senior Mortgagee(s) in the event of any default for
which the Mortgagee intends to commence foreclosure proceedings or similar remedial action
pursuant to its mortgage (the “Foreclosure Notice”), which notice shall be sent to the Monitoring
Agent and the Municipality as set forth in this Restriction, and to the senior Mortgagee(s) as set
forth in such senior Mortgagee’s mortgage, not less than one hundred twenty (120) days prior to
the foreclosure sale or the acceptance of a deed in lieu of foreclosure. The Owner expressly
agrees to the delivery of the Foreclosure Notice and any other communications and disclosures
made by the Mortgagee pursuant to this Restriction.
(b) The Owner grants to the Municipality or its designee the right and option to purchase
the Property upon receipt by the Municipality of the Foreclosure Notice. In the event that the
Municipality intends to exercise its option, the Municipality or its designee shall purchase the
Property within one hundred twenty (120) days of receipt of such notice, at a price equal to the
greater of (i) the sum of the outstanding principal balance of the note secured by such foreclosing
Mortgagee’s mortgage, together with the outstanding principal balance(s) of any note(s) secured
by mortgage(s) senior in priority to such mortgage (but in no event shall the aggregate amount
thereof be greater than one hundred percent (100%) of the Maximum Resale Price calculated at
the time of the granting of the mortgage) plus all future advances, accrued interest and all
reasonable costs and expenses which the foreclosing Mortgagee and any senior Mortgagee(s) are
entitled to recover pursuant to the terms of such mortgages (the “Mortgage Satisfaction
Amount”), and (ii) the Maximum Resale Price (which for this purpose may be less than the
purchase price paid for the Property by the Owner)(the greater of (i) and (ii) above herein
referred to as the “Applicable Foreclosure Price”). The Property shall be sold and conveyed in its
then-current “as is, where is” condition, without representation or warranty of any kind, direct or
indirect, express or implied, and with the benefit of and subject to all rights, rights of way,
restrictions, easements, covenants, liens, improvements, housing code violations, public
assessments, any and all unpaid federal or state taxes (subject to any rights of redemption for
unpaid federal taxes), municipal liens and any other encumbrances of record then in force and
applicable to the Property having priority over such foreclosing Mortgagee’s mortgage, and
further subject to a Restriction identical in form and substance to this Restriction which the
Owner hereby agrees to execute, to secure execution by the Municipality or its designee, and to
record with the deed, except that (i) during the term of ownership of the Property by the
Municipality or its designee the owner-occupancy requirements of Section 2 hereof shall not
apply (unless the designee is an Eligible Purchaser), and (ii) the Maximum Resale Price shall be
recalculated based on the price paid for the Property by the Municipality or its designee, but not
greater than the Applicable Foreclosure Price. Said deed shall clearly state that it is made
subject to the Restriction which is made part of the deed. Failure to comply with the
preceding sentence shall not affect the validity of the conveyance from the Owner to the
Municipality or its designee or the enforceability of the restrictions herein.
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010© Rev. 9.9.19 (Page 10 of 16)
(c) Not earlier than one hundred twenty (120) days following the delivery of the
Foreclosure Notice to the Monitoring Agent, the Municipality and any senior Mortgagee(s)
pursuant to subsection (a) above, the foreclosing Mortgagee may conduct the foreclosure sale or
accept a deed in lieu of foreclosure. The Property shall be sold and conveyed in its then-current
“as is, where is” condition, without representation or warranty of any kind, direct or indirect,
express or implied, and with the benefit of and subject to all rights, rights of way, restrictions,
easements, covenants, liens, improvements, housing code violations, public assessments, any and
all unpaid federal or state taxes (subject to any rights of redemption for unpaid federal taxes),
municipal liens and any other encumbrances of record then in force and applicable to the
Property having priority over the foreclosing Mortgagee’s mortgage, and further subject to a
Restriction, as set forth below.
(d) In the event that the foreclosing Mortgagee conducts a foreclosure sale or other
proceeding enforcing its rights under its mortgage and the Property is sold for a price in excess
of the greater of the Maximum Resale Price and the Mortgage Satisfaction Amount, such excess
shall be paid to the Municipality for its Affordable Housing Fund after (i) a final judicial
determination, or (ii) a written agreement of all parties who, as of such date hold (or have been
duly authorized to act for other parties who hold) a record interest in the Property, that the
Municipality is entitled to such excess. The legal costs of obtaining any such judicial
determination or agreement shall be deducted from the excess prior to payment to the
Municipality. To the extent that the Owner possesses any interest in any amount which would
otherwise be payable to the Municipality under this paragraph, to the fullest extent permissible
by law, the Owner hereby assigns its interest in such amount to the Mortgagee for payment to the
Municipality.
(e) If any Mortgagee shall acquire the Property by reason of foreclosure or upon
conveyance of the Property in lieu of foreclosure, which shall include the Federal National
Mortgage Association (“Fannie Mae”) when it is assignee of the Mortgagee’s rights after such
foreclosure or conveyance, then the rights and restrictions contained herein shall apply to such
Mortgagee upon such acquisition of the Property and to any purchaser of the Property from such
Mortgagee, and the Property shall be conveyed subject to a Restriction identical in form and
substance to this Restriction, which the Mortgagee that has so acquired the Property agrees to
annex to the deed and to record with the deed, except that (i) during the term of ownership of the
Property by such Mortgagee the owner-occupancy requirements of Section 2 hereof shall not
apply, (ii) the title covenants required under Section 5 shall not apply only as to a subsequent
REO conveyance by Fannie Mae, and (iii) the Maximum Resale Price shall be recalculated based
on the price paid for the Property by such Mortgagee at the foreclosure sale, but not greater than
the Applicable Foreclosure Price. Said deed shall clearly state that it is made subject to the
Restriction which is made part of the deed. Failure to comply with the preceding sentence
shall not affect the validity of the conveyance to the Mortgagee or the enforceability of the
restrictions herein.
(f) If any party other than a Mortgagee shall acquire the Property by reason of foreclosure
or upon conveyance of the Property in lieu of foreclosure, the Property shall be conveyed subject
to a Restriction identical in form and substance to this Restriction, which the foreclosing
Mortgagee agrees to annex to the deed and to record with the deed, except that (i) if the
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010© Rev. 9.9.19 (Page 11 of 16)
purchaser at such foreclosure sale or assignee of a deed in lieu of foreclosure is an Ineligible
Purchaser, then during the term of ownership of the Property by such Ineligible Purchaser, the
owner-occupancy requirements of Section 2 hereof shall not apply, and (ii) the Maximum Resale
Price shall be recalculated based on the price paid for the Property by such third party purchaser
at the foreclosure sale, but not greater than the Applicable Foreclosure Price. Said deed shall
clearly state that it is made subject to the Restriction which is made part of the deed.
Failure to comply with the preceding sentence shall not affect the validity of the conveyance to
such third party purchaser or the enforceability of the restrictions herein.
(g) Upon satisfaction of the requirements contained in this Section 7, the Monitoring
Agent shall issue a Compliance Certificate to the foreclosing Mortgagee which, upon recording
in the Registry, may be relied upon as provided in Section 6(b) hereof as conclusive evidence
that the conveyance of the Property pursuant to this Section 7 is in compliance with the rights,
restrictions, covenants and agreements contained in this Restriction.
(h) The Owner understands and agrees that nothing in this Restriction or the Regulatory
Agreement (i) in any way constitutes a promise or guarantee by MassHousing, DHCD, the
Municipality or the Monitoring Agent that the Mortgagee shall actually receive the Mortgage
Satisfaction Amount, the Maximum Resale Price for the Property or any other price for the
Property, or (ii) impairs the rights and remedies of the Mortgagee in the event of a deficiency.
(i) If a Foreclosure Notice is delivered after the delivery of a Conveyance Notice as
provided in Section 4(a) hereof, the procedures set forth in this Section 7 shall supersede the
provisions of Section 4 hereof.
8. Covenants to Run With the Property. (a) This Restriction, including all
restrictions, rights and covenants contained herein, is an affordable housing restriction as that
term is defined in Section 31 of Chapter 184 of the Massachusetts General Laws, having the
benefit of Section 32 of such Chapter 184, and is enforceable as such. This Restriction has been
approved by the Director of DHCD.
(b) In confirmation thereof the Owner (and the Grantor if this Restriction is attached to
the Deed) intend, declare and covenant (i) that this Restriction, including all restrictions, rights
and covenants contained herein, shall be and are covenants running with the land, encumbering
the Property for the Term, and are binding upon the Owner and the Owner’s successors in title
and assigns, (ii) are not merely personal covenants of the Owner, and (iii) shall enure to the
benefit of and be enforceable by the Municipality, the Monitoring Agent and DHCD and their
successors and assigns, for the Term. Owner hereby agrees that any and all requirements of the
laws of the Commonwealth of Massachusetts have been satisfied in order for the provisions of
this Restriction to constitute restrictions and covenants running with the land and that any
requirements of privity of estate have been satisfied in full.
9. Notice. Any notices, demands or requests that may be given under this
Restriction shall be sufficiently served if given in writing and delivered by hand or mailed by
certified or registered mail, postage prepaid, return receipt requested, to the following entities
and parties in interest at the addresses set forth below, or such other addresses as may be
specified by any party (or its successor) by such notice.
Municipality: ______________________________________
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010© Rev. 9.9.19 (Page 12 of 16)
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
Grantor: ______________________________________
(applicable ______________________________________
only if this ______________________________________
Restriction ______________________________________
is attached ______________________________________
to the Deed) ______________________________________
Owner: ______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
Monitoring Agent[s]
(1) ______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
(2) ______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
Others: ______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010© Rev. 9.9.19 (Page 13 of 16)
Any such notice, demand or request shall be deemed to have been given on the day it is hand
delivered or mailed.
10. Further Assurances. The Owner agrees from time to time, as may be reasonably
required by the Monitoring Agent, to furnish the Monitoring Agent upon its request with a
written statement, signed and, if requested, acknowledged, setting forth the condition and
occupancy of the Property, information concerning the resale of the Property and other material
information pertaining to the Property and the Owner's conformance with the requirements of the
Comprehensive Permit, Program and Program Guidelines, as applicable.
11. Enforcement. (a) The rights hereby granted shall include the right of the
Municipality and the Monitoring Agent to enforce this Restriction independently by appropriate
legal proceedings and to obtain injunctive and other appropriate relief on account of any
violations including without limitation relief requiring restoration of the Property to the
condition, affordability or occupancy which existed prior to the violation impacting such
condition, affordability or occupancy (it being agreed that there shall be no adequate remedy at
law for such violation), and shall be in addition to, and not in limitation of, any other rights and
remedies available to the Municipality and the Monitoring Agent.
(b) Without limitation of any other rights or remedies of the Municipality and the
Monitoring Agent, or their successors and assigns, in the event of any sale, conveyance or other
transfer or occupancy of the Property in violation of the provisions of this Restriction, the
Municipality and Monitoring Agent shall be entitled to the following remedies, which shall be
cumulative and not mutually exclusive:
(i) specific performance of the provisions of this Restriction;
(ii) money damages for charges in excess of the Maximum Resale Price, if
applicable;
(iii) if the violation is a sale of the Property to an Ineligible Purchaser except
as permitted herein, the Monitoring Agent and the Municipality shall have the
option to locate an Eligible Purchaser to purchase or itself purchase the Property
from the Ineligible Purchaser on the terms and conditions provided herein; the
purchase price shall be a price which complies with the provisions of this
Restriction; specific performance of the requirement that an Ineligible Purchaser
shall sell, as herein provided, may be judicially ordered.
(iv) the right to void any contract for sale or any sale, conveyance or other
transfer of the Property in violation of the provisions of this Restriction in the
absence of a Compliance Certificate, by an action in equity to enforce this
Restriction; and
(v) money damages for the cost of creating or obtaining a comparable
dwelling unit for an Eligible Purchaser.
(c) In addition to the foregoing, the Owner hereby agrees and shall be obligated to pay
all fees and expenses (including legal fees) of the Monitoring Agent and/or the Municipality in
the event successful enforcement action is taken against the Owner or Owner’s successors or
assigns. The Owner hereby grants to the Monitoring Agent and the Municipality a lien on the
Property, junior to the lien of any institutional holder of a first mortgage on the Property, to
secure payment of such fees and expenses in any successful enforcement action. The Monitoring
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010© Rev. 9.9.19 (Page 14 of 16)
Agent and the Municipality shall be entitled to seek recovery of fees and expenses incurred in a
successful enforcement action of this Restriction against the Owner and to assert such a lien on
the Property to secure payment by the Owner of such fees and expenses. Notwithstanding
anything herein to the contrary, in the event that the Monitoring Agent and/or Municipality fails
to enforce this Restriction as provided in this Section, DHCD, if it is not named as Monitoring
Agent, shall have the same rights and standing to enforce this Restriction as the Municipality and
Monitoring Agent.
(d) The Owner for himself, herself or themselves and his, her or their successors and
assigns, hereby grants to the Monitoring Agent and the Municipality the right to take all actions
with respect to the Property which the Monitoring Agent or Municipality may determine to be
necessary or appropriate pursuant to applicable law, court order, or the consent of the Owner to
prevent, remedy or abate any violation of this Restriction.
12. Monitoring Agent Services; Fees. The Monitoring Agent shall monitor
compliance of the Project and enforce the requirements of this Restriction. As partial
compensation for providing these services, a Resale Fee [ ] shall [ ] shall not be payable to the
Monitoring Agent on the sale of the Property to an Eligible Purchaser or any other purchaser in
accordance with the terms of this Restriction. This fee, if imposed, shall be paid by the Owner
herein as a closing cost at the time of Closing, and payment of the fee to the Monitoring Agent
shall be a condition to delivery and recording of its certificate, failing which the Monitoring
Agent shall have a claim against the new purchaser, his, her or their successors or assigns, for
which the Monitoring Agent may bring an action and may seek an attachment against the
Property.
13. Actions by Municipality. Any action required or allowed to be taken by the
Municipality hereunder shall be taken by the Municipality’s Chief Executive Officer or designee.
14. Severability. If any provisions hereof or the application thereof to any person or
circumstance are judicially determined, to any extent, to be invalid or unenforceable, the
remainder hereof, or the application of such provision to the persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected thereby.
15. Independent Counsel. THE OWNER ACKNOWLEDGES THAT HE, SHE,
OR THEY HAVE READ THIS DOCUMENT IN ITS ENTIRETY AND HAS HAD THE
OPPORTUNITY TO CONSULT LEGAL AND FINANCIAL ADVISORS OF HIS, HER OR
THEIR CHOOSING REGARDING THE EXECUTION, DELIVERY AND PERFORMANCE
OF THE OBLIGATIONS HEREUNDER.
16. Binding Agreement. This Restriction shall bind and inure to the benefit of the
persons, entities and parties named herein and their successors or assigns as are permitted by
this Restriction.
17. Amendment. This Restriction may not be rescinded, modified or amended, in
whole or in part, without the written consent of the Monitoring Agent, the Municipality and the
holder of any mortgage or other security instrument encumbering all or any portion of the
Property, which written consent shall be recorded with the Registry.
Executed as a sealed instrument this day of ____________________, 200__ .
Grantor:
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010© Rev. 9.9.19 (Page 15 of 16)
(applicable only if this Owner:
Restriction is attached to the Deed)
By: ____________ By: ____________
__________________[Space Below This Line for Acknowledgement]___________________
COMMONWEALTH OF MASSACHUSETTS
_______________, ss. ____________, 20__
On this___day of _________________, 20______, before me, the undersigned Notary Public,
_________________________(name of document signer), personally appeared, proved to me through
satisfactory evidence of identification, which were [personal knowledge or MA License]__________________,
to be the person whose name is signed on the preceding or attached document, and acknowledged to me that
(he) (she) signed it voluntarily for its stated purpose.
_________________________
Notary Public:
My commission expires:
MASSHOUSING UNIFORM INSTRUMENT – FANNIE MAE APPROVED FORM B-010© Rev. 9.9.19 (Page 16 of 16)
COMMONWEALTH OF MASSACHUSETTS
_______________, ss. ____________, 20__
On this___day of _________________, 20______, before me, the undersigned Notary Public,
_________________________(name of document signer), personally appeared, proved to me through
satisfactory evidence of identification, which were [personal knowledge or MA License]__________________,
to be the person whose name is signed on the preceding or attached document, and acknowledged to me that
(he) (she) signed it voluntarily for its stated purpose.
_________________________
Notary Public:
My commission expires:
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Affordable Housing Restriction2019-09-9 Affordable Housing Restriction (Deed Rider)

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Completed 12 July 2020

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