CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XXXV—RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE (parts 3550 to 3575) > PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS > SUBPART N—Housing Preservation (§3560.651 to §3560.700) > 3560.663—Post-payment responsibilities for loans subject to continued restrictive-use provisions.

3560.663—Post-payment responsibilities for loans subject to continued restrictive-use provisions.

(a) If a borrower prepays a loan and the housing project remains subject to restrictive-use provisions, the requirements of this section apply after prepayment.
(b) Owners of prepaid housing projects will be responsible for ensuring that the restrictive-use provisions agreed to as a condition of prepayment are observed.
(c) Owners must maintain appropriate documentation to demonstrate compliance with the restrictive-use provisions and must make the documentation and the housing project site available for Federal Government inspection upon request.
(1) Owners must document rent increases in accordance with subpart G of this part.
(2) Owners must document tenant eligibility in accordance with § 3560.152.
(3) In an Agency approved format, owners must provide the agency with a signed and dated certification within 30 days of the beginning of each calendar year for the full period of the restrictive-use provisions establishing that the restrictive-use provisions are being met.
(d) Owners must observe Agency policies on tenant grievances as described in § 3560.160. The Agency may enforce restrictive-use provisions through administrative and legal actions. Tenants may enforce the restrictive-use provisions by contacting the Agency or through legal action. The Agency will release the restrictive-use provisions when the Agency conditions have been met.