Common use of Sale of Project Clause in Contracts

Sale of Project. In the event the housing project in which the rental unit is located is sold to a third party buyer approved by Rural Development, this Lease will be transferred and assigned to the new third party owner of the project. No increase in tenant contribution to rent will take place due to prepayment of the Rural Development loan during term of this Lease. The following two paragraphs apply only in prepayment cases: If loan prepayment occurs and the housing project is subject to restrictive use provisions, this Lease and any renewals thereof must be amended to include a clause specifying the tenant protections required under subpart N of 7 C.F.R. 3560. Moreover, as a condition of the Government’s approval of a request to accept early payment on notes owed, the tenant household is protected, to the extent herein disclosed, against involuntary displacement (except for good cause) and against having the tenant household contribution level (rent) materially increased until (insert either restrictive use date or insert “the tenant household decides to move” depending on the restrictive-use provision accepted by the owner). At all times until (insert relevant 20 year term following prepayment or “tenant moves”), the tenant household contribution level (rent) must be consistent with that necessary to maintain the project for low and moderate- income tenants.

Sale of Project. In the event the housing project in which the rental unit is located is sold to a third party buyer approved by Rural Development, this Lease will be transferred and assigned to the new third party owner of the project. No increase in tenant contribution to rent will take place due to prepayment of the Rural Development loan during term of this Lease. The following two paragraphs apply only in prepayment cases: If loan prepayment occurs and the housing project is subject to restrictive use provisions, this Lease and any renewals thereof must be amended to include a clause specifying the tenant protections required under subpart N of 7 C.F.R. 3560. Moreover, as a condition of the Government’s approval of a request to accept early payment on notes owed, the tenant household is protected, to the extent herein disclosed, against involuntary displacement (except for good cause) and against having the tenant household contribution level (rent) materially increased until (insert either restrictive use date or insert “the tenant household decides to move” depending on the restrictive-use provision accepted by the owner). At all times until (insert relevant 20 year term following prepayment or “tenant moves”), the tenant household contribution level (rent) must be consistent with that necessary to maintain the project for low and moderate- moderate-income tenants.