Laws, Regulations & Annotations

W

880.0000 WELFARE EXEMPTION

(a) IN GENERAL

Annotation 880.0267.005

880.0267.005 Recorded Regulatory Agreement. The subject property is a 698-unit apartment house, owned by a limited partnership in which the managing general partner is an eligible nonprofit corporation. The property is subject to a regulatory agreement which requires that at least 20 percent of the units be occupied by tenants who are "Low or Moderate Income Tenants." Since the welfare exemption requires an enforceable agreement with a public agency, a property owner must be in compliance with that agreement in order to receive the welfare exemption. In this case, although the regulatory agreement requires that 20 percent of the units be made available to low-income tenants, it also provides that the property owner may still be considered to be in compliance with the regulatory agreement if a household eventually exceeds the income eligibility, provided that the owner makes other units available or takes other actions to satisfy the 20 percent requirement. Therefore, if the property owner is in compliance with the terms of the regulatory agreement by any of the means described therein, it remains eligible for the welfare exemption. If the enforcing agency determines that the terms of the regulatory agreement have not been met, the owner will not be eligible for the welfare exemption. C 10/19/2015.