2000-07-25 US Dept of Housing Lease Restrictions
JUl-25-2000 TUE 09:02 AM
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~BAN ~'f./
u.s. DEPARTMENT OF HOUBJ1IG
AND URBAII DEVELOPIIEJIT
ROCKY MOUNTAIN, DENVER
633 17TH ST.
DENVER, COLORADO 80202-3607
July 25, 2000
Marcus Miller J Esq.
Couri & McAurthur
P.O. Box 369
St. Michael~ Minnesota 55376
Re: Lease restrictions - City of Albertville, MN
Dear Mr. Miller:
This is in response to your request for a letter generally describing
the effect on the availability of financing insured by the U .8. Department
of Housing and Urban DeV'clopment/Federal Housing Administration
(HUD/FHA) of restrictions on leasing which the City of Albertville either
has imposed or proposes to impose on the leasing of certain residential
properties. You indicated that you arc the city attorney for the City of
Albertville.
Although I do not know the details of the city-imposed restrictions
on leasing, in general. the existence of most such restrictions would
violate HUD /FHA's policy prohibiting legal restrictions on conveyance
found in 24 C.F.R. ~ 203.41 (1999). Therefore, there is.Q substantial
likelihood that properties or mortgagors subject to any such restrictions
on leasing would not be eligible for HUD/FHA-insured financing. You
should review HUD /FHA's regulations in order to determine if the
particular re5trictions which the City has imposed or is contemplating
imposing are of a type which would make properties or mortgagors
ineligible for HUD I FHA-insured financing.
Hun fFHA does allow certain types of restrictions on conveyance
and leasing under HUD/FHA's exception for governmental programs
aimed at making properties aUordable for low-or moderate-income
housing. If the City's restrictions are part of such a program, you should
review HUD/FHA's regulations in order to determine if the restrictions
would be allowed by HUD fFHA under this exception.
JUl-25-2000 TUE 09:03 AM
FAX NO.
If you have any questions, please call me at (303) 672-5409 extension
1350.
Sincerely,
Ic:::.~ ~
Kenneth L. Roland
Attorney-Advisor
cc: Jerry Keeton, Chief, Technical Support Branch
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