(a) If a department loan is extended, subordinated, or paid off before the end of its term, the department approves the reinstatement of a qualifying unpaid matured loan, the department approves the extraction of equity from a development, or a new tax credit investment occurs, then the department shall enter into a new regulatory agreement with the development’s owner, or amend the existing agreement, and may add another regulatory agreement if the department determines it necessary. The agreement shall be binding upon the development’s owner and successors in interest upon sale or transfer of the development property, regardless of any prepayment of the loan. The agreement shall be recorded in the office of the county recorder in the county in which the development is located. The new or amended regulatory agreement shall:

1. (1) Set standards for tenant selection to ensure occupancy by the eligible households.
2. (2) Govern the terms of occupancy agreements.

3. (3) Restrict rents for assisted units, consistent with this chapter, and require reports to confirm all of the following:

   1. (A) Compliance with these rent restrictions.
   2. (B) The qualification of tenants under applicable income restrictions consistent with this chapter.
   3. (C) The special populations being served.
   4. (D) That any required tenant services are being provided consistent with this chapter.
4. (4) Provide for periodic inspections by the department.
5. (5) Require occupancy and financial reports, and financial audits for the development, unless waived by the department if the department loan is paid off and the waiver may be rescinded in the sole determination of the department.
6. (6) Govern the use of operating income for the development, unless waived by the department if the department loan is paid off and the waiver may be rescinded in the sole determination of the department.
7. (7) Govern the use of reserves for the development, unless waived by the department if the department loan is paid off and the waiver may be rescinded in the sole determination of the department.
8. (8) Have a term for not less than the term of the loan, including any extension.
9. (9) Include other provisions necessary to carry out the purposes of this chapter.