(a) In addition to whatever remedies exist in the contract, the developer shall, upon demand by the Commissioner, transfer title to the State or a receiver designated by the State for that property conveyed to it pursuant to Section 8-37y-6 of these regulations if the Commissioner determines that:
- (1) reasonable progress in the development of the property as described in the developer's application, has not been made from the date of conveyance of the property;
- (2) the property has been developed or used for purposes other than for housing to benefit homeless persons or persons and families of low and moderate income; or (3) the developer has amended its bylaws and/or articles of incorporation so that it no longer conforms with that originally submitted and approved by the Commissioner; or (4) the developer has failed to maintained proper insurance or has otherwise failed to protect the state's interest.
- (b) Restrictive covenants, as stated in Section 8-37y-9, shall be included in all deeds for property which the Department conveys to the developer. Developers shall have the responsibility for enforcement of all restrictions.
- (c) In the event of a subsequent sale, the developer shall have the first option to purchase the property.
- (d) If a developer dissolves its organization, the developer shall convey its interest in the property to the Department or the Department's designated receiver.
(Effective November 26, 1993)