Virginia Law

The sale of units in the development shall be subject to a regulatory agreement executed at the initial closing by the authority and the mortgagor. Such regulatory agreement shall govern the construction of the development, the marketing and sale of the units, the maximum sales prices for such units, eligibility of purchasers of such units, the use and disposition of the development, the payment of any penalty described below for sale to a person or family not of low and moderate income, and such other matters as the executive director shall deem appropriate. Only sales prices established or approved on behalf of the authority pursuant to the regulatory agreement may be charged for units in the development. The mortgagor shall execute such other documents with regard to the regulation of the development as the executive director may determine to be necessary or appropriate to protect the interests of the authority and to permit fulfillment of the authority's duties and responsibilities under the Act and these rules and regulations.

In the event that a single family dwelling unit shall be sold to a purchaser who is not of low or moderate income as described in 13VAC10-30-20 of this chapter, the authority shall have the right to require the mortgagor to pay a penalty in such amount as shall be prescribed in the resolution authorizing the mortgage loan or in the commitment issued pursuant to such resolution.

The authority shall have the power to supervise the mortgagor and the development in accordance with § 36-55.34:1 of the Code of Virginia. The authority shall have the right to inspect the development, conduct audits of all books and records of the development and to require such reports as the authority deems reasonable.