§ 34-45-6. Notice of discontinuance. (a) Not less than two (2) years prior to:

(1) Selling, leasing, or disposing of prepaying obligations secured by a federally insured or assisted development in a manner which would result in either:

(i) A discontinuance of the use of the development as a federally insured or assisted housing development, or

(ii) Cause the termination or expiration of any use restrictions which apply to the development; or

(2) Recording a declaration of condominium, pursuant to chapter 36.1 of this title,

With respect to all or any portion of a federally insured or assisted development, the owner shall provide written notice of such sale, lease, disposition, or prepayments to:

(i) Each tenant of the development,

(ii) The tenant association of the development,

(iii) The corporation,

(iv) The department,

(v) The housing authority of the city or town in which the development is located, and

(vi) The city or town council of the city or town in which the development is located.

(b) A copy of any notice required by this section shall be filed in the land evidence records of the city or town in which the development is located.

(c) No sale, lease, or disposition of or prepayment of any obligations secured by a federally insured or assisted development in a manner which would result in either:

(1) A discontinuance of the use of the development as a federally insured or assisted housing development; or

(2) Cause the termination or expiration of any use restrictions which apply to the development,

Shall be valid unless the notices required by this section shall have first been provided and filed as required hereunder.

(d) The declaration of a condominium of a federally insured or assisted development which is otherwise valid will not be invalid under this section if consummated within two (2) years of notice if the owner records an agreement to maintain existing use restrictions with regard to those units which are federally insured or assisted for the duration of the two (2) year notice period in the appropriate office of land records and provide the corporation with a copy of that agreement.

History of Section. (P.L. 1988, ch. 508, § 1; P.L. 1989, ch. 493, §§ 1, 3.)