Is this free money? Or am I missing something?

[Mike Shaw]

Ok ok, I know there is no such thing as free money. Here is the deal:

I'm in Austin, Texas, looking in the 78702 area code (north of the river and close to downtown). Up and coming area. Everything I've seen in this area has been 200k+ for 1 bedroom, 325k+ for 2 bedrooms. 

Now, I'm looking at a unit in a set of 3 buildings to be built in early 2017. The buildings have a total of 44 units, 33 of which are reserved for low income families, under SMART housing. The requirements look very similar to Section 8. For a 3 bedroom, 2 bath, the price is 235k. 3k taxes, 250$ a month HOA. This seems like a great deal to me. However, I have a few questions: Am I required to rent to low-income renters? How do they decide which 33 are reserved? Is there some other risk I'm missing here?

It seems like a great chance to own property close to downtown, there seems like no way people don't pay 1800$ a month for the unit (balcony, laundry, 1200 sq feet). In a few years it should be very cash flow positive, no? 

Thanks all!!

[Carrie Hiner]

Hey Mike, I think I found the project. There are some documents in the MLS about the SMART program. In the FAQ section, I found this:

Can the homeowner ever lease his/her property to a third party? No, that would defeat the purpose and spirit of selling the home to a qualified affordable buyer. By renting the home to a third party, the homeowner would effectively become an investor.