30 Year Housing Clause

[Shawn Sexton]

During a title search, the seller's (wholesaler) attorney informed me that the current deed (from the original seller) has a clause that states the property could only be used for low or very low income households. The house was constructed by Habit for Humanity in 1997 and there is still another eight years left on the original 30 years required to offer this property to those specified households. The inspection period is over and I have money tied up in an earnest money deposit that I would rather not lose. Would this issue make the title unmarketable, thus requiring the return of the deposit? If I rehab and rent the property I would only be able to charge a low end rent that doesn't make much ROI sense. I would have been able to make a much larger profit from the rehab (adding square footage) in the neighborhood.

Any ideas?