How to remove deed restrictions from property?

Question

I'm looking to purchase a 3-family investment property but the previous owner (not the one selling it now) received state tax credits (in 2000) to complete a rehab. Now the property can only be sold to an owner occupant with max 80% of the median income. The deed says that this conveys with all subsequent owners for 50 years. Is there any way I can get this restriction removed so I can purchase the property as a non-owner occupied investor? (plus I don't meet the income requirement either)

Come on BP, help me out!

Russell Brazil · Answer

There is probably little chance of the deed restriction being lifted. The state has no incentive to life the restriction so you can make money at the states expense, even if that expense was 15 years ago.  You can always hire an attorney to attempt to get the restriction lifted, but thats probably just flushing your money down the toilet to be honest.

Steve Babiak · Answer

Read the actual deed restriction to see if rental to somebody meeting the income limits is permitted:

https://www.lawserver.com/law/state/connecticut/ct...

Steve Babiak · Answer

Looks like you can re-pay some of the prior credits. Figure out how much that would be, and then determine if you need to adjust your offer price.

Chris Soignier · Answer

Have any kids?    Or a non-/low-earning spouse?    If so, could one of them perhaps become the owner?

Shawn M. · Answer

@Steve Babiak

The restriction is confusing, I can rent it and if I don't there is a penalty stated but I do not know if that wipes out the restriction. See restriction attached.

Thank you!

How to remove deed restrictions from property?

How to remove deed restrictions from property?

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