---
kind: "section"
citation: "7 C.F.R. § 3560.663"
title: "7"
number: "3560.663"
heading: "Post-payment responsibilities for loans subject to continued restrictive-use provisions."
url: "https://uscodex.org/cfr/7/3560.663"
---

# §3560.663. Post-payment responsibilities for loans subject to continued restrictive-use provisions.

- (a) If a borrower prepays a loan and the housing project remains subject to restrictive-use provisions, the requirements of this section apply after prepayment.
- (b) Owners of prepaid housing projects will be responsible for ensuring that the restrictive-use provisions agreed to as a condition of prepayment are observed.
- (c) Owners must maintain appropriate documentation to demonstrate compliance with the restrictive-use provisions and must make the documentation and the housing project site available for Federal Government inspection upon request.
  - (1) Owners must document rent increases in accordance with subpart G of this part.
  - (2) Owners must document tenant eligibility in accordance with [§ 3560.152](/cfr/7/3560.152.md).
  - (3) In an Agency approved format, owners must provide the agency with a signed and dated certification within 30 days of the beginning of each calendar year for the full period of the restrictive-use provisions establishing that the restrictive-use provisions are being met.
- (d) Owners must observe Agency policies on tenant grievances as described in [§ 3560.160](/cfr/7/3560.160.md). The Agency may enforce restrictive-use provisions through administrative and legal actions. Tenants may enforce the restrictive-use provisions by contacting the Agency or through legal action. The Agency will release the restrictive-use provisions when the Agency conditions have been met.

## Notes

### Authority

Authority: 42 U.S.C. 1480.

### Source

Source: 69 FR 69106, Nov. 26, 2004, unless otherwise noted.