Hanover Gardens

What Hanover Gardens's governing documents say

Hanover Gardens is a Low-Income Housing Tax Credit (LIHTC) rental community in Wilmington, NC. This document is a Declaration of Land Use Restrictive Covenants that binds the property owner (landlord), not residents. It ensures the owner maintains income and rent restrictions for at least 15 years after the compliance period, with enforcement rights held by the state housing agency and tenants.

• Affordability & income limits: At least 40% of units must be rent-restricted and occupied by households earning 60% or less of area median gross income. Additionally, at least 50% of qualified units must be affordable to households at or below 50% of county median income.
• Rent restrictions: Rents on low-income units are capped at the maximum allowed under Section 42 of the Internal Revenue Code. The owner cannot increase rent above that limit during the extended use period.
• Lease & occupancy rules: All units must be leased to members of the general public who qualify as low-income tenants. The owner cannot refuse to lease to a holder of a Section 8 voucher because of that status. Units must be used as non-transient rental housing.
• Duration of restrictions: The income and rent restrictions run for an 'Extended Use Period' that begins when the first building is placed in service and ends 15 years after the 15-year compliance period (total up to 30 years). If the property is foreclosed, restrictions may terminate earlier, but existing tenants cannot be evicted without good cause for three more years.
• Owner obligations & enforcement: The owner must annually verify tenant incomes, allow inspections by the state housing agency, and cannot sell, demolish, or convert common areas without approval. The agency and any low-income tenant can sue to enforce the restrictions.
• What this document doesn't cover: This document does not contain rules for residents (e.g., pet limits, parking, noise, or architectural changes). It is a covenant between the owner and the state, not a homeowner association rulebook.

Plain-language summary generated from the governing documents on file for this community. It may be incomplete and is not legal advice — read the full documents below or consult the official recorded versions.