Glossary of Municipal Securities Terms

LAND USE RESTRICTION AGREEMENT

An agreement binding the parties to limit the use of property to a particular use for the term of the agreement. Land use restriction agreements (sometimes referred to as “regulatory agreements” or “tax regulatory agreements”) typically are used in connection with multi-family housing revenue bond issues or financings involving low-income housing tax credits to ensure that the financed facilities are used for low-income housing for the period required under federal tax laws. See: HOUSING REVENUE BOND – Multi-family housing revenue bonds.

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