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A Land Use Restriction Agreement (LURA) is a critical component in affordable housing projects, particularly those involving Low-Income Housing Tax Credit (LIHTC) properties. This legal agreement establishes limitations on how a property can be used. It often ensures that it remains dedicated to providing affordable housing over a specified period. Property owners who enter into these agreements are typically subject to constraints like rent limits to maintain affordability standards for low-income households.
These agreements are vital for developers and property owners who wish to benefit from federal income tax credits. By adhering to a LURA, they can secure tax credits. These credits significantly ease the financial burden associated with creating and maintaining affordable housing projects. The LIHTC program, a major driver of affordable housing in the United States, often relies on LURAs to fulfill its mission of assisting low-income families.
The role of a LURA in managing land use is crucial for both local communities and developers. It aligns the interests of stakeholders by balancing community needs with property owner incentives. This agreement ensures that the properties not only benefit from financial advantages but also contribute to sustainable community development.
