Deed-restricted properties are subsidized to reserve some amount of the property as affordable housing units. They often have long life cycles written out in predetermined agreements. Typically financed through low-income housing tax credits, tax exempt mortgage revenue or general obligation bonds or local, state or federal loans or grants, each deed-restricted property has a legal document on file with the relevant regulatory agency (e.g., TCAC, LIHTC, USDA, CA HCD, HUD HAP Agreements). This document, signed by both the agency and the property owner, details the terms, duration, and parcel-specific information of the agreement. Deed-restrictions are referred to by a variety of names including deed-restriction, regulatory agreement, affordability covenant, etc.
Affordable non-deed restricted properties are those that do not have legal documentation reserving some or all of the property as affordable housing. These properties are sometimes called naturally occurring affordable housing.
