I have no direct involvement with this - a friend sent me an article from her local paper.

Briefly, the Commonwealth of MA through it's Department of Housing and Community Development is considering legal action concerning an affordable unit in a condo complex that was sold in a foreclosure auction.  The deed to the then owner, contained deed riders which act to protect affordability in towns with little affordable housing.   Affordable units are meant to be within the reach of persons earning no more than 80% of the local county's median income.  The complex itself contains 32 homes, 8 of which are affordable.

Apparently the owner, took out a second mortgage, which was on its face invalid according to the affordability terms recited in her deed & first mortgage.  Interestingly, the second mortgage, subsequently foreclosed, did not include any affordability language.

The purchaser at the foreclosure auction is now between a rock & a hard place.  He put the unit up for rent at around $2100/month which is market value & certainly not affordable & he told the newspaper that with the affordability restriction in place the unit is valueless to him- he can't sell it for what he paid (around 163K)

The Commonwealth of MA is wrangling with the lender & it seems possible that litigation will ensue.