(a) A borrower must agree that if the borrower voluntarily destroys, moves from, or relinquishes ownership of the rehabilitated housing on or before the first anniversary of the date the rehabilitation is completed:
(1) the borrower’s housing rehabilitation loan becomes immediately due and payable; and
(2) an interest surcharge is added sufficient to make the total interest paid equal an amount determined by the prevailing interest rates for rehabilitation loans from private sources at the time of the sale.
(b) The local government that approved the loan may waive the interest surcharge if:
(1) the local government finds that the borrower must sell the housing because of financial hardship or similar circumstances; and
(2) the department consents to the waiver.

(c) A local government that approved a housing rehabilitation loan may, with the consent of the department, take the following action if the borrower dies or the borrower sells or gives away property encumbered by the loan:
(1) declare all or part of any deferred payments due and payable;
(2) declare the balance of the loan due and payable; or
(3) allow a buyer, donee, or other successor in title who qualifies under Section 2304.062 to assume the loan.