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The project was to create a six-lot subdivision of a metes and bounds tract inside of a city. The subdivider lived on what became one of the lots. A cul-de-sac allowed access for the other lots. He was looking to make some quick money so he didn't set the lot price as high as he might have. Within a few weeks he sold all five other lots to a single buyer. That buyer was a quasi-governmental agency that provided government-subsidized assistance in various forms.
The result was the construction of five identical single-family houses that filled with single mother with children occupants. They paid a low rental fee to occupy the houses with no utility expenses and no responsibilty for lawn care or building maintenance. The subdivider soon found unattended children on his property with some going through his possessions, especially in his garage. Before long, he reached his breaking point, bought a different house outside of the city and moved out of "HIS" neighborhood. His longterm neighbors were very upset to the point they wouldn't even talk to him or his wife.
Covenants and Resrtrictions
GaryG is on-target for what could have been done, but with restrictions, it might have been a long time selling the lots.
I don't know wether to call this "Be careful what you wish for, you might get it"
Or maybe "No good deed goes unpunished." After all, six needy families now have a home.
I'm not sure what kind of (constitutional) CC&Rs one could write to prevent this sort of thing. Better to enter into an agreement with a builder and construct and sell homes instead of selling vacant lots.
I would think an owner occupancy / no renters covenant would be viable.