US (United States) Code. Title 12. Chapter 42: Low-Income house preservation and resident homeownership

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Banks and banking

  • Enviado por: El remitente no desea revelar su nombre
  • Idioma: inglés
  • País: Estados Unidos Estados Unidos
  • 91 páginas
publicidad

-CITE-

12 USC CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND

RESIDENT HOMEOWNERSHIP 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

.

-HEAD-

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

-MISC1-

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

Sec.

4101. General prepayment limitation.

(a) Prepayment and termination.

(b) Foreclosure.

(c) Effect of unauthorized prepayment.

4102. Notice of intent.

(a) Filing with Secretary.

(b) Filing with State or local government, tenants,

and mortgagee.

(c) Ineligibility for filing.

4103. Appraisal and preservation value of eligible low-income

housing.

(a) Appraisal.

(b) Preservation value.

(c) Guidelines.

4104. Annual authorized return and preservation rents.

(a) Annual authorized return.

(b) Preservation rents.

4105. Federal cost limits and limitations on plans of action.

(a) Determination of relationship to Federal cost

limits.

(b) Limitations on action pursuant to Federal cost

limits.

4106. Information from Secretary.

(a) Information to owners terminating affordability

restrictions.

(b) Information to owners extending low-income

affordability restrictions.

(c) Availability to tenants.

(d) Second notice of intent.

4107. Plan of action.

(a) Submission to Secretary.

(b) Contents.

(c) Revisions.

4108. Prepayment and voluntary termination.

(a) Approval.

(b) Standards and procedure for written findings.

(c) Disapproval.

4109. Incentives to extend low-income use.

(a) Agreements by Secretary.

(b) Permissible incentives.

4110. Incentives for transfer to qualified purchasers.

(a) In general.

(b) Right of first offer to priority purchasers.

(c) Right of refusal for other qualified purchasers.

(d) Assistance.

4111. Mandatory sale for housing exceeding Federal cost limits.

(a) In general.

(b) Right of first refusal to priority purchasers.

(c) Right of refusal for other qualified purchasers.

(d) Assistance.

4112. Criteria for approval of plan of action involving incentives.

(a) In general.

(b) Implementation.

(c) Determination of remaining useful life.

(d) Housing standards.

4113. Assistance for displaced tenants.

(a) Section 1437f assistance.

(b) Relocation assistance.

(c) Continued occupancy.

(d) Required acceptance of section 1437f assistance.

(e) Regional pools.

(f) Enhanced voucher assistance for certain tenants.

4114. Permissible prepayment or voluntary termination and

modification of commitments.

(a) In general.

(b) Section 1437f rental assistance.

4115. Timetable for approval of plan of action.

(a) Notification of deficiencies.

(b) Notification of approval.

(c) Delayed approval.

4116. Resident homeownership program.

(a) Formation of resident council.

(b) Other program requirements and limitations.

4117. Delegated responsibility to State agencies.

(a) In general.

(b) Approval.

(c) Implementation agreements.

4118. Consultations with other interested parties.

4119. Definitions.

4120. Notice to tenants.

4121. Definitions of qualified and priority purchaser and related

party rule.

(a) Priority purchaser.

(b) Qualified purchaser.

(c) Related parties.

(d) Management exception.

4122. Preemption of State and local laws.

(a) In general.

(b) Effect.

4123. Severability.

4124. Authorization of appropriations.

(a) In general.

(b) Grants.

4125. State preservation project assistance.

(1) In general.

(2) Section 1437f.

(3) Restriction.

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

4141. Authority.

4142. Purposes.

4143. Grants for building resident capacity and funding

predevelopment costs.

(a) In general.

(b) Allocation.

(c) Limitation on grant amounts.

(d) Resident capacity grants.

(e) Predevelopment grants.

(f) Grant applications.

(g) Appeal.

4144. Grants for other purposes.

4145. Delivery of assistance through intermediaries.

(a) In general.

(b) Selection of eligible intermediaries.

(c) Conflicts of interest.

(d) ''Eligible intermediary'' defined.

4146. Definitions.

4147. Funding.

-COD-

CODIFICATION

Subtitles A and B of the Low-Income Housing Preservation and

Resident Homeownership Act of 1990, Pub. L. 100-242, title II, as

revised generally by Pub. L. 101-625, title VI, Sec. 601(a), Nov.

28, 1990, 104 Stat. 4249, comprise subchapter I of this chapter.

Prior to the general revision by Pub. L. 101-625 subtitles A and B

(Sec. 201-235) of the Emergency Low Income Housing Preservation Act

of 1987, Pub. L. 100-242, title II, Feb. 5, 1988, 101 Stat. 1877,

as amended by Pub. L. 100-628, title X, Sec. 1021-1027, Nov. 7,

1988, 102 Stat. 3270, 3271; Pub. L. 101-235, title II, Sec. 201,

202(a)-(c), 203(b), Dec. 15, 1989, 103 Stat. 2037, 2038; Pub. L.

101-402, Sec. 1, Oct. 1, 1990, 104 Stat. 866; Pub. L. 101-494, Sec.

1(c), 2(a), Oct. 31, 1990, 104 Stat. 1185, were set out as a note

under section 1715l of this title and amended section 1715z-6 of

this title.

Subtitle C of the Low-Income Housing Preservation and Resident

Homeownership Act of 1990, Pub. L. 100-242, title II, as added by

Pub. L. 102-550, title III, Sec. 312, Oct. 28, 1992, 106 Stat.

3765, comprises subchapter II of this chapter. Another subtitle C

of title II of Pub. L. 100-242 amended sections 1472, 1485, and

1487 of Title 42, The Public Health and Welfare.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1715z-1, 1715z-1b of this

title; title 42 sections 1437n, 8107, 12742, 12877.

-CITE-

12 USC SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED

UNDER NATIONAL HOUSING ACT 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

.

-HEAD-

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 4125, 4143, 4146 of

this title.

-CITE-

12 USC Sec. 4101 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4101. General prepayment limitation

-STATUTE-

(a) Prepayment and termination

An owner of eligible low-income housing may prepay, and a

mortgagee may accept prepayment of, a mortgage on such housing only

in accordance with a plan of action approved by the Secretary under

this subchapter or in accordance with section 4114 of this title.

An insurance contract with respect to eligible low-income housing

may be terminated pursuant to section 1715t of this title only in

accordance with a plan of action approved by the Secretary under

this subchapter or in accordance with section 4114 of this title.

(b) Foreclosure

A mortgagee may foreclose the mortgage on, or acquire by deed in

lieu of foreclosure, any eligible low-income housing project only

if the mortgagee also conveys title to the project to the Secretary

in connection with a claim for insurance benefits.

(c) Effect of unauthorized prepayment

Any prepayment of a mortgage on eligible low-income housing or

termination of the mortgage insurance on such housing not in

compliance with the provisions of this subchapter shall be null and

void and any low-income affordability restrictions on the housing

shall continue to apply to the housing.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 211, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4249.)

-MISC1-

EFFECTIVE DATE

Section 605 of Pub. L. 101-625 provided that: ''This subtitle

(subtitle A (Sec. 601-605) of title VI of Pub. L. 101-625, enacting

this chapter, amending sections 1715z-6 and 1715z-15 of this title

and section 1437f of Title 42, The Public Health and Welfare, and

enacting provisions set out below) shall take effect on the date of

the enactment of this Act (Nov. 28, 1990).''

SHORT TITLE

Section 201 of title II of Pub. L. 100-242, as added by Pub. L.

101-625, title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4249,

provided that: ''This title (enacting this chapter, amending

section 1715z-15 of this title and sections 1437f, 1472, 1485, and

1487 of Title 42, The Public Health and Welfare, and enacting

provisions set out below) may be cited as the 'Low-Income Housing

Preservation and Resident Homeownership Act of 1990'.''

APPLICABILITY

Section 235 of Pub. L. 100-242, as added by Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4274, provided

that: ''Subject to section 605 of the Cranston-Gonzalez National

Affordable Housing Act (Pub. L. 101-625, set out above), the

requirements of this subtitle (subtitle B (Sec. 211-235) of title

II of Pub. L. 100-242, enacting this subchapter) shall apply to any

project that is eligible low-income housing on or after November 1,

1987.''

REGULATIONS

Pub. L. 102-550, title III, Sec. 332, Oct. 28, 1992, 106 Stat.

3773, provided that: ''Except as otherwise provided in this title

(enacting sections 4141 to 4147 of this title, amending sections

1715z-1, 1715z-6, 4103, 4105 to 4112, 4116, 4119, 4121, 4122, 4124,

and 4125 of this title, enacting provisions set out as notes under

this section and sections 1715z-6, 4109, and 4117 of this title,

and amending provisions set out as a note under this section), the

Secretary of Housing and Urban Development shall issue interim

regulations implementing this title and the amendments made by this

title not later than the expiration of the 90-day period beginning

on the date of the enactment of this Act (Oct. 28, 1992), which

shall take effect upon issuance. The Secretary shall issue final

regulations implementing this title and the amendments made by this

title after notice and opportunity for public comment regarding the

interim regulations, pursuant to the provisions of section 553 of

title 5, United States Code (notwithstanding subsections (a)(2),

(b)(B), and (d)(3) of such section). The duration of the period

for public comment shall not be less than 60 days, and the final

regulations shall be issued not later than the expiration of the

60-day period beginning upon the conclusion of the comment period

and shall take effect upon issuance.''

LOW-INCOME HOUSING PRESERVATION

Pub. L. 104-204, title II, Sept. 26, 1996, 110 Stat. 2883,

provided in part: ''That of the total amount provided under this

head, $350,000,000 shall be available for use in conjunction with

properties that are eligible for assistance under the Low-Income

Housing Preservation and Resident Homeownership Act of 1990

(LIHPRHA) (see Short Title note above) or the Emergency Low Income

Housing Preservation Act of 1987 (ELIHPA) (see Codification note

set out preceding this section), of which $75,000,000 shall be

available for obligation until March 1, 1997 for projects (1) that

are subject to a repayment or settlement agreement that was

executed between the owner and the Secretary prior to September 1,

1995; (2) whose submissions were delayed as a result of their

location in areas that were designated as a Federal disaster area

in a Presidential Disaster Declaration; or (3) whose processing

was, in fact or in practical effect, suspended, deferred, or

interrupted for a period of twelve months or more because of

differing interpretations, by the Secretary and an owner or by the

Secretary and a State or local rent regulatory agency, concerning

the timing of filing eligibility or the effect of a presumptively

applicable State or local rent control law or regulation on the

determination of preservation value under section 213 of LIHPRHA,

as amended (12 U.S.C. 4103), if the owner of such project filed

notice of intent to extend the low-income affordability

restrictions of the housing, or transfer to a qualified purchaser

who would extend such restrictions, on or before November 1, 1993;

and of which, up to $100,000,000 may be used for rental assistance

to prevent displacement of families residing in projects whose

owners prepay their mortgages; and the balance of which shall be

available from the effective date of this Act (Sept. 26, 1996) for

sales to preferred priority purchasers: Provided further, That with

the exception of projects described in clauses (1), (2), or (3) of

the preceding proviso, the Secretary shall, notwithstanding any

other provision of law, suspend further processing of preservation

applications which have not heretofore received approval of a plan

of action: Provided further, That $150,000,000 of amounts

recaptured from interest reduction payment contracts for section

236 (12 U.S.C. 1715z-1) projects whose owners prepay their

mortgages during fiscal year 1997 shall be rescinded: Provided

further, That an owner of eligible low-income housing may prepay

the mortgage or request voluntary termination of a mortgage

insurance contract, so long as said owner agrees not to raise rents

for sixty days after such prepayment: Provided further, That such

developments have been determined to have preservation equity at

least equal to the lesser of $5,000 per unit or $500,000 per

project or the equivalent of eight times the most recently

published monthly fair market rent for the area in which the

project is located as the appropriate unit size for all of the

units in the eligible project: Provided further, That the Secretary

may modify the regulatory agreement to permit owners and priority

purchasers to retain rental income in excess of the basic rental

charge in projects assisted under section 236 of the National

Housing Act, for the purpose of preserving the low- and

moderate-income character of the housing: Provided further, That

eligible low-income housing shall include properties meeting the

requirements of this paragraph with mortgages that are held by a

State agency as a result of a sale by the Secretary without

insurance, which immediately before the sale would have been

eligible low-income housing under LIHPRHA: Provided further, That

notwithstanding any other provision of law, subject to the

availability of appropriated funds, each low-income family, and

moderate-income family who is elderly or disabled or is residing in

a low-vacancy area, residing in the housing on the date of

prepayment or voluntary termination, and whose rent, as a result of

a rent increase occurring no later than one year after the date of

the prepayment, exceeds 30 percent of adjusted income, shall be

offered tenant-based assistance in accordance with section 8 (42

U.S.C. 1437f) or any successor program, under which the family

shall pay no less for rent than it paid on such date: Provided

further, That any family receiving tenant-based assistance under

the preceding proviso may elect (1) to remain in the unit of the

housing and if the rent exceeds the fair market rent or payment

standard, as applicable, the rent shall be deemed to be the

applicable standard, so long as the administering public housing

agency finds that the rent is reasonable in comparison with rents

charged for comparable unassisted housing units in the market or

(2) to move from the housing and the rent will be subject to the

fair market rent of the payment standard, as applicable, under

existing program rules and procedures: Provided further, That the

tenant-based assistance made available under the preceding two

provisos are in lieu of benefits provided in subsections (sic)

223(b), (c), and (d) of the Low-Income Housing Preservation and

Resident Homeownership Act of 1990 (12 U.S.C. 4113(b), (c), (d)):

Provided further, That any sales shall be funded using the capital

grant available under section 220(d)(3)(A) of LIHPRHA (12 U.S.C.

4110(d)(3)(A)): Provided further, That any extensions shall be

funded using a non-interest-bearing capital (direct) loan by the

Secretary not in excess of the amount of the cost of rehabilitation

approved in the plan of action plus 65 percent of the property's

preservation equity and under such other terms and conditions as

the Secretary may prescribe: Provided further, That any capital

grant shall be limited to seven times, and any capital loan limited

to six times, the annual fair market rent for the project, as

determined using the fair market rent for fiscal year 1997 for the

area in which the project is located, using the appropriate

apartment sizes and mix in the eligible project, except where, upon

the request of a priority purchaser, the Secretary determines that

a greater amount is necessary and appropriate to preserve

low-income housing: Provided further, That section 241(f) of the

National Housing Act (12 U.S.C. 1715z-6(f)) is repealed and

insurance under such section shall not be offered as an incentive

under LIHPRHA and ELIHPA: Provided further, That up to $10,000,000

of the amount of $350,000,000 made available by a preceding proviso

in this paragraph may be used at the discretion of the Secretary to

reimburse owners of eligible properties for which plans of action

were submitted prior to the effective date of this Act (Sept. 26,

1996), but were not executed for lack of available funds, with such

reimbursement available only for documented costs directly

applicable to the preparation of the plan of action as determined

by the Secretary, and shall be made available on terms and

conditions to be established by the Secretary: Provided further,

That, notwithstanding any other provision of law, a priority

purchaser may utilize assistance under the HOME Investment

Partnerships Act (42 U.S.C. 12721 et seq.) or the Low Income

Housing Tax Credit (see 26 U.S.C. 42): Provided further, That

projects with approved plans of action which exceed the limitations

on eligibility for funding imposed by this Act may submit revised

plans of action which conform to these limitations by March 1,

1997, and retain the priority for funding otherwise applicable from

the original date of approval of their plan of action, subject to

securing any additional necessary funding commitments by August 1,

1997.''

Pub. L. 104-134, title I, Sec. 101(e) (title II), Apr. 26, 1996,

110 Stat. 1321-257, 1321-267; renumbered title I, Pub. L. 104-140,

Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided in part that: ''Of

the total amount provided under this head, $624,000,000, plus

amounts recaptured from interest reduction payment contracts for

section 236 (12 U.S.C. 1715z-1) projects whose owners prepay their

mortgages during fiscal year 1996 (which amounts shall be

transferred and merged with this account), shall be for use in

conjunction with properties that are eligible for assistance under

the Low Income Housing Preservation and Resident Homeownership Act

of 1990 (LIHPRHA) (see Short Title note above) or the Emergency

Low-Income Housing Preservation Act of 1987 (ELIHPA) (see

Codification note set out preceding this section): Provided, That

prior to August 15, 1996, funding to carry out plans of action

shall be limited to sales of projects to non-profit organizations,

tenant-sponsored organizations, and other priority purchasers:

Provided further, That of the amount made available by this

paragraph, up to $10,000,000 shall be available for preservation

technical assistance grants pursuant to section 253 of the Housing

and Community Development Act of 1987 (12 U.S.C. 4143), as amended:

Provided further, That with respect to amounts made available by

this paragraph, after August 15, 1996, if the Secretary determines

that the demand for funding may exceed amounts available for such

funding, the Secretary (1) may determine priorities for

distributing available funds, including giving priority funding to

tenants displaced due to mortgage prepayment and to projects that

have not yet been funded but which have approved plans of action;

and (2) may impose a temporary moratorium on applications by

potential recipients of such funding: Provided further, That an

owner of eligible low-income housing may prepay the mortgage or

request voluntary termination of a mortgage insurance contract, so

long as said owner agrees not to raise rents for sixty days after

such prepayment: Provided further, That an owner of eligible

low-income housing who has not timely filed a second notice under

section 216(d) (12 U.S.C. 4106(d)) prior to the effective date of

this Act (Apr. 26, 1996) may file such notice by April 15, 1996:

Provided further, That such developments have been determined to

have preservation equity at least equal to the lesser of $5,000 per

unit or $500,000 per project or the equivalent of eight times the

most recently published fair market rent for the area in which the

project is located as the appropriate unit size for all of the

units in the eligible project: Provided further, That the Secretary

may modify the regulatory agreement to permit owners and priority

purchasers to retain rental income in excess of the basic rental

charge in projects assisted under section 236 of the National

Housing Act (12 U.S.C. 1715z-1), for the purpose of preserving the

low and moderate income character of the housing: Provided further,

That the Secretary may give priority to funding and processing the

following projects provided that the funding is obligated not later

than September 15, 1996: (1) projects with approved plans of action

to retain the housing that file a modified plan of action no later

than August 15, 1996 to transfer the housing; (2) projects with

approved plans of action that are subject to a repayment or

settlement agreement that was executed between the owner and the

Secretary prior to September 1, 1995; (3) projects for which

submissions were delayed as a result of their location in areas

that were designated as a Federal disaster area in a Presidential

Disaster Declaration; and (4) projects whose processing was, in

fact, or in practical effect, suspended, deferred, or interrupted

for a period of nine months or more because of differing

interpretations, by the Secretary and an owner concerning the time

of the ability of an uninsured section 236 (12 U.S.C. 1715z-1)

property to prepay or by the Secretary and a State or local rent

regulatory agency, concerning the effect of a presumptively

applicable State or local rent control law or regulation on the

determination of preservation value under section 213 of LIHPRHA,

as amended (12 U.S.C. 4103), if the owner of such project filed

notice of intent to extend the low-income affordability

restrictions of the housing, or transfer to a qualified purchaser

who would extend such restrictions, on or before November 1, 1993:

Provided further, That eligible low-income housing shall include

properties meeting the requirements of this paragraph with

mortgages that are held by a State agency as a result of a sale by

the Secretary without insurance, which immediately before the sale

would have been eligible low-income housing under LIHPRHA: Provided

further, That notwithstanding any other provision of law, subject

to the availability of appropriated funds, each unassisted

low-income family residing in the housing on the date of prepayment

or voluntary termination, and whose rent, as a result of a rent

increase occurring no later than one year after the date of the

prepayment, exceeds 30 percent of adjusted income, shall be offered

tenant-based assistance in accordance with section 8 (42 U.S.C.

1437f) or any successor program, under which the family shall pay

no less for rent than it paid on such date: Provided further, That

any family receiving tenant-based assistance under the preceding

proviso may elect (1) to remain in the unit of the housing and if

the rent exceeds the fair market rent or payment standard, as

applicable, the rent shall be deemed to be the applicable standard,

so long as the administering public housing agency finds that the

rent is reasonable in comparison with rents charged for comparable

unassisted housing units in the market or (2) to move from the

housing and the rent will be subject to the fair market rent of the

payment standard, as applicable, under existing program rules and

procedures: Provided further, That rents and rent increases for

tenants of projects for which plans of action are funded under

section 220(d)(3)(B) of LIHPRHA (12 U.S.C. 4110(d)(3)(B)) shall be

governed in accordance with the requirements of the program under

which the first mortgage is insured or made (sections 236 or

221(d)(3) BMIR (12 U.S.C. 1715z-1, 4111(d)(3)), as appropriate):

Provided further, That the immediately foregoing proviso shall

apply hereafter to projects for which plans of action are to be

funded under such section 220(d)(3)(B) (12 U.S.C. 4110(d)(3)(B)),

and shall apply to any project that has been funded under such

section starting one year after the date that such project was

funded: Provided further, That up to $10,000,000 of the amount made

available by this paragraph may be used at the discretion of the

Secretary to reimburse owners of eligible properties for which

plans of action were submitted prior to the effective date of this

Act (Apr. 26, 1996), but were not executed for lack of available

funds, with such reimbursement available only for documented costs

directly applicable to the preparation of the plan of action as

determined by the Secretary, and shall be made available on terms

and conditions to be established by the Secretary: Provided

further, That, notwithstanding any other provision of law,

effective October 1, 1996, the Secretary shall suspend further

processing of preservation applications which do not have approved

plans of action.''

For similar provisions see Pub. L. 104-120, Sec. 2(b), Mar. 28,

1996, 110 Stat. 834.

CONDITIONS OF ASSISTANCE

Pub. L. 102-550, title III, Sec. 314, Oct. 28, 1992, 106 Stat.

3770, provided that:

''(a) Elihpa of 1987. - The Secretary may not require, as a

condition of eligibility for or receipt of technical assistance

made available under the Departments of Veterans Affairs and

Housing and Urban Development, and Independent Agencies

Appropriations Act, 1992 (Public Law 102-139 (105 Stat. 736, see

Tables for classification)) (including any phase of a grant), that

an applicant participate in a training program sponsored or

conducted by the Department of Housing and Urban Development for

acquisition of eligible low income housing under the provisions of

the Emergency Low Income Housing Preservation Act of 1987 (see

Codification note above), and may not provide any preference or

priority for such assistance for any applicant based on

participation in such a program.

''(b) Lihprha of 1990. - The Secretary may require, as a

condition of eligibility for or receipt of technical assistance

made available under the Departments of Veterans Affairs and

Housing and Urban Development, and Independent Agencies

Appropriations Act, 1992 (Public Law 102-139) (including any phase

of a grant), that an applicant participate in a training program

sponsored or conducted by the Department of Housing and Urban

Development for acquisition of eligible low-income housing under

this title (enacting sections 4141 to 4147 of this title, amending

sections 1715z-1, 1715z-6, 4103, 4105 to 4112, 4116, 4119, 4121,

4122, 4124, and 4125 of this title, enacting provisions set out as

notes under this section and sections 1715z-6, 4109, and 4117 of

this title, and amending provisions set out as a note under this

section), and may provide preference or priority for such

assistance for applicants based on participation in such a program,

but only if the program is made available on a nationwide basis not

later than March 1, 1993.''

TRANSITION PROVISIONS

Section 604 of Pub. L. 101-625, as amended by Pub. L. 102-550,

title III, Sec. 313, Oct. 28, 1992, 106 Stat. 3769, provided that:

''(a) Housing Eligible for Election. - Any owner of housing that

becomes eligible low-income housing before January 1, 1991 and who,

before such date, filed a notice of intent under section 222 of the

Emergency Low Income Housing Preservation Act of 1987 (formerly set

out in a note under section 1715l of this title) (as such section

existed before the date of the enactment of this Act (Nov. 28,

1990)) or under section 212 of such Act (12 U.S.C. 4102) (as

amended by section 601(a)) may elect to be subject to (1) the

provisions of such Act as in effect before the date of the

enactment of this Act, or (2) the provisions of the Low-Income

Housing Preservation and Resident Homeownership Act of 1990 (see

Short Title note above), after the date of the enactment of this

Act. The Secretary shall establish procedures for owners to make

the election under the preceding sentence. An owner that elects to

be subject to the provisions of the Emergency Low Income Housing

Preservation Act of 1987 shall comply with section 212(b), section

217(a)(2), and section 217(c) of the Low-Income Housing

Preservation and Resident Homeownership Act of 1990 (12 U.S.C.

4102(b) and 4107(a)(2), (c)).

''(b) Right of Conversion to New System. - Any owner who has

filed a plan of action on or before October 11, 1990, shall have

the right to convert to the system of incentives and restrictions

under this subtitle (subtitle A of title VI of Pub. L. 101-625, see

Effective Date note above), with such adjustments as the Secretary

determines to be appropriate to compensate for the value of any

incentives the owner received under the Emergency Low Income

Housing Preservation Act of 1987 (see Codification note preceding

this section). Owners filing plans after such date shall not have

any right under this subsection.

''(c) Effectiveness of Repealed Provisions. - Notwithstanding the

amendment made by section 601(a) (enacting this chapter), the

provisions of the Emergency Low Income Housing Preservation Act of

1987 (as in effect immediately before the date of the enactment of

this Act (Nov. 28, 1990)) shall apply with respect to any housing

for which the election under subsection (a)(1) is made. With

respect to housing for which such an election is made -

''(1) in making incentives under section 224 of such Act

(formerly set out in a note under section 1715l of this title)

available to such housing, the Secretary -

''(A) shall, for approvable plans of action, provide

assistance sufficient to enable a nonprofit organization that

has purchased or will purchase an eligible low income housing

project to meet project oversight costs; and

''(B) may not refuse to offer incentives referred to in such

section to any owner who filed a notice of intent under section

222 of such Act before October 15, 1991, based solely on the

date of filing of the plan of action for the housing; and

''(2) the provisions of section 233(1)(A)(i) of such Act

(formerly set out in a note under section 1715l of this title)

shall not apply, and the term 'eligible low income housing'

shall, for purposes of such Act, shall (sic) include housing

financed by a loan or mortgage that is insured or held by the

Secretary or a State or State agency under section 221(d)(3) of

the National Housing Act (12 U.S.C. 1715l(d)(3)) and receiving

loan management assistance under section 8 of the United States

Housing Act of 1937 (42 U.S.C. 1437f) due to a conversion from

section 101 of the Housing and Urban Development Act of 1965 (12

U.S.C. 1701s).

''(d) Regulations. - Not later than the expiration of the 90-day

period beginning on the date of the enactment of this Act (Nov. 28,

1990), the Secretary of Housing and Urban Development shall,

subject to the provisions of section 553 of title 5, United States

Code, publish proposed rules to implement this subtitle and the

amendments made by this subtitle. Not later than 45 days after the

expiration of the period under the preceding sentence the Secretary

shall issue interim or final rules to implement such provisions.''

-CITE-

12 USC Sec. 4102 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4102. Notice of intent

-STATUTE-

(a) Filing with Secretary

An owner of eligible low-income housing that intends to terminate

the low-income affordability restrictions through prepayment or

voluntary termination in accordance with section 4108 of this

title, extend the low-income affordability restrictions of the

housing in accordance with section 4109 of this title, or transfer

the housing to a qualified purchaser in accordance with section

4110 of this title, shall file with the Secretary a notice

indicating such intent in the form and manner as the Secretary

shall prescribe.

(b) Filing with State or local government, tenants, and mortgagee

The owner, upon filing a notice of intent under this section,

shall simultaneously file the notice of intent with the chief

executive officer of the appropriate State or local government for

the jurisdiction within which the housing is located and with the

mortgagee, and shall inform the tenants of the housing of the

filing.

(c) Ineligibility for filing

An owner shall not be eligible to file a notice of intent under

this section if the mortgage covering the housing -

(1) falls into default on or after November 28, 1990; or

(2)(A) fell into default before, but is current as of, November

28, 1990; and

(B) the owner does not agree to recompense the appropriate

Insurance Fund, in the amount the Secretary determines

appropriate, for any losses sustained by the Fund as a result of

any work-out or other arrangement agreed to by the Secretary and

the owner with respect to the defaulted mortgage.

The Secretary shall carry out this subsection in a manner

consistent with the provisions of section 1701z-11 of this title.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 212, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4249.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4103, 4106, 4107, 4108,

4113 of this title.

-CITE-

12 USC Sec. 4103 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4103. Appraisal and preservation value of eligible low-income

housing

-STATUTE-

(a) Appraisal

Upon receiving notice of intent regarding an eligible low-income

housing project indicating an intent to extend the low-income

affordability restrictions under section 4109 of this title or

transfer the housing under section 4110 of this title, the

Secretary shall provide for determination of the preservation value

of the housing, as follows:

(1) Appraisers

The preservation value shall be determined by 2 independent

appraisers, one of whom shall be selected by the Secretary and

one of whom shall be selected by the owner. The appraisals shall

be conducted not later than 4 months after filing the notice of

intent under section 4102 of this title, and the owner shall

submit to the Secretary the appraisal made by the owner's

selected appraiser not later than 90 days after receipt of the

notice under paragraph (2). If the 2 appraisers fail to agree on

the preservation value, and the Secretary and the owner also fail

to agree on the preservation value, the Secretary and the owner

shall jointly select and jointly compensate a third appraiser,

whose appraisal shall be binding on the parties.

(2) Notice

Not later than 30 days after the filing of a notice of intent

to seek incentives under section 4109 of this title or transfer

the property under section 4110 of this title, the Secretary

shall provide written notice to the owner filing the notice of

intent of -

(A) the need for the owner to acquire an appraisal of the

property under paragraph (1);

(B) the rules and guidelines for such appraisals;

(C) the filing deadline for submission of the appraisal under

paragraph (1);

(D) the need for an appraiser retained by the Secretary to

inspect the housing and project financial records; and

(E) any delegation to the appropriate State agency by the

Secretary of responsibilities regarding the appraisal.

(3) Timeliness

The Secretary may approve a plan of action to receive

incentives under section 4109 or 4110 of this title only based

upon an appraisal conducted in accordance with this subsection

that is not more than 30 months old.

(b) Preservation value

For purposes of this subchapter, the preservation value of

eligible low-income housing appraised under this section shall be -

(1) for purposes of extending the low-income affordability

restrictions and receiving incentives under section 4109 of this

title, the fair market value of the property based on the highest

and best use of the property as residential rental housing; and

(2) for purposes of transferring the property under section

4110 or 4111 of this title, the fair market value of the housing

based on the highest and best use of the property.

(c) Guidelines

The Secretary shall provide written guidelines for appraisals of

preservation value, which shall assume repayment of the existing

federally assisted mortgage, termination of the existing low-income

affordability restrictions, simultaneous termination of any Federal

rental assistance, and costs of compliance with any State or local

laws of general applicability. The guidelines may permit reliance

upon assessments of rehabilitation needs and other conversion costs

determined by an appropriate State agency, as determined by the

Secretary. The guidelines shall instruct the appraiser to use the

greater of actual project operating expenses at the time of the

appraisal (based on the average of the actual project operating

expenses during the preceding 3 years) or projected operating

expenses after conversion in determining preservation value. The

guidelines established by the Secretary shall not be inconsistent

with customary appraisal standards. The guidelines shall also meet

the following requirements:

(1) Residential rental value

In the case of preservation value determined under subsection

(b)(1) of this section, the guidelines shall assume conversion of

the housing to market-rate rental housing and shall establish

methods for (A) determining rehabilitation expenditures that

would be necessary to bring the housing up to quality standards

required to attract and sustain a market rate tenancy upon

conversion, and (B) assessing other costs that the owner could

reasonably be expected to incur if the owner converted the

property to market-rate multifamily rental housing.

(2) Highest and best use value

In the case of preservation value determined under subsection

(b)(2) of this section, the guidelines shall assume conversion of

the housing to highest and best use for the property and shall

establish methods for (A) determining any rehabilitation

expenditures that would be necessary to convert the housing to

such use, and (B) assessing other costs that the owner could

reasonably be expected to incur if the owner converted the

property to its highest and best use.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 213, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4250; amended Pub.

L. 102-550, title III, Sec. 302, Oct. 28, 1992, 106 Stat. 3763.)

-MISC1-

AMENDMENTS

1992 - Subsec. (c). Pub. L. 102-550 inserted ''simultaneous

termination of any Federal rental assistance,'' before ''and

costs'' in first sentence.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4104, 4105, 4106, 4110,

4111, 4117, 4119 of this title.

-CITE-

12 USC Sec. 4104 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4104. Annual authorized return and preservation rents

-STATUTE-

(a) Annual authorized return

Pursuant to an appraisal under section 4103 of this title, the

Secretary shall determine the annual authorized return on the

appraised housing, which shall be equal to 8 percent of the

preservation equity (as such term is defined in section 4119(8) of

this title).

(b) Preservation rents

The Secretary shall also determine the aggregate preservation

rents under this subsection for each project appraised under

section 4103 of this title. The aggregate preservation rents shall

be used solely for the purposes of comparison with Federal cost

limits under section 4105 of this title. Actual rents received by

an owner (or a qualified purchaser) shall be determined pursuant to

section 4109, 4110, or 4111 of this title. The aggregate

preservation rents shall be established as follows:

(1) Extension of affordability limits

The aggregate preservation rent for purposes of receiving

incentives pursuant to extension of the low-income affordability

restrictions under section 4109 of this title shall be the gross

potential income for the project, determined by the Secretary,

that would be required to support the following costs:

(A) The annual authorized return determined under subsection

(a) of this section.

(B) Debt service on any rehabilitation loan for the housing.

(C) Debt service on the federally-assisted mortgage for the

housing.

(D) Project operating expenses.

(E) Adequate reserves.

(2) Sale

The aggregate preservation rent for purposes of receiving

incentives pursuant to sale under section 4110 or 4111 of this

title shall be the gross income for the project determined by the

Secretary, that would be required to support the following costs:

(A) Debt service on the loan for acquisition of the housing.

(B) Debt service on any rehabilitation loan for the housing.

(C) Debt service on the federally-assisted mortgage for the

housing.

(D) Project operating expenses.

(E) Adequate reserves.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 214, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4251.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4105, 4106, 4109, 4111,

4119, 4122 of this title.

-CITE-

12 USC Sec. 4105 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4105. Federal cost limits and limitations on plans of action

-STATUTE-

(a) Determination of relationship to Federal cost limits

(1) Initial determination

For each eligible low-income housing project appraised under

section 4103(a) of this title, the Secretary shall determine

whether the aggregate preservation rents for the project

determined under paragraph (1) or (2) of section 4104(b) of this

title exceed the amount determined by multiplying 120 percent of

the fair market rental (established under section 1437f(c) of

title 42) for the market area in which the housing is located by

the number of dwelling units in the project (according to

appropriate unit sizes).

(2) Relevant local markets

If the aggregate preservation rents for a project exceeds the

amount determined under paragraph (1), the Secretary shall

determine whether such aggregate rents exceed the amount

determined by multiplying 120 percent of the prevailing rents in

the relevant local market area in which the housing is located by

the number of units in the project (according to the appropriate

unit sizes). A relevant local market area shall be an area

geographically smaller than a market area established by the

Secretary under section 1437f(c)(1) of title 42 that is

identifiable as a distinct rental market area. The Secretary may

rely on the appraisal to determine the relevant local market

areas and prevailing rents in such local areas and any other

information the Secretary determines is appropriate.

(3) Effect

For purposes of this subchapter, the aggregate preservation

rents shall be considered to exceed the Federal cost limits under

this subsection only if the aggregate preservation rents exceed

the amount determined under paragraph (1) and the amount

determined under paragraph (2).

(b) Limitations on action pursuant to Federal cost limits

(1) Housing within Federal cost limits

If the aggregate preservation rents for an eligible low-income

housing project do not exceed the Federal cost limit, the owner

may not prepay the mortgage on the housing or terminate the

insurance contract with respect to the housing, except as

permitted under section 4114 of this title. The owner may -

(A) file a plan of action under section 4107 of this title to

receive incentives under section 4109 of this title; or

(B) file a second notice of intent under section 4106(d) of

this title indicating an intention to transfer the housing

under section 4110 of this title and take actions pursuant to

such section.

(2) Housing exceeding Federal cost limits

If the aggregate preservation rents for an eligible low-income

housing project exceed the Federal cost limit, the owner may -

(A) file a plan of action under section 4107 of this title to

receive incentives under section 4109 of this title if the

owner agrees to accept incentives under such sections in an

amount that shall not exceed the Federal cost limit;

(B) file a second notice of intent under section 4106(d) of

this title indicating an intention to transfer the housing

under section 4110 of this title and take actions pursuant to

such section if the owner agrees to transfer the housing at a

price that shall not exceed the Federal cost limit; or

(C) file a second notice of intent under section 4106(d) of

this title indicating an intention to prepay the mortgage or

voluntarily terminate the insurance, subject to the mandatory

sale provisions under section 4111 of this title.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 215, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4252; amended Pub.

L. 102-550, title III, Sec. 317(a)(1), Oct. 28, 1992, 106 Stat.

3772.)

-MISC1-

AMENDMENTS

1992 - Subsec. (a)(2). Pub. L. 102-550 made technical amendment

to reference to section 1437f(c)(1) of title 42 to reflect

correction of corresponding provision of original act.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4104, 4106, 4109, 4110,

4119 of this title.

-CITE-

12 USC Sec. 4106 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4106. Information from Secretary

-STATUTE-

(a) Information to owners terminating affordability restrictions

The Secretary shall provide each owner who submits a notice of

intent to terminate the low-income affordability restrictions on

the housing under section 4108 of this title with information under

this section not later than 6 months after receipt of the notice of

intent. The information shall include a description of the

criteria for such termination specified under section 4108 of this

title and the documentation required to satisfy such criteria.

(b) Information to owners extending low-income affordability

restrictions

The Secretary shall provide each owner who submits notice of

intent to extend the low-income affordability restrictions on the

housing under section 4109 of this title or transfer the housing

under section 4110 of this title to a qualified purchaser with

information under this subsection not later than 9 months after

receipt of the notice of intent. The information shall include any

information necessary for the owner to prepare a plan of action

under section 4107 of this title, including the following:

(1) Preservation values

A statement of the preservation value of the housing determined

under paragraphs (1) and (2) of section 4103(b) of this title.

(2) Preservation rent

A statement of the preservation rent for the housing as

calculated under section 4104(b) of this title.

(3) Federal cost limits

A statement of the applicable Federal cost limits for the

market area (or relevant local market area, if applicable) in

which the housing is located, which shall explain the limitations

under sections 4109 and 4110 of this title of the amount of

assistance that the Secretary may provide based on such cost

limits.

(4) Federal cost limit analysis

A statement of whether the aggregate preservation rents exceed

the Federal cost limits and a direction to the owner to file a

plan of action under section 4107 of this title or submit a

second notice of intent under subsection (d) of this section,

whichever is applicable.

(c) Availability to tenants

The Secretary shall make any information provided to the owner

under subsections (a) and (b) of this section available to the

tenants of the housing, together with other information relating to

the rights and opportunities of the tenants.

(d) Second notice of intent

(1) Filing

Each owner of eligible low-income housing that elects to

transfer housing under section 4110 of this title shall submit to

the Secretary, in such form and manner as the Secretary

prescribes, notice of intent to sell the housing under section

4110 of this title. To be eligible to prepay the mortgage or

voluntarily terminate the insurance contract on the mortgage, an

owner of housing for which the preservation rents exceed the

Federal cost limits under section 4105(b) of this title shall

submit to the Secretary notice of such intent. The provisions of

sections 4111 and 4113 of this title shall apply to any owner

submitting a notice under the preceding sentence.

(2) Timing

A second notice of intent under this subsection shall be

submitted not later than 30 days after receipt of information

from the Secretary under this section. If an owner fails to

submit such notice within such period, the notice of intent

submitted by the owner under section 4102 of this title shall be

void and ineffective for purposes of this subchapter.

(3) Filing with the State or local government, tenants, and

mortgagee

Upon filing a second notice of intent under this subsection,

the owner shall simultaneously file such notice of the intent

with the chief executive officer of the appropriate State or

local government for the jurisdiction within which the housing is

located and with the mortgagee, and shall inform the tenants of

the housing of the filing.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 216, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4253; amended Pub.

L. 102-550, title III, Sec. 303, 317(a)(2), Oct. 28, 1992, 106

Stat. 3763, 3772.)

-MISC1-

AMENDMENTS

1992 - Subsec. (b)(4). Pub. L. 102-550, Sec. 317(a)(2),

substituted ''exceed'' for ''exceeds''.

Subsec. (d)(3). Pub. L. 102-550, Sec. 303, added par. (3).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4105, 4107, 4110, 4111 of

this title.

-CITE-

12 USC Sec. 4107 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4107. Plan of action

-STATUTE-

(a) Submission to Secretary

(1) Timing

Not later than 6 months after receipt of the information from

the Secretary under section 4106 of this title an owner seeking

to terminate the low-income affordability restrictions through

prepayment of the mortgage or voluntary termination under section

4108 of this title, or to extend the low-income affordability

restriction on the housing under section 4109 of this title,

shall submit a plan of action to the Secretary in such form and

manner as the Secretary shall prescribe. Any owner or purchaser

seeking a transfer of the housing under section 4110 or 4111 of

this title shall submit a plan of action under this section to

the Secretary upon acceptance of a bona fide offer under section

4110(b) or (c) of this title or upon making of any bona fide

offer under section 4111 of this title.

(2) Copies to tenants

Each owner submitting a plan of action under this section to

the Secretary shall also submit a copy to the tenants of the

housing. The owner shall simultaneously submit the plan of

action to the office of the chief executive officer of the

appropriate State or local government for the jurisdiction within

which the housing is located. Each owner and the Secretary shall

also, upon request, make available to the tenants of the housing

and to the office of the chief executive officer of the

appropriate State or local government for the jurisdiction within

which the housing is located all documentation supporting the

plan of action, but not including any information that the

Secretary determines is proprietary information. An appropriate

agency of such State or local government shall review the plan

and advise the tenants of the housing of any programs that are

available to assist the tenants in carrying out the purposes of

this title. (FOOTNOTE 1)

(FOOTNOTE 1) See References in Text note below.

(3) Failure to submit

If the owner does not submit a plan of action to the Secretary

within the 6-month period referred to in paragraph (1) (or the

applicable longer period), the notice of intent shall be

ineffective for purposes of this subchapter and the owner may not

submit another notice of intent under section 4102 of this title

until 6 months after the expiration of such period.

(b) Contents

(1) Termination of affordability restrictions

If the plan of action proposes to terminate the low-income

affordability restrictions through prepayment or voluntary

termination in accordance with section 4108 of this title, the

plan shall include -

(A) a description of any proposed changes in the status or

terms of the mortgage or regulatory agreement;

(B) a description of any proposed changes in the low-income

affordability restrictions;

(C) a description of any change in ownership that is related

to prepayment or voluntary termination;

(D) an assessment of the effect of the proposed changes on

existing tenants;

(E) an analysis of the effect of the proposed changes on the

supply of housing affordable to low- and very low-income

families or persons in the community within which the housing

is located and in the area that the housing could reasonably be

expected to serve; and

(F) any other information that the Secretary determines is

necessary to achieve the purposes of this title. (FOOTNOTE 1)

(2) Extension of affordability restrictions

If the plan of action proposes to extend the low-income

affordability restrictions of the housing in accordance with

section 4109 of this title or transfer the housing to a qualified

purchaser in accordance with section 4110 of this title, the plan

shall include -

(A) a description of any proposed changes in the status or

terms of the mortgage or regulatory agreement;

(B) a description of the Federal incentives requested

(including cash flow projections), and analyses of how the

owner will address any physical or financial deficiencies and

maintain the low-income affordability restrictions of the

housing;

(C) a description of any assistance from State or local

government agencies, including low-income housing tax credits,

that have been offered to the owner or purchaser or for which

the owner or purchaser has applied or intends to apply;

(D) a description of any transfer of the property, including

the identity of the transferee and a copy of any documents of

sale; and

(E) any other information that the Secretary determines is

necessary to achieve the purposes of this title. (FOOTNOTE 1)

(c) Revisions

An owner may from time to time revise and amend the plan of

action as may be necessary to obtain approval of the plan under

this subchapter. The owner shall submit any revision to the

Secretary and to the tenants of the housing and make available to

the Secretary and tenants all documentation supporting any

revision, but not including any information that the Secretary

determines is proprietary information.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 217, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4254; amended Pub.

L. 102-550, title III, Sec. 304, Oct. 28, 1992, 106 Stat. 3763.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in subsecs. (a)(2) and (b)(1)(F), (2)(E),

means title II of Pub. L. 100-242, as amended by Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4249, known as the

Low-Income Housing Preservation and Resident Homeownership Act of

1990, which is classified principally to this chapter. For

complete classification of this Act to the Code, see Short Title

note set out under section 4101 of this title and Tables.

-MISC2-

AMENDMENTS

1992 - Subsec. (a)(2). Pub. L. 102-550, Sec. 304(a), inserted

after second sentence ''Each owner and the Secretary shall also,

upon request, make available to the tenants of the housing and to

the office of the chief executive officer of the appropriate State

or local government for the jurisdiction within which the housing

is located all documentation supporting the plan of action, but not

including any information that the Secretary determines is

proprietary information.''

Subsec. (c). Pub. L. 102-550, Sec. 304(b), inserted before period

at end ''and make available to the Secretary and tenants all

documentation supporting any revision, but not including any

information that the Secretary determines is proprietary

information''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4105, 4106, 4110 of this

title.

-CITE-

12 USC Sec. 4108 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4108. Prepayment and voluntary termination

-STATUTE-

(a) Approval

The Secretary may approve a plan of action that provides for

termination of the low-income affordability restrictions through

prepayment of the mortgage or voluntary termination of the mortgage

insurance contract only upon a written finding that -

(1) implementation of the plan of action will not -

(A) materially increase economic hardship for current

tenants, and will not in any event result in (i) a monthly

rental payment by any current tenant that exceeds 30 percent of

the monthly adjusted income of the tenant or an increase in the

monthly rental payment in any year that exceeds 10 percent

(whichever is lower), or (ii) in the case of a current tenant

who already pays more than such percentage, an increase in the

monthly rental payment in any year that exceeds the increase in

the Consumer Price Index or 10 percent (whichever is lower); or

(B) involuntarily displace current tenants (except for good

cause) where comparable and affordable housing is not readily

available determined without regard to the availability of

Federal housing assistance that would address any such hardship

or involuntary displacement; and

(2) the supply of vacant, comparable housing is sufficient to

ensure that such prepayment will not materially affect -

(A) the availability of decent, safe, and sanitary housing

affordable to low-income and very low-income families or

persons in the area that the housing could reasonably be

expected to serve;

(B) the ability of low-income and very low-income families or

persons to find affordable, decent, safe, and sanitary housing

near employment opportunities; or

(C) the housing opportunities of minorities in the community

within which the housing is located.

(b) Standards and procedure for written findings

(1) Standards

A written finding under subsection (a) of this section shall be

based on an analysis of the evidence considered by the Secretary

in reaching such finding and shall contain documentation of such

evidence.

(2) Procedure and criteria

The Secretary shall, by regulation, develop (A) a procedure for

determining whether the conditions under paragraphs (1) and (2)

of subsection (a) of this section exist, (B) requirements for

evidence on which such determinations are based, and (C) criteria

on which such determinations are based.

(c) Disapproval

If the Secretary determines a plan of action to prepay a mortgage

or terminate an insurance contract fails to meet the requirements

of subsection (a) of this section, the Secretary shall disapprove

the plan, the notice of intent filed under section 4102 of this

title by such owner shall not be effective for purposes of this

subchapter, and the owner may, in order to receive incentives under

this subchapter, file a new notice of intent under such section.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 218, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4256; amended Pub.

L. 102-550, title III, Sec. 305, Oct. 28, 1992, 106 Stat. 3763.)

-MISC1-

AMENDMENTS

1992 - Subsecs. (b), (c). Pub. L. 102-550 added subsec. (b) and

redesignated former subsec. (b) as (c).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4102, 4106, 4107 of this

title.

-CITE-

12 USC Sec. 4109 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4109. Incentives to extend low-income use

-STATUTE-

(a) Agreements by Secretary

After approving a plan of action from an owner of eligible

low-income housing that includes the owner's plan to extend the

low-income affordability restrictions of the housing, the Secretary

shall, subject to the availability of appropriations for such

purpose, enter into such agreements as are necessary to enable the

owner to receive (for each year after the approval of the plan of

action) the annual authorized return for the housing determined

under section 4104(a) of this title, pay debt service on the

federally-assisted mortgage covering the housing, pay debt service

on any loan for rehabilitation of the housing, and meet project

operating expenses and establish adequate reserves. The Secretary

shall take into account the Federal cost limits under section

4105(a) of this title for the housing when providing incentives

under subsections (FOOTNOTE 1) (b)(2) and (3) of this section. The

Secretary shall take such actions as are necessary to ensure that

owners receive the annual authorized return for the housing

determined under section 4104(a) of this title during the period in

which rent increases are phased in as provided in section

4112(a)(2)(E) of this title, including (in order of preference) (1)

allowing the owner access to residual receipt accounts (pursuant to

subsection (b)(1) of this section), (2) deferring remittance of

excess rent payments, and (3) providing an increase in rents

permitted under an existing contract under section 1437f of title

42 (pursuant to subsection (b)(2) of this section).

(FOOTNOTE 1) So in original. Probably should be ''subsection''.

(b) Permissible incentives

Such agreements may include one or more of the following

incentives:

(1) Increased access to residual receipts accounts.

(2) Subject to the availability of amounts provided in

appropriations Acts -

(A) an increase in the rents permitted under an existing

contract under section 1437f of title 42, or

(B) additional assistance under section 1437f of title 42 or

an extension of any project-based assistance attached to the

housing; and

(3) An increase in the rents on units occupied by current

tenants as permitted under section 4112 of this title.

(4) Financing of capital improvements under section 201 of the

Housing and Community Development Amendments of 1978.

(5) Financing of capital improvements through provision of

insurance for a second mortgage under section 1715z-6 of this

title.

(6) In the case of housing defined in section 4119(1)(A)(iii)

of this title, redirection of the Interest Reduction Payment

subsidies to a second mortgage.

(7) Access by the owner to a portion of the preservation equity

in the housing through provision of insurance for a second

mortgage loan insured under section 1715z-6(f) (FOOTNOTE 2) of

this title or a non-insured mortgage loan approved by the

Secretary and the mortgagee.

(FOOTNOTE 2) See References in Text note below.

(8) Other incentives authorized in law.

With respect to any housing with a mortgage insured or otherwise

assisted pursuant to section 1715z-1 of this title, the provisions

of subsections (f) and (g) of section 1715z-1 of this title

notwithstanding, the fair market rental charge for each unit in

such housing may be increased in accordance with this subsection,

but the owner shall pay to the Secretary all rental charges

collected in excess of the basic rental charges, in an amount not

greater than the fair market rental charges as such charges would

have been established under section 1715z-1(f) of this title absent

the requirements of this paragraph.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 219, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4256; amended Pub.

L. 102-550, title III, Sec. 306, Oct. 28, 1992, 106 Stat. 3764.)

-REFTEXT-

REFERENCES IN TEXT

Section 201 of the Housing and Community Development Amendments

of 1978, referred to in subsec. (b)(4), is section 201 of Pub. L.

95-557, title II, Oct. 31, 1978, 92 Stat. 2084, which enacted

section 1715z-1a of this title and amended section 1715z-1 of this

title.

Section 1715z-6(f) of this title, referred to in subsec. (b)(7),

was repealed by Pub. L. 104-204, title II, Sept. 26, 1996, 110

Stat. 2885.

-MISC2-

AMENDMENTS

1992 - Subsec. (a). Pub. L. 102-550 inserted ''(for each year

after the approval of the plan of action)'' after ''receive'' and

inserted at end ''The Secretary shall take such actions as are

necessary to ensure that owners receive the annual authorized

return for the housing determined under section 4104(a) of this

title during the period in which rent increases are phased in as

provided in section 4112(a)(2)(E) of this title, including (in

order of preference) (1) allowing the owner access to residual

receipt accounts (pursuant to subsection (b)(1) of this section),

(2) deferring remittance of excess rent payments, and (3) providing

an increase in rents permitted under an existing contract under

section 1437f of title 42 (pursuant to subsection (b)(2) of this

section).''

STUDY OF PROJECTS ASSISTED UNDER FLEXIBLE SUBSIDY PROGRAM

Section 318 of Pub. L. 102-550 provided that:

''(a) Study. - The Secretary shall conduct a study of housing

projects that (1) are assisted under section 236 of the National

Housing Act (12 U.S.C. 1715z-1) or the proviso of section 221(d)(5)

of such Act (12 U.S.C. 1715l(d)(5)), and (2) have received or are

receiving assistance under section 201 of the Housing and Community

Development Amendments of 1978 (see References in Text note above),

to determine the cost of providing such projects with incentives

under the Low-Income Housing Preservation and Resident

Homeownership Act of 1990 (see Short Title note set out under

section 4101 of this title). The study shall examine any projects

portions of which assisted under such section 236 that are assisted

primarily by State agencies.

''(b) Report. - The Secretary shall submit a report to the

Congress regarding any findings and conclusions of the study under

subsection (a) not later than the expiration of the 1-year period

beginning on the date of the enactment of this Act (Oct. 28,

1992).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4102, 4103, 4104, 4105,

4106, 4107, 4110, 4111, 4112, 4114, 4119 of this title.

-CITE-

12 USC Sec. 4110 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4110. Incentives for transfer to qualified purchasers

-STATUTE-

(a) In general

With respect to any eligible low-income housing for which an

owner has submitted a second notice of intent under section 4106(d)

of this title to transfer the housing to a qualified purchaser, the

owner shall offer the housing for transfer to qualified purchasers

as provided in this section. The Secretary shall issue regulations

describing the means by which potential qualified purchasers shall

be notified of the availability of the housing for sale. The

Secretary shall take into account the Federal cost limits under

section 4105(a) of this title for the housing when providing

incentives under section 4109(b)(2) and (b)(3) of this title

(pursuant to subsection (d)(3) of this section).

(b) Right of first offer to priority purchasers

(1) Negotiation period

For the 12-month period beginning on the receipt by the

Secretary of a second notice of intent under section 4106(d) of

this title with respect to such housing, the owner may offer to

sell and negotiate a sale of the housing only with priority

purchasers. The negotiated sale price may not exceed the

preservation value of the housing determined under section

4103(b)(2) of this title. The owner or the purchaser shall

submit a plan of action under section 4107 of this title for any

sale under this subsection, which shall include any request for

assistance under this section, upon the acceptance of any bona

fide offer meeting the requirements of this paragraph.

(2) Expression of interest

During such period, priority purchasers may submit written

notice to the Secretary stating their interest in acquiring the

housing. Such notice shall be made in the form and include such

information as the Secretary may prescribe.

(3) Information

Within 30 days of receipt of an expression of interest by a

priority purchaser, the Secretary shall provide such purchaser

with information on the assistance available from the Federal

Government to facilitate a transfer and the owner shall provide

appropriate information on the housing, as determined by the

Secretary.

(c) Right of refusal for other qualified purchasers

If no bona fide offer to purchase any eligible low-income housing

subject to this section that meets the requirements of subsection

(b) of this section is made and accepted during the period under

such subsection, during the 3-month period beginning upon the

expiration of the 12-month period under subsection (b)(1) of this

section, the owner of the housing may offer to sell and may sell

the housing only to qualified purchasers. The negotiated sale

price may not exceed the preservation value of the housing

determined under section 4103(b)(2) of this title. The owner or

purchaser shall submit a plan of action under section 4107 of this

title for any sale under this subsection, which shall include any

request for assistance under this section, upon the acceptance of

any bona fide offer meeting the requirements of this paragraph.

(FOOTNOTE 1)

(FOOTNOTE 1) So in original. Probably should be ''subsection.''

(d) Assistance

(1) Approval

If the qualified purchaser is a resident council, the Secretary

may not approve a plan of action for assistance under this

section unless the council's proposed resident homeownership

program meets the requirements under section 4116 of this title.

For all other qualified purchasers, the Secretary may not approve

the plan unless the Secretary finds that the criteria for

approval under section 4112 of this title have been satisfied.

(2) Amount

Subject to the availability of amounts approved in

appropriations Acts, the Secretary shall, for approvable plans of

action, provide assistance sufficient to enable qualified

purchasers (including all priority purchasers other than resident

councils acquiring under the homeownership program authorized by

section 4116 of this title) to -

(A) acquire the eligible low-income housing from the current

owner for a purchase price not greater than the preservation

equity of the housing;

(B) pay the debt service on the federally-assisted mortgage

covering the housing;

(C) pay the debt service on any loan for the rehabilitation

of the housing;

(D) meet project operating expenses and establish adequate

reserves for the housing, and in the case of a priority

purchaser, meet project oversight costs;

(E) receive a distribution equal to an 8 percent annual

return on any actual cash investment (from sources other than

assistance provided under this title (FOOTNOTE 2) ) made to

acquire or rehabilitate the project;

(FOOTNOTE 2) See References in Text note below.

(F) in the case of a priority purchaser, receive a

reimbursement of all reasonable transaction expenses associated

with the acquisition, loan closing, and implementation of an

approved plan of action; and

(G) in the case of an approved resident homeownership

program, cover the costs of training for the resident council,

homeownership counseling and training, the fees for the

nonprofit entity or public agency working with the resident

council and costs related to relocation of tenants who elect to

move.

(3) Incentives

(A) In general

For all qualified purchasers of housing under this

subsection, the Secretary may provide assistance for an

approved plan of action in the form of 1 or more of the

incentives authorized under section 4109(b) of this title,

except that the incentive under such section 4109(b)(7) of this

title may include an acquisition loan under section 1715z-6(f)

(FOOTNOTE 2) of this title.

(B) Priority purchasers

Where the qualified purchaser is a priority purchaser, the

Secretary may provide assistance for an approved plan of action

(in the form of a grant) for each unit in the housing in an

amount, as determined by the Secretary, that does not exceed

the present value of the total of the projected published fair

market rentals for existing housing (established by the

Secretary under section 1437f(c) of title 42) for the next 10

years (or such longer period if additional assistance is

necessary to cover the costs referred to in paragraph (2)).

-SOURCE-

(Pub. L. 100-242, title II, Sec. 220, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4257; amended Pub.

L. 102-550, title III, Sec. 307, Oct. 28, 1992, 106 Stat. 3764.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in subsec. (d)(2)(E), means title II of

Pub. L. 100-242, as amended by Pub. L. 101-625, title VI, Sec.

601(a), Nov. 28, 1990, 104 Stat. 4249, known as the Low-Income

Housing Preservation and Resident Homeownership Act of 1990, which

is classified principally to this chapter. For complete

classification of this Act to the Code, see Short Title note set

out under section 4101 of this title and Tables.

Section 1715z-6(f) of this title, referred to in subsec.

(d)(3)(A), was repealed by Pub. L. 104-204, title II, Sept. 26,

1996, 110 Stat. 2885.

-MISC2-

AMENDMENTS

1992 - Subsec. (d)(2). Pub. L. 102-550, Sec. 307(a), inserted

''(including all priority purchasers other than resident councils

acquiring under the homeownership program authorized by section

4116 of this title)'' after ''purchasers''.

Subsec. (d)(2)(D). Pub. L. 102-550, Sec. 307(b), inserted before

semicolon at end '', and in the case of a priority purchaser, meet

project oversight costs''.

Subsec. (d)(2)(E), (F). Pub. L. 102-550, Sec. 307(c), (d),

amended subpars. (E) and (F) generally. Prior to amendment,

subpars. (E) and (F) read as follows:

''(E) receive an adequate return (as determined by the Secretary)

on any actual cash investment made to acquire the project;

''(F) in the case of a priority purchaser, receive an adequate

reimbursement for transaction expenses relating to acquisition of

the housing, subject to approval by the Secretary; and''.

Subsec. (d)(3)(A). Pub. L. 102-550, Sec. 307(e), struck out ''any

residual receipts for the housing transfered (sic) to the selling

owner shall be deducted from the sale price of the housing under

subsection (b) or (c) of this section and'' after ''except that''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4102, 4103, 4104, 4105,

4106, 4107, 4111, 4112, 4114, 4116, 4119, 4142, 4143 of this title.

-CITE-

12 USC Sec. 4111 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4111. Mandatory sale for housing exceeding Federal cost limits

-STATUTE-

(a) In general

With respect to any eligible low-income housing for which the

aggregate preservation rents determined under section 4104(b) of

this title exceed the Federal cost limit, the owner shall offer the

housing for sale to qualified purchasers as provided in this

section.

(b) Right of first refusal to priority purchasers

(1) Duration and required sale

For the 12-month period beginning upon the receipt by the

Secretary of the second notice of intent under section 4106(d) of

this title with respect to such housing, the owner of the housing

may offer to sell and may sell the housing only to priority

purchasers. If, during such period, a priority purchaser makes a

bona fide offer to purchase the housing for a sale price not less

than the preservation value of the housing determined under

section 4103(b)(2) of this title, the Secretary shall require the

owner to sell the housing pursuant to such offer.

(2) Expression of interest

During the period under paragraph (1), priority purchasers

shall have the opportunity to submit written notice to the owner

and the Secretary stating their interest in acquiring the

housing. Such written notice shall be in such form and include

such information as the Secretary may prescribe.

(3) Information from Secretary

Not later than 30 days after receipt of any notice under

paragraph (2), the Secretary shall provide such purchaser with

information on the assistance available from the Federal

Government to facilitate a transfer and the owner shall provide

such purchaser with appropriate information on the housing, as

determined by the Secretary.

(c) Right of refusal for other qualified purchasers

If no bona fide offer to purchase any eligible low-income housing

subject to this section that meets the requirements of subsection

(b) of this section is made during the period under such

subsection, during the 3-month period beginning upon the expiration

of the 12-month period under subsection (b)(1) of this section, the

owner of the housing may offer to sell and may sell the housing

only to qualified purchasers. If, during such period, a qualified

purchaser makes a bona fide offer to purchase the housing for a

sale price not less than the preservation value of the housing

determined under section 4103(b)(2) of this title, the Secretary

shall require the owner to sell the housing pursuant to such offer.

(d) Assistance

(1) Federal cost limit

Subject to the availability of amounts approved in

appropriations Acts, the Secretary shall, for approvable plans of

action, provide to qualified purchasers assistance under section

1437f of title 42 sufficient to produce a gross income potential

equal to the amount determined by multiplying 120 percent of the

prevailing rents in the relevant local market area in which the

housing is located by the number of units in the project

(according to appropriate unit sizes), and any other incentives

authorized under section 4109(b) of this title that would have

been provided to a qualified purchaser under section 4110 of this

title.

(2) Additional assistance

From amounts made available under section 4124(b) of this

title, the Secretary may make grants to assist in the completion

of sales and transfers under this section to any qualified

purchasers. Any grant under this paragraph shall be in an amount

not exceeding the difference between the preservation value for

the housing (determined under section 4103(b)(2) of this title)

and the level of assistance under paragraph (1) of this

subsection.

(3) Securing State and local funding

The Secretary shall assist any qualified purchaser of such

housing in securing funding and other assistance (including tax

and assessment reductions) from State and local governments to

facilitate a sale under this section.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 221, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4259; amended Pub.

L. 102-550, title III, Sec. 317(a)(3), Oct. 28, 1992, 106 Stat.

3772.)

-MISC1-

AMENDMENTS

1992 - Subsec. (c). Pub. L. 102-550 substituted ''than'' for

''that'' before ''the preservation''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4103, 4104, 4105, 4106,

4107, 4114, 4119, 4124 of this title.

-CITE-

12 USC Sec. 4112 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4112. Criteria for approval of plan of action involving

incentives

-STATUTE-

(a) In general

The Secretary may approve a plan of action for extension of the

low-income affordability restrictions on any eligible low-income

housing or transfer the housing to a qualified purchaser (other

than a resident council) only upon finding that -

(1) due diligence has been given to ensuring that the package

of incentives is, for the Federal Government, the least costly

alternative that is consistent with the full achievement of the

purposes of this title; (FOOTNOTE 1)

(FOOTNOTE 1) See References in Text note below.

(2) binding commitments have been made to ensure that -

(A) the housing will be retained as housing affordable for

very low-income families or persons, low-income families or

persons, and moderate-income families or persons for the

remaining useful life of such housing (as determined under

subsection (c) of this section);

(B) throughout such period, adequate expenditures will be

made for maintenance and operation of the housing and that the

project meets housing standards established by the Secretary

under subsection (d) of this section, as determined by

inspections conducted under such subsection by the Secretary;

(C) current tenants will not be involuntarily displaced

(except for good cause);

(D) any increase in rent contributions for current tenants

will be to a level that does not exceed 30 percent of the

adjusted income of the tenant or the published existing fair

market rent for comparable housing established under section

1437f(c) of title 42, whichever is lower, except that the rent

contributions of any tenants occupying the housing at the time

of any increase may not be reduced by reason of this

subparagraph (except with respect to tenants receiving section

8 (42 U.S.C. 1437f) assistance in accordance with subparagraph

(E)(ii) of this paragraph);

(E)(i) any resulting increase in rents for current tenants

(except for increases made necessary by increased operating

costs) -

(I) shall be phased in equally over a period of not less

than 3 years, if such increase is 30 percent or more; and

(II) shall be limited to not more than 10 percent per year

if such increase is more than 10 percent but less than 30

percent; and

(ii) assistance under section 1437f of title 42 shall be

provided, to the extent available under appropriation Acts, if

necessary to mitigate any adverse effect on current

income-eligible very low- and low-income tenants; and (FOOTNOTE

2)

(FOOTNOTE 2) So in original. Word ''and'' probably should not

appear.

(F)(i) rents for units becoming available to new tenants

shall be at levels approved by the Secretary that will ensure,

to the extent practicable, that the units will be available and

affordable to the same proportions of very low-income families

or persons, low-income families or persons, and moderate-income

families or persons (including families or persons whose

incomes are 95 percent or more of area median income) as

resided in the housing as of January 1, 1987 (based on the area

median income limits established by the Secretary in February

1987), or the date the plan of action is approved, whichever

date results in the highest proportion of very low-income

families, except that this limitation shall not prohibit a

higher proportion of very low-income families from occupying

the housing; and

(ii) in approving rents under this paragraph, the Secretary

shall take into account any additional incentives provided

under this subchapter;

(G) future rent adjustments shall be -

(i) made by applying an annual factor (to be determined by

the Secretary) to the portion of rent attributable to

operating expenses for the housing and, where the owner is a

priority purchaser, to the portion of rent attributable to

project oversight costs; and

(ii) subject to a procedure, established by the Secretary,

for owners to apply for rent increases not adequately

compensated by annual adjustment under clause (i), under

which the Secretary may increase rents in excess of the

amount determined under clause (i) only if the Secretary

determines such increases are necessary to reflect

extraordinary necessary expenses of owning and maintaining

the housing; and

(H) any savings from reductions in operating expenses due to

management efficiencies shall be deposited in project reserves

for replacement and the owner shall have periodic access to

such reserves, to the extent the Secretary determines that the

level of reserves is adequate and that the housing is

maintained in accordance with the standards established under

subsection (d) of this section; and

(3) no incentives under section 4109 of this title (other than

to purchasers under section 4110 of this title) may be provided

until the Secretary determines the project meets housing

standards under subsection (d) of this section, except that

incentives under such section and other incentives designed to

correct deficiencies in the project may be provided.

(b) Implementation

Any agreement to maintain the low-income affordability

restrictions for the remaining useful life of the housing may be

made through execution of a new regulatory agreement, modifications

to the existing regulatory agreement or mortgage, or, in the case

of the prepayment of a mortgage or voluntary termination of

mortgage insurance, a recorded instrument.

(c) Determination of remaining useful life

(1) ''Remaining useful life'' defined

For purposes of this title, (FOOTNOTE 3) the term ''remaining

useful life'' means, with respect to eligible low-income housing,

the period during which the physical characteristics of the

housing remain in a condition suitable for occupancy, assuming

normal maintenance and repairs are made and major systems and

capital components are replaced as becomes necessary.

(FOOTNOTE 3) See References in Text note below.

(2) Standards

The Secretary shall, by rule under section 553 of title 5,

establish standards for determining when the useful life of an

eligible low-income housing project has expired. The

determination shall be made on the record after opportunity for a

hearing.

(3) Owner petition

The Secretary shall establish a procedure under which owners of

eligible low-income housing may petition the Secretary for a

determination that the useful life of such housing has expired.

The procedure shall not permit such a petition before the

expiration of the 50-year period beginning upon the approval of a

plan of action under this subchapter with respect to such

housing. In making a determination pursuant to a petition under

this paragraph, the Secretary shall presume that the useful life

of the housing has not expired, and the owner shall have the

burden of proof in establishing such expiration. The Secretary

may not determine that the useful life of any housing has expired

if such determination results primarily from failure to make

regular and reasonable repairs and replacement, as became

necessary.

(4) Tenant and community comment and appeal

In making a determination regarding the useful life of any

housing pursuant to a petition submitted under paragraph (3), the

Secretary shall provide for comment by tenants of the housing and

interested persons and organizations with respect to the

petition. The Secretary shall also provide the tenants and

interested persons and organizations with an opportunity to

appeal a determination under this subsection.

(d) Housing standards

(1) Establishment and inspection

The Secretary shall, by regulation, establish standards

regarding the physical condition in which any eligible low income

housing project receiving incentives under this subchapter shall

be maintained. The Secretary shall inspect each such project not

less than annually to ensure that the project is in compliance

with such standards.

(2) Sanctions

(A) In general

The Secretary shall take any action appropriate to require

the owner of any housing not in compliance with such standards

to bring such housing into compliance with the standards,

including -

(i) directing the mortgagee, with respect to an equity

take-out loan under section 1715z-6(f) (FOOTNOTE 3) of this

title, to withhold the disbursement to the owner of any

escrowed loan proceeds and requiring that such proceeds be

used for repair of the housing; and

(ii) reduce the amount of the annual authorized return, as

determined by the Secretary, for the period ending upon a

determination by the Secretary that the project is in

compliance with the standards and requiring that such amounts

be used for repair.

(B) Continued compliance

To ensure continued compliance with the standards for a

project subject to any action under subparagraph (A), the

Secretary may also limit access of the owner to such amounts

and use of such amounts for not more than the 2-year period

beginning upon the determination that the project is in

compliance with the standards.

(C) Removal of assistance

If, upon inspection, the Secretary determines that any

eligible low income housing project has failed to comply with

the standards established under this subsection for 2

consecutive years, the Secretary may take 1 or more of the

following actions:

(i) Subject to availability of amounts provided in

appropriations Acts, provide assistance under sections

1437f(b) and 1437f(o) of title 42 (other than project-based

assistance attached to the housing) for any tenant eligible

for such assistance who desires to terminate occupancy in the

housing. For each unit in the housing vacated pursuant to

the provision of assistance under this clause, the Secretary

may, notwithstanding any other law or contract for

assistance, cancel the provision of project-based assistance

attached to the housing for 1 dwelling unit, if the housing

is receiving such assistance.

(ii) In the case of housing for which an equity take-out

loan has been made under section 1715z-6(f) (FOOTNOTE 4) of

this title, declare such loan to be in default and accelerate

the maturity date of the loan.

(FOOTNOTE 4) See References in Text note below.

(iii) Declare any rehabilitation loan insured or provided

by the Secretary (with respect to the housing) to be in

default and accelerate the maturity date of the loan.

(iv) Suspend payments under or terminate any contract for

project-based rental assistance under section 1437f of title

42.

(v) Take any other action authorized by law or the project

regulatory agreement to ensure that the housing will be

brought into compliance with the standards established under

this subsection.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 222, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4260; amended Pub.

L. 102-550, title III, Sec. 308, 317(a)(4), Oct. 28, 1992, 106

Stat. 3764, 3772; Pub. L. 103-327, title II, Sept. 28, 1994, 108

Stat. 2316.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in subsecs. (a)(1) and (c)(1), means

title II of Pub. L. 100-242, as amended by Pub. L. 101-625, title

VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4249, known as the

Low-Income Housing Preservation and Resident Homeownership Act of

1990, which is classified principally to this chapter. For

complete classification of this Act to the Code, see Short Title

note set out under section 4101 of this title and Tables.

Section 1715z-6(f) of this title, referred to in subsec.

(d)(2)(A)(i), (C)(ii), was repealed by Pub. L. 104-204, title II,

Sept. 26, 1996, 110 Stat. 2885.

-COD-

CODIFICATION

Amendment by Pub. L. 103-327 is based on section 601(a)-(d) of

title VI of S. 2281, One Hundred Third Congress, as reported July

13, 1994, which was enacted into law by Pub. L. 103-327.

-MISC3-

AMENDMENTS

1994 - Subsec. (a)(2)(D). Pub. L. 103-327 temporarily amended

subpar. (D) to read as follows: ''monthly rent contributions by

current and future tenants, including tenants receiving assistance

under section 1437f of title 42, shall not exceed the lesser of -

''(i) 30 percent of the adjusted income of the tenant; or

''(ii) 90 percent of the actual rent paid for a comparable unit

in comparable unassisted housing in the market area in which the

eligible low-income housing is located;

except that the rent contributions of tenants (other than tenants

receiving assistance under section 1437f of title 42) occupying the

housing at the time of any increase may not be reduced under this

subparagraph.'' See Effective and Termination Dates of 1994

Amendment note below.

Subsec. (a)(2)(E)(ii). Pub. L. 103-327, which directed the

temporary amendment of par. (1)(E)(ii) by substituting a period for

''; and'' and inserting at end ''For any section 8 assistance

provided under this subchapter, whether through the extension of an

existing contract or the provision of a new contract for

assistance, the Secretary shall have the discretion to adjust

contract rents within the limits established under section 4105 of

this title, irrespective of the comparable rent requirements set

forth in section 1437f(c) of title 42. Notwithstanding any

provision of law to the contrary, any conflict pertaining to the

computation of contract rents arising from differences between this

subchapter and section 1437f of title 42 shall, subject to the

prior approval of the Secretary, be resolved in favor of this

subchapter; and'', was executed by making the amendments to par.

(2)(E)(ii) to reflect the probable intent of Congress. See

Effective and Termination Dates of 1994 Amendment note below.

Subsec. (a)(2)(E)(iii). Pub. L. 103-327 temporarily added cl.

(iii) which read as follows:

''(iii)(I) to retain the tenant occupancy profile required by

subparagraph (F)(i), tenants that are determined by the Secretary

to be low-income tenants at initial income certification upon

occupancy, or at the time of implementation of a plan of action

(whichever occurs last), shall pay for rent an amount that is not

less than the lesser of -

''(aa) 30 percent of 45 percent of median income for the area

(as determined by the Secretary and adjusted for family size); or

''(bb) 90 percent of the actual rent paid for a comparable unit

in comparable unassisted housing in the market area in which the

eligible low-income housing is located.

Subject to subclause (II), payment of this minimum rent shall be a

condition of continued occupancy and eligibility for section 8

assistance.

''(II) Notwithstanding the rents required under subclause (I), a

tenant who occupies a unit designated for occupancy by low-income

persons and families, and who becomes a very low-income tenant,

shall be provided with the next available unit designated for

occupancy by very low-income persons and families, and, until such

unit becomes available, shall pay for rent not more than the amount

chargeable as rent under section 1437a(a) of title 42. Such tenant

shall not be evicted for nonpayment of rent if the rent amounts set

forth in this subclause are paid. The costs resulting from the

difference between rents required under subclause (I) and the rents

permitted under this subclause shall be incorporated into the

section 8 contract for units designated for occupancy by low-income

persons or families; and''. See Effective and Termination Dates of

1994 Amendment note below.

Subsec. (a)(2)(F). Pub. L. 103-327, which directed the temporary

amendment of par. (1)(F) by substituting ''to the extent

practicable, the units becoming available to new tenants shall be''

for ''rents for units becoming available to new tenants shall be at

levels approved by the Secretary that will ensure, to the extent

practicable, that the units will be'' in cl. (i), adding cl. (ii),

and redesignating former cl. (ii) as (iii), was executed by making

the amendments to par. (2)(F) to reflect the probable intent of

Congress. Cl. (ii) read as follows: ''in order to maintain the

proportions of very low- and low-income families and persons

required by clause (i), owners shall be required to apply any

required Federal preference rules only with respect to tenants

within each low- or very low-income category, in accordance with

the approved tenant profile; and''. See Effective and Termination

Dates of 1994 Amendment note below.

1992 - Subsec. (a)(2)(A). Pub. L. 102-550, Sec. 317(a)(4)(A),

substituted ''low-income'' for ''low income'' after ''families or

persons,''.

Subsec. (a)(2)(G)(i). Pub. L. 102-550, Sec. 308(b), substituted

'', where the owner is a priority purchaser, to the portion of rent

attributable to project oversight costs'' for ''by making changes

in the annual authorized return under section 4104 of this title''.

Subsec. (c)(2). Pub. L. 102-550, Sec. 317(a)(4)(B), substituted

''a hearing'' for ''an hearing''.

Subsec. (d)(2)(B). Pub. L. 102-550, Sec. 317(a)(4)(C), inserted

''the'' after ''that''.

Subsec. (d)(2)(C)(ii). Pub. L. 102-550, Sec. 317(a)(4)(D),

substituted ''in default'' for ''default''.

Subsec. (e). Pub. L. 102-550, Sec. 308(a), struck out subsec. (e)

which read as follows: ''(e) Windfall Profits. - The Secretary

shall submit a report to the Congress not later than 90 days after

November 28, 1990, evaluating the availability, quality, and

reliability of data to measure the accessibility of decent,

affordable housing in all areas where properties are eligible to

submit a notice of intent to prepay under section 4102 of this

title. To prevent payment of windfall profits, the Secretary may

make available incentive payments under section 4109 or 4110 of

this title only to owners in those rental markets where there is an

inadequate supply of decent, affordable housing, if the Secretary

determines that adequate data can be obtained to permit objective

and fair implementation or where necessary to accomplish the other

public policy objectives under this chapter. The Secretary shall

implement this subsection in a manner consistent with the process

established by this chapter.''

EFFECTIVE AND TERMINATION DATES OF 1994 AMENDMENT

Title II of Pub. L. 103-327, Sept. 28, 1994, 108 Stat. 2316,

provided in part that: ''Section 601 (amending this section and

section 4119 of this title and enacting provisions set out below)

of title VI of S. 2281 (103d Cong., 2d Sess(.)), as reported to the

Senate on July 13 (legislative day, July 11), 1994 (S. Rep.

103-307), is hereby incorporated into this Act (Pub. L. 103-327),

and such section 601 is deemed enacted into law upon enactment of

this Act (Sept. 28, 1994): Provided, That the provisions of such

section 601 shall be effective only during fiscal year 1995.''

Section 601(f) of title VI of S. 2281, One-Hundred Third

Congress, as reported July 13, 1994, which was enacted into law by

title II of Pub. L. 103-327, Sept. 28, 1994, 108 Stat. 2316,

provided in part, that:

''(1) In general. - Except as provided in paragraph (2), this

section (amending this section and section 4119 of this title)

shall take effect on the date of enactment of this Act (Sept. 28,

1994).

''(2) Exception. - If an owner of eligible low-income housing has

a plan of action that has been approved by the Secretary and that

is being implemented as of the date of enactment of this Act (Sept.

28, 1994), subsections (a), (b), (c), and (d) (amending this

section) shall not apply to current tenants of such housing until

the first date on which the next annual rent adjustments are made

following the date of enactment of this Act.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4109, 4110, 4114, 4116,

4121, 4125 of this title.

-CITE-

12 USC Sec. 4113 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4113. Assistance for displaced tenants

-STATUTE-

(a) Section 1437f assistance

Each low-income family that is displaced as a result of the

prepayment of the mortgage or voluntary termination of an insurance

contract on eligible low income housing shall, subject to the

availability or (FOOTNOTE 1) amounts provided under appropriations

Acts, receive tenant-based assistance under section 1437f of title

42. To the extent sufficient amounts are made available under

appropriations Acts, in each fiscal year the Secretary shall

reserve from amounts made available under section 4124(a) of this

title or, if necessary, under section 1437c(c) of title 42, such

amounts as the Secretary determines are necessary to provide

assistance payments for low-income families displaced during the

fiscal year.

(FOOTNOTE 1) So in original. Probably should be ''of''.

(b) Relocation assistance

The Secretary shall coordinate with public housing agencies to

ensure that any very low- or low-income family displaced from

eligible low-income housing as the result of the prepayment of the

mortgage (or termination of the mortgage insurance contract) on

such housing is able to acquire a suitable, affordable dwelling

unit in the area of the housing from which the family is

displaced. The Secretary shall require the owner of such housing

to pay 50 percent of the moving expenses of each family relocated,

except that such percentage shall be increased to the extent that

State or local law of general applicability requires a higher

payment by the owner.

(c) Continued occupancy

(1) In general

Each owner that prepays the mortgage (or terminates the

mortgage insurance contract) on eligible low-income housing

shall, as provided in paragraph (3), allow the tenants occupying

units in such housing on the date of the submission of notice of

intent under section 4102 of this title to remain in the housing

for a period of 3 years, at rent levels (except for increases

necessary for increased operating costs) existing at the time of

prepayment.

(2) Provision of assistance by owner

In any case in which the Secretary requires an owner to allow

tenants to occupy units under paragraph (1), an owner may fulfill

the requirements of such paragraph by providing such assistance

necessary for the tenant to rent a decent, safe, and sanitary

unit in another project for the same period and at a rental cost

to the tenant not in excess of the rental amount the tenant would

have been required to pay in the housing of the owner, except

that the tenant must freely agree to waive the right to occupy

the unit in the owner's housing.

(3) Applicability to low-vacancy areas and special needs tenants

The provisions of this subsection shall apply only to -

(A) eligible low income housing located in a low-vacancy area

(as such term is defined by the Secretary); and

(B) tenants in any eligible low-income housing in any area

who have special needs restricting their ability to relocate

(including elderly tenants and tenants with disabilities), as

determined under regulations established by the Secretary.

(d) Required acceptance of section 1437f assistance

An owner who prepays the mortgage (or terminates the mortgage

insurance contract) on eligible low-income housing and maintains

the housing for residential rental occupancy may not refuse to

rent, refuse to negotiate for the rental of, or otherwise make

unavailable or deny the rent of a dwelling unit in such property to

any person, or discriminate against any person in the terms,

conditions, or privileges of rental of a dwelling (or in the

provision of services or facilities in connection therewith),

because the person receives assistance under section 1437f of title

42.

(e) Regional pools

In providing assistance under this section, the Secretary shall

allocate the assistance on a regional basis through the regional

offices of the Department of Housing and Urban Development. The

Secretary shall allocate assistance under this section in a manner

so that the total number of assisted units in each such region

available for occupancy by, and affordable to, lower income

families and persons does not decrease because of the prepayment or

payment of a mortgage on eligible low-income housing or the

termination of an insurance contract on such housing.

(f) Enhanced voucher assistance for certain tenants

(1) Authority

In lieu of benefits under subsections (b), (c), and (d) of this

section, and subject to the availability of appropriated amounts,

each family described in paragraph (2) shall be offered enhanced

voucher assistance under section 1437f(t) of title 42.

(2) Eligible families

A family described in this paragraph is a family that is -

(A)(i) a low-income family; or

(ii) a moderate-income family that is: (I) an elderly family;

(II) a disabled family; or (III) residing in a low-vacancy

area; and

(B) residing in eligible low-income housing on the date of

the prepayment of the mortgage or voluntary termination of the

insurance contract.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 223, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4264; amended Pub.

L. 105-276, title V, Sec. 550(d), Oct. 21, 1998, 112 Stat. 2610;

Pub. L. 106-74, title V, Sec. 538(c), Oct. 20, 1999, 113 Stat.

1123.)

-MISC1-

AMENDMENTS

1999 - Subsec. (f). Pub. L. 106-74 added subsec. (f).

1998 - Subsec. (a). Pub. L. 105-276 substituted ''tenant-based

assistance under section 1437f of title 42'' for ''assistance under

the certificate and voucher programs under sections 1437f(b) and

1437f(o)''.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by title V of Pub. L. 105-276 effective and applicable

beginning upon Oct. 1, 1999, except as otherwise provided, with

provision that Secretary may implement amendment before such date,

except to extent that such amendment provides otherwise, and with

savings provision, see section 503 of Pub. L. 105-276, set out as a

note under section 1437 of Title 42, The Public Health and Welfare.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1715z-1a, 4106, 4114 of

this title; title 42 section 1437f.

-CITE-

12 USC Sec. 4114 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4114. Permissible prepayment or voluntary termination and

modification of commitments

-STATUTE-

(a) In general

Notwithstanding any limitations on prepayment or voluntary

termination under this subchapter, an owner may terminate the

low-income affordability restrictions through prepayment or

voluntary termination, subject to compliance with the provisions of

section 4113 of this title, under one of the following

circumstances:

(1)(A) The Secretary approves a plan of action under section

4109(a) of this title, but does not provide the assistance

approved in such plan during the 15-month period beginning on the

date of approval.

(B) After the date that the housing would have been eligible

for prepayment pursuant to the terms of the mortgage

(notwithstanding this subchapter), the Secretary approves a plan

of action under section 4110 or 4111 of this title, but does not

provide the assistance approved in such plan before the earlier

of (i) the expiration of the 2-month period beginning on the

commencement of the 1st fiscal year beginning after such

approval, or (ii) the expiration of the 6-month period beginning

on the date of approval.

(C) The Secretary approves a plan of action under section 4110

or 4111 of this title for any eligible low-income housing not

covered by subparagraph (B), but does not provide the assistance

approved in such plan before the earlier of (i) the expiration of

the 2-month period beginning on the commencement of the 1st

fiscal year beginning after such approval, or (ii) the expiration

of the 9-month period beginning on the date of approval.

(2) An owner who intended to transfer the housing to a

qualified purchaser under section 4110 or 4111 of this title, and

fully complied with the provisions of such section, did not

receive any bona fide offers from any qualified purchasers within

the applicable time periods.

In the event that the purchaser under the plan of action is unable

to consummate the purchase for reasons other than the failure of

the Secretary to provide incentives, an owner may terminate the

low-income affordability restrictions through prepayment or

voluntary termination subject to the provisions of sections 4110

and 4111 of this title.

(b) Section 1437f rental assistance

When providing rental assistance under section 1437f of title 42,

the Secretary may enter into a contract with an owner, contingent

upon the future availability of appropriations for the purpose of

renewing expiring contracts for rental assistance as provided in

appropriations Acts, to extend the term of such rental assistance

for such additional period or periods necessary to carry out an

approved plan of action. The contract and the approved plan of

action shall provide that, if the Secretary is unable to extend the

term of such rental assistance or is unable to develop a revised

package of incentives providing benefits to the owner comparable to

those received under the original approved plan of action, the

Secretary, upon the request of the owner, shall take the following

actions (subject to the limitations under the following

paragraphs):

(1) Modification of commitments

Modify the binding commitments made pursuant to section

4112(a)(2) of this title that are dependent on such rental

assistance.

(2) Termination of plan of action

Permit the owner to prepay the mortgage and terminate the plan

of action and any implementing use agreements or restrictions,

but only if the owner agrees in writing to comply with provisions

of section 4113 of this title.

At least 30 days before making a request under this subsection, an

owner shall notify the Secretary of the owner's intention to submit

the request. The Secretary shall have a period of 90 days

following receipt of such notice to take action to extend the

rental assistance contract and to continue the binding commitments

under section 4112(a)(2) of this title.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 224, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4265.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4101, 4105 of this title.

-CITE-

12 USC Sec. 4115 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4115. Timetable for approval of plan of action

-STATUTE-

(a) Notification of deficiencies

Not later than 60 days after receipt of a plan of action, the

Secretary shall notify the owner in writing of any deficiencies

that prevent the plan of action from being approved. If

deficiencies are found, such notice shall describe alternative ways

in which the plan may be revised to meet the criteria for approval.

(b) Notification of approval

(1) In general

Not later than 180 days after receipt of a plan of action, or

such longer period as the owner requests, the Secretary shall

notify the owner in writing whether the plan of action, including

any revisions, is approved. If approval is withheld, the notice

shall describe -

(A) the reasons for withholding approval; and

(B) the actions that could be taken to meet the criteria for

approval.

(2) Opportunity to revise

The Secretary shall subsequently give the owner a reasonable

opportunity to revise the plan of action and seek approval.

(c) Delayed approval

If the Secretary does not approve a plan of action within the

period under subsection (b) of this section, the Secretary shall

provide incentives and assistance under this subchapter in the

amount that the owner would have received if the Secretary had

complied with such time limitations. The preceding sentence shall

not apply if the plan of action was not approved because of

deficiencies. An owner may bring an action in the appropriate

Federal district court to enforce this subsection.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 225, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4266.)

-CITE-

12 USC Sec. 4116 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4116. Resident homeownership program

-STATUTE-

(a) Formation of resident council

Tenants seeking to purchase eligible low-income housing in

accordance with section 4110 of this title shall organize a

resident council for the purpose of developing a resident

homeownership program in accordance with standards established by

the Secretary. The resident council shall work with a public or

private nonprofit organization or a public body (including an

agency or instrumentality thereof). Such organization or public

body shall have experience to enable it to help the tenants

consider their options and to develop the capacity necessary to own

and manage the housing, where appropriate, and shall be approved by

the Secretary.

(b) Other program requirements and limitations

(1) Sales to residents

As a condition of approval of a plan of action involving

homeownership program under this subchapter, the resident council

shall prepare a workable plan acceptable to the Secretary for

giving all residents an opportunity to become owners, which plan

shall identify -

(A) the price at which the resident council intends to

transfer ownership interests in, or shares representing, units

in the housing;

(B) the factors that will influence the establishment of such

price;

(C) how such price compares to the estimated appraised value

of the ownership interests or shares;

(D) the underwriting standard the resident council plans to

use (or reasonably expects a public or private lender to use)

for potential tenant purchasers;

(E) the financing arrangements the tenants are expected to

pursue or be provided; and

(F) a workable schedule of sale (subject to the limitations

of paragraph (8)) based on estimated tenant incomes.

(2) Approval of method of conversion and limitation on conditions

of approval

The Secretary shall approve the method for converting the

housing to homeownership, which may involve acquisition of

ownership interests in, or shares representing, the units in a

project under any arrangement determined by the Secretary to be

appropriate, such as cooperative ownership (including limited

equity cooperative ownership) and fee simple ownership (including

condominium ownership). The Secretary may not require the

prepayment of the mortgage on eligible low-income housing for the

approval of a plan of action involving a homeownership program

for the housing.

(3) Required conditions

The Secretary shall require that the form of homeownership

impose appropriate conditions, including conditions to assure

that -

(A) the number of initial owners that are very low-income,

lower income, or moderate-income persons at initial occupancy

meet standards required or approved by the Secretary;

(B) occupancy charges payable by the owners meet requirements

established by the Secretary;

(C) the aggregate incomes of initial and subsequent owners

and other sources of funds for the project are sufficient to

permit occupancy charges to cover the full operating costs of

the housing and any debt service;

(D) each initial owner occupies the unit it acquires; and

(E) the low-income affordability restrictions shall continue

to apply to any rental units in the housing for any period

during which such units remain rental units.

(4) Use of proceeds from sales to eligible families

The entity that transfers ownership interests in, or shares

representing, units to eligible families, or another entity

specified in the approved application, may use 50 percent of the

proceeds, if any, from the initial sale for costs of the

homeownership program, including improvements to the project,

operating and replacement reserves for the project, additional

homeownership opportunities in the project, and other

project-related activities approved by the Secretary. The

remaining 50 percent of such proceeds shall be returned to the

Secretary for use under section 4110 of this title, subject to

availability under appropriations Acts. Such entity shall keep,

and make available to the Secretary, all records necessary to

calculate accurately payments due the Secretary under this

paragraph.

(5) Restrictions on resale by homeowners

(A) In general

(i) Transfer permitted

A homeowner under a homeownership program may transfer the

homeowner's ownership interest in, or shares representing,

the unit, except that a homeownership program may establish

restrictions on the resale of units under the program.

(ii) Right to purchase

Where a resident management corporation, resident council,

or cooperative has jurisdiction over the unit, the

corporation, council, or cooperative shall have the right to

purchase the ownership interest in, or shares representing,

the unit from the homeowner for the amount specified in a

firm contract between the homeowner and a prospective buyer.

(iii) Promissory note required

The homeowner shall execute a promissory note equal to the

difference, if any, between the market value and the purchase

price, payable to the Secretary, together with a mortgage

securing the obligation of the note.

(B) 6 years or less

In the case of a transfer within 6 years of the acquisition

under the program, the homeownership program shall provide for

appropriate restrictions to assure that an eligible family may

not receive any undue profit. The plan shall provide for

limiting the family's consideration for its interest in the

property to the total of -

(i) the contribution to equity paid by the family;

(ii) the value, as determined by such means as the

Secretary shall determine through regulation, of any

improvements installed at the expense of the family during

the family's tenure as owner; and

(iii) the appreciated value determined by an inflation

allowance at a rate which may be based on a cost-of-living

index, an income index, or market index as determined by the

Secretary through regulation and agreed to by the purchaser

and the entity that transfers ownership interests in, or

shares representing, units to eligible families (or another

entity specified in the approved application), at the time of

initial sale, and applied against the contribution to equity.

Such an entity may, at the time of initial sale, enter into an

agreement with the family to set a maximum amount which this

appreciation may not exceed.

(C) 6-20 years

In the case of a transfer during the period beginning 6 years

after the acquisition and ending 20 years after the

acquisition, the homeownership program shall provide for the

recapture by the Secretary or the program of an amount equal to

the amount of the declining balance on the note described in

subparagraph (A)(iii).

(D) Use of recaptured funds

Any net sales proceeds that may not be retained by the

homeowner under the plan approved pursuant to this paragraph

shall be paid to the HOME Investment Trust Fund for the unit of

general local government in which the housing is located. If

the housing is located in a unit of general local government

that is not a participating jurisdiction (as such term is

defined in section 12704 of title 42), any such net sales

proceeds shall be paid to the HOME Investment Trust Fund for

the State in which the housing is located. With respect to any

proceeds transferred to a HOME Investment Trust Fund under this

subparagraph, the Secretary shall take such actions as are

necessary to ensure that the proceeds shall be immediately

available for eligible activities to expand the supply of

affordable housing under section 12742 of title 42. The

Secretary shall require the maintenance of any records

necessary to calculate accurately payments due under this

paragraph.

(6) Protection of nonpurchasing families

(A) Eviction

No tenant residing in a dwelling unit in a property on the

date the Secretary approves a plan of action may be evicted by

reason of a homeownership program approved under this

subchapter.

(B) Rental assistance

If a tenant decides not to purchase a unit, or is not

qualified to do so, the Secretary shall ensure that rental

assistance under section 1437f of title 42 is available for use

by each otherwise qualified tenant (that meets the eligibility

requirements under such section) in that or another property.

Any system for preferences established under section

1437f(d)(1)(A) or 1437f(o)(6)(A) of title 42 shall not apply to

the provision of assistance to such families.

(C) Relocation assistance

The resident council shall also inform each such tenant that

if the tenant chooses to move, the owner will pay relocation

assistance in accordance with the approved homeownership

program.

(7) Qualified management

As a condition of approval of a homeownership program under

this subchapter, the resident council shall have demonstrated its

abilities to manage eligible properties by having done so

effectively and efficiently for a period of not less than 3 years

or by entering into a contract with a qualified management entity

that meets such standards as the Secretary may prescribe to

ensure that the property will be maintained in a decent, safe,

and sanitary condition.

(8) Timely homeownership

Except in the case of limited equity cooperatives, resident

councils shall transfer ownership of the property to tenants

within a specified period of time that the Secretary determines

to be reasonable. During the interim period when the property

continues to be operated and managed as rental housing, the

resident council shall utilize written tenant selection policies

and criteria that are approved by the Secretary as consistent

with the purpose of providing housing for very low-income

families. The resident council shall promptly notify in writing

any rejected applicant of the grounds for any rejection.

(9) Records and audit of resident councils

(A) Maintenance

Each resident council shall keep such records as may be

reasonably necessary to fully disclose the amount and the

disposition by such resident council of the proceeds of

assistance received under this subchapter (including any

proceeds from sales under paragraphs (4) and (5)(D)), the total

cost of the homeownership program in connection with which such

assistance is given or used, and the amount and nature of that

portion of the program supplied by other sources, and such

other sources as will facilitate an effective audit.

(B) Access

The Secretary shall have access for the purpose of audit and

examination to any books, documents, papers, and records of the

resident council that are pertinent to assistance received

under this subchapter.

(C) Audit

The Comptroller General of the United States, or any of the

duly authorized representatives of the Comptroller General,

shall also have access for the purpose of audit and examination

to any books, documents, papers, and records of the resident

council that are pertinent to assistance received under this

subchapter.

(10) Assumption conditions

Any entity that assumes a mortgage covering low-income housing

in connection with the acquisition of the housing from an owner

under this section must comply with any low-income affordability

restrictions for the remaining useful life of the housing as

determined under section 4112(c) of this title.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 226, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4267; amended Pub.

L. 102-550, title III, Sec. 309, Oct. 28, 1992, 106 Stat. 3765;

Pub. L. 105-276, title V, Sec. 514(b)(2)(A), Oct. 21, 1998, 112

Stat. 2548.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(6)(B). Pub. L. 105-276, which directed the

substitution of ''Any system for preferences established under

section 1437f(d)(1)(A) or 1437f(o)(6)(A)'' for ''The requirement

for giving preferences to certain categories of eligible families

under sections 1437f(d)(1)(A) and 1437f(o)(3)'' in second sentence,

was executed by making the substitution for text which included the

word ''preference'' rather than ''preferences'' to reflect the

probable intent of Congress.

1992 - Subsec. (b)(2). Pub. L. 102-550, Sec. 309(1), inserted

''and limitation on conditions of approval'' in heading and

inserted at end of text ''The Secretary may not require the

prepayment of the mortgage on eligible low-income housing for the

approval of a plan of action involving a homeownership program for

the housing.''

Subsec. (b)(3)(E). Pub. L. 102-550, Sec. 309(2), added subpar.

(E).

Subsec. (b)(8). Pub. L. 102-550, Sec. 309(3), substituted

''Except in the case of limited equity cooperatives, resident'' for

''Resident''.

Subsec. (b)(10). Pub. L. 102-550, Sec. 309(4), struck out '', as

determined by the Secretary,'' after ''entity that assumes'',

substituted ''4112(c)'' for ''4112(d)'', and struck out at end

''This requirement shall only apply to an entity, such as a

cooperative association, that, as determined by the Secretary,

intends to own the housing on a permanent basis.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4110 of this title; title

42 section 1437f.

-CITE-

12 USC Sec. 4117 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4117. Delegated responsibility to State agencies

-STATUTE-

(a) In general

In addition to any responsibilities delegated under section

4103(c) of this title, the Secretary shall delegate some or all

responsibility for implementing this subchapter to a State housing

agency if such agency submits a preservation plan acceptable to the

Secretary.

(b) Approval

State preservation plans shall be submitted in such form and in

accordance with such procedures as the Secretary shall establish.

The Secretary may approve plans that contain -

(1) an inventory of low-income housing located within the State

that is or will be eligible low-income housing under this

subchapter within 5 years;

(2) a description of the agency's experience in the area of

multifamily financing and restructuring;

(3) a description of the administrative resources that the

agency will commit to the processing of plans of action in

accordance with this subchapter;

(4) a description of the administrative resources that the

agency will commit to the monitoring of approved plans of action

in accordance with this subchapter;

(5) an independent analysis of the performance of the

multifamily housing inventory financed or otherwise monitored by

the agency;

(6) a certification by the public official responsible for

submitting the comprehensive housing affordability strategy under

section 12705 of title 42 that the proposed activities are

consistent with the approved housing strategy of the State within

which the eligible low-income housing is located; and

(7) such other certifications or information that the Secretary

determines to be necessary or appropriate to achieve the purposes

of this subchapter.

(c) Implementation agreements

The Secretary may enter into any agreements necessary to

implement an approved State preservation plan, which may include

incentives that are authorized under other provisions of this

subchapter.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 227, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4270.)

-MISC1-

REGULATIONS

Pub. L. 102-550, title III, Sec. 315, Oct. 28, 1992, 106 Stat.

3770, provided that: ''The Secretary of Housing and Urban

Development shall issue interim regulations implementing section

227 of the Housing and Community Development Act of 1987 (as

amended by section 601(a) of the Cranston-Gonzalez National

Affordable Housing Act) (12 U.S.C. 4117) not later than the

expiration of the 30-day period beginning on the date of the

enactment of this Act (Oct. 28, 1992), which shall take effect upon

issuance. The Secretary shall issue final regulations implementing

such section 227 after notice and opportunity for public comment

regarding the interim regulations, pursuant to the provisions of

section 553 of title 5, United States Code (notwithstanding

subsections (a)(2), (b)(B), and (d)(3) of such section). The

duration of the period for public comment shall not be less than 60

days, and the final regulations shall be issued not later than the

expiration of the 60-day period beginning upon the conclusion of

the comment period and shall take effect upon issuance.''

-CITE-

12 USC Sec. 4118 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4118. Consultations with other interested parties

-STATUTE-

The Secretary shall confer with any appropriate State or local

government agency to confirm any State or local assistance that is

available to achieve the purposes of this title (FOOTNOTE 1) and

shall give consideration to the views of any such agency when

making determinations under this subchapter. The Secretary shall

also confer with appropriate interested parties that the Secretary

believes could assist in the development of a plan of action that

best achieves the purposes of this subchapter.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 228, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4271.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in text, means title II of Pub. L.

100-242, as amended by Pub. L. 101-625, title VI, Sec. 601(a), Nov.

28, 1990, 104 Stat. 4249, known as the Low-Income Housing

Preservation and Resident Homeownership Act of 1990, which is

classified principally to this chapter. For complete

classification of this Act to the Code, see Short Title note set

out under section 4101 of this title and Tables.

-CITE-

12 USC Sec. 4119 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4119. Definitions

-STATUTE-

For purposes of this subchapter:

(1) The term ''eligible low-income housing'' means any housing

financed by a loan or mortgage -

(A) that is -

(i) insured or held by the Secretary under section

1715l(d)(3) of this title and receiving loan management

assistance under section 1437f of title 42 due to a

conversion from section 1701s of this title;

(ii) insured or held by the Secretary and bears interest at

a rate determined under the proviso of section 1715l(d)(5) of

this title;

(iii) insured, assisted, or held by the Secretary or a

State or State agency under section 1715z-1 of this title; or

(iv) held by the Secretary and formerly insured under a

program referred to in clause (i), (ii), or (iii); and

(B) that, under regulation or contract in effect before

February 5, 1988, is or will within 24 months become eligible

for prepayment without prior approval of the Secretary.

(2) The term ''Federal cost limit'' means, for any eligible

low-income housing, the amount determined under section 4105(a)

of this title.

(3) The term ''low-income affordability restrictions'' means

limits imposed by regulation or regulatory agreement on tenant

rents, rent contributions, or income eligibility in eligible

low-income housing.

(4) The terms ''low-income families or persons'' and ''very

low-income families or persons'' mean families or persons whose

incomes do not exceed the respective levels established for

low-income families and very low-income families, respectively,

under section 1437a(b)(2) of title 42.

(5) The term ''moderate-income families or persons'' means

families or persons whose incomes are between 80 percent and 95

percent of the median income for the area, as determined by the

Secretary with adjustments for smaller and larger families.

(6) The term ''nonprofit organization'' means any private,

nonprofit organization that -

(A) is organized or chartered under State or local laws;

(B) has no part of its net earnings inuring to the benefit of

any member, founder, contributor, or individual;

(C) complies with standards of financial accountability

acceptable to the Secretary; and

(D) has among its principal purposes significant activities

related to the provision of decent housing that is affordable

to very low-, low-, and moderate-income families.

(7) The term ''owner'' means the current or subsequent owner or

owners of eligible low-income housing.

(8) The term ''preservation equity'' means, for any eligible

low-income housing -

(A) for purposes of determining the authorized return under

section 4104(a) of this title and providing incentives to

extend the low-income affordability restrictions on the housing

under section 4109 of this title -

(i) the preservation value of the housing determined under

section 4103(b)(1) of this title; less

(ii) any debt secured by the property; and

(B) for purposes of determining incentives under section

(FOOTNOTE 1) 4110 and 4111 of this title and determining the

amount of an acquisition loan under the provisions of section

1715z-6(f)(3) (FOOTNOTE 2) of this title -

(FOOTNOTE 1) So in original. Probably should be ''sections''.

(FOOTNOTE 2) See References in Text note below.

(i) the preservation value of the housing determined under

section 4103(b)(2) of this title; less

(ii) the outstanding balance of the federally-assisted

mortgage or mortgages for the housing.

(9) The term ''preservation value'' means, for any eligible

low-income housing, the applicable value determined under

paragraph (1) or (2) of section 4103(b) of this title.

(10) The term ''Secretary'' means the Secretary of Housing and

Urban Development.

(11) The term ''resident council'' means any incorporated

nonprofit organization or association that -

(A) is representative of the residents of the housing;

(B) adopts written procedures providing for the election of

officers on a regular basis; and

(C) has a democratically elected governing board, elected by

the residents of the housing.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 229, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4271; amended Pub.

L. 102-550, title III, Sec. 310, 317(a)(5), Oct. 28, 1992, 106

Stat. 3765, 3772; Pub. L. 103-327, title II, Sept. 28, 1994, 108

Stat. 2316.)

-REFTEXT-

REFERENCES IN TEXT

Section 1715z-6(f) of this title, referred to in par. (8)(B), was

repealed by Pub. L. 104-204, title II, Sept. 26, 1996, 110 Stat.

2885.

-COD-

CODIFICATION

Amendment by Pub. L. 103-327 is based on section 601(e) of title

VI of S. 2281, One Hundred Third Congress, as reported July 13,

1994, which was enacted into law by Pub. L. 103-327.

-MISC3-

AMENDMENTS

1994 - Par. (4). Pub. L. 103-327 temporarily amended par. (4) to

read as follows:

''(4)(A) The term 'low-income tenants' means families or persons

with incomes that exceed 50 percent of the median income for the

area (as determined by the Secretary with adjustments for family

size) but do not exceed 80 percent of the median income for the

area (as determined by the Secretary with adjustments for family

size).

''(B) The term 'very low-income tenants' means families or

persons with incomes that are less than or equal to 50 percent of

the median income for the area (as determined by the Secretary with

adjustments for family size).'' See Effective and Termination Dates

of 1994 Amendment note below.

1992 - Par. (1)(A)(i). Pub. L. 102-550, Sec. 310, substituted

''receiving loan management assistance under section 1437f of title

42 due to a conversion from section 1701s of this title'' for

''assisted under section 1701s of this title or section 1437f of

title 42''.

Par. (11)(A). Pub. L. 102-550, Sec. 317(a)(5), substituted

''residents'' for ''resident''.

EFFECTIVE AND TERMINATION DATES OF 1994 AMENDMENT

Amendment by Pub. L. 103-327 effective only during fiscal year

1995, see provision of title II of Pub. L. 103-327 set out as a

note under section 4112 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1715z-1a, 1715z-15, 4104,

4109, 4122, 4146 of this title.

-CITE-

12 USC Sec. 4120 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4120. Notice to tenants

-STATUTE-

Where a provision of this subchapter requires that information or

material be given to tenants of the housing, the requirement may be

met by (1) posting a copy of the information or material in readily

accessible locations within each affected building, or posting

notices in each such location describing the information or

material and specifying a location, as convenient to the tenants as

is reasonably practical, where a copy may be examined, and (2)

supplying a copy of the information or material to a representative

of the tenants.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 230, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4273.)

-CITE-

12 USC Sec. 4121 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4121. Definitions of qualified and priority purchaser and

related party rule

-STATUTE-

(a) Priority purchaser

The term ''priority purchaser'' means (A) a resident council

organized to acquire the housing in accordance with a resident

homeownership program that meets the requirements of section 4121

(FOOTNOTE 1) of this title; and (B) any nonprofit organization or

State or local agency that agrees to maintain low-income

affordability restrictions for the remaining useful life of the

housing (as determined under section 4112(d) (FOOTNOTE 2) of this

title).

(FOOTNOTE 1) So in original. Probably should be section

''4116''.

(FOOTNOTE 2) So in original. Probably should be section

''4112(c)''.

(b) Qualified purchaser

The term ''qualified purchaser'' means any entity that agrees to

maintain low-income affordability restrictions for the remaining

useful life of the housing (as determined under section 4112(c) of

this title), and includes for-profit entities and priority

purchasers.

(c) Related parties

Except as provided in subsection (d) of this section, the terms

''qualified purchaser'' and ''priority purchaser'' do not include

any entity that, either directly or indirectly, is wholly or

partially owned or controlled by the owner of the housing being

transferred under this subchapter, is under whole or partial common

control with such owner, or has any financial interest in such

owner or in which such owner has any financial interest. The

Secretary shall issue any regulations appropriate to implement the

preceding sentence.

(d) Management exception

A qualified purchaser shall not be precluded from retaining as a

property management entity a company that is owned or controlled by

the selling owner or a principal thereof if retention of the

management company is neither a condition of sale nor part of

consideration paid for sale and the property management contract is

negotiated by the qualified purchaser on an arm's length basis.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 231, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4273; amended Pub.

L. 102-550, title III, Sec. 317(a)(6), Oct. 28, 1992, 106 Stat.

3772.)

-MISC1-

AMENDMENTS

1992 - Subsec. (b). Pub. L. 102-550 substituted ''4112(c)'' for

''4112(d)''.

-CITE-

12 USC Sec. 4122 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4122. Preemption of State and local laws

-STATUTE-

(a) In general

No State or political subdivision of a State may establish,

continue in effect, or enforce any law or regulation that -

(1) restricts or inhibits the prepayment of any mortgage

described in section 4119(1) of this title (or the voluntary

termination of any insurance contract pursuant to section 1715t

of this title) on eligible low income housing;

(2) restricts or inhibits an owner of such housing from

receiving the authorized annual return provided under section

4104 of this title;

(3) is inconsistent with any provision of this subchapter,

including any law, regulation, or other restriction that limits

or impairs the ability of any owner of eligible low income

housing to receive incentives authorized under this subchapter

(including authorization to increase rental rates, transfer the

housing, obtain secondary financing, or use the proceeds of any

of such incentives); or

(4) in its applicability to low-income housing is limited only

to eligible low-income housing for which the owner has prepaid

the mortgage or terminated the insurance contract.

Any law, regulation, or restriction described under paragraph (1),

(2), (3), or (4) shall be ineffective and any eligible low-income

housing exempt from the law, regulation, or restriction, only to

the extent that it violates the provisions of this subsection.

(b) Effect

This section shall not prevent the establishment, continuing in

effect, or enforcement of any law or regulation of any State or

political subdivision of a State not inconsistent with the

provisions of this subchapter, such as any law or regulation

relating to building standards, zoning limitations, health, safety,

or habitability standards for housing, rent control, or conversion

of rental housing to condominium or cooperative ownership, to the

extent such law or regulation is of general applicability to both

housing receiving Federal assistance and nonassisted housing. This

section shall not preempt, annul, or alter any contractual

restrictions or obligations existing before November 28, 1990, that

prevent or limit an owner of eligible low-income housing from

prepaying the mortgage on the housing (or terminating the insurance

contract on the housing).

-SOURCE-

(Pub. L. 100-242, title II, Sec. 232, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4273; amended Pub.

L. 102-550, title III, Sec. 311, Oct. 28, 1992, 106 Stat. 3765.)

-MISC1-

AMENDMENTS

1992 - Subsec. (b). Pub. L. 102-550 substituted '', such as any

law or regulation'' for ''and'' after ''subchapter''.

-CITE-

12 USC Sec. 4123 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4123. Severability

-STATUTE-

If any provision of this subchapter, or the application of such

provision with respect to any person or circumstance, is held

invalid, the remainder of this Act, and the application of such

provision to any other person or circumstance, shall not be

affected by such holding.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 233, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4274.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in text, is Pub. L. 100-242, Feb. 5, 1988,

101 Stat. 1815, as amended, known as the Housing and Community

Development Act of 1987. For complete classification of this Act to

the Code, see Short Title of 1988 Amendment note under section 5301

of Title 42, The Public Health and Welfare, and Tables.

-CITE-

12 USC Sec. 4124 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4124. Authorization of appropriations

-STATUTE-

(a) In general

There are authorized to be appropriated for assistance and

incentives authorized under this subchapter $638,252,784 for fiscal

year 1993 and $665,059,401 for fiscal year 1994.

(b) Grants

Subject to approval in appropriation Acts, not more than

$50,000,000 of the amounts made available under subsection (a) of

this section for fiscal year 1993, and not more than $50,000,000 of

the amounts made available under subsection (a) of this section for

fiscal year 1994, shall be available for grants under section

4111(d)(2) of this title.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 234, as added Pub. L. 101-625,

title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4274; amended Pub.

L. 102-550, title III, Sec. 301, Oct. 28, 1992, 106 Stat. 3762.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 amended section generally. Prior to

amendment, section read as follows:

''(a) General. - There are authorized to be appropriated for

assistance and incentives authorized under this chapter

$425,000,000 for fiscal year 1991 and $858,000,000 for fiscal year

1992.

''(b) Grants. - Of the amounts made available under subsection

(a) of this section, not more than $100,000,000 for each of fiscal

years 1991 and 1992 shall be available for grants under section

4111(d)(2) of this title, subject to approval in appropriations

Acts.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4111, 4113, 4147 of this

title.

-CITE-

12 USC Sec. 4125 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER I - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL

HOUSING ACT

-HEAD-

Sec. 4125. State preservation project assistance

-STATUTE-

(1) In general

Upon application by a State or local housing authority (including

public housing agencies), the Secretary of Housing and Urban

Development may make available, from sources of assistance

appropriated to preserve the low and moderate income status of

projects with expiring Federal use restrictions, assistance to such

State or local housing authorities for use in preventing the loss

of housing affordable for low and moderate income families that is

assisted under a State program under the terms of which the owner

may prepay a State assisted or subsidized mortgage on such

housing. The application of the State or local housing authority

shall demonstrate to the Secretary that the total amount of

incentives provided to the owner to induce the owner to preserve

the low and moderate income status of the project shall not exceed

the level of incentives which may be provided to a similarly

situated project with expiring Federal use restrictions under

subtitle B of title II of the Housing and Community Development Act

of 1987 (12 U.S.C. 4101 et seq.).

(2) Section 1437f

Any assistance under section 1437f of title 42 made available

pursuant to this section may be used (i) to supplement any

assistance available on existing section 8 (42 U.S.C. 1437f)

contracts, or (ii) to provide additional assistance to structures

to ensure that all units occupied by tenants who are lower income

families (as such term is defined in section 1437a(b) of title 42)

pay rents not exceeding 30 percent of their adjusted incomes. Any

project receiving assistance hereunder shall be subject to

standards, inspections and sanctions established by the Secretary

under section 222(d) of the Housing and Community Development Act

of 1987 (12 U.S.C. 4112(d)). Any such section 8 (42 U.S.C. 1437f)

assistance shall be provided for a term and at the fair market rent

levels or such higher levels used as applicable for eligible

low-income housing that receives incentives under subtitle B of

title II of the Housing and Community Development Act of 1987 (12

U.S.C. 4101 et seq.).

(3) Restriction

Assistance may be provided under this section only to State and

local housing authorities that require any housing receiving such

assistance to remain affordable for lower and moderate income

tenants for the period during which assistance under this section

is received.

-SOURCE-

(Pub. L. 101-625, title VI, Sec. 613(b), Nov. 28, 1990, 104 Stat.

4280; Pub. L. 102-550, title III, Sec. 317(b), Oct. 28, 1992, 106

Stat. 3772.)

-REFTEXT-

REFERENCES IN TEXT

The Housing and Community Development Act of 1987, referred to in

pars. (1) and (2), is Pub. L. 100-242, Feb. 5, 1988, 101 Stat.

1815, as amended. Subtitle B of title II of the Act is classified

generally to this subchapter (Sec. 4101 et seq.). For complete

classification of this Act to the Code, see Short Title of 1988

Amendment note under section 5301 of Title 42, The Public Health

and Welfare, and Tables.

-COD-

CODIFICATION

Section was enacted as part of the Cranston-Gonzalez National

Affordable Housing Act, and not as part of the Low-Income Housing

Preservation and Resident Homeownership Act of 1990 which comprises

this chapter.

-MISC3-

AMENDMENTS

1992 - Par. (2). Pub. L. 102-550 substituted ''222(d)'' for

''224(e)''.

-CITE-

12 USC SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY

BUILDING 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

.

-HEAD-

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 1701z-11 of this title.

-CITE-

12 USC Sec. 4141 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

-HEAD-

Sec. 4141. Authority

-STATUTE-

The Secretary of Housing and Urban Development may provide

technical assistance and capacity building to further the

preservation program established under this title. (FOOTNOTE 1)

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 251, as added Pub. L. 102-550,

title III, Sec. 312, Oct. 28, 1992, 106 Stat. 3766.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in text, means title II of Pub. L.

100-242, as amended by Pub. L. 101-625, title VI, Sec. 601(a), Nov.

28, 1990, 104 Stat. 4249, known as the Low-Income Housing

Preservation and Resident Homeownership Act of 1990, which is

classified principally to this chapter. For complete

classification of this Act to the Code, see Short Title note set

out under section 4101 of this title and Tables.

-CITE-

12 USC Sec. 4142 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

-HEAD-

Sec. 4142. Purposes

-STATUTE-

The purposes of this subchapter are -

(1) to promote the ability of residents of eligible low-income

housing to meaningfully participate in the preservation process

established by this title (FOOTNOTE 1) and affect decisions about

the future of their housing;

(FOOTNOTE 1) See References in Text note below.

(2) to promote the ability of community-based nonprofit housing

developers and resident councils to acquire, rehabilitate, and

competently own and manage eligible housing as rental or

cooperative housing for low- and moderate-income people; and

(3) to assist the Secretary in discharging the obligation under

section 4110 of this title to notify potential qualified

purchasers of the availability of properties for sale and to

otherwise facilitate the coordination and oversight of the

preservation program established under this title. (FOOTNOTE 1)

-SOURCE-

(Pub. L. 100-242, title II, Sec. 252, as added Pub. L. 102-550,

title III, Sec. 312, Oct. 28, 1992, 106 Stat. 3766.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in pars. (1) and (3), means title II of

Pub. L. 100-242, as amended by Pub. L. 101-625, title VI, Sec.

601(a), Nov. 28, 1990, 104 Stat. 4249, known as the Low-Income

Housing Preservation and Resident Homeownership Act of 1990, which

is classified principally to this chapter. For complete

classification of this Act to the Code, see Short Title note set

out under section 4101 of this title and Tables.

-CITE-

12 USC Sec. 4143 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

-HEAD-

Sec. 4143. Grants for building resident capacity and funding

predevelopment costs

-STATUTE-

(a) In general

Assistance made available under this section shall be used for

direct assistance grants to resident organizations and

community-based nonprofit housing developers and resident councils

to assist the acquisition of specific projects (including the

payment of reasonable administrative expenses to participating

intermediaries).

(b) Allocation

30 percent of the assistance made available under this section

shall be used for resident capacity grants in accordance with

subsection (d) of this section. The remainder shall be used for

predevelopment grants in connection with specific projects in

accordance with subsection (e) of this section.

(c) Limitation on grant amounts

A resident capacity grant under subsection (d) of this section

may not exceed $30,000 per project and a grant under subsection (e)

of this section for predevelopment costs may not exceed $200,000

per project, exclusive of any fees paid to a participating

intermediary by the Secretary for administering the program.

(d) Resident capacity grants

(1) Use

Resident capacity grants under this subsection shall be

available to eligible applicants to cover expenses for resident

outreach, incorporation of a resident organization or council,

conducting democratic elections, training, leadership

development, legal and other technical assistance to the board of

directors, staff and members of the resident organization or

council.

(2) Eligible housing

Grants under this subsection may be provided with respect to

eligible low-income housing for which the owner has filed a

notice of intent under subchapter I of this chapter or title II

of the Emergency Low Income Housing Preservation Act of 1987

(pursuant to section 604 of the Cranston-Gonzalez National

Affordable Housing Act).

(e) Predevelopment grants

(1) Use

Predevelopment grants under this subsection shall be made

available to community-based nonprofit housing developers and

resident councils to cover the cost of organizing a purchasing

entity and pursuing an acquisition, including third party costs

for training, development consulting, legal, appraisal,

accounting, environmental, architectural and engineering,

application fees, and sponsor's staff and overhead costs.

(2) Eligible housing

Such grants may only be made available with respect to any

eligible low-income housing project for which the owner has filed

an initial notice of intent to transfer the housing to a

qualified purchaser in accordance with section 4110 of this

title, or has filed a notice of intent and entered into a binding

agreement to sell the housing to a resident organization or

nonprofit organization.

(3) Phase-in of grant payments

Grant payments under this subsection shall be made in phases,

based on performance benchmarks established by the Secretary in

consultation with intermediaries selected under section 4145(b)

of this title.

(f) Grant applications

Grant applications for assistance under subsections (d) and (e)

of this section shall be received monthly on a rolling basis and

approved or rejected on at least a quarterly basis by

intermediaries selected under section 4145(b) of this title.

(g) Appeal

If an application for assistance under subsections (FOOTNOTE 1)

(d) or (e) of this section is denied, the applicant shall have the

right to appeal the denial to the Secretary and receive a binding

determination within 30 days of the appeal.

(FOOTNOTE 1) So in original. Probably should be ''subsection''.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 253, as added Pub. L. 102-550,

title III, Sec. 312, Oct. 28, 1992, 106 Stat. 3766.)

-REFTEXT-

REFERENCES IN TEXT

Title II of the Emergency Low Income Housing Preservation Act of

1987, referred to in subsec. (d)(2), probably means title II of

Pub. L. 100-242, Feb. 5, 1988, 102 Stat. 1877, prior to being

amended generally by Pub. L. 101-625, Sec. 601(a), which was known

as the Emergency Low Income Housing Preservation Act of 1987 and

which was classified principally as a note under section 1715l of

this title. Title II of Pub. L. 100-242 was amended generally by

Pub. L. 101-625, title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat.

4249, and is now known as the Low-Income Housing Preservation and

Resident Homeownership Act of 1990, which is classified principally

to this chapter. For complete classification of this Act to the

Code, see Short Title note set out under section 4101 of this title

and Tables.

Section 604 of the Cranston-Gonzalez National Affordable Housing

Act, referred to in subsec. (d)(2), is section 604 of Pub. L.

101-625, which is set out as a note under section 4101 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4145, 4147 of this title.

-CITE-

12 USC Sec. 4144 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

-HEAD-

Sec. 4144. Grants for other purposes

-STATUTE-

The Secretary may provide grants under this subchapter -

(1) to resident-controlled or community-based nonprofit

organizations with experience in resident education and

organizing for the purpose of conducting community, city or

county wide outreach and training programs to identify and

organize residents of eligible low-income housing; and

(2) to State and local government agencies and nonprofit

intermediaries for the purpose of carrying out such activities as

the Secretary deems appropriate to further the preservation

program established under this title. (FOOTNOTE 1)

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 254, as added Pub. L. 102-550,

title III, Sec. 312, Oct. 28, 1992, 106 Stat. 3767.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in par. (2), means title II of Pub. L.

100-242, as amended by Pub. L. 101-625, title VI, Sec. 601(a), Nov.

28, 1990, 104 Stat. 4249, known as the Low-Income Housing

Preservation and Resident Homeownership Act of 1990, which is

classified principally to this chapter. For complete

classification of this Act to the Code, see Short Title note set

out under section 4101 of this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4145, 4147 of this title.

-CITE-

12 USC Sec. 4145 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

-HEAD-

Sec. 4145. Delivery of assistance through intermediaries

-STATUTE-

(a) In general

The Secretary shall approve and disburse assistance under section

4143 of this title through eligible intermediaries selected by the

Secretary under subsection (b) of this section. If the Secretary

does not receive an acceptable proposal from an intermediary

offering to administer assistance under this section in a given

State, the Secretary shall administer the program in such State

directly.

(b) Selection of eligible intermediaries

(1) In general

The Secretary shall develop criteria to select eligible

intermediaries, through a competitive process, to administer

assistance under this subchapter. The process shall include

provision for a reasonable administrative fee.

(2) Priority

With respect to all forms of grants available under section

4143 of this title, such criteria shall give priority to

applications from eligible intermediaries with demonstrated

expertise or experience with the program established under this

title (FOOTNOTE 1) or under the Emergency Low Income Housing

Preservation Act of 1987.

(FOOTNOTE 1) See References in Text note below.

(3) Criteria

The criteria developed under this subsection shall -

(A) not assign any preference or priority to applications

from eligible intermediaries based on their previous

participation in administering or receiving Federal grants or

loans (but may exclude applicants who have failed to perform

under prior contracts of a similar nature);

(B) require an applicant to prepare a proposal that

demonstrates adequate staffing, qualifications, prior

experience, and a plan for participation; and

(C) permit an applicant to serve as the administrator of

assistance made available under section 4143(d) or (e) of this

title, based on the applicant's suitability and interest.

(4) Geographic coverage

The Secretary may select more than 1 State or regional

intermediary for a single State or region. The number of

intermediaries chosen for each State or region may be based on

the number of eligible low-income housing projects in the State

or region, provided there is no duplication of geographic

coverage by intermediaries in the administration of the direct

assistance grant program.

(5) National nonprofit intermediaries

National nonprofit intermediaries shall be selected to

administer the assistance made available under section 4143 of

this title only with respect to States or regions for which no

other eligible intermediary, acceptable to the Secretary, has

submitted a proposal to participate.

(6) Preference

With respect to assistance made available under section 4144 of

this title, preference shall be given to eligible regional,

State, and local intermediaries, over national nonprofit

organizations.

(c) Conflicts of interest

Eligible intermediaries selected under subsection (b) of this

section to disburse assistance under section 4143 of this title

shall certify that they will serve only as delegated program

administrators, charged with the responsibility for reviewing and

approving grant applications on behalf of the Secretary. Selected

intermediaries shall -

(1) establish appropriate procedures for grant administration

and fiscal management, pursuant to standards established by the

Secretary; and

(2) receive a reasonable administrative fee, except that they

may not provide other services to grant recipients with respect

to projects that are the subject of the grant application and may

not receive payment, directly or indirectly, from the proceeds of

grants they have approved.

(d) ''Eligible intermediary'' defined

For purposes of this section, the term ''eligible intermediary''

means a State, regional, or national organization (including a

quasi-public organization) or a State or local housing agency that

-

(1) has as a central purpose the preservation of existing

affordable housing and the prevention of displacement;

(2) does not receive direct Federal appropriations for

operating support;

(3) in the case of a national nonprofit organization, has been

in existence for at least 5 years prior to the date of

application and has been classified by the Internal Revenue

Service as an exempt organization under section 501(c)(3) of

title 26;

(4) in the case of a regional or State nonprofit organization,

has been in existence for at least 3 years prior to the date of

application and has been classified by the Internal Revenue

Service as an exempt organization under section 501(c)(3) of

title 26 or is otherwise a tax-exempt entity;

(5) has a record of service to low-income individuals or

community-based nonprofit housing developers in multiple

communities and, with respect to intermediaries administering

assistance under section 4143 of this title, has experience with

the allocation or administration of grant or loan funds; and

(6) meets standards of fiscal responsibility established by the

Secretary.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 255, as added Pub. L. 102-550,

title III, Sec. 312, Oct. 28, 1992, 106 Stat. 3767.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in subsec. (b)(2), means title II of Pub.

L. 100-242, as amended by Pub. L. 101-625, title VI, Sec. 601(a),

Nov. 28, 1990, 104 Stat. 4249, known as the Low-Income Housing

Preservation and Resident Homeownership Act of 1990, which is

classified principally to this chapter. For complete

classification of this Act to the Code, see Short Title note set

out under section 4101 of this title and Tables.

The Emergency Low Income Housing Preservation Act of 1987,

referred to in subsec. (b)(2), is title II of Pub. L. 100-242, Feb.

5, 1988, 101 Stat. 1877, as amended, which was classified

principally as a note under section 1715l of this title. Title II

of Pub. L. 100-242 was amended generally by Pub. L. 101-625, title

VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4249, and is now known as

the Low-Income Housing Preservation and Resident Homeownership Act

of 1990, which is classified principally to this chapter. For

complete classification of this Act to the Code, see Short Title

note set out under section 4101 of this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4143 of this title.

-CITE-

12 USC Sec. 4146 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

-HEAD-

Sec. 4146. Definitions

-STATUTE-

For purposes of this subchapter -

(1) the term ''community-based nonprofit housing developer''

means a nonprofit community development corporation that -

(A) has been classified by the Internal Revenue Service as an

exempt organization under section 501(c)(3) of title 26;

(B) has been in existence for at least 2 years prior to the

date of the grant application;

(C) has a record of service to low- and moderate-income

people in the community in which the project is located;

(D) is organized at the neighborhood, city, county or

multi-county level; and

(E) in the case of a corporation acquiring eligible housing

under subchapter I of this chapter, agrees to form a purchaser

entity that conforms to the definition of a community-based

nonprofit organization under such subchapter and agrees to use

its best efforts to secure majority tenant consent to the

acquisition of the project for which grant assistance is

requested; and

(2) the terms ''eligible low-income housing'', ''nonprofit

organization'', ''owner'', and ''resident council'' have the

meanings given such terms in section 4119 of this title.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 256, as added Pub. L. 102-550,

title III, Sec. 312, Oct. 28, 1992, 106 Stat. 3769.)

-CITE-

12 USC Sec. 4147 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 42 - LOW-INCOME HOUSING PRESERVATION AND RESIDENT

HOMEOWNERSHIP

SUBCHAPTER II - TECHNICAL ASSISTANCE AND CAPACITY BUILDING

-HEAD-

Sec. 4147. Funding

-STATUTE-

The Secretary shall use not more than $25,000,000 of the amounts

made available under section 4124(a) of this title for fiscal year

1993, and not more than $25,000,000 of the amounts made available

under section 4124(a) of this title for fiscal year 1994, to carry

out this subchapter. Of any amounts made available to carry out

this subchapter in any appropriation Act, 90 percent shall be set

aside for use in accordance with section 4143 of this title and 10

percent shall be set aside for use in accordance with subsection

(FOOTNOTE 1) 4144 of this title.

(FOOTNOTE 1) So in original. Probably should be ''section''.

-SOURCE-

(Pub. L. 100-242, title II, Sec. 257, as added Pub. L. 102-550,

title III, Sec. 312, Oct. 28, 1992, 106 Stat. 3769.)

-CITE-