-CITE-

42 USC CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-MISC1-

Sec.

3931. Congressional statement of purpose.

3932. Creation of corporations.

(a) Authorization.

(b) Creation of additional corporations.

(c) Creation of corporations and organization of

other partnerships, joint ventures, or

associations by private persons.

3933. Organization of corporation.

(a) Appointment of incorporators; Chairman; initial

board of directors.

(b) Action by incorporators; filing articles of

incorporation.

(c) Initial offering of stock in corporation and of

interests in partnership; terms of offering.

3934. Board of Directors; membership; appointment; term.

3935. Financing the corporation.

3936. Purposes and powers of corporation.

(a) Building, rehabilitation, acquisition, and

financing of housing and related facilities

for families and individuals of low or

moderate income; acquisition and disposal of

property; funds.

(b) Authorization to enter into partnerships,

limited partnerships, joint ventures, and

other associations; manager or general partner

of partnership, venture, or association;

research and studies; technical assistance;

loans or grants; hire or acceptance of

services of consultants, experts, advisory

boards and panels.

(c) Exercise of powers conferred upon stock

corporation by District of Columbia Business

Corporation Act.

(d) Labor standards.

(e) Maximum combined outstanding equity commitment.

3937. National housing partnership.

(a) Formation of limited partnership; partnership

agreement.

(b) Applicability of other laws; legal status of

limited partnership.

(c) Authorization to enter into partnerships,

limited partnerships, or joint ventures

organized under State or local laws for

purpose of engaging in low and moderate income

housing developments, projects, or

undertakings.

(d) General partner; capital of partnership;

contribution of partners.

(e) Partnership agreement; participation in low and

moderate income housing developments,

projects, or undertakings; limitation on

aggregate initial equity investment.

(f) Partnership agreement; authorization for

stockholders to become limited partners;

inclusion of other limited partners;

acquisition of assignor's stock by assignee of

limited partner; approval of substitution or

addition of partnership member.

(g) Liability of corporation as general partner;

treatment of interest of limited partner in

partnership.

(h) Execution of certificate of partnership and

amendments.

3938. Annual report of corporation; audit of accounts.

3939. Applicability of antitrust laws.

3940. Reservation of right to repeal, alter, or amend

chapter.

3941. State or local taxation or regulation; access to

judicial process.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 12 sections 24, 1441a,

1441a-1, 1464, 1831q.

-End-

-CITE-

42 USC Sec. 3931 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3931. Congressional statement of purpose

-STATUTE-

The Congress finds that the volume of housing being produced for

families and individuals of low or moderate income must be

increased to meet the national goal of a decent home and a suitable

living environment for every American family, and declares that it

is the policy of the United States to encourage the widest possible

participation by private enterprise in the provision of housing for

low or moderate income families. The Congress has therefore

determined that one or more private organizations should be created

to encourage maximum participation by private investors in programs

and projects to provide low and moderate income housing.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 901, Aug. 1, 1968, 82 Stat. 547.)

-End-

-CITE-

42 USC Sec. 3932 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3932. Creation of corporations

-STATUTE-

(a) Authorization

There is hereby authorized to be created a private corporation

for profit (hereinafter in this chapter referred to as the

"corporation"). The corporation will not be an agency or

establishment of the United States Government. The corporation

shall be subject to the provisions of this chapter and, to the

extent consistent with this chapter, to the District of Columbia

Business Corporation Act.

(b) Creation of additional corporations

Whenever the President finds it in the national interest to do

so, he may cause the creation of an additional corporation or

additional corporations to carry out the purposes of this chapter.

All the provisions of this chapter shall thereupon become

applicable to each such corporation, and to the limited partnership

formed by it pursuant to section 3937 of this title.

(c) Creation of corporations and organization of other

partnerships, joint ventures, or associations by private persons

Nothing in this chapter shall be construed to preclude private

persons from creating other corporations and organizing other

partnerships, joint ventures, or associations for the purposes set

forth in this chapter as the purposes of the corporation and the

partnership described in section 3937 of this title.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 902, Aug. 1, 1968, 82 Stat. 547.)

-REFTEXT-

REFERENCES IN TEXT

The District of Columbia Business Corporation Act, referred to in

subsec. (a), is act June 8, 1954, ch. 269, 68 Stat. 179, as

amended, which is not classified to the Code.

-End-

-CITE-

42 USC Sec. 3933 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3933. Organization of corporation

-STATUTE-

(a) Appointment of incorporators; Chairman; initial board of

directors

The President of the United States shall appoint, by and with the

advice and consent of the Senate, incorporators of the corporation,

one of whom shall be designated by the President to serve as

chairman. The incorporators shall serve as the initial board of

directors until the first annual meeting of stockholders or until

their successors are elected and have qualified.

(b) Action by incorporators; filing articles of incorporation

The incorporators shall take whatever actions are necessary or

appropriate to establish the corporation, including the filing of

articles of incorporation as approved by the President.

(c) Initial offering of stock in corporation and of interests in

partnership; terms of offering

The incorporators shall also arrange for an initial offering of

shares of stock in the corporation and of interests in the

partnership described in section 3937 of this title. If the

incorporators deem it advisable in order to carry out the purposes

of this chapter, the initial offering may be made upon terms which

require the purchase of other securities of the corporation or of

interests in such partnership.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 903, Aug. 1, 1968, 82 Stat. 547.)

-End-

-CITE-

42 USC Sec. 3934 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3934. Board of Directors; membership; appointment; term

-STATUTE-

The corporation shall have a board of directors (hereinafter in

this section referred to as the "board"), consisting of fifteen

members. Three members of the board shall be appointed by the

President of the United States, by and with the advice and consent

of the Senate, effective on the date on which the other members are

elected, and for terms of three years or until their successors

have been appointed and have qualified, except that the first three

members of the board so appointed shall continue in office for

terms of one, two, and three years, respectively, and any member so

appointed to fill a vacancy shall be appointed only for the

unexpired term of the director whom he succeeds. Twelve members of

the board shall be elected by the stockholders.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 904, Aug. 1, 1968, 82 Stat. 547.)

-End-

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42 USC Sec. 3935 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3935. Financing the corporation

-STATUTE-

The corporation shall have the power to create and issue the

number of shares stated in its articles of incorporation. Such

shares may be divided into one or more classes, any or all of which

classes may consist of shares with par value or shares without par

value, with such designations, preferences, voting powers, and

special or relative rights and such limitations, restrictions, or

qualifications thereof as shall be stated in the articles of

incorporation. The articles of incorporation may limit or deny the

voting power of the shares of any class.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 905, Aug. 1, 1968, 82 Stat. 548.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 12 section 24.

-End-

-CITE-

42 USC Sec. 3936 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3936. Purposes and powers of corporation

-STATUTE-

(a) Building, rehabilitation, acquisition, and financing of housing

and related facilities for families and individuals of low or

moderate income; acquisition and disposal of property; funds

In order to achieve the objectives and carry out the purposes of

this chapter, the corporation is authorized to -

(1) plan, initiate, and carry out, pursuant to Federal programs

or otherwise, the building, rehabilitation, acquisition, and

financing of housing and related facilities primarily for the

benefit of families and individuals of low or moderate income;

(2) buy, own, manage, lease, or otherwise acquire or dispose of

property in connection with the developments, projects, or

undertakings referred to in paragraph (1);

(3) provide such funds as may be necessary to accomplish the

developments, projects, or undertakings referred to in paragraph

(1); and

(4) for the purpose of generating income to support the

building or rehabilitation of housing primarily for the benefit

of families and individuals of low or moderate income (A) design,

develop, manufacture and sell products and services for use in

the construction, sale, or financing of housing, and (B) design

and develop commercial, industrial, or retail facilities that are

not directly related to housing, except that the development and

preservation of housing for families and individuals of low or

moderate income shall be the primary activity of the corporation.

(b) Authorization to enter into partnerships, limited partnerships,

joint ventures, and other associations; manager or general

partner of partnership, venture, or association; research and

studies; technical assistance; loans or grants; hire or

acceptance of services of consultants, experts, advisory boards

and panels

Included in the activities authorized to the corporation for the

accomplishment of the purposes indicated in subsection (a) of this

section are, among others not specifically named -

(1) to enter into partnerships, limited partnerships, joint

ventures, and other associations with individuals, corporations,

and private and governmental agencies, organizations, and

institutions;

(2) to act as manager or general partner of any such

partnership, venture, or association;

(3) to conduct or contract for research and studies related to

the development, demonstration, and evaluation of improved

techniques and methods of constructing, rehabilitating, and

maintaining housing;

(4) to provide technical assistance to nonprofit corporations,

limited dividend corporations, and others with respect to the

planning, refinancing, construction, rehabilitation, maintenance,

and management of housing for low and moderate income families

and individuals;

(5) to make loans or grants including grants of interests in

housing and related facilities, to nonprofit corporations,

limited dividend corporations, and others, in carrying out its

activities under subsection (a) of this section; and

(6) to hire or accept the voluntary services of consultants,

experts, advisory boards, and panels to aid the corporation in

carrying out the purposes of this chapter.

(c) Exercise of powers conferred upon stock corporation by District

of Columbia Business Corporation Act

To carry out the foregoing purposes and engaged in the foregoing

activities, the corporation shall have the usual powers conferred

upon a stock corporation by the District of Columbia Business

Corporation Act.

(d) Labor standards

Nothing in this chapter shall have the effect of waiving or

otherwise affecting the applicability of the provisions of sections

3141-3144, 3146, and 3147 of title 40, or any other law requiring

compliance with labor standards, in the case of any construction to

which such provisions would otherwise apply.

(e) Maximum combined outstanding equity commitment

The combined outstanding equity commitment of the corporation and

the partnership with respect to activities undertaken under

subsection (a)(4) of this section may not exceed (1) 7 percent of

their total combined equity commitment outstanding during the first

12-month period following October 17, 1984; (2) 14 percent of their

total combined equity commitment outstanding during the second

12-month period following October 17, 1984; or (3) 20 percent of

their total combined equity commitment outstanding at any time

thereafter.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 906, Aug. 1, 1968, 82 Stat. 548;

Pub. L. 98-181, title IV, Sec. 467, Nov. 30, 1983, 97 Stat. 1236;

Pub. L. 98-479, title I, Sec. 104(c)(1), (2), Oct. 17, 1984, 98

Stat. 2225.)

-REFTEXT-

REFERENCES IN TEXT

The District of Columbia Business Corporation Act, referred to in

subsec. (c), is act June 8, 1954, ch. 269, 68 Stat. 179, as

amended, which is not classified to the Code.

-COD-

CODIFICATION

In subsec. (d), "sections 3141-3144, 3146, and 3147 of title 40"

substituted for "the Davis-Bacon Act (40 U.S.C. 267a - 276a-5)",

meaning 40 U.S.C. 276a - 276a-5, on authority of Pub. L. 107-217,

Sec. 5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of

which enacted Title 40, Public Buildings, Property, and Works.

-MISC1-

AMENDMENTS

1984 - Subsec. (a)(4). Pub. L. 98-479, Sec. 104(c)(1), added par.

(4).

Subsec. (e). Pub. L. 98-479, Sec. 104(c)(2), added subsec. (e).

1983 - Subsec. (a)(1). Pub. L. 98-181 inserted references to

acquisition and financing.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3937, 3938 of this title.

-End-

-CITE-

42 USC Sec. 3937 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3937. National housing partnership

-STATUTE-

(a) Formation of limited partnership; partnership agreement

The corporation is authorized to arrange for the formation, as a

separate organization, of a limited partnership (hereinafter in

this chapter referred to as the "partnership") under the District

of Columbia Uniform Limited Partnership Act for the purpose of

engaging in any of the activities authorized for the corporation

under section 3936 of this title, and to enter into a partnership

agreement governing the affairs of such limited partnership.

(b) Applicability of other laws; legal status of limited

partnership

The partnership shall be subject to the provisions, to the extent

consistent with this chapter, of (1) the District of Columbia

Uniform Limited Partnership Act and (2) those provisions of the

District of Columbia Uniform Partnership Act made applicable by

section 6(2) of that Act. Notwithstanding any inconsistency between

the provisions of such Acts, or of any other law, and the

provisions of this section, the partnership organized pursuant to

this section shall be deemed to have the legal status of a limited

partnership.

(c) Authorization to enter into partnerships, limited partnerships,

or joint ventures organized under State or local laws for purpose

of engaging in low and moderate income housing developments,

projects, or undertakings

The partnership is authorized to enter into partnerships, limited

partnerships, or joint ventures organized under applicable State or

local law for the purpose of engaging in low and moderate income

housing developments, projects, or undertakings in particular

localities.

(d) General partner; capital of partnership; contribution of

partners

The corporation shall be the general partner in the partnership.

The capital of the partnership and the contributions of the

partners shall be in such amounts and at such times as are set

forth in or pursuant to the partnership agreement.

(e) Partnership agreement; participation in low and moderate income

housing developments, projects, or undertakings; limitation on

aggregate initial equity investment

The partnership agreement shall include provisions designed to

assure that (1) the partnership shall participate in low and

moderate income housing developments, projects, or undertakings in

a manner designed to encourage the participation therein of local

interests, and (2) in any such development, project, or undertaking

the partnership shall not subscribe to more than 25 per centum

(including equity investments made in services or property) of the

aggregate initial equity investment unless, in the judgment of the

corporation as general partner, the balance of the required equity

investment is not readily obtainable from other responsible

investors residing or doing business in the local community.

(f) Partnership agreement; authorization for stockholders to become

limited partners; inclusion of other limited partners;

acquisition of assignor's stock by assignee of limited partner;

approval of substitution or addition of partnership member

The partnership agreement may without limitation (1) permit each

of the stockholders of the corporation to become a member of the

partnership as a limited partner, (2) authorize the inclusion of

other limited partners in addition to the stockholders of the

corporation, (3) provide that the assignee of the partnership

interest of a limited partner of the partnership who is also a

stockholder of the corporation may not become a substituted limited

partner unless he also acquires the assignor's stock of the

corporation, and (4) include provisions requiring that the

corporation as a general partner approve the substitution or

addition of a member of the partnership.

(g) Liability of corporation as general partner; treatment of

interest of limited partner in partnership

A corporation which is a limited partner in the partnership shall

not become liable as a general partner by reason of the fact that

(1) such corporation is a holder of shares of voting stock of the

corporation constituting not more than 5 per centum of the total

number of outstanding shares of such stock and exercises any of the

rights (including voting rights) of a holder of such shares, and/or

(2) a person who is an officer or director of such corporation (or

of another corporation which controls or is subject to the control

of, or is under common control with, such corporation) is a

director of the corporation and performs the duties of that office.

The interest of a limited partner in the partnership shall not be

treated as a stock interest in the corporation, notwithstanding

that such interest of a limited partner may be proportionate to his

stock interest in the corporation.

(h) Execution of certificate of partnership and amendments

The certificate of the partnership and any amendment thereof

required by the District of Columbia Uniform Limited Partnership

Act shall be executed and acknowledged by the corporation as member

and by each other member of the partnership or his attorney-in-fact

duly authorized by power of attorney in writing. The corporation

may execute and acknowledge the certificate and any amendment

thereof as attorney-in-fact for any member, member to be

substituted or added, or assigning member, by whom the certificate

or amendment is required to be executed and acknowledged and who

has appointed the corporation as such attorney.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 907, Aug. 1, 1968, 82 Stat. 549.)

-REFTEXT-

REFERENCES IN TEXT

The District of Columbia Uniform Limited Partnership Act,

referred to in subsecs. (a) and (h), is Pub. L. 87-716, Sept. 28,

1962, 76 Stat. 655, as amended, which is not classified to the

Code.

The District of Columbia Uniform Partnership Act, referred to in

subsec. (b), is Pub. L. 87-709, Sept. 27, 1962, 76 Stat. 636, as

amended, which is not classified to the Code.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3932, 3933 of this title;

title 12 sections 24, 1464.

-End-

-CITE-

42 USC Sec. 3938 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3938. Annual report of corporation; audit of accounts

-STATUTE-

(a)(1) The corporation shall submit an annual report to the

President for transmittal to the Congress within six months after

the end of its fiscal year. The report shall include a

comprehensive and detailed report of the operations, activities,

and financial condition of the corporation and the partnership

under this chapter.

(2) The report shall contain a description of the activities

undertaken under section 3936(a)(4) of this title, and shall

specify, as a percentage of equity and in dollars, the extent of

the corporation's and the partnership's investment in housing for

the benefit of families and individuals of low or moderate income,

the extent of the corporation's and the partnership's investment in

other housing, and the extent of the corporation's and the

partnership's activities which are undertaken under section

3936(a)(4) of this title.

(b) The accounts of the corporation and of the partnership shall

be audited annually in accordance with generally accepted auditing

standards by independent certified public accountants or

independent licensed public accountants certified or licensed by a

regulatory authority of a State or other political subdivision of

the United States.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 908, Aug. 1, 1968, 82 Stat. 550;

Pub. L. 98-479, title I, Sec. 104(c)(3), Oct. 17, 1984, 98 Stat.

2225.)

-MISC1-

AMENDMENTS

1984 - Subsec. (a). Pub. L. 98-479 designated existing provisions

as par. (1) and added par. (2).

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in subsec.

(a) of this section relating to transmittal of annual report to

Congress, see section 3003 of Pub. L. 104-66, as amended, set out

as a note under section 1113 of Title 31, Money and Finance, and

item 2 on page 182 of House Document No. 103-7.

-End-

-CITE-

42 USC Sec. 3939 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3939. Applicability of antitrust laws

-STATUTE-

Nothing contained herein shall affect the applicability of the

Federal antitrust laws to the activities of the corporation and the

partnership created under this chapter and of the persons

participating therein or in partnerships, limited partnerships, or

joint ventures with either of them.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 909, Aug. 1, 1968, 82 Stat. 550.)

-End-

-CITE-

42 USC Sec. 3940 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3940. Reservation of right to repeal, alter, or amend chapter

-STATUTE-

The right to repeal, alter, or amend this chapter at any time is

expressly reserved.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 910, Aug. 1, 1968, 82 Stat. 550.)

-End-

-CITE-

42 USC Sec. 3941 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 49 - NATIONAL HOUSING PARTNERSHIPS

-HEAD-

Sec. 3941. State or local taxation or regulation; access to

judicial process

-STATUTE-

Nothing contained in this chapter shall preclude a State or other

local jurisdiction from imposing, in accordance with the laws of

such State or other local jurisdiction, any valid nondiscriminatory

tax, obligation, or regulation on the partnership as a taxable and

or legal entity, but no limited partner of the partnership not

otherwise subject to taxation or regulation by or judicial process

of a State or other local jurisdiction shall be subject to taxation

or regulation by or subject to or denied access to judicial process

of such State or other local jurisdiction, or be subject or denied

access to any greater extent, because of activities of the

corporation or partnership within such State or other local

jurisdiction.

-SOURCE-

(Pub. L. 90-448, title IX, Sec. 912, as added Pub. L. 91-351, title

VIII, Sec. 711, July 24, 1970, 84 Stat. 463.)

-End-