Title 12 — Banks and Banking
Chapter 42 — Low-Income Housing Preservation and Resident Homeownership
§ 4111. Mandatory sale for housing exceeding Federal cost limits
Statutory text
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.
Right of first refusal to priority purchasers
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.
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.
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.
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) 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), 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.
Assistance
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.
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.
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Housing and Community Development Act of 1987
Pub. L. 100–242 title II § 221 · 101 Stat. 1815
Enacted · 12 U.S.C. § 4111
Pub. L. 100–242, title II, § 221, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4259
Source evidence
Code source credit
Pub. L. 100–242, title II, § 221, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4259Enacted provision · exact public law section
SEC. 221. GENERAL PREPAYMENT LIMITATION. (a) Prior Approval of Plan of Action.— 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 of Housing and Urban Development under this subtitle. (b) Alternative Prepayment Moratorium.— In the event any court of the United States or any State invalidates the requirements established in this subtitle, an owner of eligible low income housing located in the geographic area subject to the jurisdiction of such court may not prepay, and a mortgagee may not accept prepayment of, a mortgage on such housing during the 2-year period following the date of such invalidation.Housing and Community Development Act of 1992
Pub. L. 102–550 title III § 317(a)(3) · 106 Stat. 3672
Substituted · 12 U.S.C. § 4111(c)
Pub. L. 102–550 substituted “than” for “that” before “the preservation”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 102–550 substituted “than” for “that” before “the preservation”.Enacted provision · exact public law section
(3) in the second sentence of section 221(c), by striking “that” and inserting “than”;
2 of 2 references resolved to an enrolled provision
Editorial Notes
Amendments
1992—Subsec. (c). Pub. L. 102–550 substituted “than” for “that” before “the preservation”.
Credits
1990–1992 · 2 acts
- 1990Pub. L. 100–242, title II, § 221, as added Pub. L. 101–625, title VI, § 601(a), , 104 Stat. 4259
- 1992amended Pub. L. 102–550, title III, § 317(a)(3), , 106 Stat. 3772.
Show as published
(Pub. L. 100–242, title II, § 221, as added Pub. L. 101–625, title VI, § 601(a), , 104 Stat. 4259; amended Pub. L. 102–550, title III, § 317(a)(3), , 106 Stat. 3772.)