Title 12 — Banks and Banking
Chapter 42 — Low-Income Housing Preservation and Resident Homeownership
§ 4113. Assistance for displaced tenants
Statutory text
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 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.
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.
Continued occupancy
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.
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.
Applicability to low-vacancy areas and special needs tenants
The provisions of this subsection shall apply only to—
eligible low income housing located in a low-vacancy area (as such term is defined by the Secretary); and
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.
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.
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.
Enhanced voucher assistance for certain tenants
Authority
In lieu of benefits under subsections (b), (c), and (d), 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.
Eligible families
A family described in this paragraph is a family that is—
a low-income family; or
a moderate-income family that is: (I) an elderly family; (II) a disabled family; or (III) residing in a low-vacancy area; and
residing in eligible low-income housing on the date of the prepayment of the mortgage or voluntary termination of the insurance contract.
Footnotes
- 1 So in original. Probably should be “of”.
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 § 223 · 101 Stat. 1815
Enacted · 12 U.S.C. § 4113
Pub. L. 100–242, title II, § 223, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4264
Source evidence
Code source credit
Pub. L. 100–242, title II, § 223, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4264Enacted provision · exact public law section
SEC. 223. PLAN OF ACTION. (a) Preparation and Submission.— Upon receipt of a notice of intent, the Secretary shall provide the owner with such information as the owner needs to prepare a plan of action, which information shall include a description of the Federal incentives authorized under this title. The owner shall submit the plan of action to the Secretary in such form and manner as the Secretary shall prescribe. The owner may simultaneously submit the plan of action to any State and local governments. appropriate State or local government agency for the jurisdiction within which the housing is located, which agency shall, in reviewing the plan, consult with representatives of the tenants of the housing. (b) Contents.— The plan of action shall include— (1) a description of any proposed changes in the status or terms of the mortgage or regulatory agreement, which may include a request for incentives to extend the low income use of the housing; (2) a description of any assistance that could be provided by State and local governments. State or local government agencies, as determined by prior consultation between the owner and any appropriate State or local agencies; (3) a description of any proposed changes in the low income affordability restrictions; (4) a description of any change in ownership that is related to prepayment; (5) an assessment of the effect of the proposed changes on existing tenants; (6) a statement of the effect of the proposed changes on the supply of housing affordable to lower 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 (7) any other information that the Secretary determines is necessary to achieve the purposes of this title. (c) Revisions.— The 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 subtitle.Pub. L. 105–276 title V § 550(d) · 112 Stat. 2461
Substituted · 12 U.S.C. § 4113(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)”
Source evidence
Code amendment note
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)”.Enacted provision · exact public law section
(d) Assistance for Displaced Residents.— Section 223(a) of the Housing and Community Development Act of 1987 (12 U.S.C. 4113(a)) is amended by striking “assistance under the certificate and voucher programs under sections 8(b) and 8(o)” and inserting “tenant-based assistance under section 8”.Effective date note
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.Pub. L. 106–74 title V § 538(c) · 113 Stat. 1047
Added · 12 U.S.C. § 4113(f)
Pub. L. 106–74 added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 106–74 added subsec. (f).Enacted provision · exact public law section
(c) Enhanced Vouchers for Certain Tenants in Prepayment and Voluntary Termination Properties.— Section 223 of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4113) is amended by adding at the end the following new subsection: “(f) Enhanced Voucher Assistance for Certain Tenants.— “(1) Authority.— In lieu of benefits under subsections (b), (c), and (d), and subject to the availability of appropriated amounts, each family described in paragraph (2) shall be offered enhanced voucher assistance under section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)). “(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.”.
3 of 3 references resolved to an enrolled provision
Editorial Notes
Amendments1998–1999 · 2 rounds
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)”.
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by title V of Pub. L. 105–276 effective and applicable beginning upon , 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.
Credits
1990–1999 · 3 acts
- 1990Pub. L. 100–242, title II, § 223, as added Pub. L. 101–625, title VI, § 601(a), , 104 Stat. 4264
- 1998amended Pub. L. 105–276, title V, § 550(d), , 112 Stat. 2610
- 1999Pub. L. 106–74, title V, § 538(c), , 113 Stat. 1123.
Show as published
(Pub. L. 100–242, title II, § 223, as added Pub. L. 101–625, title VI, § 601(a), , 104 Stat. 4264; amended Pub. L. 105–276, title V, § 550(d), , 112 Stat. 2610; Pub. L. 106–74, title V, § 538(c), , 113 Stat. 1123.)