§ 4121. Definitions of qualified and priority purchaser and related party rule

Footnotes

1. 1 So in original. Probably should be section “4116”.
2. 2 So in original. Probably should be section “4112(c)”.

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.

1. 1990

   Housing and Community Development Act of 1987

   Pub. L. 100–242 title II § 231 · 101 Stat. 1815

   Enacted · 12 U.S.C. § 4121

   Pub. L. 100–242, title II, § 231, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4273

   Source evidence

   Code source credit
   Pub. L. 100–242, title II, § 231, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4273

   Enacted provision · exact public law section
   SEC. 231. INSURANCE FOR SECOND MORTGAGE FINANCING. Loans. 12 USC 1715z–6. Section 241 of the National Housing Act is amended by adding at the end the following new subsection: “(f) (1) Notwithstanding any other provision of this section, the Secretary may, upon such terms and conditions as the Secretary may prescribe, make a commitment to insure and insure equity loans made by financial institutions approved by the Secretary. For purposes of this section, the term ‘equity loan’ means a loan or advance of credit to the owner of eligible low income housing (as defined in section 233 of the Emergency Low Income Housing Preservation Act of 1987) that is made for the purpose of implementing a plan of action approved under such Act. “(2) To be eligible for insurance under this subsection, an equity loan shall— “(A) be limited to an amount equal to 90 percent of the value of the equity in the project, as determined by the Secretary, and the Secretary, in making the determination, shall take into account that rental income for the project may rise within limits established by section 225(b) of the Emergency Low Income Housing Preservation Act of 1987; “(B) have a maturity and provisions for amortization satisfactory to the Secretary, bear interest at such rate as may be agreed upon by the mortgagor and mortgagee, and be secured in such manner as the Secretary may require; and “(C) contain such other terms, conditions, and restrictions as the Secretary may prescribe, including phased advances of equity loan proceeds to reflect project rent levels. “(3) A qualified nonprofit organization or limited equity tenant cooperative corporation, when purchasing an otherwise eligible project, may constitute an owner of eligible low income housing for purposes of receiving a loan insured under this subsection. “(4) The provisions of subsections (d), (e), (g), (h), (i), (j), (k), (1), and (n; of section 207 shall be applicable to loans insured under this section, except that— “(A) all references to the term ‘mortgage’ shall be construed to refer to the term ‘loan’ as used in this subsection; “(B) loans involving projects covered by a mortgage insured under section 236 shall be insured under and shall be the obligation of the Special Risk Insurance Fund; and “(C) with respect to any sale under foreclosure of a mortgage on the project that is senior to the equity loan insured under this subsection and when the equity loan is secured by a mortgage, the Secretary may— “(i) issue regulations providing that, in order to receive insurance benefits, the insured mortgagee shall either assign the equity loan to the Secretary or bid the amount necessary to acquire the project and convey title to the project to the Secretary, in which case the insurance benefits paid by the Secretary shall include the amount bid by the mortgagee to satisfy the senior mortgage at the foreclosure sale; and “(ii) if the equity loan has been assigned to the Secretary, bid, in addition to amounts authorized under section 207(k), any sum not in excess of the total unpaid indebtedness secured by such senior mortgage and the equity loan, plus taxes, insurance, foreclosure costs, fees, and other expenses. “(5) A mortgagee approved by the Secretary may not withhold consent to an equity loan on a property on which that mortgagee holds a mortgage.”.

2. 1992

   Housing and Community Development Act of 1992

   Pub. L. 102–550 title III § 317(a)(6) · 106 Stat. 3672

   Substituted · 12 U.S.C. § 4121(b)

   Pub. L. 102–550 substituted “4112(c)” for “4112(d)”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 102–550 substituted “4112(c)” for “4112(d)”.

   Enacted provision · exact public law section
   (6) in section 231(b), by striking “section 222(d)” and inserting “section 222(c)”,

2 of 2 references resolved to an enrolled provision