§ 4122. Preemption of State and local laws

Statutory text

In general

No State or political subdivision of a State may establish, continue in effect, or enforce any law or regulation that—

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;

restricts or inhibits an owner of such housing from receiving the authorized annual return provided under section 4104 of this title;

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

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.

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).

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.

1990
Housing and Community Development Act of 1987
Pub. L. 100–242 title II § 232 · 101 Stat. 1815
Enacted · 12 U.S.C. § 4122
Pub. L. 100–242, title II, § 232, 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, § 232, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4273
Enacted provision · exact public law section
SEC. 232. REPORT TO CONGRESS. Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit to the Congress a report setting forth the activities carried out under this subtitle. The report shall include a description of the plans of action approved under subsections (a) and (b) of section 225 and an analysis of the extent to which the plans retain housing affordable for very low-income families or persons, lower income families or persons, and moderate income families or persons.
1992
Housing and Community Development Act of 1992
Pub. L. 102–550 title III § 311 · 106 Stat. 3672
Substituted · 12 U.S.C. § 4122(b)
Pub. L. 102–550 substituted “, such as any law or regulation” for “and” after “subchapter”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 102–550 substituted “, such as any law or regulation” for “and” after “subchapter”.
Enacted provision · exact public law section
SEC. 311. PREEMPTION OF STATE AND LOCAL LAWS. The first sentence of section 232(b) of the Housing and Community Development Act of 1987 (12 U.S.C. 4122(b)) is amended by striking “and” the first place it appears and inserting “, such as any law or regulation”.

2 of 2 references resolved to an enrolled provision

Editorial Notes

Amendments

1992—Subsec. (b). Pub. L. 102–550 substituted “, such as any law or regulation” for “and” after “subchapter”.

Credits

1990–1992 · 2 acts

1990Pub. L. 100–242, title II, § 232, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4273
1992amended Pub. L. 102–550, title III, § 311, Oct. 28, 1992, 106 Stat. 3765.

Show as published

(Pub. L. 100–242, title II, § 232, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4273; amended Pub. L. 102–550, title III, § 311, Oct. 28, 1992, 106 Stat. 3765.)