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Title 42 — The Public Health and Welfare

Part A · Chapter 130 — National Affordable Housing

§ 12745. Qualification as affordable housing

Statutory text

(a)

Rental housing

(1)

Qualification

Housing that is for rental shall qualify as affordable housing under this subchapter only if the housing—

(A)

bears rents not greater than the lesser of (i) the existing fair market rent for comparable units in the area as established by the Secretary under section 1437f of this title, or (ii) a rent that does not exceed 30 percent of the adjusted income of a family whose income equals 65 percent of the median income for the area, as determined by the Secretary, with adjustment for number of bedrooms in the unit, except that the Secretary may establish income ceilings higher or lower than 65 percent of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes;

(B)

has not less than 20 percent of the units (i) occupied by very low-income families who pay as a contribution toward rent (excluding any Federal or State rental subsidy provided on behalf of the family) not more than 30 percent of the family’s monthly adjusted income as determined by the Secretary, or (ii) occupied by very low-income families and bearing rents not greater than the gross rent for rent-restricted residential units as determined under section 42(g)(2) of title 26;

(C)

is occupied only by households that qualify as low-income families;

(D)

is not refused for leasing to a holder of a voucher or certificate of eligibility under section 1437f of this title because of the status of the prospective tenant as a holder of such voucher or certificate of eligibility;

(E)

will remain affordable, according to binding commitments satisfactory to the Secretary, for the remaining useful life of the property, as determined by the Secretary, without regard to the term of the mortgage or to transfer of ownership, or for such other period that the Secretary determines is the longest feasible period of time consistent with sound economics and the purposes of this Act, except—

(i)

upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action—

(I)

recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure; and

(II)

is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; or

(ii)

where existing affordable housing is no longer financially viable due to unforeseen acts or occurrences beyond the reasonable contemplation or control of the participating jurisdiction in which the affordable housing is located or the owner of the affordable housing that significantly impact the financial or physical condition of the affordable housing, as determined by the Secretary; and

(F)

if newly constructed, meets the energy efficiency standards promulgated by the Secretary in accordance with section 12709 of this title.

(2)

Adjustment of qualifying rent

The Secretary may adjust the qualifying rent established for a project under subparagraph (A) of paragraph (1), only if the Secretary finds that such adjustment is necessary to support the continued financial viability of the project and only by such amount as the Secretary determines is necessary to maintain continued financial viability of the project.

(3)

Increases in tenant income

Housing shall qualify as affordable housing despite a temporary noncompliance with subparagraph (B) or (C) of paragraph (1) if such noncompliance is caused by increases in the incomes of existing tenants and if actions satisfactory to the Secretary are being taken to ensure that all vacancies are filled in accordance with paragraph (1) until such noncompliance is corrected. Tenants who no longer qualify as low-income families shall pay as rent the lesser of the amount payable by the tenant under State or local law or 30 percent of the family’s adjusted monthly income, as recertified annually. The preceding sentence shall not apply with respect to funds made available under this Act for units that have been allocated a low-income housing tax credit by a housing credit agency pursuant to section 42 of title 26.

(4)

Mixed-income project

Housing that accounts for less than 100 percent of the dwelling units in a project shall qualify as affordable housing if such housing meets the criteria of this section.

(5)

Mixed-use project

Housing in a project that is designed in part for uses other than residential use shall qualify as affordable housing if such housing meets the criteria of this section.

(6)

Waiver of qualifying rent

(A)

In general

For the purpose of providing affordable housing appropriate for families described in subparagraph (B), the Secretary may, upon the application of the project owner, waive the applicability of subparagraph (A) of paragraph (1) with respect to a dwelling unit if—

(i)

the unit is occupied by such a family, on whose behalf tenant-based assistance is provided under section 1437f of this title;

(ii)

the rent for the unit is not greater than the existing fair market rent for comparable units in the area, as established by the Secretary under section 1437f of this title; and

(iii)

the Secretary determines that the waiver, together with waivers under this paragraph for other dwelling units in the project, will result in the use of amounts described in clause (iii) 1 in an effective manner that will improve the provision of affordable housing for such families.

(B)

Eligible families

A family described in this subparagraph is a family that consists of at least one elderly person (who is the head of household) and one or more of such person’s grandchildren, great grandchildren, great nieces, great nephews, or great great grandchildren (as defined by the Secretary), but does not include any parent of such grandchildren, great grandchildren, great nieces, great nephews, or great great grandchildren. Such term includes any such grandchildren, great grandchildren, great nieces, great nephews, or great great grandchildren who have been legally adopted by such elderly person.

(7)

Qualification exception

Notwithstanding paragraph (1)(A), a rental unit shall be considered to qualify as affordable housing under this subchapter if—

(A)

the unit is occupied by a tenant receiving tenant-based rental assistance under section 1437f of this title;

(B)

the contribution of the tenant toward rent does not exceed the amount permitted under the assistance described in subparagraph (A); and

(C)

the total rent for the unit does not exceed the amount approved by the public housing agency administering the assistance described in subparagraph (A).

(b)

Homeownership

(1)

Qualification

Housing that is for home-ownership shall qualify as affordable housing under this subchapter only if the housing—

(A)

has an initial purchase price 2 that does not exceed 110 percent of the median purchase price 2 for the area, as determined by the Secretary with such adjustments for differences in structure, including whether the housing is single-family or multifamily, and for new and old housing as the Secretary determines to be appropriate;

(B)

is the principal residence of an owner with a family income that does not exceed 100 percent of the median family income of the area as determined by the Secretary with adjustments for smaller and larger families—

(i)

in the case of a contract to purchase existing housing, at the time of purchase;

(ii)

in the case of a lease-purchase agreement for existing housing or for housing to be constructed, at the time the agreement is signed; or

(iii)

in the case of a contract to purchase housing to be constructed, at the time the contract is signed;

(C)

is subject to resale restrictions that are established by the participating jurisdiction and determined by the Secretary to be appropriate to—

(i)

allow for subsequent purchase of the property only by persons who meet the qualifications specified under paragraph (2),3 at a price which will—

(I)

provide the owner with a fair return on investment, including any improvements, and

(II)

ensure that the housing will remain affordable to a reasonable range of home-buyers with a household income that does not exceed 100 percent of the median family income of the area, as determined by the Secretary with adjustments for smaller and larger families;

(ii)

recapture the investment provided under this subchapter in order to assist other persons in accordance with the requirements of this subchapter, except where there are no net proceeds or where the net proceeds are insufficient to repay the full amount of the assistance; or

(iii)

maintain long-term affordability through a shared equity ownership model, a community land trust, a limited equity cooperative, a community development corporation, or other mechanism approved by the Secretary, that preserves affordability for future eligible home-buyers and ensures compliance with the purposes of this subchapter, including through the use of purchase options, rights of first refusal, or other preemptive rights to purchase housing;

(D)

if newly constructed, meets the energy efficiency standards promulgated by the Secretary in accordance with section 12709 of this title; and

(E)

is subject to restrictions that are established by the participating jurisdiction and determined by the Secretary to be appropriate, including with respect to the useful life of the property, to—

(i)

require that any subsequent purchase of the property be—

(I)

only by a person who meets the qualifications specified under subparagraph (B); and

(II)

at a price that is determined by a formula or method established by the participating jurisdiction that provides the owner with a reasonable return on investment, which may include a percentage of the cost of any improvements; or

(ii)

recapture the investment provided under this subchapter in order to assist other persons in accordance with the requirements of this subchapter, except where there are no net proceeds or where the net proceeds are insufficient to repay the full amount of the assistance.

(2)

Purchase by community land trust or cooperative housing corporation

Notwithstanding subparagraph (C)(i) of paragraph (1) and under terms determined by the Secretary, the Secretary may permit a participating jurisdiction to allow a community land trust, housing cooperative, or a community development corporation that used assistance provided under this part for the development of housing that meets the criteria under paragraph (1), to acquire the housing—

(A)

in accordance with the terms of the preemptive purchase option, lease, covenant on the land, or other similar legal instrument of the community land trust or housing cooperative when the terms and rights in the preemptive purchase option, lease, covenant, or legal instrument are and remain subject to the requirements of this subchapter;

(B)

when the purchase is for—

(i)

the purpose of—

(I)

entering into the chain of title;

(II)

enabling a purchase by a person who meets the qualifications specified under paragraph (1)(B) and is on a waitlist maintained by the community land trust or housing cooperative, subject to enforcement by the participating jurisdiction of all applicable requirements of this subchapter, as determined by the Secretary;

(III)

performing necessary rehabilitation and improvements; or

(IV)

adding a subsidy to preserve affordability, which may be from Federal or non-Federal sources; or

(ii)

another purpose determined appropriate by the Secretary; and

(C)

if, within a reasonable period of time after the applicable purpose under subparagraph (B) of this paragraph is fulfilled, as determined by the Secretary, the housing is then sold to a person who meets the qualifications specified under paragraph (1)(B).

(c)

Qualification exceptions for home-ownership

(1)

Military members

A participating jurisdiction, in accordance with terms established by the Secretary, may suspend or waive the income qualifications described in subsection (b)(1)(B) with respect to housing that otherwise meets the criteria described in subsection (b)(1) if the owner of the housing—

(A)

is a member of a regular component of the armed forces or a member of the National Guard on full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as those terms are defined in section 101 of title 10); and

(B)

has received—

(i)

temporary duty orders to deploy with a military unit or military orders to deploy as an individual acting in support of a military operation, to a location that is not within a reasonable distance from the housing, as determined by the Secretary, for a period of not less than 90 days; or

(ii)

orders for a permanent change of station.

(2)

Heirs and beneficiaries of deceased owners

Housing that meets the criteria described in subsection (b)(1)(C) prior to the death of an owner of such housing shall continue to qualify as affordable housing under this subchapter if—

(A)

the housing is the principal residence of an heir or beneficiary of the deceased owner, as defined by the Secretary; and

(B)

the heir or beneficiary, in accordance with terms established by the Secretary, assumes the duties and obligations of the deceased owner with respect to funds provided under this subchapter.

Footnotes

  1. 1 So in original.
  2. 2 See 2026 Amendment note below.
  3. 3 So in original. Probably should be “subparagraph (B),”.

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. HOME Investment Partnerships Act

    Pub. L. 101–625 title II § 215 · 104 Stat. 4079

    Enacted · 42 U.S.C. § 12745

    Pub. L. 101–625, title II, § 215, Nov. 28, 1990, 104 Stat. 4101

    Source evidence

    Code source credit
    Pub. L. 101–625, title II, § 215, Nov. 28, 1990, 104 Stat. 4101

    Enacted provision · exact public law section
    SEC. 215. QUALIFICATION AS AFFORDABLE HOUSING. (a) Rental Housing.— (1) Qualification.— Housing that is for rental shall qualify as affordable housing under this title only if the housing— (A) bears rents not greater than the lesser of (i) the existing fair market rent for comparable units in the area as established by the Secretary under section 8 of the United States Housing Act of 1937, or (ii) a rent that does not exceed 30 percent of the adjusted income of a family whose income equals 65 percent of the median income for the area, as determined by the Secretary, with adjustment for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 65 percent of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes; (B) has not less than 20 percent of the units (i) occupied by very low-income families who pay as a contribution toward rent (excluding any Federal or State rental subsidy provided on behalf of the family) not more than 30 percent of the family’s monthly adjusted income as determined by the Secretary, or (ii) occupied by very low-income families and bearing rents not greater than the gross rent for rent-restricted residential units as determined under section 42(g)(2) of the Internal Revenue Code of 1986; (C) is occupied only by households that qualify as low-income families; (D) is not refused for leasing to a holder of a voucher or certificate of eligibility under section 8 of the United States Housing Act of 1937 because of the status of the prospective tenant as a holder of such voucher or certificate of eligibility; (E) will remain affordable, according to binding commitments satisfactory to the Secretary, for the remaining useful life of the property, as determined by the Secretary, without regard to the term of the mortgage or to transfer of ownership, or for such other period that the Secretary determines is the longest feasible period of time consistent with sound economics and the purposes of this Act; and (F) if newly constructed, meets the energy efficiency standards promulgated by the Secretary in accordance with section 109 of this Act. (2) Adjustment of qualifying rent.— The Secretary may adjust the qualifying rent established for a project under subparagraph (A) of paragraph (1), only if the Secretary finds that such adjustment is necessary to support the continued financial viability of the project and only by such amount as the Secretary determines is necessary to maintain continued financial viability of the project. (3) Increases in tenant income.— Housing shall qualify as affordable housing despite a temporary noncompliance with subparagraph (B) or (C) of paragraph (1) if such noncompliance is caused by increases in the incomes of existing tenants and if actions satisfactory to the Secretary are being taken to ensure that all vacancies are filled in accordance with paragraph (1) until such noncompliance is corrected. Tenants who no longer qualify as low-income families shall pay as rent not less than 30 percent of the family’s adjusted monthly income, as recertified annually. (4) Mixed-income project.— Housing that accounts for less than 100 percent of the dwelling units in a project shall qualify as affordable housing if such housing meets the criteria of this section. (5) Mixed-use project.— Housing in a project that is designed in part for uses other than residential use shall qualify as affordable housing if such housing meets the criteria of this section. (b) Homeownership.— Housing that is for homeownership shall qualify as affordable housing under this title only if the housing— (1) has an initial purchase price that does not exceed 95 percent of the median purchase price for the area, as determined by the Secretary with such adjustments for differences in structure, including whether the housing is single-family or multifamily, and for new and old housing as the Secretary determines to be appropriate; (2) is the principal residence of an owner whose family qualifies as a low-income family at the time of purchase; (3) is made available for initial purchase only to first-time homebuyers; (4) is made available for subsequent purchase only— (A) to persons who meet the qualifications specified under paragraph (2), and (B) at a price consistent with guidelines that are established by the participating jurisdiction and determined by the Secretary to be appropriate— (i) to provide the owner with a fair return on investment, including any improvements, and (ii) to ensure that the housing will remain affordable to a reasonable range of low income homebuyers; and (5) if newly constructed, meets the energy efficiency standards promulgated by the Secretary in accordance with section 109 of this Act.

  2. Housing and Community Development Act of 1992

    Pub. L. 102–550 § 208(a)(1) · 106 Stat. 3672

    Substituted · 42 U.S.C. § 12745(a)(1)(A)

    Pub. L. 102–550, § 208(a)(1), substituted “number of bedrooms in the unit” for “smaller and larger families”

    Source evidence

    Code amendment note
    Subsec. (a)(1)(A). Pub. L. 102–550, § 208(a)(1), substituted “number of bedrooms in the unit” for “smaller and larger families”.

    Enacted provision · exact public law section
    (1) in paragraph (I)(A) by striking “smaller and larger families” and inserting “number of bedrooms in the unit”;

  3. Housing and Community Development Act of 1992

    Pub. L. 102–550 § 208(b) · 106 Stat. 3672

    Inserted · 42 U.S.C. § 12745(a)(1)(E)

    Pub. L. 102–550, § 208(b), inserted before semicolon “, except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low income affordability restrictions, as determined by the Secretary”

    Source evidence

    Code amendment note
    Subsec. (a)(1)(E). Pub. L. 102–550, § 208(b), inserted before semicolon “, except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low income affordability restrictions, as determined by the Secretary”.

    Enacted provision · exact public law section
    (b) Exception to Termination Rule.— Section 215(a)(1)(E) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(a)(1)(E)) is amended by inserting after “Act” the following: “, except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income afford-ability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low income affordability restrictions, as determined by the Secretary”.

  4. Housing and Community Development Act of 1992

    Pub. L. 102–550 § 208(a)(2) · 106 Stat. 3672

    1. Substituted · 42 U.S.C. § 12745(a)(3)

      Pub. L. 102–550, § 208(a)(2), (3), substituted “the lesser of the amount payable by the tenant under State or local law or” for “not less than” in second sentence

    2. Inserted · 42 U.S.C. § 12745(a)(3)

      Pub. L. 102–550, § 208(a)(2), (3), inserted at end “The preceding sentence shall not apply with respect to funds made available under this Act for units that have been allocated a low-income housing tax credit by a housing credit agency pursuant to section 42 of title 26.”

    Source evidence

    Code amendment note
    Subsec. (a)(3). Pub. L. 102–550, § 208(a)(2), (3), substituted “the lesser of the amount payable by the tenant under State or local law or” for “not less than” in second sentence and inserted at end “The preceding sentence shall not apply with respect to funds made available under this Act for units that have been allocated a low-income housing tax credit by a housing credit agency pursuant to section 42 of title 26.”

    Enacted provision · exact public law section
    (2) in paragraph (3), by adding at the end the following: “The preceding sentence shall not apply with respect to funds made available under this Act for units that have been allocated a low-income housing tax credit by a housing credit agency pursuant to section 42 of the Internal Revenue Code 1986.”; and

  5. Housing and Community Development Act of 1992

    Pub. L. 102–550 § 209 · 106 Stat. 3672

    1. Added · 42 U.S.C. § 12745(b)(4)

      Pub. L. 102–550, § 209, added par. (4)

    2. Struck · 42 U.S.C. § 12745(b)(4)

      Pub. L. 102–550, § 209, struck out former par. (4) which read as follows: “is made available for subsequent purchase only—

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 102–550, § 209, added par. (4) and struck out former par. (4) which read as follows: “is made available for subsequent purchase only—

    “(A) to persons who meet the qualifications specified under paragraph (2), and “(B) at a price consistent with guidelines that are established by the participating jurisdiction and determined by the Secretary to be appropriate— “(i) to provide the owner with a fair return on investment, including any improvements, and “(ii) to ensure that the housing will remain affordable to a reasonable range of low income homebuyers; and”.

    Enacted provision · exact public law section
    SEC. 209. HOMEOWNERSHIP RESALE RESTRICTIONS. Section 215(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(b)) is amended by striking paragraph (4) and inserting the following: “(4) is subject to resale restrictions that are established by the participating jurisdiction and determined by the Secretary to be appropriate to— “(A) allow for subsequent purchase of the property only by persons who meet the qualifications specified under paragraph (2), at a price which will— “(i) provide the owner with a fair return on investment, including any improvements, and “(ii) ensure that the housing will remain affordable to a reasonable range of low-income homebuyers; or “(B) recapture the investment provided under this title in order to assist other persons in accordance with the requirements of this subsection, except where there are no net proceeds or where the net proceeds are insufficient to repay the full amount of the assistance; and”.

  6. Multifamily Housing Property Disposition Reform Act of 1994

    Pub. L. 103–233 § 203(a) · 108 Stat. 342

    1. Redesignated · 42 U.S.C. § 12745(b)(3)

      Pub. L. 103–233, § 203(a), redesignated par. (4) as (3)

    2. Struck · 42 U.S.C. § 12745(b)(3)

      Pub. L. 103–233, § 203(a), struck out former par. (3) which read as follows: “is made available for initial purchase only to first-time homebuyers;”

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 103–233, § 203(a), redesignated par. (4) as (3) and struck out former par. (3) which read as follows: “is made available for initial purchase only to first-time homebuyers;”.

    Enacted provision · exact public law section
    (a) Removal of First-Time Homebuyer Requirement.— Section 215(b) of the CranstonGonzalez National Affordable Housing Act (42 U.S.C. 12745(b)) is amended— (1) by striking paragraph (3); and (2) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.

  7. Multifamily Housing Property Disposition Reform Act of 1994

    Pub. L. 103–233 § 203(b) · 108 Stat. 342

    Substituted · 42 U.S.C. § 12745(b)(3)(B)

    Pub. L. 103–233, § 203(b), substituted “subchapter” for “subsection” after “requirements of this”

    Source evidence

    Code amendment note
    Subsec. (b)(3)(B). Pub. L. 103–233, § 203(b), substituted “subchapter” for “subsection” after “requirements of this”.

    Enacted provision · exact public law section
    (b) Simplification of Resale Provisions.— Section 215(b)(3)(B) of the CranstonGonzalez National Affordable Housing Act (42 U.S.C. 12745(b)(3)(B)), as so redesignated by subsection (a) of this section, is amended by striking “subsection” and inserting “title”.

  8. Multifamily Housing Property Disposition Reform Act of 1994

    Pub. L. 103–233 § 203(a)(2) · 108 Stat. 342

    Redesignated · 42 U.S.C. § 12745(b)(4); 42 U.S.C. § 12745(b)(5)

    Pub. L. 103–233, § 203(a)(2), redesignated pars. (4) and (5) as (3) and (4), respectively

    Source evidence

    Code amendment note
    Subsec. (b)(4), (5). Pub. L. 103–233, § 203(a)(2), redesignated pars. (4) and (5) as (3) and (4), respectively.

    Enacted provision · exact public law section
    (2) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.

  9. Pub. L. 105–276 title V § 599B(b) · 112 Stat. 2461

    Amended · 42 U.S.C. § 12745(b)(2)

    Pub. L. 105–276 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “is the principal residence of an owner whose family qualifies as a low-income family at the time of purchase;”

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 105–276 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “is the principal residence of an owner whose family qualifies as a low-income family at the time of purchase;”.

    Effective date note
    Amendment by Pub. L. 105–276 made on, and applicable beginning upon, Oct. 21, 1998, see section 599B(c) of Pub. L. 105–276, set out as a note under section 12744 of this title.

  10. American Homeownership and Economic Opportunity Act of 2000

    Pub. L. 106–569 title IX § 904 · 114 Stat. 2944

    Added · 42 U.S.C. § 12745(a)(6)

    Pub. L. 106–569 added par. (6)

    Source evidence

    Code amendment note
    Subsec. (a)(6). Pub. L. 106–569 added par. (6).

    Enacted provision · exact public law section
    SEC. 904. USE OF SECTION 8 ASSISTANCE BY “GRAND-FAMILIES” TO RENT DWELLING UNITS IN ASSISTED PROJECTS. Section 215(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(a)) is amended by adding at the end the following new paragraph: “(6) Waiver of qualifying rent.— “(A) In general.— For the purpose of providing affordable housing appropriate for families described in subparagraph (B), the Secretary may, upon the application of the project owner, waive the applicability of subparagraph (A) of paragraph (1) with respect to a dwelling unit if— “(i) the unit is occupied by such a family, on whose behalf tenant-based assistance is provided under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f); “(ii) the rent for the unit is not greater than the existing fair market rent for comparable units in the area, as established by the Secretary under section 8 of the United States Housing Act of 1937; and “(iii) the Secretary determines that the waiver, together with waivers under this paragraph for other dwelling units in the project, will result in the use of amounts described in clause (iii) in an effective manner that will improve the provision of affordable housing for such families. “(B) Eligible families.— A family described in this subparagraph is a family that consists of at least one elderly person (who is the head of household) and one or more of such person’s grand children, great grandchildren, great nieces, great nephews, or great great grandchildren (as defined by the Secretary), but does not include any parent of such grandchildren, great grandchildren, great nieces, great nephews, or great great grandchildren. Such term includes any such grandchildren, great grandchildren, great nieces, great nephews, or great great grandchildren who have been legally adopted by such elderly person”.

  11. Pub. L. 119–101 § 501(p) · 140 Stat. 908

    Substituted · 42 U.S.C. § 12745(a)(1)(E)

    Pub. L. 119–101, § 501(p), which directed the substitution of “except—” and cls. (i) and (ii) for “except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; and”, was executed by making the substitution for text containing “avoiding low income” instead of “avoiding low-income”, to reflect the probable intent of Congress

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (a)(1)(E). Pub. L. 119–101, § 501(p), which directed the substitution of “except—” and cls. (i) and (ii) for “except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; and”, was executed by making the substitution for text containing “avoiding low income” instead of “avoiding low-income”, to reflect the probable intent of Congress.

  12. Pub. L. 119–101 § 501(v)(8) · 140 Stat. 908

    Substituted · 42 U.S.C. § 12745(a)(6)(B)

    Pub. L. 119–101, § 501(v)(8), substituted “person’s grandchildren” for “person’s grand children”

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (a)(6)(B). Pub. L. 119–101, § 501(v)(8), substituted “person’s grandchildren” for “person’s grand children”.

  13. Pub. L. 119–101 § 501(g) · 140 Stat. 908

    Added · 42 U.S.C. § 12745(a)(7)

    Pub. L. 119–101, § 501(g), added par. (7)

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (a)(7). Pub. L. 119–101, § 501(g), added par. (7).

  14. Pub. L. 119–101 § 501(h)(1)(C) · 140 Stat. 908

    1. Amended · 42 U.S.C. § 12745(b)

      Pub. L. 119–101, § 501(h)(1)(C), (D), (F), designated existing provisions as par. (1)

    2. Inserted · 42 U.S.C. § 12745(b)

      Pub. L. 119–101, § 501(h)(1)(C), (D), (F), inserted heading

    3. Redesignated · 42 U.S.C. § 12745(b)

      Pub. L. 119–101, § 501(h)(1)(C), (D), (F), redesignated former pars. (1) to (4) as subpars. (A) to (D), respectively, of par. (1), realigned margins

    4. Added · 42 U.S.C. § 12745(b)

      Pub. L. 119–101, § 501(h)(1)(C), (D), (F), added par. (2)

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 119–101, § 501(h)(1)(C), (D), (F), designated existing provisions as par. (1), inserted heading, redesignated former pars. (1) to (4) as subpars. (A) to (D), respectively, of par. (1), realigned margins, and added par. (2).

  15. Pub. L. 119–101 § 501(h)(1)(D) · 140 Stat. 908

    Substituted · 42 U.S.C. § 12745(b)(1)

    Pub. L. 119–101, § 501(h)(1)(D), which directed substitution of “Housing that is for home-ownership” for “Housing that is for home-ownership” in introductory provisions, was executed by making the substitution for “Housing that is for homeownership”, to reflect the probable intent of Congress

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 119–101, § 501(h)(1)(D), which directed substitution of “Housing that is for home-ownership” for “Housing that is for home-ownership” in introductory provisions, was executed by making the substitution for “Housing that is for homeownership”, to reflect the probable intent of Congress.

  16. Pub. L. 119–101 § 501(h)(1)(E)(i)(II) · 140 Stat. 908

    Changed · 42 U.S.C. § 12745(b)(1)(A)

    Pub. L. 119–101, § 501(h)(1)(E)(i)(II), which directed the insertion of “(defined as the amount borrowed by the homebuyer to purchase the home, or the estimated value after rehabilitation, which may be adjusted to account for the limits on future value imposed by the resale restriction)” after “purchase price”, was not executed because the phrase “purchase price” appeared twice in subpar. (A), and amendment did not specify which phrase was intended

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b)(1)(A). Pub. L. 119–101, § 501(h)(1)(E)(i)(II), which directed the insertion of “(defined as the amount borrowed by the homebuyer to purchase the home, or the estimated value after rehabilitation, which may be adjusted to account for the limits on future value imposed by the resale restriction)” after “purchase price”, was not executed because the phrase “purchase price” appeared twice in subpar. (A), and amendment did not specify which phrase was intended.

  17. Pub. L. 119–101 § 501(h)(1)(E)(i)(I) · 140 Stat. 908

    Substituted · 42 U.S.C. § 12745(b)(1)(A)

    Pub. L. 119–101, § 501(h)(1)(E)(i)(I), substituted “110 percent” for “95 percent”

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 119–101, § 501(h)(1)(E)(i)(I), substituted “110 percent” for “95 percent”.

  18. Pub. L. 119–101 § 501(h)(1)(E)(ii) · 140 Stat. 908

    Substituted · 42 U.S.C. § 12745(b)(1)(B)

    Pub. L. 119–101, § 501(h)(1)(E)(ii), substituted “with a family income that does not exceed 100 percent of the median family income of the area as determined by the Secretary with adjustments for smaller and larger families” for “whose family qualifies as a low-income family” in introductory provisions

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b)(1)(B). Pub. L. 119–101, § 501(h)(1)(E)(ii), substituted “with a family income that does not exceed 100 percent of the median family income of the area as determined by the Secretary with adjustments for smaller and larger families” for “whose family qualifies as a low-income family” in introductory provisions.

  19. Pub. L. 119–101 § 501(h)(1)(A) · 140 Stat. 908

    Redesignated · 42 U.S.C. § 12745(b)(1)(B)

    Pub. L. 119–101, § 501(h)(1)(A), redesignated subpars. (A) to (C) of former par. (2) as cls. (i) to (iii), respectively, of par. (1)(B) and realigned margins

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 119–101, § 501(h)(1)(A), redesignated subpars. (A) to (C) of former par. (2) as cls. (i) to (iii), respectively, of par. (1)(B) and realigned margins.

  20. Pub. L. 119–101 § 501(h)(1)(B) · 140 Stat. 908

    1. Redesignated · 42 U.S.C. § 12745(b)(1)(C)

      Pub. L. 119–101, § 501(h)(1)(B), redesignated subpars. (A) and (B) of former par. (3) as cls. (i) and (ii), respectively, of par. (1)(C)

    2. Redesignated · 42 U.S.C. § 12745(b)(1)(C)

      Pub. L. 119–101, § 501(h)(1)(B), redesignated cls. (i) and (ii) of former par. (3)(A) as subcls. (I) and (II), respectively, of par. (1)(C)(i), and realigned margins

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b)(1)(C). Pub. L. 119–101, § 501(h)(1)(B), redesignated subpars. (A) and (B) of former par. (3) as cls. (i) and (ii), respectively, of par. (1)(C), redesignated cls. (i) and (ii) of former par. (3)(A) as subcls. (I) and (II), respectively, of par. (1)(C)(i), and realigned margins.

  21. Pub. L. 119–101 § 501(h)(1)(E)(iii)(I)(aa) · 140 Stat. 908

    Substituted · 42 U.S.C. § 12745(b)(1)(C)(i)(II)

    Pub. L. 119–101, § 501(h)(1)(E)(iii)(I)(aa), which directed the substitution of “home-buyers with a household income that does not exceed 100 percent of the median family income of the area, as determined by the Secretary with adjustments for smaller and larger families” for “low-income home-buyers”, was executed by making the substitution for “low-income homebuyers”, to reflect the probable intent of Congress

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b)(1)(C)(i)(II). Pub. L. 119–101, § 501(h)(1)(E)(iii)(I)(aa), which directed the substitution of “home-buyers with a household income that does not exceed 100 percent of the median family income of the area, as determined by the Secretary with adjustments for smaller and larger families” for “low-income home-buyers”, was executed by making the substitution for “low-income homebuyers”, to reflect the probable intent of Congress.

  22. Pub. L. 119–101 § 501(h)(1)(E)(iii)(I)(bb) · 140 Stat. 908

    Added · 42 U.S.C. § 12745(b)(1)(C)(iii)

    Pub. L. 119–101, § 501(h)(1)(E)(iii)(I)(bb)–(III), added cl. (iii)

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b)(1)(C)(iii). Pub. L. 119–101, § 501(h)(1)(E)(iii)(I)(bb)–(III), added cl. (iii).

  23. Pub. L. 119–101 § 501(h)(1)(E)(iv) · 140 Stat. 908

    Added · 42 U.S.C. § 12745(b)(1)(E)

    Pub. L. 119–101, § 501(h)(1)(E)(iv), (v), added subpar. (E)

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b)(1)(E). Pub. L. 119–101, § 501(h)(1)(E)(iv), (v), added subpar. (E).

  24. Pub. L. 119–101 § 501(h)(2) · 140 Stat. 908

    Added · 42 U.S.C. § 12745(c)

    Pub. L. 119–101, § 501(h)(2), added subsec. (c)

    Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 119–101, § 501(h)(2), added subsec. (c).

12 of 31 references resolved to an enrolled provision · 1 partial · 18 unresolved

Editorial Notes

References in Text

This Act, referred to in subsec. (a)(1)(E), (3), is Pub. L. 101–625, , 104 Stat. 4079, known as the Cranston-Gonzalez National Affordable Housing Act. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables.

Amendments1992–2026 · 5 rounds

2026

Subsec. (a)(1)(E). Pub. L. 119–101, § 501(p), which directed the substitution of “except—” and cls. (i) and (ii) for “except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; and”, was executed by making the substitution for text containing “avoiding low income” instead of “avoiding low-income”, to reflect the probable intent of Congress.

Subsec. (a)(6)(B). Pub. L. 119–101, § 501(v)(8), substituted “person’s grandchildren” for “person’s grand children”.

Subsec. (a)(7). Pub. L. 119–101, § 501(g), added par. (7).

Subsec. (b). Pub. L. 119–101, § 501(h)(1)(C), (D), (F), designated existing provisions as par. (1), inserted heading, redesignated former pars. (1) to (4) as subpars. (A) to (D), respectively, of par. (1), realigned margins, and added par. (2).

Subsec. (b)(1). Pub. L. 119–101, § 501(h)(1)(D), which directed substitution of “Housing that is for home-ownership” for “Housing that is for home-ownership” in introductory provisions, was executed by making the substitution for “Housing that is for homeownership”, to reflect the probable intent of Congress.

Subsec. (b)(1)(A). Pub. L. 119–101, § 501(h)(1)(E)(i)(II), which directed the insertion of “(defined as the amount borrowed by the homebuyer to purchase the home, or the estimated value after rehabilitation, which may be adjusted to account for the limits on future value imposed by the resale restriction)” after “purchase price”, was not executed because the phrase “purchase price” appeared twice in subpar. (A), and amendment did not specify which phrase was intended.

Pub. L. 119–101, § 501(h)(1)(E)(i)(I), substituted “110 percent” for “95 percent”.

Subsec. (b)(1)(B). Pub. L. 119–101, § 501(h)(1)(E)(ii), substituted “with a family income that does not exceed 100 percent of the median family income of the area as determined by the Secretary with adjustments for smaller and larger families” for “whose family qualifies as a low-income family” in introductory provisions.

Pub. L. 119–101, § 501(h)(1)(A), redesignated subpars. (A) to (C) of former par. (2) as cls. (i) to (iii), respectively, of par. (1)(B) and realigned margins.

Subsec. (b)(1)(C). Pub. L. 119–101, § 501(h)(1)(B), redesignated subpars. (A) and (B) of former par. (3) as cls. (i) and (ii), respectively, of par. (1)(C), redesignated cls. (i) and (ii) of former par. (3)(A) as subcls. (I) and (II), respectively, of par. (1)(C)(i), and realigned margins.

Subsec. (b)(1)(C)(i)(II). Pub. L. 119–101, § 501(h)(1)(E)(iii)(I)(aa), which directed the substitution of “home-buyers with a household income that does not exceed 100 percent of the median family income of the area, as determined by the Secretary with adjustments for smaller and larger families” for “low-income home-buyers”, was executed by making the substitution for “low-income homebuyers”, to reflect the probable intent of Congress.

Subsec. (b)(1)(C)(iii). Pub. L. 119–101, § 501(h)(1)(E)(iii)(I)(bb)–(III), added cl. (iii).

Subsec. (b)(1)(E). Pub. L. 119–101, § 501(h)(1)(E)(iv), (v), added subpar. (E).

Subsec. (c). Pub. L. 119–101, § 501(h)(2), added subsec. (c).

2000

Subsec. (a)(6). Pub. L. 106–569 added par. (6).

1998

Subsec. (b)(2). Pub. L. 105–276 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “is the principal residence of an owner whose family qualifies as a low-income family at the time of purchase;”.

1994

Subsec. (b)(3). Pub. L. 103–233, § 203(a), redesignated par. (4) as (3) and struck out former par. (3) which read as follows: “is made available for initial purchase only to first-time homebuyers;”.

Subsec. (b)(3)(B). Pub. L. 103–233, § 203(b), substituted “subchapter” for “subsection” after “requirements of this”.

Subsec. (b)(4), (5). Pub. L. 103–233, § 203(a)(2), redesignated pars. (4) and (5) as (3) and (4), respectively.

1992

Subsec. (a)(1)(A). Pub. L. 102–550, § 208(a)(1), substituted “number of bedrooms in the unit” for “smaller and larger families”.

Subsec. (a)(1)(E). Pub. L. 102–550, § 208(b), inserted before semicolon “, except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low income affordability restrictions, as determined by the Secretary”.

Subsec. (a)(3). Pub. L. 102–550, § 208(a)(2), (3), substituted “the lesser of the amount payable by the tenant under State or local law or” for “not less than” in second sentence and inserted at end “The preceding sentence shall not apply with respect to funds made available under this Act for units that have been allocated a low-income housing tax credit by a housing credit agency pursuant to section 42 of title 26.”

Subsec. (b)(4). Pub. L. 102–550, § 209, added par. (4) and struck out former par. (4) which read as follows: “is made available for subsequent purchase only—

“(A) to persons who meet the qualifications specified under paragraph (2), and

“(B) at a price consistent with guidelines that are established by the participating jurisdiction and determined by the Secretary to be appropriate—

“(i) to provide the owner with a fair return on investment, including any improvements, and

“(ii) to ensure that the housing will remain affordable to a reasonable range of low income homebuyers; and”.

Statutory Notes and Related Subsidiaries

Effective Date of 1998 Amendment

Amendment by Pub. L. 105–276 made on, and applicable beginning upon, , see section 599B(c) of Pub. L. 105–276, set out as a note under section 12744 of this title.

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–233 applicable with respect to any amounts made available to carry out this subchapter after , and any amounts made available to carry out this subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103–233, set out as a note under section 5301 of this title.

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102–550, set out as a note under section 12704 of this title.

HOME Investment Partnerships Program

Pub. L. 114–113, div. L, title II, , 129 Stat. 2878, provided in part: “That with respect to funds made available under this heading [home investment partnerships program, see 129 Stat. 2878] pursuant to such Act [probably means title II of Pub. L. 101–625] and funds provided in prior and subsequent appropriations acts that were or are used by community land trusts for the development of affordable homeownership housing pursuant to section 215(b) of such Act [42 U.S.C. 12745(b)], such community land trusts, notwithstanding section 215(b)(3)(A) [now 215(b)(1)(C)(i)] of such Act [42 U.S.C. 12745(b)(1)(C)(i)], may hold and exercise purchase options, rights of first refusal or other preemptive rights to purchase the housing to preserve affordability, including but not limited to the right to purchase the housing in lieu of foreclosure”.

Credits

1990–2026 · 6 acts
  1. 1990Pub. L. 101–625, title II, § 215, , 104 Stat. 4101
  2. 1992Pub. L. 102–550, title II, §§ 208, 209, , 106 Stat. 3754
  3. 1994Pub. L. 103–233, title II, § 203, , 108 Stat. 364
  4. 1998Pub. L. 105–276, title V, § 599B(b), , 112 Stat. 2660
  5. 2000Pub. L. 106–569, title IX, § 904, , 114 Stat. 3027
  6. 2026Pub. L. 119–101, title V, § 501(g), (h), (p), (v)(8), , 140 Stat. 908, 913, 917.
Show as published

(Pub. L. 101–625, title II, § 215, , 104 Stat. 4101; Pub. L. 102–550, title II, §§ 208, 209, , 106 Stat. 3754; Pub. L. 103–233, title II, § 203, , 108 Stat. 364; Pub. L. 105–276, title V, § 599B(b), , 112 Stat. 2660; Pub. L. 106–569, title IX, § 904, , 114 Stat. 3027; Pub. L. 119–101, title V, § 501(g), (h), (p), (v)(8), , 140 Stat. 908, 913, 917.)

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