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12 U.S.C. § 4111 — Mandatory sale for housing exceeding Federal cost limits
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** With respect to any eligible low-income housing for which the aggregate preservation rents determined under [section 4104(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4104/b&num=0&edition=prelim) exceed the Federal cost limit, the owner shall offer the housing for sale to qualified purchasers as provided in this section.
**(b) Right of first refusal to priority purchasers**
(1) **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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4106/d&num=0&edition=prelim) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4103/b/2&num=0&edition=prelim), the Secretary shall require the owner to sell the housing pursuant to such offer.
(2) **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.
(3) **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
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Source file: Laws/federal/codes/united-states-code/title-12/section-4111-mandatory-sale-for-housing-exceeding-federal-cost-limits--4424acbe92.md
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Source location: Title 12, Chapter 42, § 4111; chapter-042-low-income-housing-preservation-and-resident-homeownership.md
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**(a) In general** With respect to any eligible low-income housing for which the aggregate preservation rents determined under [section 4104(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4104/b&num=0&edition=prelim) exceed the Federal cost limit, the owner shall offer the housing for sale to qualified purchasers as provided in this section.
**(b) Right of first refusal to priority purchasers**
(1) **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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4106/d&num=0&edition=prelim) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4103/b/2&num=0&edition=prelim), the Secretary shall require the owner to sell the housing pursuant to such offer.
(2) **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.
(3) **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.
**(c) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4103/b/2&num=0&edition=prelim), the Secretary shall require the owner to sell the housing pursuant to such offer.
**(d) Assistance**
(1) **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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437f&num=0&edition=prelim) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4109/b&num=0&edition=prelim) that would have been provided to a qualified purchaser under [section 4110 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4110&num=0&edition=prelim).
(2) **Additional assistance** — From amounts made available under [section 4124(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4124/b&num=0&edition=prelim), 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4103/b/2&num=0&edition=prelim)) and the level of assistance under paragraph (1) of this subsection.
(3) **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.
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, act Aug. 2, 1954, ch. 649, title VIII, § 815, 68 Stat. 647, required submission of specifications by applicants prior to award of any contract for construction of a project and submission of data with respect to acquisition of land prior to authorization to purchase such land.
Source: Supplied U.S. Code snapshot — release unconfirmed · 42 U.S.C. § 1437f
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** With respect to any eligible low-income housing for which an owner has submitted a second notice of intent under [section 4106(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4106/d&num=0&edition=prelim) to transfer the housing to a qualified purchaser, the owner shall offer the housing for transfer to qualified purchasers as provided in this section. The Secretary shall issue regulations describing the means by which potential qualified purchasers shall be notified of the availability of the housing for sale. The Secretary shall take into account the Federal cost limits under [section 4105(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4105/a&num=0&edition=prelim) for the housing when providing incentives under section 4109(b)(2) and (b)(3) of this title (pursuant to subsection (d)(3) of this section).
**(b) Right of first offer to priority purchasers**
(1) **Negotiation period** — For the 12-month period beginning on the receipt by the Secretary of a second notice of intent under [section 4106(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4106/d&num=0&edition=prelim) with respect to such housing, the owner may offer to sell and negotiate a sale of the housing only with priority purchasers. The negotiated sale price may not exceed the preservation value of the housing determined under [section 4103(b)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4103/b/2&num=0&edition=prelim). The owner or the purchaser shall submit a plan of action under [section 4107 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4107&num=0&edition=p
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4110
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Determination of relationship to Federal cost limits**
(1) **Initial determination** — For each eligible low-income housing project appraised under [section 4103(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4103/a&num=0&edition=prelim), the Secretary shall determine whether the aggregate preservation rents for the project determined under paragraph (1) or (2) of [section 4104(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4104/b&num=0&edition=prelim) exceed the amount determined by multiplying 120 percent of the fair market rental (established under [section 1437f(c) of title 42](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437f/c&num=0&edition=prelim)) for the market area in which the housing is located by the number of dwelling units in the project (according to appropriate unit sizes).
(2) **Relevant local markets** — If the aggregate preservation rents for a project exceeds the amount determined under paragraph (1), the Secretary shall determine whether such aggregate rents exceed 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 the appropriate unit sizes). A relevant local market area shall be an area geographically smaller than a market area established by the Secretary under [section 1437f(c)(1) of title 42](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437f/c/1&num=0&edition=prelim) that is identifiable as a distinct rental market area. The Secretary may rely on the appraisal to determine the relevant local market areas and prevailing rents in such local area
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4105
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Submission to Secretary**
(1) **Timing** — Not later than 6 months after receipt of the information from the Secretary under [section 4106 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4106&num=0&edition=prelim) an owner seeking to terminate the low-income affordability restrictions through prepayment of the mortgage or voluntary termination under [section 4108 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4108&num=0&edition=prelim), or to extend the low-income affordability restriction on the housing under [section 4109 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4109&num=0&edition=prelim), shall submit a plan of action to the Secretary in such form and manner as the Secretary shall prescribe. Any owner or purchaser seeking a transfer of the housing under section 4110 or 4111 of this title shall submit a plan of action under this section to the Secretary upon acceptance of a bona fide offer under section 4110(b) or (c) of this title or upon making of any bona fide offer under [section 4111 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4111&num=0&edition=prelim).
(2) **Copies to tenants** — Each owner submitting a plan of action under this section to the Secretary shall also submit a copy to the tenants of the housing. The owner shall simultaneously submit the plan of action to the office of the chief executive officer of the appropriate State or local government for the jurisdiction within which the housing is located. Each owner and the Secretary shall also, upon request, make available to the tenants of the housing and to the office of the chief executive officer of the appropriat
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 4107
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Federal law — U.S. Code and appendices · legal_authorities
Page 1603
TITLE 12—BANKS AND BANKING
§ 4111
such longer period if additional assistance is
necessary to cover the costs referred to in
paragraph (2)).
(Pub. L. 100–242, title II, § 220, as added Pub. L.
101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat.
4257; amended Pub. L. 102–550, title III, § 307, Oct.
28, 1992, 106 Stat. 3764.)
Editorial Notes
REFERENCES IN TEXT
This title, referred to in subsec. (d)(2)(E), means title
II of Pub. L. 100–242, as amended by Pub. L. 101–625,
title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, known as
the Low-Income Housing Preservation and Resident
Homeownership Act of 1990, which is classified prin-
cipally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4101 of this title and Tables.
Section 1715z–6(f) of this title, referred to in subsec.
(d)(3)(A), was repealed by Pub. L. 104–204, title II, Sept.
26, 1996, 110 Stat. 2885.
AMENDMENTS
1992—Subsec. (d)(2). Pub. L. 102–550, § 307(a), inserted
‘‘(including all priority purchasers other than resident
councils acquiring under the homeownership program
authorized by section 4116 of this title)’’ after ‘‘pur-
chasers’’.
Subsec. (d)(2)(D). Pub. L. 102–550, § 307(b), inserted be-
fore semicolon at end ‘‘, and in the case of a priority
purchaser, meet project oversight costs’’.
Subsec. (d)(2)(E), (F). Pub. L. 102–550, § 307(c), (d),
amended subpars. (E) and (F) generally. Prior to
amendment, subpars. (E) and (F) read as follows:
‘‘(E) receive an adequate return (as determined by the
Secretary) on any actual cash investment made to ac-
quire the project;
‘‘(F) in the case of a priority purchaser, receive an
adequate reimbursement for transaction expenses re-
lating to acquisition of the housing,
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 4111
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.