12 U.S.C. § 4119 — Definitions

Page 1612 TITLE 12—BANKS AND BANKING § 4118 1 See References in Text note below. (6) a certification by the public official re- sponsible for submitting the comprehensive housing affordability strategy under section 12705 of title 42 that the proposed activities are consistent with the approved housing strategy of the State within which the eligible low-in- come housing is located; and (7) such other certifications or information that the Secretary determines to be necessary or appropriate to achieve the purposes of this subchapter. (c) Implementation agreements The Secretary may enter into any agreements necessary to implement an approved State pres- ervation plan, which may include incentives that are authorized under other provisions of this subchapter. (Pub. L. 100–242, title II, § 227, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4270.) Statutory Notes and Related Subsidiaries REGULATIONS Pub. L. 102–550, title III, § 315, Oct. 28, 1992, 106 Stat. 3770, provided that: ‘‘The Secretary of Housing and Urban Development shall issue interim regulations im- plementing section 227 of the Housing and Community Development Act of 1987 (as amended by section 601(a) of the Cranston-Gonzalez National Affordable Housing Act) [12 U.S.C. 4117] not later than the expiration of the 30-day period beginning on the date of the enactment of this Act [Oct. 28, 1992], which shall take effect upon issuance. The Secretary shall issue final regulations implementing such section 227 after notice and oppor- tunity for public comment regarding the interim regu- lations, pursuant to the provisions of section 553 of title 5, United States Code (notwithstanding sub- sections (a)(2), (b)(B), and (d)(3) of such section). The duration of the period for public comment shall not be less than 60 days, and the final regulations shall be issued not later than the expiration of the 60-day period beginning upon the conclusion of the comment period and shall take effect upon issuance.’’ § 4118. Consultations with other interested par- ties The Secretary shall confer with any appro- priate State or local government agency to con- firm any State or local assistance that is avail- able to achieve the purposes of this title 1 and shall give consideration to the views of any such agency when making determinations under this subchapter. The Secretary shall also confer with appropriate interested parties that the Sec- retary believes could assist in the development of a plan of action that best achieves the pur- poses of this subchapter. (Pub. L. 100–242, title II, § 228, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4271.) Editorial Notes REFERENCES IN TEXT This title, referred to in text, 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 Home- ownership Act of 1990, which is classified principally 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. § 4119. Definitions For purposes of this subchapter: (1) The term ‘‘eligible low-income housing’’ means any housing financed by a loan or mort- gage— (A) that is— (i) insured or held by the Secretary under section 1715l(d)(3) of this title and receiving loan management assistance under section 1437f of title 42 due to a con- version from section 1701s of this title; (ii) insured or held by the Secretary and bears interest at a rate determined under the proviso of section 1715l(d)(5) of this title; (iii) insured, assisted, or held by the Sec- retary or a State or State agency under section 1715z–1 of this title; or (iv) held by the Secretary and formerly insured under a program referred to in clause (i), (ii), or (iii); and (B) that, under regulation or contract in effect before February 5, 1988, is or will with- in 24 months become eligible for prepayment without prior approval of the Secretary. (2) The term ‘‘Federal cost limit’’ means, for any eligible low-income housing, the amount determined under section 4105(a) of this title. (3) The term ‘‘low-income affordability re- strictions’’ means limits imposed by regula- tion or regulatory agreement on tenant rents, rent contributions, or income eligibility in eli- gible low-income housing. (4) The terms ‘‘low-income families or per- sons’’ and ‘‘very low-income families or per- sons’’ mean families or persons whose incomes do not exceed the respective levels established for low-income families and very low-income families, respectively, under section 1437a(b)(2) of title 42. (5) The term ‘‘moderate-income families or persons’’ means families or persons whose in- comes are between 80 percent and 95 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families. (6) The term ‘‘nonprofit organization’’ means any private, nonprofit organization that— (A) is organized or chartered under State or local laws; (B) has no part of its net earnings inuring to the benefit of any member, founder, con- tributor, or individual; (C) complies with standards of financial accountability acceptable to the Secretary; and (D) has among its principal purposes sig- nificant activities related to the provision of decent housing that is affordable to very low-, low-, and moderate-income families. (7) The term ‘‘owner’’ means the current or subsequent owner or owners of eligible low-in- come housing. (8) The term ‘‘preservation equity’’ means, for any eligible low-income housing— Page 1613 TITLE 12—BANKS AND BANKING § 4121 1 So in original. Probably should be ‘‘sections’’. 2 See References in Text note below. 1 So in original. Probably should be section ‘‘4116’’. 2 So in original. Probably should be section ‘‘4112(c)’’. (A) for purposes of determining the au- thorized return under section 4104(a) of this title and providing incentives to extend the low-income affordability restrictions on the housing under section 4109 of this title— (i) the preservation value of the housing determined under section 4103(b)(1) of this title; less (ii) any debt secured by the property; and (B) for purposes of determining incentives under section 1 4110 and 4111 of this title and determining the amount of an acquisition loan under the provisions of section 1715z–6(f)(3) 2 of this title— (i) the preservation value of the housing determined under section 4103(b)(2) of this title; less (ii) the outstanding balance of the feder- ally-assisted mortgage or mortgages for the housing. (9) The term ‘‘preservation value’’ means, for any eligible low-income housing, the appli- cable value determined under paragraph (1) or (2) of section 4103(b) of this title. (10) The term ‘‘Secretary’’ means the Sec- retary of Housing and Urban Development. (11) The term ‘‘resident council’’ means any incorporated nonprofit organization or asso- ciation that— (A) is representative of the residents of the housing; (B) adopts written procedures providing for the election of officers on a regular basis; and (C) has a democratically elected governing board, elected by the residents of the hous- ing. (Pub. L. 100–242, title II, § 229, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4271; amended Pub. L. 102–550, title III, §§ 310, 317(a)(5), Oct. 28, 1992, 106 Stat. 3765, 3772; Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2316.) Editorial Notes REFERENCES IN TEXT Section 1715z–6(f) of this title, referred to in par. (8)(B), was repealed by Pub. L. 104–204, title II, Sept. 26, 1996, 110 Stat. 2885. CODIFICATION Amendment by Pub. L. 103–327 is based on section 601(e) of title VI of S. 2281, One Hundred Third Con- gress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327. AMENDMENTS 1994—Par. (4). Pub. L. 103–327 temporarily amended par. (4) to read as follows: ‘‘(4)(A) The term ‘low-income tenants’ means families or persons with incomes that exceed 50 percent of the median income for the area (as determined by the Sec- retary with adjustments for family size) but do not ex- ceed 80 percent of the median income for the area (as determined by the Secretary with adjustments for fam- ily size). ‘‘(B) The term ‘very low-income tenants’ means fami- lies or persons with incomes that are less than or equal to 50 percent of the median income for the area (as de- termined by the Secretary with adjustments for family size).’’ See Effective and Termination Dates of 1994 Amendment note below. 1992—Par. (1)(A)(i). Pub. L. 102–550, § 310, substituted ‘‘receiving loan management assistance under section 1437f of title 42 due to a conversion from section 1701s of this title’’ for ‘‘assisted under section 1701s of this title or section 1437f of title 42’’. Par. (11)(A). Pub. L. 102–550, § 317(a)(5), substituted ‘‘residents’’ for ‘‘resident’’. Statutory Notes and Related Subsidiaries EFFECTIVE AND TERMINATION DATES OF 1994 AMENDMENT Amendment by Pub. L. 103–327 effective only during fiscal year 1995, see provision of title II of Pub. L. 103–327 set out as a note under section 4112 of this title. § 4120. Notice to tenants Where a provision of this subchapter requires that information or material be given to tenants of the housing, the requirement may be met by (1) posting a copy of the information or material in readily accessible locations within each af- fected building, or posting notices in each such location describing the information or material and specifying a location, as convenient to the tenants as is reasonably practical, where a copy may be examined, and (2) supplying a copy of the information or material to a representative of the tenants. (Pub. L. 100–242, title II, § 230, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4273.) § 4121. Definitions of qualified and priority pur- chaser and related party rule (a) Priority purchaser The term ‘‘priority purchaser’’ means (A) a resident council organized to acquire the hous- ing in accordance with a resident homeowner- ship program that meets the requirements of section 4121 1 of this title; and (B) any nonprofit organization or State or local agency that agrees to maintain low-income affordability re- strictions for the remaining useful life of the housing (as determined under section 4112(d) 2 of this title). (b) Qualified purchaser The term ‘‘qualified purchaser’’ means any en- tity that agrees to maintain low-income afford- ability restrictions for the remaining useful life of the housing (as determined under section 4112(c) of this title), and includes for-profit enti- ties and priority purchasers. (c) Related parties Except as provided in subsection (d), the terms ‘‘qualified purchaser’’ and ‘‘priority purchaser’’ do not include any entity that, either directly or indirectly, is wholly or partially owned or con- trolled by the owner of the housing being trans- ferred under this subchapter, is under whole or partial common control with such owner, or has any financial interest in such owner or in which such owner has any financial interest. The Sec-