12 U.S.C. § 4117 — Delegated responsibility to State agencies

Page 1611 TITLE 12—BANKS AND BANKING § 4117 shall not apply to the provision of assistance to such families. (C) Relocation assistance The resident council shall also inform each such tenant that if the tenant chooses to move, the owner will pay relocation assist- ance in accordance with the approved home- ownership program. (7) Qualified management As a condition of approval of a homeowner- ship program under this subchapter, the resi- dent council shall have demonstrated its abili- ties to manage eligible properties by having done so effectively and efficiently for a period of not less than 3 years or by entering into a contract with a qualified management entity that meets such standards as the Secretary may prescribe to ensure that the property will be maintained in a decent, safe, and sanitary condition. (8) Timely homeownership Except in the case of limited equity coopera- tives, resident councils shall transfer owner- ship of the property to tenants within a speci- fied period of time that the Secretary deter- mines to be reasonable. During the interim pe- riod when the property continues to be oper- ated and managed as rental housing, the resi- dent council shall utilize written tenant selec- tion policies and criteria that are approved by the Secretary as consistent with the purpose of providing housing for very low-income fami- lies. The resident council shall promptly no- tify in writing any rejected applicant of the grounds for any rejection. (9) Records and audit of resident councils (A) Maintenance Each resident council shall keep such records as may be reasonably necessary to fully disclose the amount and the disposi- tion by such resident council of the proceeds of assistance received under this subchapter (including any proceeds from sales under paragraphs (4) and (5)(D)), the total cost of the homeownership program in connection with which such assistance is given or used, and the amount and nature of that portion of the program supplied by other sources, and such other sources as will facilitate an effective audit. (B) Access The Secretary shall have access for the purpose of audit and examination to any books, documents, papers, and records of the resident council that are pertinent to assist- ance received under this subchapter. (C) Audit The Comptroller General of the United States, or any of the duly authorized rep- resentatives of the Comptroller General, shall also have access for the purpose of audit and examination to any books, docu- ments, papers, and records of the resident council that are pertinent to assistance re- ceived under this subchapter. (10) Assumption conditions Any entity that assumes a mortgage cov- ering low-income housing in connection with the acquisition of the housing from an owner under this section must comply with any low- income affordability restrictions for the re- maining useful life of the housing as deter- mined under section 4112(c) of this title. (Pub. L. 100–242, title II, § 226, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4267; amended Pub. L. 102–550, title III, § 309, Oct. 28, 1992, 106 Stat. 3765; Pub. L. 105–276, title V, § 514(b)(2)(A), Oct. 21, 1998, 112 Stat. 2548.) Editorial Notes AMENDMENTS 1998—Subsec. (b)(6)(B). Pub. L. 105–276, which directed the substitution of ‘‘Any system for preferences estab- lished under section 1437f(d)(1)(A) or 1437f(o)(6)(A)’’ for ‘‘The requirement for giving preferences to certain cat- egories of eligible families under sections 1437f(d)(1)(A) and 1437f(o)(3)’’ in second sentence, was executed by making the substitution for text which included the word ‘‘preference’’ rather than ‘‘preferences’’ to reflect the probable intent of Congress. 1992—Subsec. (b)(2). Pub. L. 102–550, § 309(1), inserted ‘‘and limitation on conditions of approval’’ in heading and inserted at end of text ‘‘The Secretary may not re- quire the prepayment of the mortgage on eligible low- income housing for the approval of a plan of action in- volving a homeownership program for the housing.’’ Subsec. (b)(3)(E). Pub. L. 102–550, § 309(2), added sub- par. (E). Subsec. (b)(8). Pub. L. 102–550, § 309(3), substituted ‘‘Except in the case of limited equity cooperatives, resident’’ for ‘‘Resident’’. Subsec. (b)(10). Pub. L. 102–550, § 309(4), struck out ‘‘, as determined by the Secretary,’’ after ‘‘entity that assumes’’, substituted ‘‘4112(c)’’ for ‘‘4112(d)’’, and struck out at end ‘‘This requirement shall only apply to an entity, such as a cooperative association, that, as determined by the Secretary, intends to own the hous- ing on a permanent basis.’’ § 4117. Delegated responsibility to State agencies (a) In general In addition to any responsibilities delegated under section 4103(c) of this title, the Secretary shall delegate some or all responsibility for im- plementing this subchapter to a State housing agency if such agency submits a preservation plan acceptable to the Secretary. (b) Approval State preservation plans shall be submitted in such form and in accordance with such proce- dures as the Secretary shall establish. The Sec- retary may approve plans that contain— (1) an inventory of low-income housing lo- cated within the State that is or will be eligi- ble low-income housing under this subchapter within 5 years; (2) a description of the agency’s experience in the area of multifamily financing and re- structuring; (3) a description of the administrative re- sources that the agency will commit to the processing of plans of action in accordance with this subchapter; (4) a description of the administrative re- sources that the agency will commit to the monitoring of approved plans of action in ac- cordance with this subchapter; (5) an independent analysis of the perform- ance of the multifamily housing inventory fi- nanced or otherwise monitored by the agency; 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—