12 U.S.C. § 4101 — General prepayment limitation

Page 1592 TITLE 12—BANKS AND BANKING § 4101 Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Sept. 1, 1988, see section 613(b) of Pub. L. 100–86, set out as a note under section 4001 of this title. CHAPTER 42—LOW-INCOME HOUSING PRES- ERVATION AND RESIDENT HOMEOWNER- SHIP SUBCHAPTER I—PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL HOUSING ACT Sec. 4101. General prepayment limitation. 4102. Notice of intent. 4103. Appraisal and preservation value of eligible low-income housing. 4104. Annual authorized return and preservation rents. 4105. Federal cost limits and limitations on plans of action. 4106. Information from Secretary. 4107. Plan of action. 4108. Prepayment and voluntary termination. 4109. Incentives to extend low-income use. 4110. Incentives for transfer to qualified pur- chasers. 4111. Mandatory sale for housing exceeding Federal cost limits. 4112. Criteria for approval of plan of action involv- ing incentives. 4113. Assistance for displaced tenants. 4114. Permissible prepayment or voluntary termi- nation and modification of commitments. 4115. Timetable for approval of plan of action. 4116. Resident homeownership program. 4117. Delegated responsibility to State agencies. 4118. Consultations with other interested parties. 4119. Definitions. 4120. Notice to tenants. 4121. Definitions of qualified and priority pur- chaser and related party rule. 4122. Preemption of State and local laws. 4123. Severability. 4124. Authorization of appropriations. 4125. State preservation project assistance. SUBCHAPTER II—TECHNICAL ASSISTANCE AND CAPACITY BUILDING 4141. Authority. 4142. Purposes. 4143. Grants for building resident capacity and funding predevelopment costs. 4144. Grants for other purposes. 4145. Delivery of assistance through inter- mediaries. 4146. Definitions. 4147. Funding. Editorial Notes CODIFICATION Subtitles A and B of the Low-Income Housing Preser- vation and Resident Homeownership Act of 1990, Pub. L. 100–242, title II, as revised generally by Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, comprise subchapter I of this chapter. Prior to the gen- eral revision by Pub. L. 101–625 subtitles A and B (§§ 201–235) of the Emergency Low Income Housing Pres- ervation Act of 1987, Pub. L. 100–242, title II, Feb. 5, 1988, 101 Stat. 1877, as amended by Pub. L. 100–628, title X, §§ 1021–1027, Nov. 7, 1988, 102 Stat. 3270, 3271; Pub. L. 101–235, title II, §§ 201, 202(a)–(c), 203(b), Dec. 15, 1989, 103 Stat. 2037, 2038; Pub. L. 101–402, § 1, Oct. 1, 1990, 104 Stat. 866; Pub. L. 101–494, §§ 1(c), 2(a), Oct. 31, 1990, 104 Stat. 1185, were set out as a note under section 1715l of this title and amended section 1715z–6 of this title. Subtitle C of the Low-Income Housing Preservation and Resident Homeownership Act of 1990, Pub. L. 100–242, title II, as added by Pub. L. 102–550, title III, § 312, Oct. 28, 1992, 106 Stat. 3765, comprises subchapter II of this chapter. Another subtitle C of title II of Pub. L. 100–242 amended sections 1472, 1485, and 1487 of Title 42, The Public Health and Welfare. SUBCHAPTER I—PREPAYMENT OF MORT- GAGES INSURED UNDER NATIONAL HOUSING ACT § 4101. General prepayment limitation (a) Prepayment and termination An owner of eligible low-income housing may prepay, and a mortgagee may accept prepay- ment of, a mortgage on such housing only in ac- cordance with a plan of action approved by the Secretary under this subchapter or in accord- ance with section 4114 of this title. An insurance contract with respect to eligible low-income housing may be terminated pursuant to section 1715t of this title only in accordance with a plan of action approved by the Secretary under this subchapter or in accordance with section 4114 of this title. (b) Foreclosure A mortgagee may foreclose the mortgage on, or acquire by deed in lieu of foreclosure, any eli- gible low-income housing project only if the mortgagee also conveys title to the project to the Secretary in connection with a claim for in- surance benefits. (c) Effect of unauthorized prepayment Any prepayment of a mortgage on eligible low-income housing or termination of the mort- gage insurance on such housing not in compli- ance with the provisions of this subchapter shall be null and void and any low-income afford- ability restrictions on the housing shall con- tinue to apply to the housing. (Pub. L. 100–242, title II, § 211, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 101–625, title VI, § 605, Nov. 28, 1990, 104 Stat. 4278, provided that: ‘‘This subtitle [subtitle A (§§ 601–605) of title VI of Pub. L. 101–625, enacting this chapter, amending sections 1715z–6 and 1715z–15 of this title and section 1437f of Title 42, The Public Health and Welfare, and enacting provisions set out below] shall take effect on the date of the enactment of this Act [Nov. 28, 1990].’’ SHORT TITLE Pub. L. 100–242, title II, § 201, as added by Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, provided that: ‘‘This title [enacting this chapter, amending section 1715z–15 of this title and sections 1437f, 1472, 1485, and 1487 of Title 42, The Public Health and Welfare, and enacting provisions set out below] may be cited as the ‘Low-Income Housing Preservation and Resident Homeownership Act of 1990’.’’ APPLICABILITY Pub. L. 100–242, title II, § 235, as added by Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4274, provided that: ‘‘Subject to section 605 of the Cranston- Gonzalez National Affordable Housing Act [Pub. L. 101–625, set out above], the requirements of this subtitle [subtitle B (§§ 211–235) of title II of Pub. L. 100–242, en- Page 1593 TITLE 12—BANKS AND BANKING § 4101 acting this subchapter] shall apply to any project that is eligible low-income housing on or after November 1, 1987.’’ REGULATIONS Pub. L. 102–550, title III, § 332, Oct. 28, 1992, 106 Stat. 3773, provided that: ‘‘Except as otherwise provided in this title [enacting sections 4141 to 4147 of this title, amending sections 1715z–1, 1715z–6, 4103, 4105 to 4112, 4116, 4119, 4121, 4122, 4124, and 4125 of this title, enacting provisions set out as notes under this section and sec- tions 1715z–6, 4109, and 4117 of this title, and amending provisions set out as a note under this section], the Secretary of Housing and Urban Development shall issue interim regulations implementing this title and the amendments made by this title not later than the expiration of the 90-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 this title and the amendments made by this title 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.’’ LOW-INCOME HOUSING PRESERVATION Pub. L. 104–204, title II, Sept. 26, 1996, 110 Stat. 2883, provided in part: ‘‘That of the total amount provided under this head, $350,000,000 shall be available for use in conjunction with properties that are eligible for assist- ance under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) [see Short Title note above] or the Emergency Low Income Housing Preservation Act of 1987 (ELIHPA) [see Codi- fication note set out preceding this section], of which $75,000,000 shall be available for obligation until March 1, 1997 for projects (1) that are subject to a repayment or settlement agreement that was executed between the owner and the Secretary prior to September 1, 1995; (2) whose submissions were delayed as a result of their location in areas that were designated as a Federal dis- aster area in a Presidential Disaster Declaration; or (3) whose processing was, in fact or in practical effect, sus- pended, deferred, or interrupted for a period of twelve months or more because of differing interpretations, by the Secretary and an owner or by the Secretary and a State or local rent regulatory agency, concerning the timing of filing eligibility or the effect of a presump- tively applicable State or local rent control law or reg- ulation on the determination of preservation value under section 213 of LIHPRHA, as amended [12 U.S.C. 4103], if the owner of such project filed notice of intent to extend the low-income affordability restrictions of the housing, or transfer to a qualified purchaser who would extend such restrictions, on or before November 1, 1993; and of which, up to $100,000,000 may be used for rental assistance to prevent displacement of families residing in projects whose owners prepay their mort- gages; and the balance of which shall be available from the effective date of this Act [Sept. 26, 1996] for sales to preferred priority purchasers: Provided further, That with the exception of projects described in clauses (1), (2), or (3) of the preceding proviso, the Secretary shall, notwithstanding any other provision of law, suspend further processing of preservation applications which have not heretofore received approval of a plan of ac- tion: Provided further, That $150,000,000 of amounts re- captured from interest reduction payment contracts for section 236 [12 U.S.C. 1715z–1] projects whose owners prepay their mortgages during fiscal year 1997 shall be rescinded: Provided further, That an owner of eligible low-income housing may prepay the mortgage or re- quest voluntary termination of a mortgage insurance contract, so long as said owner agrees not to raise rents for sixty days after such prepayment: Provided further, That such developments have been determined to have preservation equity at least equal to the lesser of $5,000 per unit or $500,000 per project or the equivalent of eight times the most recently published monthly fair market rent for the area in which the project is located as the appropriate unit size for all of the units in the eligible project: Provided further, That the Secretary may modify the regulatory agreement to permit own- ers and priority purchasers to retain rental income in excess of the basic rental charge in projects assisted under section 236 of the National Housing Act, for the purpose of preserving the low- and moderate-income character of the housing: Provided further, That eligible low-income housing shall include properties meeting the requirements of this paragraph with mortgages that are held by a State agency as a result of a sale by the Secretary without insurance, which immediately before the sale would have been eligible low-income housing under LIHPRHA: Provided further, That not- withstanding any other provision of law, subject to the availability of appropriated funds, each low-income family, and moderate-income family who is elderly or disabled or is residing in a low-vacancy area, residing in the housing on the date of prepayment or voluntary termination, and whose rent, as a result of a rent in- crease occurring no later than one year after the date of the prepayment, exceeds 30 percent of adjusted in- come, shall be offered tenant-based assistance in ac- cordance with section 8 [42 U.S.C. 1437f] or any suc- cessor program, under which the family shall pay no less for rent than it paid on such date: Provided further, That any family receiving tenant-based assistance under the preceding proviso may elect (1) to remain in the unit of the housing and if the rent exceeds the fair market rent or payment standard, as applicable, the rent shall be deemed to be the applicable standard, so long as the administering public housing agency finds that the rent is reasonable in comparison with rents charged for comparable unassisted housing units in the market or (2) to move from the housing and the rent will be subject to the fair market rent of the payment standard, as applicable, under existing program rules and procedures: Provided further, That the tenant-based assistance made available under the preceding two pro- visos are in lieu of benefits provided in subsections [sic] 223(b), (c), and (d) of the Low-Income Housing Preserva- tion and Resident Homeownership Act of 1990 [12 U.S.C. 4113(b), (c), (d)]: Provided further, That any sales shall be funded using the capital grant available under section 220(d)(3)(A) of LIHPRHA [12 U.S.C. 4110(d)(3)(A)]: Pro- vided further, That any extensions shall be funded using a non-interest-bearing capital (direct) loan by the Sec- retary not in excess of the amount of the cost of reha- bilitation approved in the plan of action plus 65 percent of the property’s preservation equity and under such other terms and conditions as the Secretary may pre- scribe: Provided further, That any capital grant shall be limited to seven times, and any capital loan limited to six times, the annual fair market rent for the project, as determined using the fair market rent for fiscal year 1997 for the area in which the project is located, using the appropriate apartment sizes and mix in the eligible project, except where, upon the request of a priority purchaser, the Secretary determines that a greater amount is necessary and appropriate to preserve low- income housing: Provided further, That section 241(f) of the National Housing Act [12 U.S.C. 1715z–6(f)] is re- pealed and insurance under such section shall not be of- fered as an incentive under LIHPRHA and ELIHPA: Provided further, That up to $10,000,000 of the amount of $350,000,000 made available by a preceding proviso in this paragraph may be used at the discretion of the Secretary to reimburse owners of eligible properties for which plans of action were submitted prior to the effec- tive date of this Act [Sept. 26, 1996], but were not exe- cuted for lack of available funds, with such reimburse- ment available only for documented costs directly ap- plicable to the preparation of the plan of action as de- Page 1594 TITLE 12—BANKS AND BANKING § 4101 termined by the Secretary, and shall be made available on terms and conditions to be established by the Sec- retary: Provided further, That, notwithstanding any other provision of law, a priority purchaser may utilize assistance under the HOME Investment Partnerships Act [42 U.S.C. 12721 et seq.] or the Low Income Housing Tax Credit [see 26 U.S.C. 42]: Provided further, That projects with approved plans of action which exceed the limitations on eligibility for funding imposed by this Act may submit revised plans of action which conform to these limitations by March 1, 1997, and retain the priority for funding otherwise applicable from the original date of approval of their plan of action, subject to securing any additional necessary funding commit- ments by August 1, 1997.’’ Pub. L. 104–134, title I, § 101(e) [title II], Apr. 26, 1996, 110 Stat. 1321–257, 1321–267; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327, provided in part that: ‘‘Of the total amount provided under this head, $624,000,000, plus amounts recaptured from inter- est reduction payment contracts for section 236 [12 U.S.C. 1715z–1] projects whose owners prepay their mortgages during fiscal year 1996 (which amounts shall be transferred and merged with this account), shall be for use in conjunction with properties that are eligible for assistance under the Low Income Housing Preserva- tion and Resident Homeownership Act of 1990 (LIHPRHA) [see Short Title note above] or the Emer- gency Low-Income Housing Preservation Act of 1987 (ELIHPA) [see Codification note set out preceding this section]: Provided, That prior to August 15, 1996, fund- ing to carry out plans of action shall be limited to sales of projects to non-profit organizations, tenant-spon- sored organizations, and other priority purchasers: Pro- vided further, That of the amount made available by this paragraph, up to $10,000,000 shall be available for preservation technical assistance grants pursuant to section 253 of the Housing and Community Develop- ment Act of 1987 [12 U.S.C. 4143], as amended: Provided further, That with respect to amounts made available by this paragraph, after August 15, 1996, if the Sec- retary determines that the demand for funding may ex- ceed amounts available for such funding, the Secretary (1) may determine priorities for distributing available funds, including giving priority funding to tenants dis- placed due to mortgage prepayment and to projects that have not yet been funded but which have approved plans of action; and (2) may impose a temporary mora- torium on applications by potential recipients of such funding: Provided further, That an owner of eligible low- income housing may prepay the mortgage or request voluntary termination of a mortgage insurance con- tract, so long as said owner agrees not to raise rents for sixty days after such prepayment: Provided further, That an owner of eligible low-income housing who has not timely filed a second notice under section 216(d) [12 U.S.C. 4106(d)] prior to the effective date of this Act [Apr. 26, 1996] may file such notice by April 15, 1996: Pro- vided further, That such developments have been deter- mined to have preservation equity at least equal to the lesser of $5,000 per unit or $500,000 per project or the equivalent of eight times the most recently published fair market rent for the area in which the project is lo- cated as the appropriate unit size for all of the units in the eligible project: Provided further, That the Sec- retary may modify the regulatory agreement to permit owners and priority purchasers to retain rental income in excess of the basic rental charge in projects assisted under section 236 of the National Housing Act [12 U.S.C. 1715z–1], for the purpose of preserving the low and mod- erate income character of the housing: Provided further, That the Secretary may give priority to funding and processing the following projects provided that the funding is obligated not later than September 15, 1996: (1) projects with approved plans of action to retain the housing that file a modified plan of action no later than August 15, 1996 to transfer the housing; (2) projects with approved plans of action that are subject to a repayment or settlement agreement that was exe- cuted between the owner and the Secretary prior to September 1, 1995; (3) projects for which submissions were delayed as a result of their location in areas that were designated as a Federal disaster area in a Presi- dential Disaster Declaration; and (4) projects whose processing was, in fact, or in practical effect, sus- pended, deferred, or interrupted for a period of nine months or more because of differing interpretations, by the Secretary and an owner concerning the time of the ability of an uninsured section 236 [12 U.S.C. 1715z–1] property to prepay or by the Secretary and a State or local rent regulatory agency, concerning the effect of a presumptively applicable State or local rent control law or regulation on the determination of preservation value under section 213 of LIHPRHA, as amended [12 U.S.C. 4103], if the owner of such project filed notice of intent to extend the low-income affordability restric- tions of the housing, or transfer to a qualified pur- chaser who would extend such restrictions, on or before November 1, 1993: Provided further, That eligible low-in- come housing shall include properties meeting the re- quirements of this paragraph with mortgages that are held by a State agency as a result of a sale by the Sec- retary without insurance, which immediately before the sale would have been eligible low-income housing under LIHPRHA: Provided further, That notwith- standing any other provision of law, subject to the availability of appropriated funds, each unassisted low- income family residing in the housing on the date of prepayment or voluntary termination, and whose rent, as a result of a rent increase occurring no later than one year after the date of the prepayment, exceeds 30 percent of adjusted income, shall be offered tenant- based assistance in accordance with section 8 [42 U.S.C. 1437f] or any successor program, under which the fam- ily shall pay no less for rent than it paid on such date: Provided further, That any family receiving tenant- based assistance under the preceding proviso may elect (1) to remain in the unit of the housing and if the rent exceeds the fair market rent or payment standard, as applicable, the rent shall be deemed to be the applica- ble standard, so long as the administering public hous- ing agency finds that the rent is reasonable in compari- son with rents charged for comparable unassisted hous- ing units in the market or (2) to move from the housing and the rent will be subject to the fair market rent of the payment standard, as applicable, under existing program rules and procedures: Provided further, That rents and rent increases for tenants of projects for which plans of action are funded under section 220(d)(3)(B) of LIHPRHA [12 U.S.C. 4110(d)(3)(B)] shall be governed in accordance with the requirements of the program under which the first mortgage is insured or made (sections 236 or 221(d)(3) BMIR [12 U.S.C. 1715z–1, 4111(d)(3)], as appropriate): Provided further, That the immediately foregoing proviso shall apply hereafter to projects for which plans of action are to be funded under such section 220(d)(3)(B) [12 U.S.C. 4110(d)(3)(B)], and shall apply to any project that has been funded under such section starting one year after the date that such project was funded: Provided further, That up to $10,000,000 of the amount made available by this para- graph may be used at the discretion of the Secretary to reimburse owners of eligible properties for which plans of action were submitted prior to the effective date of this Act [Apr. 26, 1996], but were not executed for lack of available funds, with such reimbursement available only for documented costs directly applicable to the preparation of the plan of action as determined by the Secretary, and shall be made available on terms and conditions to be established by the Secretary: Provided further, That, notwithstanding any other provision of law, effective October 1, 1996, the Secretary shall sus- pend further processing of preservation applications which do not have approved plans of action.’’ For similar provisions see Pub. L. 104–120, § 2(b), Mar. 28, 1996, 110 Stat. 834. CONDITIONS OF ASSISTANCE Pub. L. 102–550, title III, § 314, Oct. 28, 1992, 106 Stat. 3770, provided that: Page 1595 TITLE 12—BANKS AND BANKING § 4102 ‘‘(a) ELIHPA OF 1987.—The Secretary may not require, as a condition of eligibility for or receipt of technical assistance made available under the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1992 (Public Law 102–139 [105 Stat. 736, see Tables for classi- fication]) (including any phase of a grant), that an ap- plicant participate in a training program sponsored or conducted by the Department of Housing and Urban Development for acquisition of eligible low income housing under the provisions of the Emergency Low In- come Housing Preservation Act of 1987 [see Codifica- tion note above], and may not provide any preference or priority for such assistance for any applicant based on participation in such a program. ‘‘(b) LIHPRHA OF 1990.—The Secretary may require, as a condition of eligibility for or receipt of technical as- sistance made available under the Departments of Vet- erans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1992 (Public Law 102–139) (including any phase of a grant), that an applicant participate in a training program sponsored or conducted by the Department of Housing and Urban Development for acquisition of eligible low-income housing under this title [enacting sections 4141 to 4147 of this title, amending sections 1715z–1, 1715z–6, 4103, 4105 to 4112, 4116, 4119, 4121, 4122, 4124, and 4125 of this title, enacting provisions set out as notes under this section and sections 1715z–6, 4109, and 4117 of this title, and amending provisions set out as a note under this section], and may provide preference or priority for such assistance for applicants based on participation in such a program, but only if the program is made avail- able on a nationwide basis not later than March 1, 1993.’’ TRANSITION PROVISIONS Pub. L. 101–625, title VI, § 604, Nov. 28, 1990, 104 Stat. 4277, as amended by Pub. L. 102–550, title III, § 313, Oct. 28, 1992, 106 Stat. 3769, provided that: ‘‘(a) HOUSING ELIGIBLE FOR ELECTION.—Any owner of housing that becomes eligible low-income housing be- fore January 1, 1991 and who, before such date, filed a notice of intent under section 222 of the Emergency Low Income Housing Preservation Act of 1987 [formerly set out in a note under section 1715l of this title] (as such section existed before the date of the enactment of this Act [Nov. 28, 1990]) or under section 212 of such Act [12 U.S.C. 4102] (as amended by section 601(a)) may elect to be subject to (1) the provisions of such Act as in ef- fect before the date of the enactment of this Act, or (2) the provisions of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 [see Short Title note above], after the date of the enactment of this Act. The Secretary shall establish procedures for owners to make the election under the preceding sen- tence. An owner that elects to be subject to the provi- sions of the Emergency Low Income Housing Preserva- tion Act of 1987 shall comply with section 212(b), sec- tion 217(a)(2), and section 217(c) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 [12 U.S.C. 4102(b) and 4107(a)(2), (c)]. ‘‘(b) RIGHT OF CONVERSION TO NEW SYSTEM.—Any owner who has filed a plan of action on or before Octo- ber 11, 1990, shall have the right to convert to the sys- tem of incentives and restrictions under this subtitle [subtitle A of title VI of Pub. L. 101–625, see Effective Date note above], with such adjustments as the Sec- retary determines to be appropriate to compensate for the value of any incentives the owner received under the Emergency Low Income Housing Preservation Act of 1987 [see Codification note preceding this section]. Owners filing plans after such date shall not have any right under this subsection. ‘‘(c) EFFECTIVENESS OF REPEALED PROVISIONS.—Not- withstanding the amendment made by section 601(a) [enacting this chapter], the provisions of the Emer- gency Low Income Housing Preservation Act of 1987 (as in effect immediately before the date of the enactment of this Act [Nov. 28, 1990]) shall apply with respect to any housing for which the election under subsection (a)(1) is made. With respect to housing for which such an election is made— ‘‘(1) in making incentives under section 224 of such Act [formerly set out in a note under section 1715l of this title] available to such housing, the Secretary— ‘‘(A) shall, for approvable plans of action, provide assistance sufficient to enable a nonprofit organiza- tion that has purchased or will purchase an eligible low income housing project to meet project over- sight costs; and ‘‘(B) may not refuse to offer incentives referred to in such section to any owner who filed a notice of intent under section 222 of such Act before October 15, 1991, based solely on the date of filing of the plan of action for the housing; and ‘‘(2) the provisions of section 233(1)(A)(i) of such Act [formerly set out in a note under section 1715l of this title] shall not apply, and the term ‘eligible low in- come housing’ shall, for purposes of such Act, shall [sic] include housing financed by a loan or mortgage that is insured or held by the Secretary or a State or State agency under section 221(d)(3) of the National Housing Act [12 U.S.C. 1715l(d)(3)] and receiving loan management assistance under section 8 of the United States Housing Act of 1937 [42 U.S.C. 1437f] due to a conversion from section 101 of the Housing and Urban Development Act of 1965 [12 U.S.C. 1701s]. ‘‘(d) REGULATIONS.—Not later than the expiration of the 90-day period beginning on the date of the enact- ment of this Act [Nov. 28, 1990], the Secretary of Hous- ing and Urban Development shall, subject to the provi- sions of section 553 of title 5, United States Code, pub- lish proposed rules to implement this subtitle and the amendments made by this subtitle. Not later than 45 days after the expiration of the period under the pre- ceding sentence the Secretary shall issue interim or final rules to implement such provisions.’’ § 4102. Notice of intent (a) Filing with Secretary An owner of eligible low-income housing that intends to terminate the low-income afford- ability restrictions through prepayment or vol- untary termination in accordance with section 4108 of this title, extend the low-income afford- ability restrictions of the housing in accordance with section 4109 of this title, or transfer the housing to a qualified purchaser in accordance with section 4110 of this title, shall file with the Secretary a notice indicating such intent in the form and manner as the Secretary shall pre- scribe. (b) Filing with State or local government, ten- ants, and mortgagee The owner, upon filing a notice of intent under this section, shall simultaneously file the notice of intent with the chief executive officer of the appropriate State or local government for the jurisdiction within which the housing is located and with the mortgagee, and shall inform the tenants of the housing of the filing. (c) Ineligibility for filing An owner shall not be eligible to file a notice of intent under this section if the mortgage cov- ering the housing— (1) falls into default on or after November 28, 1990; or (2)(A) fell into default before, but is current as of, November 28, 1990; and (B) the owner does not agree to recompense the appropriate Insurance Fund, in the amount the Secretary determines appropriate,