§ 4106. — Information from Secretary.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4106]
TITLE 12--BANKS AND BANKING
CHAPTER 42--LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP
SUBCHAPTER I--PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL HOUSING ACT
Sec. 4106. Information from Secretary
(a) Information to owners terminating affordability restrictions
The Secretary shall provide each owner who submits a notice of
intent to terminate the low-income affordability restrictions on the
housing under section 4108 of this title with information under this
section not later than 6 months after receipt of the notice of intent.
The information shall include a description of the criteria for such
termination specified under section 4108 of this title and the
documentation required to satisfy such criteria.
(b) Information to owners extending low-income affordability
restrictions
The Secretary shall provide each owner who submits notice of intent
to extend the low-income affordability restrictions on the housing under
section 4109 of this title or transfer the housing under section 4110 of
this title to a qualified purchaser with information under this
subsection not later than 9 months after receipt of the notice of
intent. The information shall include any information necessary for the
owner to prepare a plan of action under section 4107 of this title,
including the following:
(1) Preservation values
A statement of the preservation value of the housing determined
under paragraphs (1) and (2) of section 4103(b) of this title.
(2) Preservation rent
A statement of the preservation rent for the housing as
calculated under section 4104(b) of this title.
(3) Federal cost limits
A statement of the applicable Federal cost limits for the market
area (or relevant local market area, if applicable) in which the
housing is located, which shall explain the limitations under
sections 4109 and 4110 of this title of the amount of assistance
that the Secretary may provide based on such cost limits.
(4) Federal cost limit analysis
A statement of whether the aggregate preservation rents exceed
the Federal cost limits and a direction to the owner to file a plan
of action under section 4107 of this title or submit a second notice
of intent under subsection (d) of this section, whichever is
applicable.
(c) Availability to tenants
The Secretary shall make any information provided to the owner under
subsections (a) and (b) of this section available to the tenants of the
housing, together with other information relating to the rights and
opportunities of the tenants.
(d) Second notice of intent
(1) Filing
Each owner of eligible low-income housing that elects to
transfer housing under section 4110 of this title shall submit to
the Secretary, in such form and manner as the Secretary prescribes,
notice of intent to sell the housing under section 4110 of this
title. To be eligible to prepay the mortgage or voluntarily
terminate the insurance contract on the mortgage, an owner of
housing for which the preservation rents exceed the Federal cost
limits under section 4105(b) of this title shall submit to the
Secretary notice of such intent. The provisions of sections 4111 and
4113 of this title shall apply to any owner submitting a notice
under the preceding sentence.
(2) Timing
A second notice of intent under this subsection shall be
submitted not later than 30 days after receipt of information from
the Secretary under this section. If an owner fails to submit such
notice within such period, the notice of intent submitted by the
owner under section 4102 of this title shall be void and ineffective
for purposes of this subchapter.
(3) Filing with the State or local government, tenants, and
mortgagee
Upon filing a second notice of intent under this subsection, the
owner shall simultaneously file such notice of the 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.
(Pub. L. 100-242, title II, Sec. 216, as added Pub. L. 101-625, title
VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4253; amended Pub. L. 102-550,
title III, Secs. 303, 317(a)(2), Oct. 28, 1992, 106 Stat. 3763, 3772.)
Amendments
1992--Subsec. (b)(4). Pub. L. 102-550, Sec. 317(a)(2), substituted
``exceed'' for ``exceeds''.
Subsec. (d)(3). Pub. L. 102-550, Sec. 303, added par. (3).
Section Referred to in Other Sections
This section is referred to in sections 4105, 4107, 4110, 4111 of
this title.
