§ 4107. — Plan of action.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4107]
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. 4107. Plan of action
(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 an owner seeking to
terminate the low-income affordability restrictions through
prepayment of the mortgage or voluntary termination under section
4108 of this title, or to extend the low-income affordability
restriction on the housing under section 4109 of this title, 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.
(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 appropriate State or local government
for the jurisdiction within which the housing is located all
documentation supporting the plan of action, but not including any
information that the Secretary determines is proprietary
information. An appropriate agency of such State or local government
shall review the plan and advise the tenants of the housing of any
programs that are available to assist the tenants in carrying out
the purposes of this title.\1\
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\1\ See References in Text note below.
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(3) Failure to submit
If the owner does not submit a plan of action to the Secretary
within the 6-month period referred to in paragraph (1) (or the
applicable longer period), the notice of intent shall be ineffective
for purposes of this subchapter and the owner may not submit another
notice of intent under section 4102 of this title until 6 months
after the expiration of such period.
(b) Contents
(1) Termination of affordability restrictions
If the plan of action proposes to terminate the low-income
affordability restrictions through prepayment or voluntary
termination in accordance with section 4108 of this title, the plan
shall include--
(A) a description of any proposed changes in the status or
terms of the mortgage or regulatory agreement;
(B) a description of any proposed changes in the low-income
affordability restrictions;
(C) a description of any change in ownership that is related
to prepayment or voluntary termination;
(D) an assessment of the effect of the proposed changes on
existing tenants;
(E) an analysis of the effect of the proposed changes on the
supply of housing affordable to low- and very low-income
families or persons in the community within which the housing is
located and in the area that the housing could reasonably be
expected to serve; and
(F) any other information that the Secretary determines is
necessary to achieve the purposes of this title.\1\
(2) Extension of affordability restrictions
If the plan of action proposes to extend the low-income
affordability 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, the plan shall
include--
(A) a description of any proposed changes in the status or
terms of the mortgage or regulatory agreement;
(B) a description of the Federal incentives requested
(including cash flow projections), and analyses of how the owner
will address any physical or financial deficiencies and maintain
the low-income affordability restrictions of the housing;
(C) a description of any assistance from State or local
government agencies, including low-income housing tax credits,
that have been offered to the owner or purchaser or for which
the owner or purchaser has applied or intends to apply;
(D) a description of any transfer of the property, including
the identity of the transferee and a copy of any documents of
sale; and
(E) any other information that the Secretary determines is
necessary to achieve the purposes of this title.\1\
(c) Revisions
An owner may from time to time revise and amend the plan of action
as may be necessary to obtain approval of the plan under this
subchapter. The owner shall submit any revision to the Secretary and to
the tenants of the housing and make available to the Secretary and
tenants all documentation supporting any revision, but not including any
information that the Secretary determines is proprietary information.
(Pub. L. 100-242, title II, Sec. 217, as added Pub. L. 101-625, title
VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4254; amended Pub. L. 102-550,
title III, Sec. 304, Oct. 28, 1992, 106 Stat. 3763.)
References in Text
This title, referred to in subsecs. (a)(2) and (b)(1)(F), (2)(E),
means title II of Pub. L. 100-242, as amended by Pub. L. 101-625, title
VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4249, known as the Low-Income
Housing Preservation and Resident Homeownership 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.
Amendments
1992--Subsec. (a)(2). Pub. L. 102-550, Sec. 304(a), inserted after
second sentence ``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 appropriate State or local government for
the jurisdiction within which the housing is located all documentation
supporting the plan of action, but not including any information that
the Secretary determines is proprietary information.''
Subsec. (c). Pub. L. 102-550, Sec. 304(b), inserted before period at
end ``and make available to the Secretary and tenants all documentation
supporting any revision, but not including any information that the
Secretary determines is proprietary information''.
Section Referred to in Other Sections
This section is referred to in sections 4105, 4106, 4110 of this
title.
