§ 4111. — Mandatory sale for housing exceeding Federal cost limits.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4111]
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. 4111. Mandatory sale for housing exceeding Federal cost
limits
(a) In general
With respect to any eligible low-income housing for which the
aggregate preservation rents determined under section 4104(b) of this
title exceed the Federal cost limit, the owner shall offer the housing
for sale to qualified purchasers as provided in this section.
(b) Right of first refusal to priority purchasers
(1) Duration and required sale
For the 12-month period beginning upon the receipt by the
Secretary of the second notice of intent under section 4106(d) of
this title with respect to such housing, the owner of the housing
may offer to sell and may sell the housing only to priority
purchasers. If, during such period, a priority purchaser makes a
bona fide offer to purchase the housing for a sale price not less
than the preservation value of the housing determined under section
4103(b)(2) of this title, the Secretary shall require the owner to
sell the housing pursuant to such offer.
(2) Expression of interest
During the period under paragraph (1), priority purchasers shall
have the opportunity to submit written notice to the owner and the
Secretary stating their interest in acquiring the housing. Such
written notice shall be in such form and include such information as
the Secretary may prescribe.
(3) Information from Secretary
Not later than 30 days after receipt of any notice under
paragraph (2), the Secretary shall provide such purchaser with
information on the assistance available from the Federal Government
to facilitate a transfer and the owner shall provide such purchaser
with appropriate information on the housing, as determined by the
Secretary.
(c) Right of refusal for other qualified purchasers
If no bona fide offer to purchase any eligible low-income housing
subject to this section that meets the requirements of subsection (b) of
this section is made during the period under such subsection, during the
3-month period beginning upon the expiration of the 12-month period
under subsection (b)(1) of this section, the owner of the housing may
offer to sell and may sell the housing only to qualified purchasers. If,
during such period, a qualified purchaser makes a bona fide offer to
purchase the housing for a sale price not less than the preservation
value of the housing determined under section 4103(b)(2) of this title,
the Secretary shall require the owner to sell the housing pursuant to
such offer.
(d) Assistance
(1) Federal cost limit
Subject to the availability of amounts approved in
appropriations Acts, the Secretary shall, for approvable plans of
action, provide to qualified purchasers assistance under section
1437f of title 42 sufficient to produce a gross income potential
equal to the amount determined by multiplying 120 percent of the
prevailing rents in the relevant local market area in which the
housing is located by the number of units in the project (according
to appropriate unit sizes), and any other incentives authorized
under section 4109(b) of this title that would have been provided to
a qualified purchaser under section 4110 of this title.
(2) Additional assistance
From amounts made available under section 4124(b) of this title,
the Secretary may make grants to assist in the completion of sales
and transfers under this section to any qualified purchasers. Any
grant under this paragraph shall be in an amount not exceeding the
difference between the preservation value for the housing
(determined under section 4103(b)(2) of this title) and the level of
assistance under paragraph (1) of this subsection.
(3) Securing State and local funding
The Secretary shall assist any qualified purchaser of such
housing in securing funding and other assistance (including tax and
assessment reductions) from State and local governments to
facilitate a sale under this section.
(Pub. L. 100-242, title II, Sec. 221, as added Pub. L. 101-625, title
VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4259; amended Pub. L. 102-550,
title III, Sec. 317(a)(3), Oct. 28, 1992, 106 Stat. 3772.)
Amendments
1992--Subsec. (c). Pub. L. 102-550 substituted ``than'' for ``that''
before ``the preservation''.
Section Referred to in Other Sections
This section is referred to in sections 4103, 4104, 4105, 4106,
4107, 4114, 4119, 4124 of this title.
