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§ 4113. —  Assistance for displaced tenants.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC4113]

 
                       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. 4113. Assistance for displaced tenants


(a) Section 1437f assistance

    Each low-income family that is displaced as a result of the 
prepayment of the mortgage or voluntary termination of an insurance 
contract on eligible low income housing shall, subject to the 
availability or \1\ amounts provided under appropriations Acts, receive 
tenant-based assistance under section 1437f of title 42. To the extent 
sufficient amounts are made available under appropriations Acts, in each 
fiscal year the Secretary shall reserve from amounts made available 
under section 4124(a) of this title or, if necessary, under section 
1437c(c) of title 42, such amounts as the Secretary determines are 
necessary to provide assistance payments for low-income families 
displaced during the fiscal year.
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    \1\ So in original. Probably should be ``of''.
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(b) Relocation assistance

    The Secretary shall coordinate with public housing agencies to 
ensure that any very low- or low-income family displaced from eligible 
low-income housing as the result of the prepayment of the mortgage (or 
termination of the mortgage insurance contract) on such housing is able 
to acquire a suitable, affordable dwelling unit in the area of the 
housing from which the family is displaced. The Secretary shall require 
the owner of such housing to pay 50 percent of the moving expenses of 
each family relocated, except that such percentage shall be increased to 
the extent that State or local law of general applicability requires a 
higher payment by the owner.

(c) Continued occupancy

                           (1) In general

        Each owner that prepays the mortgage (or terminates the mortgage 
    insurance contract) on eligible low-income housing shall, as 
    provided in paragraph (3), allow the tenants occupying units in such 
    housing on the date of the submission of notice of intent under 
    section 4102 of this title to remain in the housing for a period of 
    3 years, at rent levels (except for increases necessary for 
    increased operating costs) existing at the time of prepayment.

                (2) Provision of assistance by owner

        In any case in which the Secretary requires an owner to allow 
    tenants to occupy units under paragraph (1), an owner may fulfill 
    the requirements of such paragraph by providing such assistance 
    necessary for the tenant to rent a decent, safe, and sanitary unit 
    in another project for the same period and at a rental cost to the 
    tenant not in excess of the rental amount the tenant would have been 
    required to pay in the housing of the owner, except that the tenant 
    must freely agree to waive the right to occupy the unit in the 
    owner's housing.

      (3) Applicability to low-vacancy areas and special needs 
                                   tenants

        The provisions of this subsection shall apply only to--
            (A) eligible low income housing located in a low-vacancy 
        area (as such term is defined by the Secretary); and
            (B) tenants in any eligible low-income housing in any area 
        who have special needs restricting their ability to relocate 
        (including elderly tenants and tenants with disabilities), as 
        determined under regulations established by the Secretary.

(d) Required acceptance of section 1437f assistance

    An owner who prepays the mortgage (or terminates the mortgage 
insurance contract) on eligible low-income housing and maintains the 
housing for residential rental occupancy may not refuse to rent, refuse 
to negotiate for the rental of, or otherwise make unavailable or deny 
the rent of a dwelling unit in such property to any person, or 
discriminate against any person in the terms, conditions, or privileges 
of rental of a dwelling (or in the provision of services or facilities 
in connection therewith), because the person receives assistance under 
section 1437f of title 42.

(e) Regional pools

    In providing assistance under this section, the Secretary shall 
allocate the assistance on a regional basis through the regional offices 
of the Department of Housing and Urban Development. The Secretary shall 
allocate assistance under this section in a manner so that the total 
number of assisted units in each such region available for occupancy by, 
and affordable to, lower income families and persons does not decrease 
because of the prepayment or payment of a mortgage on eligible low-
income housing or the termination of an insurance contract on such 
housing.

(f) Enhanced voucher assistance for certain tenants

                            (1) Authority

        In lieu of benefits under subsections (b), (c), and (d) of this 
    section, and subject to the availability of appropriated amounts, 
    each family described in paragraph (2) shall be offered enhanced 
    voucher assistance under section 1437f(t) of title 42.

                        (2) Eligible families

        A family described in this paragraph is a family that is--
            (A)(i) a low-income family; or
            (ii) a moderate-income family that is: (I) an elderly 
        family; (II) a disabled family; or (III) residing in a low-
        vacancy area; and
            (B) residing in eligible low-income housing on the date of 
        the prepayment of the mortgage or voluntary termination of the 
        insurance contract.

(Pub. L. 100-242, title II, Sec. 223, as added Pub. L. 101-625, title 
VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4264; amended Pub. L. 105-276, 
title V, Sec. 550(d), Oct. 21, 1998, 112 Stat. 2610; Pub. L. 106-74, 
title V, Sec. 538(c), Oct. 20, 1999, 113 Stat. 1123.)


                               Amendments

    1999--Subsec. (f). Pub. L. 106-74 added subsec. (f).
    1998--Subsec. (a). Pub. L. 105-276 substituted ``tenant-based 
assistance under section 1437f of title 42'' for ``assistance under the 
certificate and voucher programs under sections 1437f(b) and 1437f(o)''.


                    Effective Date of 1998 Amendment

    Amendment by title V of Pub. L. 105-276 effective and applicable 
beginning upon Oct. 1, 1999, except as otherwise provided, with 
provision that Secretary may implement amendment before such date, 
except to extent that such amendment provides otherwise, and with 
savings provision, see section 503 of Pub. L. 105-276, set out as a note 
under section 1437 of Title 42, The Public Health and Welfare.

                  Section Referred to in Other Sections

    This section is referred to in sections 1715z-1a, 4106, 4114 of this 
title; title 42 section 1437f.



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