§ 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.