§ 4119. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4119]
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. 4119. Definitions
For purposes of this subchapter:
(1) The term ``eligible low-income housing'' means any housing
financed by a loan or mortgage--
(A) that is--
(i) insured or held by the Secretary under section
1715l(d)(3) of this title and receiving loan management
assistance under section 1437f of title 42 due to a
conversion from section 1701s of this title;
(ii) insured or held by the Secretary and bears interest
at a rate determined under the proviso of section
1715l(d)(5) of this title;
(iii) insured, assisted, or held by the Secretary or a
State or State agency under section 1715z-1 of this title;
or
(iv) held by the Secretary and formerly insured under a
program referred to in clause (i), (ii), or (iii); and
(B) that, under regulation or contract in effect before
February 5, 1988, is or will within 24 months become eligible
for prepayment without prior approval of the Secretary.
(2) The term ``Federal cost limit'' means, for any eligible low-
income housing, the amount determined under section 4105(a) of this
title.
(3) The term ``low-income affordability restrictions'' means
limits imposed by regulation or regulatory agreement on tenant
rents, rent contributions, or income eligibility in eligible low-
income housing.
(4) The terms ``low-income families or persons'' and ``very low-
income families or persons'' mean families or persons whose incomes
do not exceed the respective levels established for low-income
families and very low-income families, respectively, under section
1437a(b)(2) of title 42.
(5) The term ``moderate-income families or persons'' means
families or persons whose incomes are between 80 percent and 95
percent of the median income for the area, as determined by the
Secretary with adjustments for smaller and larger families.
(6) The term ``nonprofit organization'' means any private,
nonprofit organization that--
(A) is organized or chartered under State or local laws;
(B) has no part of its net earnings inuring to the benefit
of any member, founder, contributor, or individual;
(C) complies with standards of financial accountability
acceptable to the Secretary; and
(D) has among its principal purposes significant activities
related to the provision of decent housing that is affordable to
very low-, low-, and moderate-income families.
(7) The term ``owner'' means the current or subsequent owner or
owners of eligible low-income housing.
(8) The term ``preservation equity'' means, for any eligible
low-income housing--
(A) for purposes of determining the authorized return under
section 4104(a) of this title and providing incentives to extend
the low-income affordability restrictions on the housing under
section 4109 of this title--
(i) the preservation value of the housing determined
under section 4103(b)(1) of this title; less
(ii) any debt secured by the property; and
(B) for purposes of determining incentives under section \1\
4110 and 4111 of this title and determining the amount of an
acquisition loan under the provisions of section 1715z-6(f)(3)
\2\ of this title--
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\1\ So in original. Probably should be ``sections''.
\2\ See References in Text note below.
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(i) the preservation value of the housing determined
under section 4103(b)(2) of this title; less
(ii) the outstanding balance of the federally-assisted
mortgage or mortgages for the housing.
(9) The term ``preservation value'' means, for any eligible low-
income housing, the applicable value determined under paragraph (1)
or (2) of section 4103(b) of this title.
(10) The term ``Secretary'' means the Secretary of Housing and
Urban Development.
(11) The term ``resident council'' means any incorporated
nonprofit organization or association that--
(A) is representative of the residents of the housing;
(B) adopts written procedures providing for the election of
officers on a regular basis; and
(C) has a democratically elected governing board, elected by
the residents of the housing.
(Pub. L. 100-242, title II, Sec. 229, as added Pub. L. 101-625, title
VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4271; amended Pub. L. 102-550,
title III, Secs. 310, 317(a)(5), Oct. 28, 1992, 106 Stat. 3765, 3772;
Pub. L. 103-327, title II, Sept. 28, 1994, 108 Stat. 2316.)
References in Text
Section 1715z-6(f) of this title, referred to in par. (8)(B), was
repealed by Pub. L. 104-204, title II, Sept. 26, 1996, 110 Stat. 2885.
Codification
Amendment by Pub. L. 103-327 is based on section 601(e) of title VI
of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which
was enacted into law by Pub. L. 103-327.
Amendments
1994--Par. (4). Pub. L. 103-327 temporarily amended par. (4) to read
as follows:
``(4)(A) The term `low-income tenants' means families or persons
with incomes that exceed 50 percent of the median income for the area
(as determined by the Secretary with adjustments for family size) but do
not exceed 80 percent of the median income for the area (as determined
by the Secretary with adjustments for family size).
``(B) The term `very low-income tenants' means families or persons
with incomes that are less than or equal to 50 percent of the median
income for the area (as determined by the Secretary with adjustments for
family size).'' See Effective and Termination Dates of 1994 Amendment
note below.
1992--Par. (1)(A)(i). Pub. L. 102-550, Sec. 310, substituted
``receiving loan management assistance under section 1437f of title 42
due to a conversion from section 1701s of this title'' for ``assisted
under section 1701s of this title or section 1437f of title 42''.
Par. (11)(A). Pub. L. 102-550, Sec. 317(a)(5), substituted
``residents'' for ``resident''.
Effective and Termination Dates of 1994 Amendment
Amendment by Pub. L. 103-327 effective only during fiscal year 1995,
see provision of title II of Pub. L. 103-327 set out as a note under
section 4112 of this title.
Section Referred to in Other Sections
This section is referred to in sections 1715z-1a, 1715z-15, 4104,
4109, 4122, 4146 of this title.
