§ 4122. — Preemption of State and local laws.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4122]
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. 4122. Preemption of State and local laws
(a) In general
No State or political subdivision of a State may establish, continue
in effect, or enforce any law or regulation that--
(1) restricts or inhibits the prepayment of any mortgage
described in section 4119(1) of this title (or the voluntary
termination of any insurance contract pursuant to section 1715t of
this title) on eligible low income housing;
(2) restricts or inhibits an owner of such housing from
receiving the authorized annual return provided under section 4104
of this title;
(3) is inconsistent with any provision of this subchapter,
including any law, regulation, or other restriction that limits or
impairs the ability of any owner of eligible low income housing to
receive incentives authorized under this subchapter (including
authorization to increase rental rates, transfer the housing, obtain
secondary financing, or use the proceeds of any of such incentives);
or
(4) in its applicability to low-income housing is limited only
to eligible low-income housing for which the owner has prepaid the
mortgage or terminated the insurance contract.
Any law, regulation, or restriction described under paragraph (1), (2),
(3), or (4) shall be ineffective and any eligible low-income housing
exempt from the law, regulation, or restriction, only to the extent that
it violates the provisions of this subsection.
(b) Effect
This section shall not prevent the establishment, continuing in
effect, or enforcement of any law or regulation of any State or
political subdivision of a State not inconsistent with the provisions of
this subchapter, such as any law or regulation relating to building
standards, zoning limitations, health, safety, or habitability standards
for housing, rent control, or conversion of rental housing to
condominium or cooperative ownership, to the extent such law or
regulation is of general applicability to both housing receiving Federal
assistance and nonassisted housing. This section shall not preempt,
annul, or alter any contractual restrictions or obligations existing
before November 28, 1990, that prevent or limit an owner of eligible
low-income housing from prepaying the mortgage on the housing (or
terminating the insurance contract on the housing).
(Pub. L. 100-242, title II, Sec. 232, as added Pub. L. 101-625, title
VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4273; amended Pub. L. 102-550,
title III, Sec. 311, Oct. 28, 1992, 106 Stat. 3765.)
Amendments
1992--Subsec. (b). Pub. L. 102-550 substituted ``, such as any law
or regulation'' for ``and'' after ``subchapter''.
