§ 4125. — State preservation project assistance.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4125]
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. 4125. State preservation project assistance
(1) In general
Upon application by a State or local housing authority (including
public housing agencies), the Secretary of Housing and Urban Development
may make available, from sources of assistance appropriated to preserve
the low and moderate income status of projects with expiring Federal use
restrictions, assistance to such State or local housing authorities for
use in preventing the loss of housing affordable for low and moderate
income families that is assisted under a State program under the terms
of which the owner may prepay a State assisted or subsidized mortgage on
such housing. The application of the State or local housing authority
shall demonstrate to the Secretary that the total amount of incentives
provided to the owner to induce the owner to preserve the low and
moderate income status of the project shall not exceed the level of
incentives which may be provided to a similarly situated project with
expiring Federal use restrictions under subtitle B of title II of the
Housing and Community Development Act of 1987 [12 U.S.C. 4101 et seq.].
(2) Section 1437f
Any assistance under section 1437f of title 42 made available
pursuant to this section may be used (i) to supplement any assistance
available on existing section 8 [42 U.S.C. 1437f] contracts, or (ii) to
provide additional assistance to structures to ensure that all units
occupied by tenants who are lower income families (as such term is
defined in section 1437a(b) of title 42) pay rents not exceeding 30
percent of their adjusted incomes. Any project receiving assistance
hereunder shall be subject to standards, inspections and sanctions
established by the Secretary under section 222(d) of the Housing and
Community Development Act of 1987 [12 U.S.C. 4112(d)]. Any such section
8 [42 U.S.C. 1437f] assistance shall be provided for a term and at the
fair market rent levels or such higher levels used as applicable for
eligible low-income housing that receives incentives under subtitle B of
title II of the Housing and Community Development Act of 1987 [12 U.S.C.
4101 et seq.].
(3) Restriction
Assistance may be provided under this section only to State and
local housing authorities that require any housing receiving such
assistance to remain affordable for lower and moderate income tenants
for the period during which assistance under this section is received.
(Pub. L. 101-625, title VI, Sec. 613(b), Nov. 28, 1990, 104 Stat. 4280;
Pub. L. 102-550, title III, Sec. 317(b), Oct. 28, 1992, 106 Stat. 3772.)
References in Text
The Housing and Community Development Act of 1987, referred to in
pars. (1) and (2), is Pub. L. 100-242, Feb. 5, 1988, 101 Stat. 1815, as
amended. Subtitle B of title II of the Act is classified generally to
this subchapter (Sec. 4101 et seq.). For complete classification of this
Act to the Code, see Short Title of 1988 Amendment note under section
5301 of Title 42, The Public Health and Welfare, and Tables.
Codification
Section was enacted as part of the Cranston-Gonzalez National
Affordable Housing Act, and not as part of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 which comprises this
chapter.
Amendments
1992--Par. (2). Pub. L. 102-550 substituted ``222(d)'' for
``224(e)''.
