§4111 Mandatory sale for housing exceeding Federal cost limits

Summary

When the total preservation rents for a low-income housing project go above the federal cost limit, the owner must offer the property for sale to eligible buyers. For 12 months after the Secretary gets the second notice of intent, only priority purchasers may be offered or buy the property. If a priority purchaser makes a genuine offer at or above the preservation value (the value set under the law), the owner must sell. Priority purchasers can send a written notice of interest to the owner and the Secretary. Within 30 days of that notice, the Secretary will tell the buyer what federal help is available and the owner must give basic information about the property. If no qualifying offer is made in that 12-month period, the owner then has a 3-month window to offer and sell only to qualified purchasers under the same price rule. If money is available from Congress, the Secretary must give approved buyers federal housing assistance (under section 1437f of title 42) so the project’s gross income potential equals 120% of the prevailing local rents times the number of units, plus other allowed incentives. The Secretary can also make grants, from specified funds, to cover the gap between the preservation value and the level of assistance. The Secretary must help buyers find state and local funding and tax or assessment reductions to complete the sale.