Title 12 — Banks and BankingRelease 119-73

§4115 Timetable for approval of plan of action

Title 12 › Chapter CHAPTER 42— - LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP › Subchapter SUBCHAPTER I— - PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL HOUSING ACT › § 4115

Last updated Apr 6, 2026|Official source

Summary

Within 60 days after getting a plan of action, the Secretary must tell the owner in writing if the plan has problems that stop approval and must explain how the plan can be changed to qualify. Within 180 days after receipt, or longer if the owner asks, the Secretary must tell the owner in writing whether the plan is approved. If approval is denied, the notice must say why and what changes would meet the rules, and the owner must be given a fair chance to revise the plan and try again. If the Secretary fails to approve the plan within the 180-day period, the Secretary must give the owner the same incentives and help they would have received if the deadline had been met, unless the plan was rejected because of its deficiencies. The owner can sue in a federal district court to enforce this rule.

Full Legal Text

Title 12, §4115

Banks and Banking — Source: USLM XML via OLRC

(a)Not later than 60 days after receipt of a plan of action, the Secretary shall notify the owner in writing of any deficiencies that prevent the plan of action from being approved. If deficiencies are found, such notice shall describe alternative ways in which the plan may be revised to meet the criteria for approval.

(b)(1)Not later than 180 days after receipt of a plan of action, or such longer period as the owner requests, the Secretary shall notify the owner in writing whether the plan of action, including any revisions, is approved. If approval is withheld, the notice shall describe—

(A)the reasons for withholding approval; and

(B)the actions that could be taken to meet the criteria for approval.

(2)The Secretary shall subsequently give the owner a reasonable opportunity to revise the plan of action and seek approval.

(c)If the Secretary does not approve a plan of action within the period under subsection (b), the Secretary shall provide incentives and assistance under this subchapter in the amount that the owner would have received if the Secretary had complied with such time limitations. The preceding sentence shall not apply if the plan of action was not approved because of deficiencies. An owner may bring an action in the appropriate Federal district court to enforce this subsection.

Reference

Citations & Metadata

Citation

12 U.S.C. § 4115

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73