§4122 Preemption of State and local laws

Summary

States and local governments may not make or enforce laws that stop or limit prepaying the mortgage described in section 4119(1) or ending an insurance contract under section 1715t on eligible low‑income housing. They also may not block an owner from getting the annual return in section 4104 or pass rules that conflict with this part of the federal law or that cut off incentives like raising rents, selling, refinancing, or using proceeds. Laws that apply only to housing after prepayment or insurance termination are also barred. General rules that do not conflict with this part are allowed — for example building codes, zoning, health, safety, habitability, rent control, or conversion to condos/co‑ops — but only if they apply equally to both assisted and nonassisted housing. Contracts made before November 28, 1990 that limit prepayment or ending insurance remain in force.