§4125 — Title 12 Banks and Banking | U.S. Code

Summary

HUD may give money to state or local housing agencies, including public housing agencies, when they apply. The money is to stop housing that serves low- and moderate‑income families from becoming unaffordable when federal use rules end and an owner could prepay a state‑assisted mortgage. The applying agency must show that the total incentives offered to the owner will not be higher than what a similar project with expiring federal rules could get under subtitle B of title II of the Housing and Community Development Act of 1987. Funds available under Section 8 can add to existing Section 8 help or be used so lower‑income tenants pay no more than 30 percent of their adjusted incomes. Projects that get this help must meet HUD’s standards, inspections, and penalties under section 222(d) of that Act. Section 8 support will be for a set term and at fair market rent or the higher rates used for eligible low‑income housing under subtitle B. HUD will only give help to agencies that require the housing to stay affordable while the help is received.

Title 12, §4125

Banks and Banking — Source: USLM XML via OLRC

(1)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)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)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.

Notes & Related Subsidiaries

Editorial Notes

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. Subtitle B of title II of the Act is classified generally to this subchapter (§ 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)”.

§4125 State preservation project assistance