§4102 Notice of Intent

Summary

If an owner of eligible low-income housing plans to end the affordability rules by prepaying or voluntarily stopping them, extend the affordability period, or sell the property to a qualified buyer, the owner must file a notice with the Secretary in the form the Secretary requires. At the same time, the owner must send the same notice to the chief executive officer of the state or local government where the housing is, give it to the mortgagee, and tell the tenants. An owner cannot file this notice if the mortgage went into default on or after November 28, 1990. An owner also cannot file if the mortgage defaulted before that date but was current on November 28, 1990, unless the owner agrees to pay the Insurance Fund for losses the Secretary says are owed. The Secretary must apply this rule in line with section 1701z–11.