Title 12 — Banks and BankingRelease 119-73not60

§4102 Notice of Intent

Title 12 › Chapter 42— LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP › Subchapter I— PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL HOUSING ACT › § 4102

Last updated Apr 3, 2026|Official source

Summary

If an owner plans to end the low‑income rules by prepaying or voluntarily terminating them, plans to extend those rules, or plans to sell the property to a qualified buyer, the owner must send a notice to the Secretary in the form and way the Secretary requires. At the same time, the owner must send the same notice to the head of the state or local government where the housing is, send a copy to the mortgage lender, and tell the tenants. An owner cannot send this notice if the mortgage went into default on or after November 28, 1990. If the mortgage fell into default before that date but was current on November 28, 1990, the owner can only send the notice if they agree to repay the Insurance Fund for any losses the Secretary says resulted from a workout or other arrangement.

Full Legal Text

Title 12, §4102

Banks and Banking — Source: USLM XML via OLRC

(a)An owner of eligible low-income housing that intends to terminate the low-income affordability restrictions through prepayment or voluntary termination in accordance with section 4108 of this title, extend the low-income affordability restrictions of the housing in accordance with section 4109 of this title, or transfer the housing to a qualified purchaser in accordance with section 4110 of this title, shall file with the Secretary a notice indicating such intent in the form and manner as the Secretary shall prescribe.

(b)The owner, upon filing a notice of intent under this section, shall simultaneously file the notice of intent with the chief executive officer of the appropriate State or local government for the jurisdiction within which the housing is located and with the mortgagee, and shall inform the tenants of the housing of the filing.

(c)An owner shall not be eligible to file a notice of intent under this section if the mortgage covering the housing—

(1)falls into default on or after November 28, 1990; or

(2)(A)fell into default before, but is current as of, November 28, 1990; and

(B)the owner does not agree to recompense the appropriate Insurance Fund, in the amount the Secretary determines appropriate, for any losses sustained by the Fund as a result of any work-out or other arrangement agreed to by the Secretary and the owner with respect to the defaulted mortgage.

Reference

Citations & Metadata

Citation

12 U.S.C. § 4102

Title 12 — Banks and Banking

Last Updated

Apr 3, 2026

Release point: 119-73not60