§4107 — Title 12 Banks and Banking | U.S. Code

Summary

Owners who want to end, extend, or transfer the low-income rules for their housing must send a written plan of action to the Secretary within 6 months after getting the Secretary’s information. Owners or buyers who are moving forward with a transfer must send a plan when they accept a genuine offer or make one. The owner must also give a copy of the plan to the tenants and to the chief executive officer of the local or State government where the property is. On request, the owner and the Secretary must share supporting documents with tenants and that official, except for any material the Secretary says is proprietary. The local agency will review the plan and tell tenants about programs that may help them. If the owner misses the 6-month deadline (or any longer allowed time), the earlier notice of intent is void and the owner cannot file another notice until 6 months after that period ends. If the plan would end the affordability rules, it must describe changes to the mortgage or regulatory agreement, any changes to the affordability rules, ownership changes, how tenants will be affected, how local affordable housing supply would be affected, and any other information the Secretary requires. If the plan would extend the rules or transfer to a qualified buyer, it must describe mortgage or agreement changes; the federal incentives requested with cash-flow projections and plans to fix physical or financial problems and keep affordability; any state or local help offered or sought (including tax credits); details of the transfer and buyer and sale papers; and any other information the Secretary requires. Owners may revise the plan and must send revisions and supporting documents to the Secretary and tenants, except for proprietary information.

Title 12, §4107

Banks and Banking — Source: USLM XML via OLRC

(a)(1)Not later than 6 months after receipt of the information from the Secretary under section 4106 of this title an owner seeking to terminate the low-income affordability restrictions through prepayment of the mortgage or voluntary termination under section 4108 of this title, or to extend the low-income affordability restriction on the housing under section 4109 of this title, shall submit a plan of action to the Secretary in such form and manner as the Secretary shall prescribe. Any owner or purchaser seeking a transfer of the housing under section 4110 or 4111 of this title shall submit a plan of action under this section to the Secretary upon acceptance of a bona fide offer under section 4110(b) or (c) of this title or upon making of any bona fide offer under section 4111 of this title.

(2)Each owner submitting a plan of action under this section to the Secretary shall also submit a copy to the tenants of the housing. The owner shall simultaneously submit the plan of action to the office of the chief executive officer of the appropriate State or local government for the jurisdiction within which the housing is located. Each owner and the Secretary shall also, upon request, make available to the tenants of the housing and to the office of the chief executive officer of the appropriate State or local government for the jurisdiction within which the housing is located all documentation supporting the plan of action, but not including any information that the Secretary determines is proprietary information. An appropriate agency of such State or local government shall review the plan and advise the tenants of the housing of any programs that are available to assist the tenants in carrying out the purposes of this title.11 See References in Text note below.

(3)If the owner does not submit a plan of action to the Secretary within the 6-month period referred to in paragraph (1) (or the applicable longer period), the notice of intent shall be ineffective for purposes of this subchapter and the owner may not submit another notice of intent under section 4102 of this title until 6 months after the expiration of such period.

(b)(1)If the plan of action proposes to terminate the low-income affordability restrictions through prepayment or voluntary termination in accordance with section 4108 of this title, the plan shall include—

(A)a description of any proposed changes in the status or terms of the mortgage or regulatory agreement;

(B)a description of any proposed changes in the low-income affordability restrictions;

(C)a description of any change in ownership that is related to prepayment or voluntary termination;

(D)an assessment of the effect of the proposed changes on existing tenants;

(E)an analysis of the effect of the proposed changes on the supply of housing affordable to low- and very low-income families or persons in the community within which the housing is located and in the area that the housing could reasonably be expected to serve; and

(F)any other information that the Secretary determines is necessary to achieve the purposes of this title.1

(2)If the plan of action proposes to 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, the plan shall include—

(A)a description of any proposed changes in the status or terms of the mortgage or regulatory agreement;

(B)a description of the Federal incentives requested (including cash flow projections), and analyses of how the owner will address any physical or financial deficiencies and maintain the low-income affordability restrictions of the housing;

(C)a description of any assistance from State or local government agencies, including low-income housing tax credits, that have been offered to the owner or purchaser or for which the owner or purchaser has applied or intends to apply;

(D)a description of any transfer of the property, including the identity of the transferee and a copy of any documents of sale; and

(E)any other information that the Secretary determines is necessary to achieve the purposes of this title.1

(c)An owner may from time to time revise and amend the plan of action as may be necessary to obtain approval of the plan under this subchapter. The owner shall submit any revision to the Secretary and to the tenants of the housing and make available to the Secretary and tenants all documentation supporting any revision, but not including any information that the Secretary determines is proprietary information.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This title, referred to in subsecs. (a)(2) and (b)(1)(F), (2)(E), means title II of Pub. L. 100–242, as amended by Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, known as the Low-Income Housing Preservation and Resident Homeownership Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 4101 of this title and Tables.

Amendments

1992—Subsec. (a)(2). Pub. L. 102–550, § 304(a), inserted after second sentence “Each owner and the Secretary shall also, upon request, make available to the tenants of the housing and to the office of the chief executive officer of the appropriate State or local government for the jurisdiction within which the housing is located all documentation supporting the plan of action, but not including any information that the Secretary determines is proprietary information.” Subsec. (c). Pub. L. 102–550, § 304(b), inserted before period at end “and make available to the Secretary and tenants all documentation supporting any revision, but not including any information that the Secretary determines is proprietary information”.

§4107 Plan of Action