§4111 — Title 12 Banks and Banking | U.S. Code

Summary

Owners must offer low-income housing for sale when the total preservation rents are higher than the Federal cost limit. Once the Secretary receives the second notice of intent, the owner has a 12-month period to sell only to "priority purchasers" (buyers with first claim). Priority purchasers can tell the owner and Secretary in writing they want to buy. If a priority purchaser makes a real offer at or above the preservation value, the Secretary must require the owner to sell. The Secretary must give buyers information about federal help within 30 days, and the owner must give basic project information. If no acceptable priority offer comes in those 12 months, there is a 3-month period to sell only to "qualified purchasers." Subject to available funding, the Secretary must help approved buyers by providing federal assistance under section 1437f to create a gross income potential equal to 120% of local prevailing rents times the number of units, plus any other allowed incentives. The Secretary may also give grants (from funds under section 4124(b)) up to the difference between the preservation value and that level of assistance. The Secretary will help buyers get state and local funding and tax or assessment reductions.

Title 12, §4111

Banks and Banking — Source: USLM XML via OLRC

(a)With respect to any eligible low-income housing for which the aggregate preservation rents determined under section 4104(b) of this title exceed the Federal cost limit, the owner shall offer the housing for sale to qualified purchasers as provided in this section.

(b)(1)For the 12-month period beginning upon the receipt by the Secretary of the second notice of intent under section 4106(d) of this title with respect to such housing, the owner of the housing may offer to sell and may sell the housing only to priority purchasers. If, during such period, a priority purchaser makes a bona fide offer to purchase the housing for a sale price not less than the preservation value of the housing determined under section 4103(b)(2) of this title, the Secretary shall require the owner to sell the housing pursuant to such offer.

(2)During the period under paragraph (1), priority purchasers shall have the opportunity to submit written notice to the owner and the Secretary stating their interest in acquiring the housing. Such written notice shall be in such form and include such information as the Secretary may prescribe.

(3)Not later than 30 days after receipt of any notice under paragraph (2), the Secretary shall provide such purchaser with information on the assistance available from the Federal Government to facilitate a transfer and the owner shall provide such purchaser with appropriate information on the housing, as determined by the Secretary.

(c)If no bona fide offer to purchase any eligible low-income housing subject to this section that meets the requirements of subsection (b) is made during the period under such subsection, during the 3-month period beginning upon the expiration of the 12-month period under subsection (b)(1), the owner of the housing may offer to sell and may sell the housing only to qualified purchasers. If, during such period, a qualified purchaser makes a bona fide offer to purchase the housing for a sale price not less than the preservation value of the housing determined under section 4103(b)(2) of this title, the Secretary shall require the owner to sell the housing pursuant to such offer.

(d)(1)Subject to the availability of amounts approved in appropriations Acts, the Secretary shall, for approvable plans of action, provide to qualified purchasers assistance under section 1437f of title 42 sufficient to produce a gross income potential equal to the amount determined by multiplying 120 percent of the prevailing rents in the relevant local market area in which the housing is located by the number of units in the project (according to appropriate unit sizes), and any other incentives authorized under section 4109(b) of this title that would have been provided to a qualified purchaser under section 4110 of this title.

(2)From amounts made available under section 4124(b) of this title, the Secretary may make grants to assist in the completion of sales and transfers under this section to any qualified purchasers. Any grant under this paragraph shall be in an amount not exceeding the difference between the preservation value for the housing (determined under section 4103(b)(2) of this title) and the level of assistance under paragraph (1) of this subsection.

(3)The Secretary shall assist any qualified purchaser of such housing in securing funding and other assistance (including tax and assessment reductions) from State and local governments to facilitate a sale under this section.

Editorial Notes

Amendments

1992—Subsec. (c). Pub. L. 102–550 substituted “than” for “that” before “the preservation”.

§4111 Mandatory Sale for Housing Exceeding Federal Cost Limits

Summary

Title 12, §4111

Notes & Related Subsidiaries

Editorial Notes

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