§4119 — Title 12 Banks and Banking | U.S. Code

Summary

Defines key words used in this part of the law and says how certain values are figured. "Eligible low-income housing" is housing with a loan or mortgage that is insured, held, or helped by the Secretary under certain HUD mortgage programs (including conversions from older programs) and that, under rules or contracts in effect before February 5, 1988, is or will be able to prepay within 24 months without the Secretary's prior approval. "Federal cost limit" is the dollar amount set under section 4105(a). "Low-income affordability restrictions" are rules or agreements that limit rents, tenant payments, or who can live there. "Low-income" and "very low-income" families or persons are those whose incomes do not exceed the levels set in section 1437a(b)(2) of title 42. "Moderate-income" families or persons have incomes between 80 percent and 95 percent of the area's median, adjusted for family size. A "nonprofit organization" is a private nonprofit formed under state or local law that does not give profits to insiders, keeps acceptable financial records, and mainly works to provide affordable housing. "Owner" means the current or future owner(s) of eligible low-income housing. "Preservation equity" is generally the preservation value minus debt, using either the valuation method in section 4103(b)(1) or the method in section 4103(b)(2) depending on the rule being applied; for some purposes it subtracts any debt secured by the property, and for others it subtracts the outstanding federally-assisted mortgage balance. "Preservation value" is the value set under paragraph (1) or (2) of section 4103(b). "Secretary" means the Secretary of Housing and Urban Development. "Resident council" is an incorporated nonprofit or association that represents the residents, has written election rules, and a democratically elected board chosen by the residents.

Title 12, §4119

Banks and Banking — Source: USLM XML via OLRC

For purposes of this subchapter:

(1)The term “eligible low-income housing” means any housing financed by a loan or mortgage—

(A)that is—

(i)insured or held by the Secretary under section 1715l(d)(3) of this title and receiving loan management assistance under section 1437f of title 42 due to a conversion from section 1701s of this title;

(ii)insured or held by the Secretary and bears interest at a rate determined under the proviso of section 1715l(d)(5) of this title;

(iii)insured, assisted, or held by the Secretary or a State or State agency under section 1715z–1 of this title; or

(iv)held by the Secretary and formerly insured under a program referred to in clause (i), (ii), or (iii); and

(B)that, under regulation or contract in effect before February 5, 1988, is or will within 24 months become eligible for prepayment without prior approval of the Secretary.

(2)The term “Federal cost limit” means, for any eligible low-income housing, the amount determined under section 4105(a) of this title.

(3)The term “low-income affordability restrictions” means limits imposed by regulation or regulatory agreement on tenant rents, rent contributions, or income eligibility in eligible low-income housing.

(4)The terms “low-income families or persons” and “very low-income families or persons” mean families or persons whose incomes do not exceed the respective levels established for low-income families and very low-income families, respectively, under section 1437a(b)(2) of title 42.

(5)The term “moderate-income families or persons” means families or persons whose incomes are between 80 percent and 95 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families.

(6)The term “nonprofit organization” means any private, nonprofit organization that—

(A)is organized or chartered under State or local laws;

(B)has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual;

(C)complies with standards of financial accountability acceptable to the Secretary; and

(D)has among its principal purposes significant activities related to the provision of decent housing that is affordable to very low-, low-, and moderate-income families.

(7)The term “owner” means the current or subsequent owner or owners of eligible low-income housing.

(8)The term “preservation equity” means, for any eligible low-income housing—

(A)for purposes of determining the authorized return under section 4104(a) of this title and providing incentives to extend the low-income affordability restrictions on the housing under section 4109 of this title—

(i)the preservation value of the housing determined under section 4103(b)(1) of this title; less

(ii)any debt secured by the property; and

(B)for purposes of determining incentives under section 11 So in original. Probably should be “sections”. 4110 and 4111 of this title and determining the amount of an acquisition loan under the provisions of section 1715z–6(f)(3) 22 See References in Text note below. of this title—

(i)the preservation value of the housing determined under section 4103(b)(2) of this title; less

(ii)the outstanding balance of the federally-assisted mortgage or mortgages for the housing.

(9)The term “preservation value” means, for any eligible low-income housing, the applicable value determined under paragraph (1) or (2) of section 4103(b) of this title.

(10)The term “Secretary” means the Secretary of Housing and Urban Development.

(11)The term “resident council” means any incorporated nonprofit organization or association that—

(A)is representative of the residents of the housing;

(B)adopts written procedures providing for the election of officers on a regular basis; and

(C)has a democratically elected governing board, elected by the residents of the housing.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1715z–6(f) of this title, referred to in par. (8)(B), was repealed by Pub. L. 104–204, title II, Sept. 26, 1996, 110 Stat. 2885. Codification Amendment by Pub. L. 103–327 is based on section 601(e) of title VI of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327.

Amendments

1994—Par. (4). Pub. L. 103–327 temporarily amended par. (4) to read as follows: “(4)(A) The term ‘low-income tenants’ means families or persons with incomes that exceed 50 percent of the median income for the area (as determined by the Secretary with adjustments for family size) but do not exceed 80 percent of the median income for the area (as determined by the Secretary with adjustments for family size). “(B) The term ‘very low-income tenants’ means families or persons with incomes that are less than or equal to 50 percent of the median income for the area (as determined by the Secretary with adjustments for family size).” See Effective and Termination Dates of 1994 Amendment note below. 1992—Par. (1)(A)(i). Pub. L. 102–550, § 310, substituted “receiving loan management assistance under section 1437f of title 42 due to a conversion from section 1701s of this title” for “assisted under section 1701s of this title or section 1437f of title 42”. Par. (11)(A). Pub. L. 102–550, § 317(a)(5), substituted “residents” for “resident”.

Statutory Notes and Related Subsidiaries

Effective and Termination Dates of 1994 AmendmentAmendment by Pub. L. 103–327 effective only during fiscal year 1995, see provision of title II of Pub. L. 103–327 set out as a note under section 4112 of this title.

§4119 Definitions