§4125 — Title 12 Banks and Banking | U.S. Code

Summary

HUD can give money to a state or local housing authority that asks for help. The money is to stop affordable housing from becoming unaffordable when an owner can pay off a state-supported mortgage. The housing authority’s request must show that the total incentives to the owner will not be larger than what similar projects with expiring federal restrictions would get under a 1987 federal program. The funds can top up existing rental-assistance contracts or make sure lower-income tenants pay no more than 30 percent of their adjusted income. Any project that gets help must follow HUD’s rules, inspections, and penalties under the 1987 law. HUD will provide rent help for a set term at fair market rent or the higher rent level used for those 1987 incentives. HUD only gives this help to authorities that require the housing to stay affordable for lower- and moderate-income tenants while the funds are received.

Title 12, §4125

Banks and Banking — Source: USLM XML via OLRC

(1)Upon application by a State or local housing authority (including public housing agencies), the Secretary of Housing and Urban Development may make available, from sources of assistance appropriated to preserve the low and moderate income status of projects with expiring Federal use restrictions, assistance to such State or local housing authorities for use in preventing the loss of housing affordable for low and moderate income families that is assisted under a State program under the terms of which the owner may prepay a State assisted or subsidized mortgage on such housing. The application of the State or local housing authority shall demonstrate to the Secretary that the total amount of incentives provided to the owner to induce the owner to preserve the low and moderate income status of the project shall not exceed the level of incentives which may be provided to a similarly situated project with expiring Federal use restrictions under subtitle B of title II of the Housing and Community Development Act of 1987 [12 U.S.C. 4101 et seq.].

(2)Any assistance under section 1437f of title 42 made available pursuant to this section may be used (i) to supplement any assistance available on existing section 8 [42 U.S.C. 1437f] contracts, or (ii) to provide additional assistance to structures to ensure that all units occupied by tenants who are lower income families (as such term is defined in section 1437a(b) of title 42) pay rents not exceeding 30 percent of their adjusted incomes. Any project receiving assistance hereunder shall be subject to standards, inspections and sanctions established by the Secretary under section 222(d) of the Housing and Community Development Act of 1987 [12 U.S.C. 4112(d)]. Any such section 8 [42 U.S.C. 1437f] assistance shall be provided for a term and at the fair market rent levels or such higher levels used as applicable for eligible low-income housing that receives incentives under subtitle B of title II of the Housing and Community Development Act of 1987 [12 U.S.C. 4101 et seq.].

(3)Assistance may be provided under this section only to State and local housing authorities that require any housing receiving such assistance to remain affordable for lower and moderate income tenants for the period during which assistance under this section is received.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Housing and Community Development Act of 1987, referred to in pars. (1) and (2), is Pub. L. 100–242, Feb. 5, 1988, 101 Stat. 1815. Subtitle B of title II of the Act is classified generally to this subchapter (§ 4101 et seq.). For complete classification of this Act to the Code, see

Short Title

of 1988 Amendment note under section 5301 of Title 42, The Public Health and Welfare, and Tables. Codification Section was enacted as part of the Cranston-Gonzalez National Affordable Housing Act, and not as part of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 which comprises this chapter.

Amendments

1992—Par. (2). Pub. L. 102–550 substituted “222(d)” for “224(e)”.

§4125 State Preservation Project Assistance