25 U.S.C. § 4232: Low-income requirement and…

Summary

Housing is affordable only if every unit is set aside for low-income families when they first move in or buy. For rentals, only a low-income family may first occupy the unit. For homes for sale, only a low-income family may buy the unit. Each unit must stay affordable under binding promises the Secretary accepts. Those promises must last either for the property’s remaining useful life (as the Secretary decides) or for whatever long period the Secretary finds is most feasible with sound economics and the program’s goals. If the property is foreclosed or transferred in lieu of foreclosure, affordability can still be protected if the action recognizes any legal or contractual rights of a public agency, nonprofit sponsor, or other party to keep or transfer affordable ownership, and if the action is not done to avoid the affordability rules. Housing help under section 4228(a)(2)(B) of this title is also treated as affordable.

Title 25, §4232

Indians, Source: USLM XML via OLRC

(a)In general

Housing shall qualify for affordable housing for purposes of this subchapter only if—

(1)each dwelling unit in the housing—

(A)in the case of rental housing, is made available for occupancy only by a family that is a low-income family at the time of the initial occupancy of that family of that unit; and

(B)in the case of housing for homeownership, is made available for purchase only by a family that is a low-income family at the time of purchase; and

(2)each dwelling unit in the housing will remain affordable, according to binding commitments satisfactory to the Secretary, for—

(A)the remaining useful life of the property (as determined by the Secretary) without regard to the term of the mortgage or to transfer of ownership; or

(B)such other period as the Secretary determines is the longest feasible period of time consistent with sound economics and the purposes of this subchapter, except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if that action—

(i)recognizes any contractual or legal rights of any public agency, nonprofit sponsor, or other person or entity to take an action that would—

(I)avoid termination of low-income affordability, in the case of foreclosure; or

(II)transfer ownership in lieu of foreclosure; and

(ii)is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary.

(b)Exception

Notwithstanding subsection (a), housing assistance pursuant to section 4228(a)(2)(B) of this title shall be considered affordable housing for purposes of this subchapter.

Editorial Notes

Codification Pub. L. 106–568, § 203, and Pub. L. 106–569, § 513, enacted identical section 813 of Pub. L. 104–330. This section is based on the text of section 813 of Pub. L. 104–330, as added by Pub. L. 106–569, § 513.

§4232 Low-income Requirement and Income Targeting

Summary

Title 25, §4232

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata