12-U.S.C.-1715Z-15
§1715Z-15 – §1715Z-15. Limitation On Prepayment of Mortgages On Multifamily Rental Housing
Pathway
Title 12 > Chapter 13 > Subchapter II > Section 1715z-15
Details
- Reference: Section 1715z-15
- Legend: §1715Z-15 – §1715Z-15. Limitation On Prepayment of Mortgages On Multifamily Rental Housing
- USCode Year: 2013
Provision Content
(a) Acceptance of offer to prepay; qualifications
During any period in which an owner of a multifamily rental housing project is required to obtain the approval of the Secretary for prepayment of the mortgage, the Secretary shall not accept an offer to prepay the mortgage on such project or permit a termination of an insurance contract pursuant to section 1715t of this title unless—
(1) the Secretary has determined that such project is no longer meeting a need for rental housing for lower income families in the area;
(2) the Secretary (A) has determined that the tenants have been notified of the owners request for approval of a prepayment; (B) has provided the tenants with an opportunity to comment on the owners request; and (C) has taken such comments into consideration; and
(3) the Secretary has ensured that there is a plan for providing relocation assistance for adequate, comparable housing for any lower income tenant who will be displaced as a result of the prepayment and withdrawal of the project from the program.
(b) Approval prior to foreclosure
A mortgagee may foreclose the mortgage on, or acquire by deed in lieu of foreclosure, any eligible low-income housing project (as such term is defined in section 4119 of this title) only if the mortgagee also conveys title to the project to the Secretary in connection with a claim for insurance benefits.
(c) Lower income families defined
For purposes of this section, the term lower income families has the meaning given such term in section 1437a(b)(2) of title 42.
(June 27, 1934, ch. 847, title II, §250, as added Pub. L. 98–181, title I [title IV, §433], Nov. 30, 1983, 97 Stat. 1221; amended Pub. L. 100–242, title II, §261, Feb. 5, 1988, 101 Stat. 1890; Pub. L. 101–235, title II, §202(d)(1), Dec. 15, 1989, 103 Stat. 2037; Pub. L. 101–625, title VI, §602(b), (c), Nov. 28, 1990, 104 Stat. 4277.)
Amendments
1990—Subsec. (b). Pub. L. 101–625, §602(b), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: In the case of a project assisted under section 1715z–1 of this title or the proviso to section 1715l(d)(5) of this title, section 101 of the Housing and Urban Development Act of 1965, or section 1701q of this title where the owner has the right to prepay the mortgage covering the assisted project without the Secretarys approval, the Secretary shall give a priority for additional assistance under section 1437f of title 42 and section 201 of the Housing and Community Development Amendments of 1978 to tenants and applicants to become tenants of the project, if—
(1) funds to provide such additional assistance are available; and
(2) the Secretary determines that making such additional assistance available to the project is necessary to prevent the owner from prepaying the mortgage.
Subsecs. (c), (d). Pub. L. 101–625, §602(c), redesignated subsec. (d) as (c) and struck out former subsec. (c) which read as follows: Any owner of a multifamily rental housing project referred to in subsection (b) of this section who receives additional assistance under section 1437f of title 42 under the priority established in subsection (b) of this section shall—
(1) fully utilize the assistance which is available;
(2) grant a priority to applicants to become tenants who have the lowest incomes; and
(3) maintain the low-income character of the project for a period at least equal to the remaining term of the project mortgage to the extent that assistance is provided.
1989—Subsec. (a). Pub. L. 101–235 inserted or permit a termination of an insurance contract pursuant to section 1715t of this title after second reference to project.
1988—Subsec. (a)(1). Pub. L. 100–242 struck out or that the needs of lower income families in such project can more efficiently and effectively be met through other Federal housing assistance taking into account the remaining time the project could meet such needs after families in the area.
U.S. Encyclopedia of Law Coverage
12-U.S.C.-1715Z-13A in the Legal Encyclopedia: Banking Law
In this entry about 12-U.S.C.-1715Z-13A, find legal reference material, bibliographies and premiere content related to banking law in the American Encyclopedia of Law, presenting a comprehensive view of the United States banking law-specific issues, written by authorities in the field.
12-U.S.C.-1715X in the Legal Encyclopedia: Mortgage
In this entry about 12-U.S.C.-1715X, find legal reference material, bibliographies and premiere content related to mortgage in the American Encyclopedia of Law, presenting a comprehensive view of the United States mortgage-specific issues, written by authorities in the field.
12-U.S.C.-1715V in the Legal Encyclopedia: Housing
In this entry about 12-U.S.C.-1715V, find legal reference material, bibliographies and premiere content related to housing in the American Encyclopedia of Law, presenting a comprehensive view of the United States housing-specific issues, written by authorities in the field.
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