termined by the Secretary, and shall be made available on terms and conditions to be established by the Secretary: Provided further, That, notwithstanding any other provision of law, a priority purchaser may utilize assistance under the HOME Investment Partnerships Act (42 U.S.C. 12721 et seq.] or the Low Income Housing Tax Credit [see 26 U.S.C. 42]: Provided further, That projects with approved plans of action which exceed the limitations on eligibility for funding imposed by this Act may submit revised plans of action which conform to these limitations by March 1, 1997, and retain the priority for funding otherwise applicable from the original date of approval of their plan of action, subject to securing any additional necessary funding commitments by August 1, 1997."

Pub. L. 104-134, title I, § 101(e) [title II], Apr. 26, 1996, 110 Stat. 1321-257, 1321-267; renumbered title I, Pub. L. 104-140, §1(a), May 2, 1996, 110 Stat. 1327, provided in part that: "Of the total amount provided under this head. $624,000,000, plus amounts recaptured from interest reduction payment contracts for section 236 [12 U.S.C. 1715z-1] projects whose owners prepay their mortgages during fiscal year 1996 (which amounts shall be transferred and merged with this account), shall be for use in conjunction with properties that are eligible for assistance under the Low Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) [see Short Title note above] or the Emergency Low-Income Housing Preservation Act of 1987 (ELIHPA) [see Codification note set out preceding this section]: Provided. That prior to August 15, 1996, funding to carry out plans of action shall be limited to sales of projects to non-profit organizations, tenant-sponsored organizations, and other priority purchasers: Provided further, That of the amount made available by this paragraph, up to $10,000,000 shall be available for preservation technical assistance grants pursuant to section 253 of the Housing and Community Development Act of 1987 [12 U.S.C. 4143], as amended: Provided further, That with respect to amounts made available by this paragraph, after August 15, 1996, if the Secretary determines that the demand for funding may exceed amounts available for such funding, the Secretary (1) may determine priorities for distributing available funds, including giving priority funding to tenants displaced due to mortgage prepayment and to projects that have not yet been funded but which have approved plans of action; and (2) may impose a temporary moratorium on applications by potential recipients of such funding: Provided further, That an owner of eligible lowincome housing may prepay the mortgage or request voluntary termination of a mortgage insurance contract, so long as said owner agrees not to raise rents for sixty days after such prepayment: Provided further, That an owner of eligible low-income housing who has not timely filed a second notice under section 216(d) [12 U.S.C. 4106(d)] prior to the effective date of this Act [Apr. 26, 1996] may file such notice by April 15, 1996: Provided further, That such developments have been determined to have preservation equity at least equal to the lesser of $5,000 per unit or $500,000 per project or the equivalent of eight times the most recently published fair market rent for the area in which the project is located as the appropriate unit size for all of the units in the eligible project: Provided further, That the Secretary may modify the regulatory agreement to permit owners and priority purchasers to retain rental income in excess of the basic rental charge in projects assisted under section 236 of the National Housing Act [12 U.S.C. 17152-1], for the purpose of preserving the low and moderate income character of the housing: Provided further. That the Secretary may give priority to funding and processing the following projects provided that the funding is obligated not later than September 15, 1996: (1) projects with approved plans of action to retain the housing that file a modified plan of action no later than August 15, 1996 to transfer the housing; (2) projects with approved plans of action that are subject to a repayment or settlement agreement that was executed between the owner and the Secretary prior to

September 1, 1995; (3) projects for which submissions were delayed as a result of their location in areas that were designated as a Federal disaster area in a Presidential Disaster Declaration; and (4) projects whose processing was, in fact, or in practical effect, suspended, deferred, or interrupted for a period of nine months or more because of differing interpretations, by the Secretary and an owner concerning the time of the ability of an uninsured section 236 [12 U.S.C. 17152-1] property to prepay or by the Secretary and a State or local rent regulatory agency, concerning the effect of a presumptively applicable State or local rent control law or regulation on the determination of preservation value under section 213 of LIHPRHA, as amended [12 U.S.C. 4103], if the owner of such project filed notice of intent to extend the low-income affordability restrictions of the housing, or transfer to a qualified purchaser who would extend such restrictions, on or before November 1, 1993: Provided further, That eligible low-income housing shall include properties meeting the requirements of this paragraph with mortgages that are held by a State agency as a result of a sale by the Secretary without insurance, which immediately before the sale would have been eligible low-income housing under LIHPRHA: Provided further, That notwithstanding any other provision of law, subject to the availability of appropriated funds, each unassisted low-income family residing in the housing on the date of prepayment or voluntary termination, and whose rent, as a result of a rent increase occurring no later than one year after the date of the prepayment, exceeds 30 percent of adjusted income, shall be offered tenant-based assistance in accordance with section 8 [42 U.S.C. 1437f] or any successor program, under which the family shall pay no less for rent than it paid on such date: Provided further, That any family receiving tenant-based assistance under the preceding proviso may elect (1) to remain in the unit of the housing and if the rent exceeds the fair market rent or payment standard, as applicable, the rent shall be deemed to be the applicable standard, so long as the administering public housing agency finds that the rent is reasonable in comparison with rents charged for comparable unassisted housing units in the market or (2) to move from the housing and the rent will be subject to the fair market rent of the payment standard, as applicable, under existing program rules and procedures: Provided further, That rents and rent increases for tenants of projects for which plans of action are funded under section 220(d)(3)(B) of LIHPRHA (12 U.S.C. 4110(d)(3)(B)] shall be governed in accordance with the requirements of the program under which the first mortgage is insured or made (sections 236 or 221(d)(3) BMIR [12 U.S.C. 17152–1, 4111(d)(3)], as appropriate): Provided further, That the immediately foregoing proviso shall apply hereafter to projects for which plans of action are to be funded under such section 220(d)(3)(B) [12 U.S.C. 4110(d)(3)(B)], and shall apply to any project that has been funded under such section starting one year after the date that such project was funded: Provided further. That up to $10,000,000 of the amount made available by this paragraph may be used at the discretion of the Secretary to reimburse owners of eligible properties for which plans of action were submitted prior to the effective date of this Act [Apr. 26, 1996], but were not executed for lack of available funds, with such reimbursement available only for documented costs directly applicable to the preparation of the plan of action as determined by the Secretary, and shall be made available on terms and conditions to be established by the Secretary: Provided further, That, notwithstanding any other provision of law, effective October 1, 1996, the Secretary shall suspend further processing of preservation applications which do not have approved plans of action."

For similar provisions see Pub. L. 104–120, §2(b), Mar. 28, 1996, 110 Stat. 834.

$4105. Federal cost limits and limitations on plans of action

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4104. 4106, 4109, 4110, 4119 of this title.

§ 4109. Incentives to extend low-income use

REFERENCES IN TEXT

Section 1715z-6(f) of this title, referred to in subsec. (b)(7), was repealed by Pub. L. 104-204, title II, Sept. 26, 1996, 110 Stat. 2885.

§ 4110. Incentives for transfer to qualified purchasers

REFERENCES IN TEXT

Section 1715z-6(f) of this title, referred to in subsec. (d)(3)(A), was repealed by Pub. L. 104-204, title II, Sept. 26, 1996, 110 Stat. 2885.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4102, 4103. 4104, 4105, 4106. 4107, 4111, 4112. 4114, 4116, 4119, 4142, 4143 of this title.

§ 4111. Mandatory sale for housing exceeding Federal cost limits

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4103, 4104, 4105, 4106, 4107, 4114, 4119, 4124 of this title.

§ 4112. Criteria for approval of plan of action involving incentives

(a) In general

The Secretary may approve a plan of action for extension of the low-income affordability restrictions on any eligible low-income housing or transfer the housing to a qualified purchaser (other than a resident council) only upon finding that

[See main edition for text of (1)]

(2) binding commitments have been made to ensure that

[See main edition for text of (A) to (C)]

(D) any increase in rent contributions for current tenants will be to a level that does not exceed 30 percent of the adjusted income of the tenant or the published existing fair market rent for comparable housing established under section 1437f(c) of title 42, whichever is lower, except that the rent contributions of any tenants occupying the housing at the time of any increase may not be reduced by reason of this subparagraph (except with respect to tenants receiving section 8 [42 U.S.C. 1437f] assistance in accordance with subparagraph (E)(ii) of this paragraph);

(E)(i) any resulting increase in rents for current tenants (except for increases made necessary by increased operating costs)—

(I) shall be phased in equally over a period of not less than 3 years, if such increase is 30 percent or more; and

(II) shall be limited to not more than 10 percent per year if such increase is more than 10 percent but less than 30 percent; and

(ii) assistance under section 1437f of title 42 shall be provided, to the extent available under appropriation Acts, if necessary to mitigate any adverse effect on current income-eligible very low- and low-income tenants; and1

(F)(i) rents for units becoming available to new tenants shall be at levels approved by the Secretary that will ensure, to the extent practicable, that the units will be available and affordable to the same proportions of very low-income families or persons, low-income families or persons, and moderate-income families or persons (including families or persons whose incomes are 95 percent or more of area median income) as resided in the housing as of January 1, 1987 (based on the area median income limits established by the Secretary in February 1987), or the date the plan of action is approved, whichever date results in the highest proportion of very low-income families, except that this limitation shall not prohibit a higher proportion of very low-income families from occupying the housing; and

(ii) in approving rents under this paragraph, the Secretary shall take into account any additional incentives provided under this subchapter;

[See main edition for text of (G) and (H), (3); (b) to (d); credits]

REFERENCES IN TEXT

Section 1715z-6(f) of this title, referred to in subsec. (d)(2)(A)(i), (C)(ii), was repealed by Pub. L. 104–204, title II. Sept. 26, 1996, 110 Stat. 2885.

CODIFICATION

Subsec. (a)(2)(D) to (F) of this section is set out in this supplement to reflect termination of amendment by title II of Pub. L. 103-327, see Effective and Termination Dates of 1994 Amendment note below.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 4109, 4110, 4114, 4116, 4121, 4125 of this title.

§ 4113. Assistance for displaced tenants (a) Section 1437f assistance

Each low-income family that is displaced as a result of the prepayment of the mortgage or voluntary termination of an insurance contract on eligible low income housing shall, subject to the availability or2 amounts provided under appropriations Acts, receive tenant-based assistance under section 1437f of title 42. To the extent sufficient amounts are made available under appropriations Acts, in each fiscal year the Secretary shall reserve from amounts made available under section 4124(a) of this title or, if necessary, under section 1437c(c) of title 42, such amounts as the Secretary determines are necessary to provide assistance payments for lowincome families displaced during the fiscal year.

[See main edition for text of (b) to (e)]

1 So in original. Word "and" probably should not appear. 2 So in original. Probably should be “of".

(f) Enhanced voucher assistance for certain tenants

(1) Authority

In lieu of benefits under subsections (b), (c), and (d) of this section, and subject to the availability of appropriated amounts, each family described in paragraph (2) shall be offered enhanced voucher assistance under section 1437f(t) of title 42.

(2) Eligible families

A family described in this paragraph is a family that is—

(A)(i) a low-income family; or

(ii) a moderate-income family that is: (I) an elderly family; (II) a disabled family; or (III) residing in a low-vacancy area; and

(B) residing in eligible low-income housing on the date of the prepayment of the mortgage or voluntary termination of the insurance contract.

(As amended Pub. L. 105-276, title V, §550(d), Oct. 21, 1998, 112 Stat. 2610; Pub. L. 106-74, title V, §538(c), Oct. 20, 1999, 113 Stat. 1123.)

AMENDMENTS

1999 Subsec. (f). Pub. L. 106-74 added subsec. (f). 1998 Subsec. (a). Pub. L. 105-276 substituted "tenantbased assistance under section 1437f of title 42" for "assistance under the certificate and voucher programs under sections 1437f(b) and 1437f(o)”.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by title V of Pub. L. 105-276 effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see section 503 of Pub. L. 105-276, set out as a note under section 1437 of Title 42, The Public Health and Welfare.

§ 4116. Resident homeownership program

[See main edition for text of (a)]

(b) Other program requirements and limitations

[See main edition for text of (1) to (5)]

(6) Protection of nonpurchasing families

[See main edition for text of (A)]

(B) Rental assistance

If a tenant decides not to purchase a unit, or is not qualified to do so, the Secretary shall ensure that rental assistance under section 1437f of title 42 is available for use by each otherwise qualified tenant (that meets the eligibility requirements under such section) in that or another property. Any system for preferences established under section 1437f(d)(1)(A) or 1437f(o)(6)(A) of title 42 shall not apply to the provision of assistance to such families.

[See main edition for text of (C), (7) to (10)] (As amended Pub. L. 105-276, title § 514(b)(2)(A), Oct. 21, 1998, 112 Stat. 2548.)

AMENDMENTS

མ.

1998 Subsec. (b)(6)(B). Pub. L. 105-276, which directed the substitution of “Any system for preferences estab

lished under section 1437f(d)(1)(A) or 1437f(o)(6)(A)" for "The requirement for giving preferences to certain categories of eligible families under sections 1437f(d)(1)(A) and 1437f(o)(3)" in second sentence, was executed by making the substitution for text which included the word "preference" rather than “preferences" to reflect the probable intent of Congress.

§ 4119. Definitions

For purposes of this subchapter:

[See main edition for text of (1) to (3)]

(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.

[See main edition for text of (5) to (10); credits]

§ 4202. Contents of declarations

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 4204, 4205, 4206 of this title.

§ 4203. Confidentiality of declarations

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 4204, 4205, 4206 of this title.

§ 4204. Ineligibility to file valid declarations

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 4205, 4206 of this title.

§ 4206. Rights of declarants; notifications; Government accountability

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 4203, 4204, 4207, 4208 of this title.

§ 4211. Repealed. Pub. L. 105-362, title X, § 1001 (e), Nov. 10, 1998, 112 Stat. 3291 Section, Pub. L. 101-647, title XXV, §2571, Nov. 29, 1990, 104 Stat. 4899, related to Government accountability and public reports on processing of declarations.

CHAPTER 44-TRUTH IN SAVINGS

§ 4302. Disclosure of interest rates and terms of

accounts

[See main edition for text of (a) and (b)] (c) Disclosure required for on-premises displays The disclosure requirements contained in this section shall not apply to any sign (including a rate board) disclosing a rate or rates of interest which is displayed on the premises of the depository institution if such sign contains

(1) the accompanying annual percentage yield; and

(2) a statement that the consumer should request further information from an employee of the depository institution concerning the fees and terms applicable to the advertised account.

[See main edition for text of (d) and (e)] (As amended Pub. L. 104-208, div. A, title II, § 2604(b), Sept. 30, 1996, 110 Stat. 3009 471.)

AMENDMENTS

1996 Subsec. (c). Pub. L. 104-208 redesignated par. (1) as entire subsec. (c) and subpars. (A) and (B) of former par. (1) as pars. (1) and (2), respectively, and struck out former par. (1) heading and heading and text of former par. (2). Text of former par. (2) read as follows: "For purposes of paragraph (1), a sign shall only be considered to be displayed on the premises of a depository institution if the sign is designed to be viewed only from the interior of the premises of the depository institution."

§ 4305. Distribution of schedules

(a) In general

A schedule required under section 4303 of this title for an appropriate account shall be—

[See main edition for text of (1) and (2)]

(3) provided to the depositor, in the case of any time deposit which has a maturity of more than 30 days1 is renewable at maturity without notice from the depositor, at least 30 days before the date of maturity.

[See main edition for text of (b) to (e)]

(As amended Pub. L. 104-208, div. A, title II, § 2604(d), Sept. 30, 1996, 110 Stat. 3009-471.)

AMENDMENTS

1996 - Subsec. (a)(3). Pub. L. 104-208 inserted "has a maturity of more than 30 days" after "deposit which".

§ 4310. Civil liability

REPEAL OF SECTION

Pub. L. 104-208, div. A, title II, § 2604(a), Sept. 30, 1996, 110 Stat. 3009-470, provided that, effective as of the end of the 5-year period beginning Sept. 30, 1996, this section is repealed.

§ 4313. Definitions

For the purposes of this chapter

[See main edition for text of (1) to (5)]

1 So in original. Probably should be followed by "and".

(6) Depository institution

The term "depository institution" has the meaning given such term in clauses (i) through (vi) of section 461(b)(1)(A) of this title, but does not include any nonautomated credit union that was not required to comply with the requirements of this chapter1 as of September 30, 1996, pursuant to the determination of the National Credit Union Administration Board.

[See main edition for text of (7) and (8)] (As amended Pub. L. 104-208, div. A, title II, § 2604(c), Sept. 30, 1996, 110 Stat. 3009-471.)

REFERENCES IN TEXT

This chapter, referred to in par. (6), was in the original "this title", and was translated as meaning "this subtitle", which is subtitle F of title II of Pub. L. 102-242, Dec. 19, 1991, 105 Stat. 2334, which enacted this chapter, to reflect the probable intent of Congress.

AMENDMENTS

1996-Par. (6). Pub. L. 104–208 inserted before period at end". but does not include any nonautomated credit union that was not required to comply with the requirements of this chapter as of September 30, 1996, pursuant to the determination of the National Credit Union Administration Board".

CHAPTER 46-GOVERNMENT SPONSORED ENTERPRISES

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1422b, 1426 of this title.

SUBCHAPTER I-SUPERVISION AND REGULATION OF ENTERPRISES

PART A-FINANCIAL SAFETY AND SOUNDNESS REGULATOR

§ 4513. Duty and authority of Director [See main edition for text]

(As amended Pub. L. 105-276, title II, §202(b), Oct. 21, 1998, 112 Stat. 2483; Pub. L. 105-277, div. A, § 122, Oct. 21, 1998, 112 Stat. 2681-546.)

AMENDMENTS

1998-Subsec. (b)(9) to (12). Pub. L. 105-276, which directed the amendment of subsec. (b) by redesignating pars. (9) to (11) as (10) to (12), respectively, and adding a new par. (9) which read "default loss protection levels under section_1454(a)(2)(D) of this title;" was repealed by Pub. L. 105-277, effective upon enactment of Pub. L. 105-276.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105–277, div. A, §122, Oct. 21, 1998, 112 Stat. 2681-546, provided that the amendment made by section 122 is effective upon enactment of Pub. L. 105-276 (Oct. 21, 1998).

$4515. Personnel

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104-14, set

1See References in Text note below.

out as a note preceding section 21 of Title 2, The Congress.

§4516. Funding

[See main edition for text of (a)]

(b) Allocation of annual assessment to enterprises

[See main edition for text of (1)]

(2) Timing of payment

The annual assessment shall be payable semiannually for each fiscal year, on October 1 and April 1.

[See main edition for text of (3); (c) to (g)]

(As amended Pub. L. 104-134, title I, § 101(e) [title II, §211], Apr. 26, 1996, 110 Stat. 1321-257, 1321-288; renumbered title I, Pub. L. 104-140, §1(a), May 2, 1996, 110 Stat. 1327.)

AMENDMENTS

1996 Subsec. (b)(2). Pub. L. 104–134 added par. (2) and struck out heading and text of former par. (2). Text read as follows: "The annual assessment shall be payable semiannually on September 1 and March 1 of the year for which the assessment is made."

§ 4520. Equal opportunity in solicitation of contracts

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104-14, set out as a note preceding section 21 of Title 2, The Congress.

§4521. Annual reports by Director

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104-14, set out as a note preceding section 21 of Title 2, The Congress.

§ 4524. Audits by GAO

The Comptroller General may audit the operations of the Office, and any such audit shall be conducted in accordance with generally accepted Government auditing standards. All books, records, accounts, reports, files, and property belonging to, or used by, the Office shall be made available to the Comptroller General. (As amended Pub. L. 104-316, title I, § 106(h), Oct. 19, 1996, 110 Stat. 3831.)

AMENDMENTS

1996 Pub. L. 104-316, in first sentence, substituted "may audit" for "shall audit" and inserted ", and any such audit shall be conducted" after "Office", and struck out at end "Audits under this section shall be conducted annually for the first 2 fiscal years following October 28, 1992, and as appropriate thereafter." § 4526. Regulations and orders

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com

mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104-14, set out as a note preceding section 21 of Title 2, The Congress.

PART B-AUTHORITY OF SECRETARY

SUBPART 1-GENERAL AUTHORITY

§ 4542. Prior approval authority for new programs

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of . Representatives by section 1(a) of Pub. L. 104-14, set out as a note preceding section 21 of Title 2, The Congress.

§ 4548. Reports by Secretary

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104-14, set out as a note preceding section 21 of Title 2, The Congress.

SUBPART 2 HOUSING GOALS

§ 4565. Other requirements (a) In general

To meet the low- and moderate-income housing goal under section 4562 of this title, the special affordable housing goal under section 4563 of this title, and the central cities, rural areas, and other underserved areas housing goal under section 4564 of this title, each enterprise shall—

(1) design programs and products that facilitate the use of assistance provided by the Federal Government and State and local governments;

(2) develop relationships with nonprofit and for-profit organizations that develop and finance housing and with State and local governments, including housing finance agencies; (3) take affirmative steps to

(A) assist primary lenders to make housing credit available in areas with concentrations of low-income and minority families, and

(B) assist insured depository institutions to meet their obligations under the Community Reinvestment Act of 1977 [12 U.S.C. 2901 et seq.],

which shall include developing appropriate and prudent underwriting standards, business practices, repurchase requirements, pricing, fees, and procedures;

(4) develop the institutional capacity to help finance low- and moderate-income housing, including housing for first-time homebuyers; and

(5) assist in maintaining the affordability of assisted units in eligible multifamily housing projects with expiring contracts, as defined under the Multifamily Assisted Housing Reform and Affordability Act of 1997. (b) Affordable housing goals

Actions taken under subsection (a)(5) of this section shall constitute part of the contribution