From
the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 6, 1999]
[Document not affected by Public Laws enacted between
January 6, 1999 and October 26, 2000]
[CITE: 42USC12745]
TITLE
42--THE PUBLIC HEALTH AND WELFARE
CHAPTER 130--NATIONAL AFFORDABLE HOUSING
SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING
Part A--HOME Investment Partnerships
Sec. 215. Qualification as affordable housing
- Rental housing
- Qualification
Housing
that is for rental shall qualify as affordable housing
under this subchapter only if the housing--
- bears rents not greater than the lesser of
- the existing fair market rent for comparable units
in the area as established by the Secretary under
section 1437f of this title, or
- a rent that does not exceed 30 percent of the adjusted
income of a family whose income equals 65 percent
of the median income for the area, as determined by
the Secretary, with adjustment for number of bedrooms
in the unit, except that the Secretary may establish
income ceilings higher or lower than 65 percent of
the median for the area on the basis of the Secretary's
findings that such variations are necessary because
of prevailing levels of construction costs or fair
market rents, or unusually high or low family incomes;
- has
not less than 20 percent of the units
- occupied by very low-income families who pay as
a contribution toward rent (excluding any Federal
or State rental subsidy provided on behalf of the
family) not more than 30 percent of the family's
monthly adjusted income as determined by the Secretary,
or
- occupied by very low-income families and bearing
rents not greater than the gross rent for rent-restricted
residential units as determined under section 42(g)(2)
of title 26;
- is
occupied only by households that qualify as low-income
families;
- is
not refused for leasing to a holder of a voucher or
certificate of eligibility under section 1437f of this
title because of the status of the prospective tenant
as a holder of such voucher or certificate of eligibility;
- will
remain affordable, according to binding commitments
satisfactory to the Secretary, for 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 for such other period that the Secretary
determines is the longest feasible period of time consistent
with sound economics and the purposes of this Act, except
upon a foreclosure by a lender (or upon other transfer
in lieu of foreclosure) if such action
- recognizes any contractual or legal rights of
public agencies, nonprofit sponsors, or others to
take actions that would avoid termination of low-income
affordability in the case of foreclosure or transfer
in lieu of foreclosure, and
- is not for the purpose of avoiding low income
affordability restrictions, as determined by the
Secretary; and
- if
newly constructed, meets the energy efficiency
standards promulgated by the Secretary in accordance
with
section 12709 of this title.
- Adjustment
of qualifying rent
The
Secretary may adjust the qualifying rent established for
a project under subparagraph (A) of paragraph (1), only
if the Secretary finds that such adjustment is necessary
to support the continued financial viability of the project
and only by such amount as the Secretary determines is necessary
to maintain continued financial viability of the project.
- Increases
in tenant income
Housing
shall qualify as affordable housing despite a temporary
noncompliance with subparagraph (B) or (C) of paragraph
(1) if such noncompliance is caused by increases in the
incomes of existing tenants and if actions satisfactory
to the Secretary are being taken to ensure that all vacancies
are filled in accordance with paragraph (1) until such noncompliance
is corrected. Tenants who no longer qualify as low-income
families shall pay as rent the lesser of the amount payable
by the tenant under State or local law or 30 percent of
the family's adjusted monthly income, as recertified annually.
The preceding sentence shall not apply with respect to funds
made available under this Act for units that have been allocated
a low-income housing tax credit by a housing credit agency
pursuant to section 42 of title 26.
- Mixed-income
project
Housing
that accounts for less than 100 percent of the dwelling
units in a project shall qualify as affordable housing if
such housing meets the criteria of this section.
- Mixed-use
project
Housing
in a project that is designed in part for uses other than
residential use shall qualify as affordable housing if such
housing meets the criteria of this section.
- Homeownership
Housing
that is for homeownership shall qualify as affordable housing
under this subchapter only if the housing--
- has an initial purchase price that does not exceed 95
percent of the median purchase price for the area, as determined
by the Secretary with such adjustments for differences in
structure, including whether the housing is single-family
or multifamily, and for new and old housing as the Secretary
determines to be appropriate;
- is the principal residence of an owner whose family qualifies
as a low-income family--
- in the case of a contract to purchase existing housing,
at the time of purchase;
- in the case of a lease-purchase agreement for existing
housing or for housing to be constructed, at the time
the agreement is signed; or
- in the case of a contract to purchase housing to be
constructed, at the time the contract is signed;
- is
subject to resale restrictions that are established by the
participating jurisdiction and determined by the Secretary
to be appropriate to--
- allow for subsequent purchase of the property only
by persons who meet the qualifications specified under
paragraph (2), at a price which will--
- provide the owner with a fair return on investment,
including any improvements, and
- ensure that the housing will remain affordable
to a reasonable range of low-income homebuyers;
or
- recapture
the investment provided under this subchapter in order
to assist other persons in accordance with the requirements
of this subchapter, except where there are no net proceeds
or where the net proceeds are insufficient to repay
the full amount of the assistance; and
- if
newly constructed, meets the energy efficiency standards
promulgated by the Secretary in accordance with section
12709 of this title.
(Pub.
L. 101-625, title II, Sec. 215, Nov. 28, 1990, 104 Stat. 4101; Pub.
L. 102-550, title II, Secs. 208, 209, Oct. 28, 1992, 106 Stat. 3754;
Pub. L. 103-233, title II, Sec. 203, Apr. 11, 1994, 108 Stat. 364;
Pub. L. 105-276, title V, Sec. 599B(b), Oct. 21, 1998, 112 Stat.
2660.)
References in Text
This Act, referred to in subsec. (a)(1)(E), (3), is Pub. L. 101-625,
Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National
Affordable Housing Act. For complete classification of this Act
to the Code, see Short Title note set out under section 12701 of
this title and Tables.
Amendments
1998--Subsec. (b)(2). Pub. L. 105-276 amended par. (2) generally.
Prior to amendment, par. (2) read as follows: "is the principal
residence of an owner whose family qualifies as a low-income family
at the time of purchase;''.
1994--Subsec.
(b)(3). Pub. L. 103-233, Sec. 203(a), redesignated par. (4) as (3)
and struck out former par. (3) which read as follows: "is made
available for initial purchase only to first-time homebuyers;''.
Subsec.
(b)(3)(B). Pub. L. 103-233, Sec. 203(b), substituted "subchapter''
for "subsection'' after "requirements of this''.
Subsec.
(b)(4), (5). Pub. L. 103-233, Sec. 203(a)(2), redesignated pars.
(4) and (5) as (3) and (4), respectively.
1992--Subsec.
(a)(1)(A). Pub. L. 102-550, Sec. 208(a)(1), substituted "number
of bedrooms in the unit'' for "smaller and larger families''.
Subsec.
(a)(1)(E). Pub. L. 102-550, Sec. 208(b), inserted before semicolon
", except upon a foreclosure by a lender (or upon other transfer
in lieu of foreclosure) if such action (i) recognizes any contractual
or legal rights of public agencies, nonprofit sponsors, or others
to take actions that would avoid termination of low-income affordability
in the case of foreclosure or transfer in lieu of foreclosure, and
(ii) is not for the purpose of avoiding low income affordability
restrictions, as determined by the Secretary''.
Subsec.
(a)(3). Pub. L. 102-550, Sec. 208(a)(2), (3), substituted "the
lesser of the amount payable by the tenant under State or local
law or'' for ``not less than'' in second sentence and inserted at
end "The preceding sentence shall not apply with respect to
funds made available under this Act for units that have been allocated
a low-income housing tax credit by a housing credit agency pursuant
to section 42 of title 26.''
Subsec.
(b)(4). Pub. L. 102-550, Sec. 209, added par. (4) and struck out
former par. (4) which read as follows: "is made available for
subsequent purchase only--
" (A)
to persons who meet the qualifications specified under paragraph
(2), and
"(B) at a price consistent with guidelines that are established
by the participating jurisdiction and determined by the Secretary
to be appropriate--
"(i) to provide the owner with a fair return on investment,
including any improvements, and
"(ii) to ensure that the housing will remain affordable to
a reasonable range of low income homebuyers; and''.
Effective
Date of 1998 Amendment
Amendment by Pub. L. 105-276 made on, and applicable beginning upon,
Oct. 21, 1998, see section 599B(c) of Pub. L. 105-276, set out as
a note under section 12744 of this title.
Effective
Date of 1994 Amendment
Amendment by Pub. L. 103-233 applicable with respect to any amounts
made available to carry out this subchapter after Apr. 11, 1994,
and any amounts made available to carry out this subchapter before
that date that remain uncommitted on that date, with Secretary to
issue any regulations necessary to carry out such amendment not
later than end of 45-day period beginning on that date, see section
209 of Pub. L. 103-233, set out as a note under section 5301 of
this title.
Effective
Date of 1992 Amendment
Amendment by Pub. L. 102-550 applicable to unexpended funds allocated
under subchapter II of this chapter in fiscal year 1992, except
as otherwise specifically provided, see section 223 of Pub. L. 102-550,
set out as a note under section 12704 of this title.
Section Referred to in Other Sections
This section is referred to in sections 4851b, 12705, 12750 of this
title.
|