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U.S. Code as of:
01/19/04
Section 1831q. FDIC affordable housing program
(a) Purpose
The purpose of this section is to provide homeownership and
rental housing opportunities for very low-income, low-income, and
moderate-income families.
(b) Funding and limitations of program
(1) Duration of program
The provisions of this section shall be effective, subject to
the provisions of paragraph (2), only during the 3-year period
beginning upon the commencement of the first fiscal year for
which amounts are provided pursuant to paragraph (2)(A).
(2) Annual fiscal limitations
(A) In general
In each fiscal year during the 3-year period referred to in
paragraph (1), the provisions of this section shall apply only
-
(i) to such extent or in such amounts as are provided in
appropriations Acts for any losses resulting during the
fiscal year from the sale of properties under this section,
except that such amounts for losses may not exceed
$30,000,000 in any fiscal year; and
(ii) to the extent that amounts are provided in
appropriations Acts pursuant to subparagraph (C) for any
other costs relating to the program under this section.
(B) Definition of losses
For purposes of this paragraph, the amount of losses
resulting from the sale of properties under this section during
any fiscal year shall be the amount equal to the sum of any
affordable housing discounts reasonably anticipated to accrue
during the fiscal year.
(C) Authorization of appropriations
There are authorized to be appropriated, for each fiscal year
during the 3-year period referred to in paragraph (1), such
sums as may be necessary for any costs of the program under
this section other than losses resulting from the sale of
properties under this section.
(D) Other definitions
For purposes of this paragraph:
(i) Affordable housing discount
The term "affordable housing discount" means, with respect
to any eligible residential or eligible condominium property
transferred under this section by the Corporation, the
difference (if any) between the realizable disposition value
of the property and the actual sale price of the property
under this section.
(ii) Realizable disposition value
The term "realizable disposition value" means the estimated
sale price that the Corporation reasonably would be able to
obtain upon the sale of a property by the Corporation under
the provisions of this chapter, not including this section,
and any other applicable laws. Not later than the expiration
of the 120-day period beginning upon the commencement of the
first fiscal year for which amounts are provided pursuant to
paragraph (2)(A), the Corporation shall establish, and
publish in the Federal Register, procedures for determining
the realizable disposition value of a property transferred
under this section, which shall take into consideration such
factors as the Corporation considers appropriate, including
the actual sale prices of properties disposed of by the
Resolution Trust Corporation under section 1441a(c) of this
title, the prices of other properties sold under similar
programs, and the appraised value of the property transferred
under this section. Until such procedures are established,
the Corporation may consider the realizable disposition value
of any eligible residential or condominium property to be
equal to the appraised value of the property.
(3) Existing contracts
The provisions of this section shall not apply to any eligible
residential property or any eligible condominium property that is
subject to an agreement entered into by the Corporation before
the commencement of the first fiscal year for which amounts are
provided pursuant to paragraph (2)(A) that provides for any other
disposition of the property.
(c) Rules governing disposition of eligible single family
properties
(1) Notice to clearinghouses
Within a reasonable period of time after acquiring title to an
eligible single family property, the Corporation shall provide
written notice to clearinghouses. Such notice shall contain basic
information about the property, including but not limited to
location, condition, and information relating to the estimated
fair market value of the property. Each clearinghouse shall make
such information available, upon request, to other public
agencies, other nonprofit organizations, and qualifying
households. The Corporation shall allow public agencies,
nonprofit organizations, and qualifying households reasonable
access to eligible single family property for purposes of
inspection.
(2) Offers to sell to nonprofit organizations, public agencies,
and qualifying households
During the 180-day period beginning on the date on which the
Corporation makes an eligible single family property available
for sale, the Corporation shall offer to sell the property to -
(A) qualifying households (including qualifying households
with members who are veterans); or
(B) public agencies or nonprofit organizations that agree to
(i) make the property available for occupancy by and maintain
it as affordable for low-income families (including low-income
families with members who are veterans) for the remaining
useful life of such property, or (ii) make the property
available for purchase by any such family who, except as
provided in paragraph (4), agrees to occupy the property as a
principal residence for at least 12 months and certifies in
writing that the family intends to occupy the property for at
least 12 months.
The restrictions described in clause (i) of subparagraph (B)
shall be contained in the deed or other recorded instrument. If,
upon the expiration of such 180-day period, no qualifying
household, public agency, or nonprofit organization has made a
bona fide offer to purchase the property, the Corporation may
offer to sell the property to any purchaser. The Corporation
shall actively market eligible single family properties for sale
to low-income families and to low-income families with members
who are veterans.
(3) Recapture of profits from resale
Except as provided in paragraph (4), if any eligible single
family property sold (A) to a qualifying household, or (B) to a
low-income family pursuant to paragraph (2)(B)(ii), subsection
(j)(3)(A) of this section, or subsection (k)(2) of this section,
is resold by the qualifying household or low-income family during
the 1-year period beginning upon initial acquisition by the
household or low-income family, the Corporation shall recapture
75 percent of the amount of any proceeds from the resale that
exceed the sum of (i) the original sale price for the acquisition
of the property by the qualifying household or low-income family,
(ii) the costs of any improvements to the property made after the
date of the acquisition, and (iii) any closing costs in
connection with the acquisition.
(4) Exceptions to recapture requirement
(A) Relocation
The Corporation may in its discretion waive the applicability
(i) to any qualifying household of the requirement under
paragraph (3) and the requirements relating to residency of a
qualifying household under subparagraphs (B) and (C) of
subsection (p)(12) of this section, and (ii) to any low-income
family of the requirement under paragraph (3) and the residency
requirements under paragraph (2)(B)(ii). The Corporation may
grant any such waiver only for good cause shown, including any
necessary relocation of the qualifying household or low-income
family.
(B) Other recapture provisions
The requirement under paragraph (3) shall not apply to any
eligible single family property for which, upon resale by the
qualifying household or low-income family during the 1-year
period beginning upon initial acquisition by the household or
family, a portion of the sale proceeds or any subsidy provided
in connection with the acquisition of the property by the
household or family is required to be recaptured or repaid
under any other Federal, State, or local law (including section
143(m) of title 26) or regulation or under any sale agreement.
(5) Exception to avoid displacement of existing residents
Notwithstanding the first sentence of paragraph (2), during the
180-day period following the date on which the Corporation makes
an eligible single family property available for sale, the
Corporation may sell the property to the household residing in
the property, but only if (A) such household was residing in the
property at the time notice regarding the property was provided
to clearinghouses under paragraph (1), (B) such sale is necessary
to avoid the displacement of, and unnecessary hardship to, the
resident household, (C) the resident household intends to occupy
the property as a principal residence for at least 12 months, and
(D) the resident household certifies in writing that the
household intends to occupy the property for at least 12 months.
(d) Rules governing disposition of eligible multifamily housing
properties
(1) Notice to clearinghouses
Within a reasonable period of time after acquiring title to an
eligible multifamily housing property, the Corporation shall
provide written notice to clearinghouses. Such notice shall
contain basic information about the property, including but not
limited to location, number of units (identified by number of
bedrooms), and information relating to the estimated fair market
value of the property. Each clearinghouse shall make such
information available, upon request, to qualifying multifamily
purchasers. The Corporation shall allow qualifying multifamily
purchasers reasonable access to eligible multifamily housing
properties for purposes of inspection.
(2) Expression of serious interest
Qualifying multifamily purchasers may give written notice of
serious interest in a property during a period ending 90 days
after the time the Corporation provides notice under paragraph
(1). The notice of serious interest shall be in such form and
include such information as the Corporation may prescribe.
(3) Notice of readiness for sale
Upon the expiration of the period referred to in paragraph (2)
for a property, the Corporation shall provide written notice to
any qualifying multifamily purchaser that has expressed serious
interest in the property. Such notice shall specify the minimum
terms and conditions for sale of the property.
(4) Offers by qualifying multifamily purchasers
A qualifying multifamily purchaser receiving notice in
accordance with paragraph (3) shall have 45 days (from the date
notice is received) to make a bona fide offer to purchase the
property. The Corporation shall accept an offer that complies
with the terms and conditions established by the Corporation. If,
before the expiration of such 45-day period, any offer to
purchase a property initially accepted by the Corporation is
subsequently rejected or fails (for any reason), the Corporation
shall accept another offer to purchase the property made during
such period that complies with the terms and conditions
established by the Corporation (if such another offer is made).
The preceding sentence may not be construed to require a
qualifying multifamily purchaser whose offer is accepted during
the 45-day period to purchase the property before the expiration
of the period.
(5) Extension of restricted offer periods
The Corporation may provide notice to clearinghouses regarding,
and offer for sale under the provisions of paragraphs (1) through
(4), any eligible multifamily housing property -
(A) in which no qualifying multifamily purchaser has
expressed serious interest during the period referred to in
paragraph (2), or
(B) for which no qualifying multifamily purchaser has made a
bona fide offer before the expiration of the period referred to
in paragraph (4),
except that the Corporation may, in the discretion of the
Corporation, alter the duration of the periods referred to in
paragraphs (2) and (4) in offering any property for sale under
this paragraph.
(6) Sale of multifamily properties to other purchasers
(A) Timing
If, upon the expiration of the period referred to in
paragraph (2), no qualifying multifamily purchaser has
expressed serious interest in a property, the Corporation may
offer to sell the property, individually or in combination with
other properties, to any purchaser.
(B) Limitation on combination sales
The Corporation may not sell in combination with other
properties any property for which a qualifying multifamily
purchaser has expressed serious interest in purchasing
individually.
(C) Expiration of offer period
If, upon the expiration of the period referred to in
paragraph (4), no qualifying multifamily purchaser has made an
offer to purchase a property, the Corporation may offer to sell
the property, individually or in combination with other
properties, to any purchaser.
(7) Low-income occupancy requirements
(A) Single property purchases
With respect to any purchase of a single eligible multifamily
housing property by a qualifying multifamily purchaser under
paragraph (4) or (5) -
(i) not less than 35 percent of all dwelling units
purchased shall be made available for occupancy by and
maintained as affordable for low-income and very low-income
families during the remaining useful life of the property in
which the units are located; provided that
(ii) not less than 20 percent of all dwelling units
purchased shall be made available for occupancy by and
maintained as affordable for very low-income families during
the remaining useful life of the property in which the units
are located.
(B) Aggregation requirements for multiproperty purchases
With respect to any purchase under paragraph (4) or (5) by a
qualifying multifamily purchaser involving more than one
eligible multifamily housing property as a part of the same
negotiation, with respect to which the purchaser intends to
aggregate the low-income occupancy required under this
paragraph over the total number of units so purchased -
(i) not less than 40 percent of the aggregate number of all
dwelling units purchased shall be made available for
occupancy by and maintained as affordable for low-income and
very low-income families during the remaining useful life of
the building or structure in which the units are located;
provided that
(ii) not less than 20 percent of the aggregate number of
all dwelling units purchased shall be made available for
occupancy by and maintained as affordable for very low-income
families during the remaining useful life of the building or
structure in which the units are located; and further
provided that
(iii) not less than 10 percent of the dwelling units in
each separate property purchased shall be made available for
occupancy by and maintained as affordable for low-income
families during the remaining useful life of the property in
which the units are located.
The requirements of this paragraph shall be contained in the deed
or other recorded instrument.
(8) Exemptions
(A) Continued occupancy of current residents
No purchaser of an eligible multifamily property may
terminate the occupancy of any person residing in the property
on the date of purchase for purposes of meeting the low-income
occupancy requirement applicable to the property under
paragraph (7). The purchaser shall be considered to be in
compliance with this subsection if each newly vacant dwelling
unit is reserved for low-income occupancy until the low-income
occupancy requirement is met.
(B) Financial infeasibility
The Secretary or the State housing finance agency for the
State in which an eligible multifamily housing property is
located may temporarily reduce the low-income occupancy
requirements under paragraph (7) applicable to the property, if
the Secretary or such agency determines that an owner's
compliance with such requirements is no longer financially
feasible. The owner of the property shall make a good-faith
effort to return low-income occupancy to the level required
under paragraph (7), and the Secretary or the State housing
finance agency, as appropriate, shall review the reduction
annually to determine whether financial infeasibility continues
to exist.
(e) Rent limitations
(1) In general
With respect to properties under paragraph (2), rents charged
to tenants for units made available for occupancy by very
low-income families shall not exceed 30 percent of the adjusted
income of a family whose income equals 50 percent of the median
income for the area, as determined by the Secretary, with
adjustment for family size. Rents charged to tenants for units
made available for occupancy by low-income families other than
very low-income families shall 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 family size.
(2) Applicability
The rent limitations under this subsection shall apply to any
eligible single family property sold pursuant to subsection
(c)(2)(B)(i) of this section and to any eligible multifamily
housing property sold pursuant to subsection (d) of this section.
(f) Preferences for sales
(1) In general
In selling any eligible multifamily housing property or
combinations of eligible residential properties, the Corporation
shall give preference, among substantially similar offers, to the
offer that would reserve the highest percentage of dwelling units
for occupancy or purchase by very low-income and low-income
families and would retain such affordability for the longest
term.
(2) Multiproperty purchases
The Corporation shall give preference, among substantially
similar offers made under paragraph (4) or (5) of subsection (d)
of this section to purchase more than one eligible multifamily
housing property as a part of the same negotiation, to offers
made by purchasers who agree to maintain low-income occupancy in
each separate property purchased in compliance with the levels
required for properties under subsection (d)(7)(A) of this
section.
(3) Definition of substantially similar offers
For purposes of this subsection, a given offer to purchase
eligible multifamily housing property or combinations of such
properties shall be considered to be substantially similar to
another offer if the purchase price under such given offer is not
less than 85 percent of the purchase price under the other offer.
(g) Financing sales
(1) Assistance by Corporation
(A) Sale price
The Corporation shall establish a market value for each
eligible multifamily housing property. The Corporation shall
sell eligible multifamily housing property at the net
realizable market value, except that the Corporation may agree
to sell eligible multifamily housing property at a price below
the net realizable market value to the extent necessary to
facilitate an expedited sale of such property and enable a
public agency or nonprofit organization to comply with the
low-income occupancy requirements applicable to such property
under subsection (d)(7) of this section. The Corporation may
sell eligible single family property or eligible condominium
property to qualifying households, nonprofit organizations, and
public agencies without regard to any minimum sale price.
(B) Purchase loan
The Corporation may provide a loan at market interest rates
to any purchaser of eligible residential property for all or a
portion of the purchase price, which loan shall be secured by a
first or second mortgage on the property. The Corporation may
provide the loan at below market interest rates to the extent
necessary to facilitate an expedited sale of eligible
residential property and permit (i) a low-income family to
purchase an eligible single family property under subsection
(c) of this section, or (ii) a public agency or nonprofit
organization to comply with the low-income occupancy
requirements applicable to the purchase of an eligible
residential property under subsection (c) or (d) of this
section. The Corporation shall provide loans under this
subparagraph in a form permitting sale or transfer of the loan
to a subsequent holder. In providing financing for combinations
of eligible multifamily housing properties under this section,
the Corporation may hold a participating share, including a
subordinate participation. The Corporation shall periodically
provide, to a wide range of minority- and women-owned
businesses engaged in providing affordable housing and to
nonprofit organizations, more than 50 percent of the control of
which is held by 1 or more minority individuals, that are
engaged in providing affordable housing, information that is
sufficient to inform such businesses and organizations of the
availability and terms of financing under this subparagraph;
such information may be provided directly, by notices published
in periodicals and other publications that regularly provide
information to such businesses or organizations, and through
persons and organizations that regularly provide information or
services to such businesses or organizations. For purposes of
this subparagraph, the terms "women-owned business" and
"minority-owned business" have the meanings given such terms in
section 1441a(r) of this title, and the term "minority" has the
meaning given such term in section 1204(c)(3) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989.
(2) Assistance by HUD
The Secretary shall take such action as may be necessary to
expedite the processing of applications for assistance under
section 202 of the Housing Act of 1959 [12 U.S.C. 1701q], the
United States Housing Act of 1937 [42 U.S.C. 1437 et seq.], title
IV of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11361
et seq.], and the National Housing Act [12 U.S.C. 1701 et seq.],
to enable any organization or individual to purchase eligible
residential property.
(3) Assistance by FMHA
The Secretary of Agriculture shall take such action as may be
necessary to expedite the processing of applications for
assistance under title V of the Housing Act of 1949 [42 U.S.C.
1471 et seq.] to enable any organization or individual to
purchase eligible residential property.
(4) Exception to disposition rules
Notwithstanding the requirements under paragraphs (1), (2),
(3), (4), (6), and (8) of subsection (d) of this section, the
Corporation may provide for the disposition of eligible
multifamily housing properties as necessary to facilitate
purchase of such properties for use in connection with section
202 of the Housing Act of 1959 [12 U.S.C. 1701q].
(5) Bulk acquisitions under Home Investment Partnerships Act
(A) Purchase price
In providing for bulk acquisition of eligible single family
properties by participating jurisdictions for inclusion in
affordable housing activities under title II of the
Cranston-Gonzalez National Affordable Housing Act [42 U.S.C.
12721 et seq.], the Corporation shall agree to an amount to be
paid for acquisition of such properties. The acquisition price
shall include discounts for bulk purchase and for holding of
the property such that the acquisition price for each property
shall not exceed the fair market value of the property, as
valued individually.
(B) Exemptions
To the extent necessary to facilitate sale of properties
under this paragraph, the requirements of subsections (c) and
(f) of this section and of paragraph (1) of this subsection
shall not apply to such transactions and properties involved in
such transactions.
(C) Inventories
To facilitate acquisitions by such participating
jurisdictions, the Corporation shall provide the participating
jurisdictions with inventories of eligible single family
properties not less than 4 times each year.
(h) Coordination with other programs
(1) Use of secondary market agencies
In the disposition of eligible residential properties, the
Corporation (in consultation with the Secretary) shall explore
opportunities to work with secondary market entities to provide
housing for low- and moderate-income families.
(2) Credit enhancement
(A) In general
With respect to such properties, the Secretary may,
consistent with statutory authorities, work through the Federal
Housing Administration, the Government National Mortgage
Association, the Federal National Mortgage Association, the
Federal Home Loan Mortgage Corporation, and other secondary
market entities to develop risk-sharing structures, mortgage
insurance, and other credit enhancements to assist in the
provision of property ownership, rental, and cooperative
housing opportunities for low- and moderate-income families.
(B) Certain tax-exempt bonds
The Corporation may provide credit enhancements with respect
to tax-exempt bonds issued on behalf of nonprofit organizations
pursuant to section 103, and subpart A of part IV of subchapter
A of chapter 1, of title 26, with respect to the disposition of
eligible residential properties for the purposes described in
subparagraph (A).
(3) National Affordable Housing Act
The Corporation shall coordinate the disposition of eligible
residential property under this section with appropriate programs
and provisions of, and amendments made by, the Cranston-Gonzalez
National Affordable Housing Act, including titles II [42 U.S.C.
12721 et seq.] and IV of such Act.
(i) Exemption for certain transactions with insured depository
institutions
The provisions of this section shall not apply with respect to
any eligible residential property after the date the Corporation
enters into a contract to sell such property to an insured
depository institution (as defined in section 1813 of this title),
including any sale in connection with a transfer of all or
substantially all of the assets of a closed insured depository
institution (including such property) to another insured depository
institution.
(j) Transfer of certain eligible residential properties to State
housing agencies for disposition
Notwithstanding subsections (c), (d), (f), and (g) of this
section, the Corporation may transfer eligible residential
properties to the State housing finance agency or any other State
housing agency for the State in which the property is located, or
to any local housing agency in whose jurisdiction the property is
located. Transfers of eligible residential properties under this
subsection may be conducted by direct sale, consignment sale, or
any other method the Corporation considers appropriate and shall be
subject to the following requirements:
(1) Individual or bulk transfer
The Corporation may transfer such properties individually or in
bulk, as agreed to by the Corporation and the State housing
finance agency or State or local housing agency.
(2) Acquisition price
The acquisition price paid by the State housing finance agency
or State or local housing agency to the Corporation for
properties transferred under this subsection shall be an amount
agreed to by the Corporation and the transferee agency.
(3) Low-income use
Any State housing finance agency or State or local housing
agency acquiring properties under this subsection shall offer to
sell or transfer the properties only as follows:
(A) Eligible single family properties
For eligible single family properties -
(i) to purchasers described under subparagraphs (A) and (B)
of subsection (c)(2) of this section;
(ii) if the purchaser is a purchaser described under
subsection (c)(2)(B)(i) of this section, subject to the rent
limitations under subsection (e)(1) of this section;
(iii) subject to the requirement in the second sentence of
subsection (c)(2) of this section; and
(iv) subject to recapture by the Corporation of excess
proceeds from resale of the properties under paragraphs (3)
and (4) of subsection (c) of this section.
(B) Eligible multifamily housing properties
For eligible multifamily housing properties -
(i) to qualifying multifamily purchasers;
(ii) subject to the low-income occupancy requirements under
subsection (d)(7) of this section;
(iii) subject to the provisions of subsection (d)(8) of
this section;
(iv) subject to a preference, among financially acceptable
offers, to the offer that would reserve the highest
percentage of dwelling units for occupancy or purchase by
very low- and low-income families and would retain such
affordability for the longest term; and
(v) subject to the rent limitations under subsection (e)(1)
of this section.
(4) Affordability
The State housing finance agency or State or local housing
agency shall endeavor to make the properties transferred under
this subsection more affordable to low-income families based upon
the extent to which the acquisition price of a property under
paragraph (2) is less than the market value of the property.
(k) Exception for sales to nonprofit organizations and public
agencies
(1) Suspension of offer periods
With respect to any eligible residential property, the
Corporation may (in the discretion of the Corporation) suspend
any of the requirements of paragraphs (1) and (2) of subsection
(c) of this section and paragraphs (1) through (4) of subsection
(d) of this section, as applicable, but only to the extent that
for the duration of the suspension the Corporation negotiates the
sale of the property to a nonprofit organization or public
agency. If the property is not sold pursuant to such
negotiations, the requirements of any provisions suspended shall
apply upon the termination of the suspension. Any time period
referred to in such subsections shall toll for the duration of
any suspension under this paragraph.
(2) Use restrictions
(A) Eligible single family property
Any eligible single family property sold under this
subsection shall be (i) made available for occupancy by and
maintained as affordable for low-income families for the
remaining useful life of the property, or made available for
purchase by such families, (ii) subject to the rent limitations
under subsection (e)(1) of this section, (iii) subject to the
requirements relating to residency of a qualifying household
under subsection (p)(12) of this section and to residency of a
low-income family under subsection (c)(2)(B) of this section,
and (iv) subject to recapture by the Corporation of excess
proceeds from resale of the property under paragraphs (3) and
(4) of subsection (c) of this section.
(B) Eligible multifamily housing property
Any eligible multifamily housing property sold under this
subsection shall comply with the low-income occupancy
requirements under subsection (d)(7) of this section and shall
be subject to the rent limitations under subsection (e)(1) of
this section.
(l) Rules governing disposition of eligible condominium property
(1) Notice to clearinghouses
Within a reasonable period of time after acquiring title to an
eligible condominium property, the Corporation shall provide
written notice to clearinghouses. Such notice shall contain basic
information about the property. Each clearinghouse shall make
such information available, upon request, to purchasers described
in subparagraphs (A) through (D) of paragraph (2). The
Corporation shall allow such purchasers reasonable access to an
eligible condominium property for purposes of inspection.
(2) Offers to sell
For the 180-day period following the date on which the
Corporation makes an eligible condominium property available for
sale, the Corporation may offer to sell the property, at the
discretion of the Corporation, to 1 or more of the following
purchasers:
(A) Qualifying households.
(B) Nonprofit organizations.
(C) Public agencies.
(D) For-profit entities.
(3) Low-income occupancy requirements
(A) In general
Except as provided in subparagraph (B), any nonprofit
organization, public agency, or for-profit entity that
purchases an eligible condominium property shall (i) make the
property available for occupancy by and maintain it as
affordable for low-income families for the remaining useful
life of the property, or (ii) make the property available for
purchase by any such family who, except as provided in
paragraph (5), agrees to occupy the property as a principal
residence for at least 12 months and certifies in writing that
the family intends to occupy the property for at least 12
months. The restriction described in clause (i) of the
preceding sentence shall be contained in the deed or other
recorded instrument.
(B) Multiple-unit purchases
If any nonprofit organization, public agency, or for-profit
entity purchases more than 1 eligible condominium property as a
part of the same negotiation or purchase, the Corporation may
(in the discretion of the Corporation) waive the requirement
under subparagraph (A) and provide instead that not less than
35 percent of all eligible condominium properties purchased
shall be (i) made available for occupancy by and maintained as
affordable for low-income families for the remaining useful
life of the property, or (ii) made available for purchase by
any such family who, except as provided in paragraph (5),
agrees to occupy the property as a principal residence for at
least 12 months and certifies in writing that the family
intends to occupy the property for at least 12 months. The
restriction described in clause (i) of the preceding sentence
shall be contained in the deed or other recorded instrument.
(C) Sale to other purchasers
If, upon the expiration of the 180-day period referred to in
paragraph (2), no purchaser described in subparagraphs (A)
through (D) of paragraph (2) has made a bona fide offer to
purchase the property, the Corporation may offer to sell the
property to any other purchaser.
(4) Recapture of profits from resale
Except as provided in paragraph (5), if any eligible
condominium property sold (A) to a qualifying household, or (B)
to a low-income family pursuant to paragraph (3)(A)(ii) or
(3)(B)(ii), is resold by the qualifying household or low-income
family during the 1-year period beginning upon initial
acquisition by the household or family, the Corporation shall
recapture 75 percent of the amount of any proceeds from the
resale that exceed the sum of (i) the original sale price for the
acquisition of the property by the qualifying household or
low-income family, (ii) the costs of any improvements to the
property made after the date of the acquisition, and (iii) any
closing costs in connection with the acquisition.
(5) Exception to recapture requirement
The Corporation (or its successor) may in its discretion waive
the applicability to any qualifying household or low-income
family of the requirement under paragraph (4) and the
requirements relating to residency of a qualifying household or
low-income family (under subsection (p)(12) of this section and
paragraph (3) of this subsection, respectively). The Corporation
may grant any such a waiver only for good cause shown, including
any necessary relocation of the qualifying household or
low-income family.
(6) Limitations on multiple unit purchases
The Corporation may not sell or offer to sell as part of the
same negotiation or purchase any eligible condominium properties
that are not located in the same condominium project (as such
term is defined in section 3603 of title 15). The preceding
sentence may not be construed to require all eligible condominium
properties offered or sold as part of the same negotiation or
purchase to be located in the same structure.
(7) Rent limitations
Rents charged to tenants of eligible condominium properties
made available for occupancy by very low-income families shall
not exceed 30 percent of the adjusted income of a family whose
income equals 50 percent of the median income for the area, as
determined by the Secretary, with adjustment for family size.
Rents charged to tenants of eligible condominium properties made
available for occupancy by low-income families other than very
low-income families shall 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 family size.
(m) Liability provisions
(1) In general
The provisions of this section, or any failure by the
Corporation to comply with such provisions, may not be used by
any person to attack or defeat any title to property after it is
conveyed by the Corporation.
(2) Low-income occupancy
The low-income occupancy requirements under subsections (c),
(d), (j)(3), (k)(2), and (l)(3) of this section shall be
judicially enforceable against purchasers of property under this
section and their successors in interest by affected very low-
and low-income families, State housing finance agencies, and any
agency, corporation, or authority of the United States. The
parties specified in the preceding sentence shall be entitled to
reasonable attorney fees upon prevailing in any such judicial
action.
(3) Clearinghouses
A clearinghouse shall not be subject to suit for its failure to
comply with the requirements of this section.
(4) Corporation
The Corporation shall not be liable to any depositor, creditor,
or shareholder of any insured depository institution for which
the Corporation has been appointed receiver or conservator, or of
any subsidiary corporation of a depository institution under
receivership or conservatorship, or any claimant against such
institution or subsidiary, because the disposition of assets of
the institution or the subsidiary under this section affects the
amount of return from the assets.
(n) Unified affordable housing programs
(1) In general
Not later than 4 months after December 17, 1993, the
Corporation shall enter into an agreement, as described in
paragraph (3), with the Resolution Trust Corporation that sets
out a plan for the orderly unification of the Corporation's
activities, authorities, and responsibilities under this section
with the authorities, activities, and responsibilities of the
Resolution Trust Corporation pursuant to section 1441a(c) of this
title in a manner that best achieves an effective and
comprehensive affordable housing program management structure.
The agreement shall be entered into after consultation with the
Affordable Housing Advisory Board under section 14(b) of the
Resolution Trust Corporation Completion Act.
(2) Authority and implementation
The Corporation shall have the authority to carry out the
provisions of the agreement entered into pursuant to paragraph
(1) and shall implement such agreement as soon as practicable but
in no event later than 8 months after December 17, 1993.
(3) Terms of agreement
The agreement required under paragraph (1) shall provide a plan
for -
(A) a program unifying all activities and responsibilities of
the Corporation and the Resolution Trust Corporation, and the
design of the unified program shall take into consideration the
substantial experience of the Resolution Trust Corporation
regarding -
(i) seller financing;
(ii) technical assistance;
(iii) marketing skills and relationships with public and
nonprofit entities; and
(iv) staff resources;
(B) the elimination of duplicative and unnecessary
administrative costs and resources;
(C) the management structure of the unified program;
(D) a timetable for the unification; and
(E) a methodology to determine the extent to which the
provisions of this section shall be effective, in accordance
with the limitations under subsection (b)(2) of this section.
(4) Transfer to FDIC
Beginning not later than October 1, 1995, the Corporation shall
carry out any remaining authority and responsibilities of the
Resolution Trust Corporation, as set forth in section 1441a(c) of
this title.
(o) Report
To the extent applicable, in the annual report submitted by the
Secretary to the Congress under section 3536 of title 42, the
Secretary shall include a detailed description of any activities
under this section, including recommendations for any additional
authority the Secretary considers necessary to implement the
provisions of this section.
(p) Definitions
For purposes of this section:
(1) Adjusted income and income
The terms "adjusted income" and "income" shall have the meaning
given such terms in section 3(b) of the United States Housing Act
of 1937 [42 U.S.C. 1437a(b)].
(2) Clearinghouse
The term "clearinghouse" means -
(A) the State housing finance agency for the State in which
an eligible residential property or eligible condominium
property is located;
(B) the Office of Community Investment (or other comparable
division) within the Federal Housing Finance Board; and
(C) any national nonprofit organizations (including any
nonprofit entity established by the corporation established
under title IX of the Housing and Community Development Act of
1968 [42 U.S.C. 3931 et seq.]) that the Corporation determines
has the capacity to act as a clearinghouse for information.
(3) Corporation
The term "Corporation" means the Federal Deposit Insurance
Corporation acting in its corporate capacity or its capacity as
receiver.
(4) Eligible condominium property
The term "eligible condominium property" means a condominium
unit, as such term is defined in section 3603 of title 15 -
(A) to which such Corporation acquires title in its corporate
capacity, its capacity as conservator, or its capacity as
receiver (including in its capacity as the sole owner of a
subsidiary corporation of a depository institution under
conservatorship or receivership, which subsidiary has as its
principal business the ownership of real property); and
(B) that has an appraised value that does not exceed the
amount provided in section 203(b)(2)(A) of the National Housing
Act [12 U.S.C. 1709(b)(2)(A)] except that such amount shall not
exceed $101,250 in the case of a 1-family residence, $114,000
in the case of a 2-family residence, $138,000 in the case of a
3-family residence, and $160,000 in the case of a 4-family
residence.
(5) Eligible multifamily housing property
The term "eligible multifamily housing property" means a
property consisting of more than 4 dwelling units -
(A) to which the Corporation acquires title in its corporate
capacity, its capacity as conservator, or its capacity as
receiver (including in its capacity as the sole owner of a
subsidiary corporation of a depository institution under
conservatorship or receivership, which subsidiary has as its
principal business the ownership of real property); and
(B) that has an appraised value that does not exceed the
applicable dollar amount specified in section 221(d)(3)(ii) of
the National Housing Act [12 U.S.C. 1715l(d)(3)(ii)] for
elevator-type structures, as such dollar amount is increased
under such section for geographical areas or on a
project-by-project basis (except that any such increase on a
project-by-project basis shall be made pursuant to a
determination by the Corporation that such increase is
necessary).
(6) Eligible residential property
The term "eligible residential property" includes eligible
single family properties and eligible multifamily housing
properties.
(7) Eligible single family property
The term "eligible single family property" means a 1- to
4-family residence (including a manufactured home) -
(A) to which the Corporation acquires title in its corporate
capacity, its capacity as conservator, or its capacity as
receiver (including in its capacity as the sole owner of a
subsidiary corporation of a depository institution under
conservatorship or receivership, which subsidiary has as its
principal business the ownership of real property); and
(B) that has an appraised value that does not exceed the
amount provided in section 203(b)(2)(A) of the National Housing
Act [12 U.S.C. 1709(b)(2)(A)] except that such amount shall not
exceed $101,250 in the case of a 1-family residence, $114,000
in the case of a 2-family residence, $138,000 in the case of a
3-family residence, and $160,000 in the case of a 4-family
residence.
(8) Low-income families
The term "low-income families" means families and individuals
whose incomes do not exceed 80 percent of the median income of
the area involved, as determined by the Secretary, with
adjustment for family size.
(9) Net realizable market value
The term "net realizable market value" means a price below the
market value that takes into account (A) any reductions in
holding costs resulting from the expedited sale of a property,
including foregone real estate taxes, insurance, maintenance
costs, security costs, and loss of use of funds, and (B) the
avoidance, if applicable, of fees paid to real estate brokers,
auctioneers, or other individuals or organizations involved in
the sale of property owned by the Corporation.
(10) Nonprofit organization
The term "nonprofit organization" means a private organization
(including a limited equity cooperative) -
(A) no part of the earnings of which inures to the benefit of
any member, shareholder, founder, contributor, or individual;
and
(B) that is approved by the Corporation as to financial
responsibility.
(11) Public agency
The term "public agency" means any Federal, State, local, or
other governmental entity, and includes any public housing
agency.
(12) Qualifying household
The term "qualifying household" means a household -
(A) who intends to occupy eligible single family property as
a principal residence;
(B) who agrees to occupy the property as a principal
residence for at least 12 months;
(C) who certifies in writing that the household intends to
occupy the property as a principal residence for at least 12
months; and
(D) whose income does not exceed 115 percent of the median
income for the area, as determined by the Secretary, with
adjustment for family size.
(13) Qualifying multifamily purchaser
The term "qualifying multifamily purchaser" means -
(A) a public agency;
(B) a nonprofit organization; or
(C) a for-profit entity, which makes a commitment (for itself
or any related entity) to comply with the low-income occupancy
requirements under subsection (d)(7) of this section for any
eligible multifamily housing property for which an offer to
purchase is made during or after the periods specified under
subsection (d) of this section.
(14) Secretary
The term "Secretary" means the Secretary of Housing and Urban
Development.
(15) State housing finance agency
The term "State housing finance agency" means the public
agency, authority, corporation, or other instrumentality of a
State that has the authority to provide residential mortgage loan
financing throughout the State.
(16) Very low-income families
The term "very low-income families" means families and
individuals whose incomes do not exceed 50 percent of the median
income of the area involved, as determined by the Secretary, with
adjustment for family size.
(q) Notice to clearinghouses regarding ineligible properties
(1) In general
Within a reasonable period of time after acquiring title to an
ineligible residential property, the Corporation shall, to the
extent practicable, provide written notice to clearinghouses.
(2) Content
For ineligible single family properties, such notice shall
contain the same information about such properties that the
notice required under subsection (c)(1) of this section contains
with respect to eligible single family properties. For ineligible
multifamily housing properties, such notice shall contain the
same information about such properties that the notice required
under subsection (d)(1) of this section contains with respect to
eligible multifamily housing properties. For ineligible
condominium properties, such notice shall contain the same
information about such properties that the notice required under
subsection (l)(1) of this section contains with respect to
eligible condominium properties.
(3) Availability
The clearinghouses shall make such information available, upon
request, to other public agencies, other nonprofit organizations,
qualifying households, qualifying multifamily purchasers, and
other purchasers, as appropriate.
(4) Definitions
For purposes of this subsection, the following definitions
shall apply:
(A) Ineligible condominium property
The term "ineligible condominium property" means any eligible
condominium property to which the provisions of this section do
not apply as a result of the limitations under subsection
(b)(2)(A) of this section.
(B) Ineligible multifamily housing property
The term "ineligible multifamily housing property" means any
eligible multifamily housing property to which the provisions
of this section do not apply as a result of the limitations
under subsection (b)(2)(A) of this section.
(C) Ineligible single family property
The term "ineligible single family property" means any
eligible single family property to which the provisions of this
section do not apply as a result of the limitations under
subsection (b)(2)(A) of this section.
(D) Ineligible residential property
The term "ineligible residential property" includes
ineligible single family properties, ineligible multifamily
housing properties, and ineligible condominium properties.
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