{"identifier":"/us/usc/t12/s4109","title":12,"num":"\u00a7\u202f4109.","heading":"Incentives to extend low-income use","text":"\u00a7\u202f4109.\nIncentives to extend low-income use\n(a)\nAgreements by Secretary\nAfter approving a plan of action from an owner of eligible low-income housing that includes the owner\u2019s plan to extend the low-income affordability restrictions of the housing, the Secretary shall, subject to the availability of appropriations for such purpose, enter into such agreements as are necessary to enable the owner to receive (for each year after the approval of the plan of action) the annual authorized return for the housing determined under\nsection 4104(a) of this title\nsection 4105(a) of this title\n1\n1 So in original. Probably should be \u201csubsection\u201d.\nsection 4104(a) of this title\nsection 4112(a)(2)(E) of this title\nsection 1437f of title 42\n(b)\nPermissible incentives\nSuch agreements may include one or more of the following incentives:\n(1) Increased access to residual receipts accounts.\n(2) Subject to the availability of amounts provided in appropriations Acts\u2014\n(A) an increase in the rents permitted under an existing contract under\nsection 1437f of title 42\n(B) additional assistance under\nsection 1437f of title 42\n(3) An increase in the rents on units occupied by current tenants as permitted under\nsection 4112 of this title\n(4) Financing of capital improvements under section 201 of the Housing and Community Development Amendments of 1978.\n(5) Financing of capital improvements through provision of insurance for a second mortgage under\nsection 1715z\u20136 of this title\n(6) In the case of housing defined in\nsection 4119(1)(A)(iii) of this title\n(7) Access by the owner to a portion of the preservation equity in the housing through provision of insurance for a second mortgage loan insured under section 1715z\u20136(f)\n2\n2 See References in Text note below.\n(8) Other incentives authorized in law.\nWith respect to any housing with a mortgage insured or otherwise assisted pursuant to\nsection 1715z\u20131 of this title\nsection 1715z\u20131 of this title\nsection 1715z\u20131(f) of this title","url":"https://projectusc.org/usc/t12/s4109.html","content":[{"t":"sec","id":"/us/usc/t12/s4109","children":[{"t":"num","text":"\u00a7\u202f4109."},{"t":"heading","text":"Incentives to extend low-income use"},{"t":"subsec","id":"/us/usc/t12/s4109/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Agreements by Secretary"},{"t":"content","children":[{"t":"p","text":"After approving a plan of action from an owner of eligible low-income housing that includes the owner\u2019s plan to extend the low-income affordability restrictions of the housing, the Secretary shall, subject to the availability of appropriations for such purpose, enter into such agreements as are necessary to enable the owner to receive (for each year after the approval of the plan of action) the annual authorized return for the housing determined under ","children":[{"t":"ref","text":"section 4104(a) of this title","href":"/us/usc/t12/s4104/a","tail":", pay debt service on the federally-assisted mortgage covering the housing, pay debt service on any loan for rehabilitation of the housing, and meet project operating expenses and establish adequate reserves. The Secretary shall take into account the Federal cost limits under "},{"t":"ref","text":"section 4105(a) of this title","href":"/us/usc/t12/s4105/a","tail":" for the housing when providing incentives under subsections\u202f"},{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be \u201csubsection\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201csubsection\u201d.","tail":" (b)(2) and (3) of this section. The Secretary shall take such actions as are necessary to ensure that owners receive the annual authorized return for the housing determined under "},{"t":"ref","text":"section 4104(a) of this title","href":"/us/usc/t12/s4104/a","tail":" during the period in which rent increases are phased in as provided in "},{"t":"ref","text":"section 4112(a)(2)(E) of this title","href":"/us/usc/t12/s4112/a/2/E","tail":", including (in order of preference) (1) allowing the owner access to residual receipt accounts (pursuant to subsection (b)(1) of this section), (2) deferring remittance of excess rent payments, and (3) providing an increase in rents permitted under an existing contract under "},{"t":"ref","text":"section 1437f of title 42","href":"/us/usc/t42/s1437f","tail":" (pursuant to subsection (b)(2) of this section)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s4109/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Permissible incentives"},{"t":"chapeau","text":"Such agreements may include one or more of the following incentives:"},{"t":"para","id":"/us/usc/t12/s4109/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" Increased access to residual receipts accounts.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4109/b/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" Subject to the availability of amounts provided in appropriations Acts\u2014"},{"t":"subpara","id":"/us/usc/t12/s4109/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" an increase in the rents permitted under an existing contract under ","children":[{"t":"ref","text":"section 1437f of title 42","href":"/us/usc/t42/s1437f","tail":", or"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s4109/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" additional assistance under ","children":[{"t":"ref","text":"section 1437f of title 42","href":"/us/usc/t42/s1437f","tail":" or an extension of any project-based assistance attached to the housing; and"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4109/b/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" An increase in the rents on units occupied by current tenants as permitted under ","children":[{"t":"ref","text":"section 4112 of this title","href":"/us/usc/t12/s4112","tail":"."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4109/b/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" Financing of capital improvements under section 201 of the Housing and Community Development Amendments of 1978.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4109/b/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" Financing of capital improvements through provision of insurance for a second mortgage under ","children":[{"t":"ref","text":"section 1715z\u20136 of this title","href":"/us/usc/t12/s1715z\u20136","tail":"."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4109/b/6","children":[{"t":"num","text":"(6)"},{"t":"content","text":" In the case of housing defined in ","children":[{"t":"ref","text":"section 4119(1)(A)(iii) of this title","href":"/us/usc/t12/s4119/1/A/iii","tail":", redirection of the Interest Reduction Payment subsidies to a second mortgage."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4109/b/7","children":[{"t":"num","text":"(7)"},{"t":"content","text":" Access by the owner to a portion of the preservation equity in the housing through provision of insurance for a second mortgage loan insured under section 1715z\u20136(f)\u202f","children":[{"t":"ref","text":"2"},{"t":"num","text":"2","tail":"\u202fSee References in Text note below."},{"t":"text","text":"\u202fSee References in Text note below.","tail":" of this title or a non-insured mortgage loan approved by the Secretary and the mortgagee."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s4109/b/8","children":[{"t":"num","text":"(8)"},{"t":"content","text":" Other incentives authorized in law.","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"With respect to any housing with a mortgage insured or otherwise assisted pursuant to ","children":[{"t":"ref","text":"section 1715z\u20131 of this title","href":"/us/usc/t12/s1715z\u20131","tail":", the provisions of subsections (f) and (g) of "},{"t":"ref","text":"section 1715z\u20131 of this title","href":"/us/usc/t12/s1715z\u20131","tail":" notwithstanding, the fair market rental charge for each unit in such housing may be increased in accordance with this subsection, but the owner shall pay to the Secretary all rental charges collected in excess of the basic rental charges, in an amount not greater than the fair market rental charges as such charges would have been established under "},{"t":"ref","text":"section 1715z\u20131(f) of this title","href":"/us/usc/t12/s1715z\u20131/f","tail":" absent the requirements of this paragraph."}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}