Limitation on prepayment of mortgages on multifamily rental housing

12 U.S.C. § 1715z–15
in effect
Sign in to generate a plain English summaryAsk Belisarius Agent
(a) Acceptance of offer to prepay; qualificationsDuring any period in which an owner of a multifamily rental housing project is required to obtain the approval of the Secretary for prepayment of the mortgage, the Secretary shall not accept an offer to prepay the mortgage on such project or permit a termination of an insurance contract pursuant to section 1715t of this title unless—(1) the Secretary has determined that such project is no longer meeting a need for rental housing for lower income families in the area; (2) the Secretary (A) has determined that the tenants have been notified of the owner’s request for approval of a prepayment; (B) has provided the tenants with an opportunity to comment on the owner’s request; and (C) has taken such comments into consideration; and (3) the Secretary has ensured that there is a plan for providing relocation assistance for adequate, comparable housing for any lower income tenant who will be displaced as a result of the prepayment and withdrawal of the project from the program. (b) Approval prior to foreclosureA mortgagee may foreclose the mortgage on, or acquire by deed in lieu of foreclosure, any eligible low-income housing project (as such term is defined in section 4119 of this title) only if the mortgagee also conveys title to the project to the Secretary in connection with a claim for insurance benefits. (c) “Lower income families” definedFor purposes of this section, the term “lower income families” has the meaning given such term in section 1437a(b)(2) of title 42.

Starting a business? Corpus forms LLCs in all 50 states and DC.