--- kind: "section" citation: "12 U.S.C. § 4106" title: "12" title_heading: "Banks and Banking" number: "4106" heading: "Information from Secretary" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/12/4106" units: - "Chapter 42 — Low-Income Housing Preservation and Resident Homeownership" - "Subchapter I — Prepayment of Mortgages Insured under National Housing Act" --- # §4106. Information from Secretary - (a) **Information to owners terminating affordability restrictions—** The [Secretary](/usc/12/4119.md?p=10) shall provide each [owner](/usc/12/4119.md?p=7) who submits a notice of intent to terminate the [low-income affordability restrictions](/usc/12/4119.md?p=3) on the housing under [section 4108 of this title](/usc/12/4108.md) with information under this section not later than 6 months after receipt of the notice of intent. The information shall include a description of the criteria for such termination specified under [section 4108 of this title](/usc/12/4108.md) and the documentation required to satisfy such criteria. - (b) **Information to owners extending low-income affordability restrictions—** The [Secretary](/usc/12/4119.md?p=10) shall provide each [owner](/usc/12/4119.md?p=7) who submits notice of intent to extend the [low-income affordability restrictions](/usc/12/4119.md?p=3) on the housing under [section 4109 of this title](/usc/12/4109.md) or transfer the housing under [section 4110 of this title](/usc/12/4110.md) to a [qualified purchaser](/usc/12/4121.md?p=b) with information under this subsection not later than 9 months after receipt of the notice of intent. The information shall include any information necessary for the [owner](/usc/12/4119.md?p=7) to prepare a plan of action under [section 4107 of this title](/usc/12/4107.md), including the following: - (1) **Preservation values—** A statement of the [preservation value](/usc/12/4119.md?p=9) of the housing determined under paragraphs (1) and (2) of [section 4103(b) of this title](/usc/12/4103.md?p=b). - (2) **Preservation rent—** A statement of the preservation rent for the housing as calculated under [section 4104(b) of this title](/usc/12/4104.md?p=b). - (3) **Federal cost limits—** A statement of the applicable [Federal cost limits](/usc/12/4119.md?p=2) for the market area (or relevant local market area, if applicable) in which the housing is located, which shall explain the limitations under sections [4109](/usc/12/4109.md) and [4110](/usc/12/4110.md) of this title of the amount of assistance that the [Secretary](/usc/12/4119.md?p=10) may provide based on such cost limits. - (4) **Federal cost limit analysis—** A statement of whether the aggregate preservation rents exceed the [Federal cost limits](/usc/12/4119.md?p=2) and a direction to the [owner](/usc/12/4119.md?p=7) to file a plan of action under [section 4107 of this title](/usc/12/4107.md) or submit a second notice of intent under [subsection (d)](#d), whichever is applicable. - (c) **Availability to tenants—** The [Secretary](/usc/12/4119.md?p=10) shall make any information provided to the [owner](/usc/12/4119.md?p=7) under subsections [(a)](#a) and [(b)](#b) available to the tenants of the housing, together with other information relating to the rights and opportunities of the tenants. - (d) **Second notice of intent—** - (1) **Filing—** Each [owner](/usc/12/4119.md?p=7) of [eligible low-income housing](/usc/12/4119.md?p=1) that elects to transfer housing under [section 4110 of this title](/usc/12/4110.md) shall submit to the [Secretary](/usc/12/4119.md?p=10), in such form and manner as the [Secretary](/usc/12/4119.md?p=10) prescribes, notice of intent to sell the housing under [section 4110 of this title](/usc/12/4110.md). To be eligible to prepay the [mortgage](/usc/12/1707.md?p=a) or voluntarily terminate the insurance contract on the [mortgage](/usc/12/1707.md?p=a), an [owner](/usc/12/4119.md?p=7) of housing for which the preservation rents exceed the [Federal cost limits](/usc/12/4119.md?p=2) under [section 4105(b) of this title](/usc/12/4105.md?p=b) shall submit to the [Secretary](/usc/12/4119.md?p=10) notice of such intent. The provisions of sections [4111](/usc/12/4111.md) and [4113](/usc/12/4113.md) of this title shall apply to any [owner](/usc/12/4119.md?p=7) submitting a notice under the preceding sentence. - (2) **Timing—** A second notice of intent under this subsection shall be submitted not later than 30 days after receipt of information from the [Secretary](/usc/12/4119.md?p=10) under this section. If an [owner](/usc/12/4119.md?p=7) fails to submit such notice within such period, the notice of intent submitted by the [owner](/usc/12/4119.md?p=7) under [section 4102 of this title](/usc/12/4102.md) shall be void and ineffective for purposes of this subchapter. - (3) **Filing with the State or local government, tenants, and mortgagee—** Upon filing a second notice of intent under this subsection, the [owner](/usc/12/4119.md?p=7) shall simultaneously file such notice of the intent with the chief executive officer of the appropriate [State](/usc/12/1707.md?p=d) or local government for the jurisdiction within which the housing is located and with the [mortgagee](/usc/12/1707.md?p=b), and shall inform the tenants of the housing of the filing. ## Source credit (Pub. L. 100–242, title II, § 216, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4253; amended Pub. L. 102–550, title III, §§ 303, 317(a)(2), Oct. 28, 1992, 106 Stat. 3763, 3772.) ## Notes ### Editorial Notes ### Amendments 1992—Subsec. (b)(4). Pub. L. 102–550, § 317(a)(2), substituted “exceed” for “exceeds”. Subsec. (d)(3). Pub. L. 102–550, § 303, added par. (3).