---
kind: "section"
citation: "12 U.S.C. § 4113"
title: "12"
title_heading: "Banks and Banking"
number: "4113"
heading: "Assistance for displaced tenants"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4113"
units:
  - "Chapter 42 — Low-Income Housing Preservation and Resident Homeownership"
  - "Subchapter I — Prepayment of Mortgages Insured under National Housing Act"
---

# §4113. Assistance for displaced tenants

- (a) **Section 1437f assistance—** Each low-income family that is displaced as a result of the prepayment of the [mortgage](/usc/12/1707.md?p=a) or voluntary termination of an insurance contract on eligible low income housing shall, subject to the availability or[^1] amounts provided under appropriations Acts, receive tenant-based assistance under [section 1437f of title 42](/usc/42/1437f.md). To the extent sufficient amounts are made available under appropriations Acts, in each fiscal year the [Secretary](/usc/12/4119.md?p=10) shall reserve from amounts made available under [section 4124(a) of this title](/usc/12/4124.md?p=a) or, if necessary, under [section 1437c(c) of title 42](/usc/42/1437c.md?p=c), such amounts as the [Secretary](/usc/12/4119.md?p=10) determines are necessary to provide assistance payments for low-income families displaced during the fiscal year.
- (b) **Relocation assistance—** The [Secretary](/usc/12/4119.md?p=10) shall coordinate with public housing agencies to ensure that any very low- or low-income family displaced from [eligible low-income housing](/usc/12/4119.md?p=1) as the result of the prepayment of the [mortgage](/usc/12/1707.md?p=a) (or termination of the [mortgage](/usc/12/1707.md?p=a) insurance contract) on such housing is able to acquire a suitable, affordable dwelling unit in the area of the housing from which the family is displaced. The [Secretary](/usc/12/4119.md?p=10) shall require the [owner](/usc/12/4119.md?p=7) of such housing to pay 50 percent of the moving expenses of each family relocated, except that such percentage shall be increased to the extent that [State](/usc/12/1707.md?p=d) or local law of general applicability requires a higher payment by the [owner](/usc/12/4119.md?p=7).
- (c) **Continued occupancy—**
  - (1) **In general—** Each [owner](/usc/12/4119.md?p=7) that prepays the [mortgage](/usc/12/1707.md?p=a) (or terminates the [mortgage](/usc/12/1707.md?p=a) insurance contract) on [eligible low-income housing](/usc/12/4119.md?p=1) shall, as provided in [paragraph (3)](#c-3), allow the tenants occupying units in such housing on the date of the submission of notice of intent under [section 4102 of this title](/usc/12/4102.md) to remain in the housing for a period of 3 years, at rent levels (except for increases necessary for increased operating costs) existing at the time of prepayment.
  - (2) **Provision of assistance by owner—** In any case in which the [Secretary](/usc/12/4119.md?p=10) requires an [owner](/usc/12/4119.md?p=7) to allow tenants to occupy units under [paragraph (1)](#c-1), an [owner](/usc/12/4119.md?p=7) may fulfill the requirements of such paragraph by providing such assistance necessary for the tenant to rent a decent, safe, and sanitary unit in another project for the same period and at a rental cost to the tenant not in excess of the rental amount the tenant would have been required to pay in the housing of the [owner](/usc/12/4119.md?p=7), except that the tenant must freely agree to waive the right to occupy the unit in the [owner](/usc/12/4119.md?p=7)’s housing.
  - (3) **Applicability to low-vacancy areas and special needs tenants—** The provisions of this subsection shall apply only to—
    - (A) eligible low income housing located in a low-vacancy area (as such term is defined by the [Secretary](/usc/12/4119.md?p=10)); and
    - (B) tenants in any [eligible low-income housing](/usc/12/4119.md?p=1) in any area who have special needs restricting their ability to relocate (including elderly tenants and tenants with disabilities), as determined under regulations established by the [Secretary](/usc/12/4119.md?p=10).
- (d) **Required acceptance of section 1437f assistance—** An [owner](/usc/12/4119.md?p=7) who prepays the [mortgage](/usc/12/1707.md?p=a) (or terminates the [mortgage](/usc/12/1707.md?p=a) insurance contract) on [eligible low-income housing](/usc/12/4119.md?p=1) and maintains the housing for residential rental occupancy may not refuse to rent, refuse to negotiate for the rental of, or otherwise make unavailable or deny the rent of a dwelling unit in such property to any [person](/usc/12/5481.md?p=19), or discriminate against any [person](/usc/12/5481.md?p=19) in the terms, conditions, or privileges of rental of a dwelling (or in the provision of services or facilities in connection therewith), because the [person](/usc/12/5481.md?p=19) receives assistance under [section 1437f of title 42](/usc/42/1437f.md).
- (e) **Regional pools—** In providing assistance under this section, the [Secretary](/usc/12/4119.md?p=10) shall allocate the assistance on a regional basis through the regional offices of the Department of Housing and Urban Development. The [Secretary](/usc/12/4119.md?p=10) shall allocate assistance under this section in a manner so that the total number of assisted units in each such region available for occupancy by, and affordable to, lower income families and [persons](/usc/12/5481.md?p=19) does not decrease because of the prepayment or payment of a [mortgage](/usc/12/1707.md?p=a) on [eligible low-income housing](/usc/12/4119.md?p=1) or the termination of an insurance contract on such housing.
- (f) **Enhanced voucher assistance for certain tenants—**
  - (1) **Authority—** In lieu of benefits under subsections [(b)](#b), [(c)](#c), and [(d)](#d), and subject to the availability of appropriated amounts, each family described in [paragraph (2)](#f-2) shall be offered enhanced voucher assistance under [section 1437f(t) of title 42](/usc/42/1437f.md?p=t).
  - (2) **Eligible families—** A family described in this paragraph is a family that is—
    - (A)
      - (i) a low-income family; or
      - (ii) a moderate-income family that is: (I) an elderly family; (II) a disabled family; or (III) residing in a low-vacancy area; and
    - (B) residing in [eligible low-income housing](/usc/12/4119.md?p=1) on the date of the prepayment of the [mortgage](/usc/12/1707.md?p=a) or voluntary termination of the insurance contract.

## Footnotes

[^1]: So in original. Probably should be “of”.

## Source credit

(Pub. L. 100–242, title II, § 223, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4264; amended Pub. L. 105–276, title V, § 550(d), Oct. 21, 1998, 112 Stat. 2610; Pub. L. 106–74, title V, § 538(c), Oct. 20, 1999, 113 Stat. 1123.)

## Notes

### Editorial Notes

### Amendments

1999—Subsec. (f). Pub. L. 106–74 added subsec. (f).

1998—Subsec. (a). Pub. L. 105–276 substituted “tenant-based assistance under section 1437f of title 42” for “assistance under the certificate and voucher programs under sections 1437f(b) and 1437f(o)”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1998 Amendment

Amendment by title V of Pub. L. 105–276 effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see section 503 of Pub. L. 105–276, set out as a note under section 1437 of Title 42, The Public Health and Welfare.