§4116. Resident homeownership program — Inbound Citations

Citations to 12 U.S.C. § 4116 as a whole

• 12 U.S.C. § 4110(d)(1)

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  (1) If the qualified purchaser is a resident council, the Secretary may not approve a plan of action for assistance under this section unless the council’s proposed resident homeownership program meets the requirements under section 4116 of this title. For all other qualified purchasers, the Secretary may not approve the plan unless the Secretary finds that the criteria for approval under section 4112 of this title have been satisfied.
• 12 U.S.C. § 4110(d)(2)

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  (2) Subject to the availability of amounts approved in appropriations Acts, the Secretary shall, for approvable plans of action, provide assistance sufficient to enable qualified purchasers (including all priority purchasers other than resident councils acquiring under the homeownership program authorized by section 4116 of this title) to—

  (A) acquire the eligible low-income housing from the current owner for a purchase price not greater than the preservation equity of the housing;

  (B) pay the debt service on the federally-assisted mortgage covering the housing;

  (C) pay the debt service on any loan for the rehabilitation of the housing;

  (D) meet project operating expenses and establish adequate reserves for the housing, and in the case of a priority purchaser, meet project oversight costs;

  (E) receive a distribution equal to an 8 percent annual return on any actual cash investment (from sources other than assistance provided under this title²) made to acquire or rehabilitate the project;

  (F) in the case of a priority purchaser, receive a reimbursement of all reasonable transaction expenses associated with the acquisition, loan closing, and implementation of an approved plan of action; and

  (G) in the case of an approved resident homeownership program, cover the costs of training for the resident council, homeownership counseling and training, the fees for the nonprofit entity or public agency working with the resident council and costs related to relocation of tenants who elect to move.