12 U.S.C. § 4108 — Prepayment and voluntary termination

(a) The Secretary^* may approve a plan ending low-income affordability restrictions^* through mortgage prepayment or voluntary insurance termination only after a written finding that: (1) the plan will not (A) materially increase current tenants’ economic hardship, and will not cause any tenant’s monthly rent to exceed 30 percent of adjusted monthly income or increase in any year by more than 10 percent, whichever is lower; or, for a tenant already above that percentage, increase in any year by more than the increase in the Consumer^* Price Index or 10 percent, whichever is lower; and (B) involuntarily displace current tenants, except for good cause, when comparable affordable housing is not readily available, without counting Federal housing assistance that would address the hardship or displacement; and (2) enough vacant comparable housing exists to ensure the prepayment will not materially affect (A) affordable decent, safe, sanitary housing for low- and very-low-income families or persons^* in the area the housing could serve, (B) those families’ or persons’ ability to find such housing near jobs, or (C) minorities’ housing opportunities in the community. (b)(1) A written finding must analyze the evidence the Secretary considered and document that evidence. (2) By regulation, the Secretary must create (A) a procedure to decide whether the conditions in (a)(1) and (2) exist, (B) evidence requirements, and (C) decision criteria. (c) If a plan fails (a), the Secretary must disapprove it. The owner’s section 4102 notice is then ineffective for this subchapter, although the owner^* may file a new notice under that section to seek incentives.