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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 10:51:44 -04:00

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LegalText 12 U.S.C. § 4122 Preemption of State and local laws us united_states_code code_section 12 BANKS AND BANKING 42 LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP 4122 12 U.S.C. § 4122 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc12@119-100.zip /us/usc/t12/s4122 data/legal/raw/us/code/title-12/usc12.xml 75bdc8177ce0a0e3a4c9b64cda98ea24afd02a8ada9500efa44293c67e442eeb e6b98700ef4156ac33fde5d105824845d727afa91a53f3762be2cf4d1a3b01fa 9dc195035e24914075af71353d535286a2eb88bf1115a4110c463827f4222e1b 2026-07-04 official
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12 U.S.C. § 4122 - Preemption of State and local laws

Text

(a) In general No State or political subdivision of a State may establish, continue in effect, or enforce any law or regulation that—

(1) restricts or inhibits the prepayment of any mortgage described in section 4119(1) of this title (or the voluntary termination of any insurance contract pursuant to section 1715t of this title) on eligible low income housing;

(2) restricts or inhibits an owner of such housing from receiving the authorized annual return provided under section 4104 of this title;

(3) is inconsistent with any provision of this subchapter, including any law, regulation, or other restriction that limits or impairs the ability of any owner of eligible low income housing to receive incentives authorized under this subchapter (including authorization to increase rental rates, transfer the housing, obtain secondary financing, or use the proceeds of any of such incentives); or

(4) in its applicability to low-income housing is limited only to eligible low-income housing for which the owner has prepaid the mortgage or terminated the insurance contract.

Any law, regulation, or restriction described under paragraph (1), (2), (3), or (4) shall be ineffective and any eligible low-income housing exempt from the law, regulation, or restriction, only to the extent that it violates the provisions of this subsection.

(b) Effect This section shall not prevent the establishment, continuing in effect, or enforcement of any law or regulation of any State or political subdivision of a State not inconsistent with the provisions of this subchapter, such as any law or regulation relating to building standards, zoning limitations, health, safety, or habitability standards for housing, rent control, or conversion of rental housing to condominium or cooperative ownership, to the extent such law or regulation is of general applicability to both housing receiving Federal assistance and nonassisted housing. This section shall not preempt, annul, or alter any contractual restrictions or obligations existing before November 28, 1990, that prevent or limit an owner of eligible low-income housing from prepaying the mortgage on the housing (or terminating the insurance contract on the housing).

(Pub. L. 100242, title II, § 232, as added Pub. L. 101625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4273; amended Pub. L. 102550, title III, § 311, Oct. 28, 1992, 106 Stat. 3765.)

Notes

Editorial Notes

Amendments1992—Subsec. (b). Pub. L. 102550 substituted “, such as any law or regulation” for “and” after “subchapter”.