§ 4232. Low-income requirement and income targeting

• (a) Housing shall qualify for affordable housing for purposes of this subchapter only if—
  • (1) each dwelling unit in the housing—
    • (A) in the case of rental housing, is made available for occupancy only by a family that is a low-income family at the time of the initial occupancy of that family of that unit; and
    • (B) in the case of housing for homeownership, is made available for purchase only by a family that is a low-income family at the time of purchase; and
  • (2) each dwelling unit in the housing will remain affordable, according to binding commitments satisfactory to the Secretary, for—
    • (A) the remaining useful life of the property (as determined by the Secretary) without regard to the term of the mortgage or to transfer of ownership; or
    • (B) such other period as the Secretary determines is the longest feasible period of time consistent with sound economics and the purposes of this subchapter, except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if that action—
      • (i) recognizes any contractual or legal rights of any public agency, nonprofit sponsor, or other person or entity to take an action that would—
        • (I) avoid termination of low-income affordability, in the case of foreclosure; or
        • (II) transfer ownership in lieu of foreclosure; and
      • (ii) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary.
• (b) Notwithstanding subsection (a), housing assistance pursuant to section 4228(a)(2)(B) of this title shall be considered affordable housing for purposes of this subchapter.