
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC3937]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 49--NATIONAL HOUSING PARTNERSHIPS
 
Sec. 3937. National housing partnership


(a) Formation of limited partnership; partnership agreement

    The corporation is authorized to arrange for the formation, as a 
separate organization, of a limited partnership (hereinafter in this 
chapter referred to as the ``partnership'') under the District of 
Columbia Uniform Limited Partnership Act [D.C. Code, Sec. 41-201 et 
seq.] for the purpose of engaging in any of the activities authorized 
for the corporation under section 3936 of this title, and to enter into 
a partnership agreement governing the affairs of such limited 
partnership.

(b) Applicability of other laws; legal status of limited partnership

    The partnership shall be subject to the provisions, to the extent 
consistent with this chapter, of (1) the District of Columbia Uniform 
Limited Partnership Act and (2) those provisions of the District of 
Columbia Uniform Partnership Act [D.C. Code, Sec. 41-101 et seq.] made 
applicable by section 6(2) of that Act [D.C. Code, Sec. 41-105(b)]. 
Notwithstanding any inconsistency between the provisions of such Acts, 
or of any other law, and the provisions of this section, the partnership 
organized pursuant to this section shall be deemed to have the legal 
status of a limited partnership.

(c) Authorization to enter into partnerships, limited partnerships, or 
        joint ventures organized under State or local laws for purpose 
        of engaging in low and moderate income housing developments, 
        projects, or undertakings

    The partnership is authorized to enter into partnerships, limited 
partnerships, or joint ventures organized under applicable State or 
local law for the purpose of engaging in low and moderate income housing 
developments, projects, or undertakings in particular localities.

(d) General partner; capital of partnership; contribution of partners

    The corporation shall be the general partner in the partnership. The 
capital of the partnership and the contributions of the partners shall 
be in such amounts and at such times as are set forth in or pursuant to 
the partnership agreement.

(e) Partnership agreement; participation in low and moderate income 
        housing developments, projects, or undertakings; limitation on 
        aggregate initial equity investment

    The partnership agreement shall include provisions designed to 
assure that (1) the partnership shall participate in low and moderate 
income housing developments, projects, or undertakings in a manner 
designed to encourage the participation therein of local interests, and 
(2) in any such development, project, or undertaking the partnership 
shall not subscribe to more than 25 per centum (including equity 
investments made in services or property) of the aggregate initial 
equity investment unless, in the judgment of the corporation as general 
partner, the balance of the required equity investment is not readily 
obtainable from other responsible investors residing or doing business 
in the local community.

(f) Partnership agreement; authorization for stockholders to become 
        limited partners; inclusion of other limited partners; 
        acquisition of assignor's stock by assignee of limited partner; 
        approval of substitution or addition of partnership member

    The partnership agreement may without limitation (1) permit each of 
the stockholders of the corporation to become a member of the 
partnership as a limited partner, (2) authorize the inclusion of other 
limited partners in addition to the stockholders of the corporation, (3) 
provide that the assignee of the partnership interest of a limited 
partner of the partnership who is also a stockholder of the corporation 
may not become a substituted limited partner unless he also acquires the 
assignor's stock of the corporation, and (4) include provisions 
requiring that the corporation as a general partner approve the 
substitution or addition of a member of the partnership.

(g) Liability of corporation as general partner; treatment of interest 
        of limited partner in partnership

    A corporation which is a limited partner in the partnership shall 
not become liable as a general partner by reason of the fact that (1) 
such corporation is a holder of shares of voting stock of the 
corporation constituting not more than 5 per centum of the total number 
of outstanding shares of such stock and exercises any of the rights 
(including voting rights) of a holder of such shares, and/or (2) a 
person who is an officer or director of such corporation (or of another 
corporation which controls or is subject to the control of, or is under 
common control with, such corporation) is a director of the corporation 
and performs the duties of that office. The interest of a limited 
partner in the partnership shall not be treated as a stock interest in 
the corporation, notwithstanding that such interest of a limited partner 
may be proportionate to his stock interest in the corporation.

(h) Execution of certificate of partnership and amendments

    The certificate of the partnership and any amendment thereof 
required by the District of Columbia Uniform Limited Partnership Act 
[D.C. Code, Sec. 41-201 et seq.] shall be executed and acknowledged by 
the corporation as member and by each other member of the partnership or 
his attorney-in-fact duly authorized by power of attorney in writing. 
The corporation may execute and acknowledge the certificate and any 
amendment thereof as attorney-in-fact for any member, member to be 
substituted or added, or assigning member, by whom the certificate or 
amendment is required to be executed and acknowledged and who has 
appointed the corporation as such attorney.

(Pub. L. 90-448, title IX, Sec. 907, Aug. 1, 1968, 82 Stat. 549.)

                       References in Text

    The District of Columbia Uniform Limited Partnership Act, referred 
to in subsecs. (a) and (h), is Pub. L. 87-716, Sept. 28, 1962, 76 Stat. 
655, as amended, which appears in chapter 2 (Sec. 41-201 et seq.) of 
Title 41, Partnerships, of the District of Columbia Code.
    The District of Columbia Uniform Partnership Act, referred to in 
subsec. (b), is Pub. L. 87-709, Sept. 27, 1962, 76 Stat. 636, as 
amended, which appears in chapter 1 (Sec. 41-101 et seq.) of Title 41 of 
the District of Columbia Code.

                  Section Referred to in Other Sections

    This section is referred to in sections 3932, 3933 of this title; 
title 12 sections 24, 1464.
