Page:United States Statutes at Large Volume 100 Part 3.djvu/480

 100 STAT. 2288

PUBLIC LAW 99-514—OCT. 22, 1986

(A) claimed (on a return of tax imposed by chapter 1 of the Internal Revenue Code of 1954) as a deduction by a qualified cooperative housing corporation for interest for any taxable year beginning before January 1, 1986, on a 3 v^ second mortgage loan made by a city housing development ^''•agency or corporation in connection with a qualified re>' financing, and > (B) reported (before April 16, 1986) by the qualified cooperative housing corporation to its tenant-stockholders as interest described in section 216(a)(2) of such Code, ? • shall be treated for purposes of such Code as if such amount were paid by such qualified cooperative housing corporation during such taxable year. (4) QUALIFIED COOPERATIVE HOUSING CORPORATION.—

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(A) IN GENERAL.—For purposes of this subsection, the term "qualified cooperative housing corporation" means any corporation if— (i) such corporation is, after the application of paragraphs (1) and (2), a cooperative housing corporation (as defined in section 216(b) of the Internal Revenue Code of 1954), (ii) such corporation is subject to a qualified limitedprofit housing companies law, and (iii) such corporation either— (I) filed for incorporation on July 22, 1965, or (II) filed for incorporation on March 5, 1964. (B) QUALIFIED LIMITED-PROFIT HOUSING COMPANIES LAW.—

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For purposes of subparagraph (A), the term "qualified limited-profit housing companies law" means any limitedprofit housing companies law which limits the resale price for a tenant-stockholder's stock in a cooperative housing corporation to the sum of his basis for such stock plus his proportionate share of part or all of the amortization of any mortgage on the building owned by such corporation. '• (5) QUALIFIED REFINANCING.—For purposes of this subsection, the term "qualified refinancing" means any refinancing— (A) which occurred— (i) with respect to a qualified cooperative housing corporation described in paragraph (4)(A)(iii)(I) on September 20, 1978, or (ii) with respect to a qualified cooperative housing ^' corporation described in paragraph (4)(A)(iii)(II) on November 21, 1978, and (B) in which a qualified cooperative housing corporation refinanced a first mortgage loan made to such corporation '•:.:' by a city housing development agency with a first mortgage -=?r loan made by a city housing development corporation and insured by an agency of the Federal Government and a ' ' * second mortgage loan made by such city housing development agency, in the process of which a reserve was created (as required by such Federal agency) and closing costs were paid or reimbursed by such city housing development agency or corporation. (6) QuAUFiED REFINANCING-RELATED RESERVE.—For purposes

of this subsection, the term "qualified refinancing-related re-" serve" means any reserve of a qualified cooperative housing corporation with respect to the creation of which no amount

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