Page:United States Statutes at Large Volume 100 Part 3.djvu/804

 100 STAT. 2612

PUBLIC LAW 99-514—OCT. 22, 1986 r:f exceed 90 percent of the average area purchase price applicable to such residence. i' "(2) AVERAGE AREA PURCHASE PRICE.—For purposes of paragraph (1), the term 'average area purchase price' means, with o respect to any residence, the average purchase price of single 0 family residences (in the statistical area in which the residence is located) which were purchased during the most recent 12- month period for which sufficient statistical information is » available. The determination under the preceding sentence shall be made as of the date on which the commitment to provide the financing is made (or, if earlier, the date of the a purchase of the residence). "(3) SEPARATE APPLICATION TO NEW RESIDENCES AND OLD RESI-

l DENCES.—For purposes of this subsection, the determination of average area purchase price shall be made separately with "t respect to— "(A) residences which have not been previously occupied, ••y*.-:^

and

"(B) residences which have been previously occupied. I

"(4) SPECIAL RULE FOR 2 TO 4 FAMILY RESIDENCES.—For

pur-

't poses of this subsection, to the extent provided in regulations, the determination of average area purchase price shall be made separately with respect to 1 family, 2 family, 3 family, and 4 = family residences. "(5) SPECIAL RULE FOR TARGETED AREA RESIDENCES.—In

the

1 case of a targeted area residence, paragraph (1) shall be applied J by substituting '110 percent' for '90 percent'. J

"(6) EXCEPTION FOR QUALIFIED HOME IMPROVEMENT LOANS.—

Paragraph (1) shall not apply with respect to any qualified home improvement loan.

'

"(f) INCOME REQUIREMENTS.—

i e ' ^ ?• a ^

"(1) IN GENERAL.—An issue meets the requirements of this subsection only if all owner-financing provided under the issue is provided for mortgagors whose family income is 115 percent or less of the applicable median family income. "(2) DETERMINATION OF FAMILY INCOME.—For purposes of this subsection, the family income of mortgagors, and area median gross income, shall be determined by the Secretary after taking into account the regulations prescribed under section 8 of the United States Housing Act of 1937 (or, if such program is terminated, under such program as in effect immediately before such termination). "(3) SPECIAL RULE FOR APPLYING PARAGRAPH (i) IN THE CASE OF TARGETED AREA RESIDENCES.—In the case of any financing

provided under any issue for targeted area residences— "(A) V of the amount of such financing may be provided b boH; without regard to paragraph (1), and "(B) paragraph (1) shall be treated as satisfied with respect to the remainder of the owner financing if the family income of the mortgagor is 140 percent or less of the 'applicable median family income. ''>". "(4) APPLICABLE MEDIAN FAMILY INCOME.—For purposes of this subsection, the term 'applicable median family income' means, with respect to a residence, whichever of the following is the ei greater: '? "(A) the area median gross income for the area in which to. such residence is located, or

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