Page:United States Statutes at Large Volume 100 Part 3.djvu/809

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2617

'county' a n a r e a designated by the Secretary which is the equivalent of a county. "(3) ACQUISITION COST.—

"(A) IN GENERAL.—The term 'acquisition cost' means the cost of acquiring the residence as a completed residential unit. "(B) EXCEPTIONS.—The term 'acquisition cost' does not include— "(i) usual and reasonable settlement or financing costs, "(ii) the value of services performed by the mortgagor or m e m b e r s of his family in completing the residence, and "(iii) the cost of land which has been owned by the mortgagor for a t least 2 years before the date on which construction of the residence begins. "(C)

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SPECIAL

RULE

FOR

QUALIFIED

REHABILITATION

" LOANS.—In the case of a qualified rehabilitation loan, for purposes of subsection (e), the term 'acquisition cost' ineludes the cost of the rehabilitation. "(4) QUALIFIED HOME IMPROVEMENT L O A N. — The term

'

'quali-

fied home improvement loan' means the financing (in a n a m o u n t which does not exceed $15,000)— "(A) of alterations, repairs, and improvements on or in connection with a n existing residence by the owner thereof, but "(B) only of such items as substantially protect or improve the basic livability or energy efficiency of the property. "(5) QUALIFIED REHABILITATION LOAN.—

,;

^j^

"(A) IN GENERAL.—The term 'qualified rehabilitation loan' means any owner-financing provided in connection with— "(i) a qualified rehabilitation, or "(ii) the acquisition of a residence with respect to which the r e has been a qualified rehabilitation, but only if the mortgagor to whom such financing is provided is the first resident of the residence after the completion of the rehabilitation. "(B)

QUALIFIED

REHABILITATION.—For

purposes

of

subparagraph (A), the term 'qualified rehabilitation' means r any rehabilitation of a building if— "(i) the r e is a period of a t least 20 years between the date on which the building was first used and the date on which the physical work on such rehabilitation V-': begins, .-,.,;. "(ii) in the rehabilitation process— "(I) 50 percent or more of the existing external walls of such building a r e retained in place as external walls, "(II) 75 percent or more of the existing e x t e r n a l ,, walls of such building a r e retained in place as i n t e r n a l or external walls, and "(III) 75 percent or more of the existing internal s t r u c t u r a l framework of such building is retained i . a in place, and
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