Page:United States Statutes at Large Volume 100 Part 3.djvu/810

 100 STAT. 2618

PUBLIC LAW 99-514—OCT. 22, 1986 ii •

"(iii) the expenditures for such rehabilitation are 25 percent or more of the mortgagor's adjusted basis in the residence. - ' *• For purposes of clause (iii), the mortgagor's adjusted basis ,t, shall be determined as of the completion of the rehabilitation or, if later, the date on which the mortgagor acquires the residence. "(6) DETERMINATIONS ON ACTUARIAL BASIS.—All determinations of yield, effective interest rates, and amounts required to be paid or credited to mortgagors or paid to the United States under subsection (g) shall be made on an actuarial basis taking into account the present value of money. "(7) SINGLE-FAMILY AND OWNER-OCCUPIED RESIDENCES INCLUDE CERTAIN RESIDENCES WITH 2 TO 4 UNITS.—Except for purposes of

subsection (h)(2), the terms 'single-family' and 'owner-occupied', when used with respect to residences, include 2, 3, or 4 family residences— "(A) one unit of which is occupied by the owner of the i. units, and "(B) which were first occupied at least 5 years before the mortgage is executed. "(8) COOPERATIVE HOUSING CORPORATIONS.—

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"(A) IN GENERAL.—In the case of any cooperative housing corporation— "(i) each dwelling unit shall be treated as if it were actually owned by the person entitled to occupy such dwelling unit by reason of his ownership of stock in the corporation, and "(ii) any indebtedness of the corporation allocable to the dwelling unit shall be treated as if it were indebtedness of the shareholder entitled to occupy the dwelling unit. "(B) ADJUSTMENT TO TARGETED AREA REQUIREMENT.—In

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the case of any issue to provide financing to a cooperative housing corporation with respect to cooperative housing not located in a targeted area, to the extent provided in regulations, such issue may be combined with 1 or more other issues for purposes of determining whether the requirements of subsection (h) are met. "(C) COOPERATIVE HOUSING CORPORATION.—The term 'cooperative housing corporation' has the meaning given to such term by section 216(b)(l). "(9) TREATMENT OF LIMITED EQUITY COOPERATIVE HOUSING.— "(A) TREATMENT AS RESIDENTIAL RENTAL PROPERTY.—

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Except as provided in subparagraph (B), for purposes of this part— "(i) any limited equity cooperative housing shall be treated as residential rental property and not as owneroccupied housing, and "(ii) bonds issued to provide such housing shall be subject to the same requirements and limitations as bonds the proceeds of which are to be used to provide qualified residential rental projects (as defined in section 142(d)). "(B) BONDS SUBJECT TO QUALIFIED MORTGAGE BOND TERMI-

NATION DATE.—Subparagraph (A) shall not apply to any bond issued after the date specified in subsection (a)(l)(B).

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