Page:United States Statutes at Large Volume 100 Part 3.djvu/819

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2627

"(2) ADDITIONAL REQUIREMENTS.—A bond shall not be treated as a qualified redevelopment bond unless— "(A) the issue described in paragraph (1) is issued pursuant to— "(i) a State law which authorizes the issuance of such bonds for redevelopment purposes in blighted areas, and "(ii) a redevelopment plan which is adopted before such issuance by the governing body described in paragraph (4)(A) with respect to the designated blighted area, "(B)(i) the payment of the principal and interest on such f* ' issue is primarily secured by taxes of general applicability imposed by a general purpose governmental unit, or "(ii) any incresise in real property tax revenues (attributable to increases in assessed value) by reason of the carrying out of such purposes in such area is reserved , exclusively for debt service on such issue (and similar issues) to the extent such increase does not exceed such debt r service, d:u"r "(C) each interest in real property located in such area— "(i) which is acquired by a governmental unit with the proceeds of the issue, and "(ii) which is transferred to a person other than a governmental unit, is transferred for fair market value, ... "(D) the financed area with respect to such issue meets the no additional charge requirements of paragraph (5), and "(E) the use of the proceeds of the issue meets the requirements of paragraph (6). "(3) REDEVELOPMENT PURPOSES.—For purposes of paragraph

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(1)-

"(A) IN GENERAL.—The term 'redevelopment purposes' means, with respect to any designated blighted area— ii) 4JC, "(i) the acquisition (by a governmental unit having the power to exercise eminent domain) of real property located in such area, "(ii) the clearing and preparation for redevelopment of land in such area which was acquired by such governmental unit, "(iii) the rehabilitation of real property located in jj such area which was acquired by such governmental ,i unit, and "(iv) the relocation of occupants of such real props';,v..... -•erty. ^ "(B) NEW CONSTRUCTION NOT PERMITTED.—The term 're^. development purposes' does not include the construction (other than the rehabilitation) of any property or the enlargement of an existing building. "(4) DESIGNATED BUGHTED AREA.—For purposes of this subsection— "(A) IN GENERAL.—The term 'designated blighted area' means any blighted area designated by the governing body of a local general purpose governmental unit in the jurisdiction of which such area is located. j;^ "(B) BUGHTED AREA.—The term 'blighted area' means any area which the governing body described in subpara-

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