Page:United States Statutes at Large Volume 102 Part 4.djvu/675

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PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3645

SEC. 4005. PROVISIONS RELATING TO MORTGAGE REVENUE BONDS AND MORTGAGE CREDIT CERTIFICATES. (a) EXTENSION OF AUTHORITY TO ISSUE BONDS AND CERTIFICATES.—

(1) Subparagraph (B) of section 143(a)(l) of the 1986 Code (relating to termination) is amended by striking out "December 31, 1988" each place it appears and inserting in lieu thereof "December 31, 1989". (2) Subsection (h) of section 25 of the 1986 Code (relating to credit for interest on certain home mortgages), as amended by section 1013(a)(26) of this Act, is amended by striking out "1988" and inserting in lieu thereof "1989". O> CALCULATION OF INCOME LIMITS FOR QUALIFIED MORTGAGE t) BOND FINANCED HOMES IN HIGH HOUSING COST AREAS.—Section

143(f) of the 1986 C!ode (relating to income requirements) is amended by adding at the end thereof the following new paragraph: "(5) ADJUSTMENT OF INCOME REQUIREMENT BASED ON RELATION OF HIGH H O U S I N G COSTS TO INCOME.—

"(A) IN GENERAL.—If the residence (for which financing is provided under the issue) is located in a high housing cost area and the limitation determined under this paragraph is greater than the limitation otherwise applicable under paragraph (1), there shall be substituted for the income limitation in paragraph (1), a limitation equal to the percentage determined under subparagraph (B) of the area median gross income for such area. "(B) INCOME REQUIREMENTS FOR RESIDENCES IN HIGH HOUS-

ING COST AREA.—The percentage determined under this subparagraph for a residence located in a high housing cost area is the percentage (not greater than 140 percent) equal to the product of— "(I) 115 percent, and "(II) the amount by which the housing cost/income ratio for such area exceeds 0.2. "(C) HIGH HOUSING COST AREAS.—For purposes of this paragraph, the term 'high housing cost area' means any statistical area for which the housing cost/income ratio is greater than 1.2. "(D) HOUSING COST/INCOME RATIO.—For purposes of this paragraph— "(i) IN GENERAL.—The term 'housing cost/income ratio' means, with respect to any statistical area, the number determined by dividing— "(I) the applicable housing price ratio for such area, by "(II) the ratio which the area median gross income for such area bears to the median gross income for the United States. "(ii) APPLICABLE HOUSING PRICE RATIO.—For purposes of clause (i), the applicable housing price ratio for any area is the new housing price ratio or the existing housing price ratio, whichever results in the housing cost/income ratio being closer to 1. "(iii) N E W HOUSING PRICE RATIO.—The new housing price ratio for any area is the ratio which—

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