Page:United States Statutes at Large Volume 103 Part 3.djvu/242

 103 STAT. 2310 PUBLIC LAW 101-239—DEC. 19, 1989 Regulations.  -'k- before the close of the 3-year period following such termination— "(I) the eviction or the termination of tenancy (other than for good cause) of an existing tenant of any low-income unit, or (ID any increase in the gross rent with respect to such unit. "(F) QUALIFIED CONTRACT.— For purposes of subparagraph (E), the term 'qualified contract' means a bona fide contract to acquire (within a reasonable period after the contract is entered into) the low-income portion of the building for an amount not less than the applicable fraction (specified in the extended low-income housing commitment) of— "(i) the sum of— "(I) the outstanding indebtedness secured by, or with respect to, the building, "(11) the adjusted investor equity in the building, plus "(m) other capital contributions not reflected in the amounts described in subclause (I) or (U), re- duced by "(ii) cash distributions from (or available for distribu- tion from) the project. The Secretary shall prescribe such regulations as may be necessary or appropriate to cany out this paragraph, including regulations to prevent the manipulation of the amount determined under the preceding sentence. " (G) ADJUSTED INVESTOR EQUITY.— "(i) IN GENERAL. —For purposes of subparagraph (E), the term 'adjusted investor equity* means, with respect to any calendar year, the aggregate amount of cash taxpayers invested with respect to the project increased by the amount equal to— "(I) such amount, multiplied by "(II) the cost-of-living adjustment for such cal- endar year, determined under section l(f)(3) by substituting the base calendar year for 'calendar year 1987'. An amount shall be taken into account as an invest- ment in the project only to the extent there was an obligation to invest such amount as of the beginning of the credit period and to the extent such amount is reflected in the adjusted basis of the project. "(ii) Ck>siH>F-LiviNG INCREASES IN EXCESS OF 5 PERCENT NOT TAKEN INTO ACCOUNT.— Under regulations pre- scribed by the Secretary, if the CPI for any calendar year (as defined in section l(f)(4)) exceeds the CPI for the preceding calendar year by more than 5 percent, the CPI for the base calendar year shall be increased such that such excess shall never be taken into account under clause (i). "(iii) BASE CALENDAR YEAR. — For purposes of this subparagraph, the term 'base calendar year' means the calendar year with or within which the 1st taxable year of the creoit period ends. "(H) LOW-INCOME PORTION. —For purposes of this para- graph, the low-income portion of a building is the portion of

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