Page:United States Statutes at Large Volume 103 Part 3.djvu/245

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2313 ' ^ "(ii) In the case of a unit which has 1 or more separate bedrooms, 1.5 individuals for each separate bedroom. In the case of a project with respect to which a credit is 1 allowable by reason of this section and for which financing is provided by a bond described in section 142(a)(7), the imputed income limitation shall apply in lieu of the other- wise applicable income limitation for purposes of applying section 142(d)(4)(B)(ii). "(D) TREATMENT OF UNITS OCCUPIED BY INDIVIDUALS WHOSE INCOMES RISE ABOVE LIMIT.— "(i) IN GENERAL.— Except as provided in clause (ii), notwithstanding an increase in the income of the occu- pants of a low-income unit above the income limitation applicable under paragraph (1), such unit shall con- tinue to be treated as a low-income unit if the income of such occupants initially met such income limitation. 1> r, "(ii) NEXT AVAILABLE UNIT MUST BE RENTED TO LOW- INCOME TENANT IF INCOME RISES ABOVE 140 PERCENT OF INCOME LIMIT.—I f the income of the occupants of the unit increases above 140 percent of the income limita- tion applicable under paragraph (1), clause (i) shall cease to apply to such unit if any residential rental unit in the building (of a size comparable to, or smaller than, such unit) is occupied by a new resident whose income exceeds such income limitation." (B) Subparagraph (A) of section 42(g)(2) is amended by striking ' the income limitation under paragraph (1) ap- plicable to individuals occupying such unit" and inserting 'the imputed income limitation applicable to such unit' (2) REDUCTION IN AREA MEDIAN GROSS INCOME NOT TO REQUIRE REDUCTION OF RENT. —Subparagraph (A) of section 42(g)(2) (relat- ing to rent-restricted units) is amended by adding at the end thereof the following new sentence: "For purposes of the preced- ing sentence, the amount of the income limitation under para- graph (1) applicable for any period shall not be less than such limitation applicable for the earliest period the building (which contains the unit) was included in the determination of whether the project is a qualified low-income housing project." (3) EXCLUSION WITH RESPECT TO CONTINUING CARE FACILITIES NOT TO APPLY IN DETERMINING INCOME.— Subparagraph (B) of section 142(d)(2) is amended by adding at the end thereof the following: "Section 7872(g) shall not apply in determining the income of individuals under this subparagraph." (f) ADDITIONAL BUILDINGS ELIGIBLE FOR WAIVER OF 10-YEAR PERIOD APPLICABLE TO ACQUISITIONS OF EXISTING BUILDINGS.— Para- graph (6) of section 42(d) is amended by redesignating subparagraph (C) as subparagraph (E) and by inserting after subparagraph (B) the following new subparagraphs: " (C) LOW-INCOME BUILDINGS WHERE MORTGAGE MAY BE PREPAID. — A waiver may be granted under subparagraph (A) (without regard to any clause thereof) with respect to a federally-assisted building described in clause (ii) or (iii) of t- subparagraph (B) if^ .• "(i) the mortgage on such building is eligible for ? prepayment under subtitle B of the Emergency Low

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