Page:United States Statutes at Large Volume 103 Part 3.djvu/249

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2317 meaning of section 103 of the Stewart B. McKinney Homeless Assistance Act (42 UJS.C. 11302), as in efiTect on the date of the enactment of this clause) to independent living within 24 months, and ''dD in which a governmental entity or qualified nonprofit organization (as defined in subsection (h)(5)) provides such individuals with temporary housing and supportive services designed to assist such individuals in locating and retaining perma- nent housing. of dause (i), a single-room occupancy unit shall not be treated as uised on a transient basis merely because it is rented on a month-by-month basis." (2) QUALIFIED BASIS TO INCLUDE POBTION OF BUILDING USED TO PBOViDE supFOBnvE SERVICES.—Paragraph (1) of section 42(c) is amended by adding at the end thereof the following new subparagraph: CB) QUALIFIED BASIS TO INCLUDE POBTION OF BUILDING USED TO PROVIDE SUPPORTIVE SERVICES FOR HOMELESS.— In the case of a qualified low-income buildii^ described in subsection (i)(3)Xiii)» the qualified basis of such building for any taxable year shall be increased by the lesser of— (i) so much of the eligible basis of such building as is used throughout the year to provide supportive services designed to assist tenants in locating and retaining permanent housing, or "(ii) 20 percent of the qualified basis of such building (determined without r^iurd to this subparagraph)." (j) VOLUME CAP NOT TO APPLY WHERE 50 PERCENT OR MORE OF BUILDING Is FINANCED Wrni TAX-EXEMPT BONDS.— Subparagraph (B) of section 42(h)(4) is amended by striking "70 percent" each place it appears and inserting "50 percent". (k) BUILDING NOT TUBATED AS FEDERALLY SUBSTOIZED BY REASON OF COMMUNITY DEVELOPMENT BLOCK GRANT.— Subparagraph (D) of section 42(i)(2) (defining below market Federal loan) is amended by adding at the end thereof the following new sentence: "Such term shall not include any loan which would be a below market Federal loan solely by reason of assistance provided under section 106, 107, or 108 of the Housing and Conmiunity Development Act of 1974 (as in efiTect on the date of the enactment of this sentence)." (1) ELIGIBLE BASIS FOR NEW BUILDINGS TO INCLUDE EXPENDITURES BEFORE C!LO6E OF 1ST YEAR OF CREDIT PERIOD. — (1) NEW BUILDINGS.— Paragraph (1) of section 42(d) (relating to eligible basis for new buildings) is amended by inserting berore the period "as of the close of the 1st taxable year of the credit period". (2) EXISTING BUILDINGS. — Subparagraph (A) of section 42(d)(2) (relating to eligible basis for existing buildings) is amended by striking "subparagraph (B)" and all that follows through the end of clause (i) and inserting "subparagraph (B), its adjusted basis as of the close of the 1st taxable year of the credit period, and". (3) CONFORMING AMENDMENTS.— (A) Subparagraph (CD of section 42(d)(2) is amended by striking "ACQUISITION COST" in the heading and inserting
 * '(iv) SiNGLB-HOOM OCCUPANCY UNITS. — For purposes

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