Page:United States Statutes at Large Volume 103 Part 3.djvu/251

 PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2319 (o) INCREASED RESPONSIBILITIES FOR HOUSING CREDIT AGENCIES.— Section 42 is amended by redesignating subsections (m) and (n) as subsections (n) and (o), respectively, and by inserting after subsec- tion (1) the following new subsection: " (m) RESPONSIBILITIES OF HOUSING CREDIT AGENCIES.— " (1) PLANS FOR ALLOCATION OF CREDIT AMONG PROJECTS. — "(A) IN GENERAL. — Notwithstanding any other provision of this section, the housing credit dollar amount with re- spect to any building shall be zero unless— "(i) such amount was allocated pursuant to a quali- fied allocation plan of the housing credit agency which is approved by the governmental unit (in accordance with rules similar to the rules of section 147(fK2) (other than subparagraph (B)(ii) thereof)) of which such agency is a part, and "(ii) such agency notifies the chief executive officer (or the equivalent) of the local jurisdiction within which the building is located of such project and pro- vides such individual a reasonable opportunity to com- ment on the project. "(B) QUALIFIED ALLOCATION PLAN.— For purposes of this paragraph, the term 'qualified allocation plan' means any plan— "(i) which sets forth selection criteria to be used to determine housing priorities of the housing credit agency which are appropriate to local conditions, "(ii) which gives the highest priority to those projects as to which the highest percentage of the housing credit dollar amount is to be used for project costs other than the cost of intermediaries unless granting such priority would impede the development of projects in hard-to-develop areas, "(iii) which also gives preference in allocating hous- ing credit dollar amounts among selected projects to— "(I) projects serving the lowest income tenants, and "(II) projects obligated to serve qualified tenants \.'. for the longest periods, and "(iv) which provides a procedure that the agency will follow in notifying the Internal Revenue Service of noncompliance with the provisions of this section which such agency becomes aware of. " (C) CERTAIN SELECTION CRITERIA MUST BE USED.— The selection criteria set forth in a qualified allocation plan must include— "(i) project location, "(ii) housing needs characteristics, "(iii) project characteristics, "(iv) sponsor characteristics, "(v) participation of loccJ tax-exempt organizations, "(vi) tenant populations with special housing needs, and "(vii) public housing waiting lists. "(D) APPLICATION TO BOND FINANCED PROJECTS. — Subsec- tion (h)(4) shall not apply to any project unless the project satisfies the requirements for allocation of a housing credit

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