Page:United States Statutes at Large Volume 107 Part 1.djvu/462

 107 STAT. 436 PUBLIC LAW 103-66—AUG. 10, 1993 PART IV—INCENTIVES FOR INVESTMENT IN REAL ESTATE Subpart A—Extension of Qualified Mortgage Bonds and Low-Income Housing Credit SEC. 13141. PERMANENT EXTENSION OF QUALIFIED MORTGAGE BONDS. 26 USC 143. (a) IN GENERAL.— Paragraph (1) of section 143(a) (defining qualified mortgage bond) is amended to read as follows: "(1) QUALIFIED MORTGAGE BOND DEFINED.— For purposes of this title, the term 'qualified mortgage bond' means a bond which is issued as part of a qualified mortgage issue." (b) MORTGAGE CREDIT CERTIFICATES.— Section 25 is amended by striking subsection (h) and by redesignating subsections (i) and (j) as subsections (h) and (i), respectively. (c) TREATMENT OF RESALE PRICE CONTROL AND SUBSIDY LIEN PROGRAMS.— Subsection (k) of section 143 is amended by adding at the end thereof the following new paragraph: " (10) TREATMENT OF RESALE PRICE CONTROL AND SUBSIDY LIEN PROGRAMS. — "(A) IN GENERAL.— In the case of a residence which is located in a high housing cost area (as defined in section 143(fK5)), the interest of a governmental imit in such residence by reason of financing provided under any qualified program shall not be taken mto account under this section (other than subsection (m)), and the acquisition cost of the residence which is taken into account under subsection (e) shall be such cost reduced by the amount of such financing. "(B) QUALIFIED PROGRAM.—For purposes of subparagraph (A), the term 'qualified program* means any governmental program providing mortgage loans (other than 1st mortgage loans) or grants— "(i) which restricts (throughout the 9-year period beginning on the date the financing is provided) the resale of the residence to a purchaser qualifying under this section and to a price determined by an index that reflects less than the full amount of any appreciation in the residence's value, or "(ii) which provides for deferred or reduced interest payments on such financing and grants the governmental unit a share in the appreciation of the residence, but only if such financing is not provided directly or indirectly through the use of any tax-exempt private activity bond." (d) FINANCING ALLOWED FOR CONTRACT FOR DEED AGREE- MENTS.— (1) IN GENERAL. —Paragraph (2) of section 143(d) (relating to exceptions to 3-year requirement) is amended— (A) by striking "and" at the end of subparagraph (A), (B) by adding "and" at the end of subparagraph (B), and (C) by inserting after subparagraph (B) the following new subparagraph:

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