Page:United States Statutes at Large Volume 107 Part 1.djvu/463

 PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 437 "(C) financing with respect to land described in subsection (i)(l)(C) and the construction of any residence thereon." (2) EXCEPTION TO NEW MORTGAGE REQUIREMENT.— Paragraph (1) of section 143(i) (relating to mortgages must be new 26 USC 143. mortgages) is amended by adding at the end thereof the following new subparagraph: "(C) EXCEPTION FOR CERTAIN CONTRACT FOR DEED AGREEMENTS.— "(i) IN GENERAL.—In the case of land possessed under a contract for deed by a mortgagor— "(I) whose principal residence (within the meaning of section 1034) is located on such land, and "(II) whose family income (as defined in subsection (f)(2)) is not more than 50 percent of applicable median family income (as defined in subsection (f)(4)), the contract for deed shall not be treated as an existing mortgage for purposes of subparagraph (A). "(ii) CONTRACT FOR DEED DEFINED.— For purposes of this subparagraph, the term 'contract for deed' means a seller-financed contract for the conveyance of land under which— "(I) legal title does not pass to the purchaser until the consideration under the contract is fully paid to the seller, and "(II) the seller's remedy for nonpayment is forfeiture rather than judicial or nonjudicial foreclosure." (3) ACQUISITION COST INCLUDES COST OF LAND. —Clause (iii) of section 143(k)(3)(B) is amended by inserting "(other than land described in subsection (i)(l)(C)(i))" after "cost of land". (e) FINANCING OF NEW 2-FAMILY RESIDENCES PERMITTED. — Paragraph (7) of section 143(k) is amended by adding at the end thereof the following flush sentence: "Subparagraph (B) shall not apply to any 2-family residence if the residence is a targeted area residence and the family income of the mortgagor meets the requirement of subsection (f)(3)(B)." (f) EFFECTIVE DATES. — (1) BONDS. —The amendment made by subsection (a) shall 26 USC 143 note. apply to bonds issued after June 30, 1992. (2) CERTIFICATES.— The amendment made by subsection 26 USC 25 note. (b) shall apply to elections for periods after June 30, 1992. (3) SUBSECTIONS (C) AND (e).—The amendments made by 26 USC 143 note. subsections (c) and (e) shall apply to qualified mortgage bonds issued and mortgage credit certificates provided on or after the date of enactment of this Act. (4) CONTRACT FOR DEED AGREEMENTS.— The amendments 26 USC 143 note. made by subsection (d) shall apply to loans originated and credit certificates provided after the date of the enactment of this Act. SEC. 13142. LOW-INCOME HOUSING CREDIT. (a) PERMANENT EXTENSION. —

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