Page:United States Statutes at Large Volume 122.djvu/2909

 12 2 STA T . 2 8 8 6PUBLIC LA W 11 0– 28 9—J UL Y3 0, 2008 PARTI I —MOD I F I C ATIO NS TO TA X-E XEMPT H O U SIN GB OND RU L ES SEC.30 0 7 . R EC Y C LINGOFTAX- EXE MP T D E B T FOR FINANCING RESI- DENTIAL RENTAL PRO J ECTS. (a)INGE NE RAL.—Subsection (i) o f section 146 ( r e l atin g to treat -m ent of refun d ing issues) is amended b y adding at t h e end the follo w ing new p aragraph

‘(6) T REA TM ENT OFC ERTA I NRE S I D ENTIAL RENTAL P RO J ECT B ONDS AS REF U NDIN G BONDS IRRESPECTI V E OF OBLIGOR.— ‘‘( A ) IN GENERAL.—If , during the 6-month period begin- ning on the date of a repayment of a loan financed by an issue 95 percent or more of the net proceeds of which are used to pro v ide pro j ects described in section 14 2 (d), such repayment is used to provide a new loan for any project so described, any bond which is issued to refinance such issue shall be treated as a refunding issue to the e x tent the principal amount of such refunding issue does not exceed the principal amount of the bonds refunded. ‘‘( B ) L IMITATIONS.—Subparagraph (A) shall apply to only one refunding of the original issue and only if— ‘‘(i) the refunding issue is issued not later than 4 years after the date on which the original issue was issued, ‘‘(ii) the latest maturity date of any bond of the refunding issue is not later than 3 4 years after the date on which the refunded bond was issued, and ‘‘(iii) the refunding issue is approved in accordance with section 14 7 (f) before the issuance of the refunding issue. ’ ’. (b) LO W -INCOME H OUSING C REDIT.—Clause (ii) of section 42(h)(4)(A) is amended by inserting ‘‘or such financing is refunded as described in section 146(i)(6)’’ before the period at the end. (c) E FFECTIVE D ATE.—The amendments made by this section shall apply to repayments of loans received after the date of the enactment of this Act. SEC. 300 8 . COORDINATION OF CERTAIN R U LES APPLICABLE TO LO W - INCOME H OUSING CREDIT AND Q UALIFIED RESIDENTIAL RENTAL PROJECT EXEMPT FACILITY BONDS. (a) DETERMINATION OF N E X T AVAILABLE U NIT.— P aragraph (3) of section 142(d) (relating to current income determinations) is amended by adding at the end the following new subparagraph: ‘‘(C) EXCEPTION FOR PROJECTS WIT H RESPECT TO WHICH AFFORDABLE HOUSING CREDIT IS ALLOWED.—In the case of a project with respect to which credit is allowed under section 42, the second sentence of subparagraph (B) shall be applied by substituting ‘building (within the meaning of section 42)’ for ‘project’.’’. (b) STUDENTS.—Paragraph (2) of section 142(d) (relating to definitions and special rules) is amended by adding at the end the following new subparagraph: ‘‘(C) STUDENTS.— R ules similar to the rules of 42(i)(3)(D) shall apply for purposes of this subsection.’’. (c) SINGLE-ROOM O CCUPANC Y UNITS.—Paragraph (2) of section 142(d) (relating to definitions and special rules), as amended by 26USC4 2 note.Ap p licab ilit y .

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