Page:United States Statutes at Large Volume 83.djvu/747

 83 STAT.]

PUBLIC LAW 9 1 - 1 7 2 - D E C. 30, 1969

719

" (b) DEFINITIONS.—For purposes of this section— " ( ]) QUALIFIED HOUSING PROJECT.—The term 'qualified housing project' means a project to provide rental or cooperative housing for lower income families— " (A) with respect to which a mortgage is insured under section 221(d)(3) or 236 of the National Housing Act, and ^s Stat. iso; " (B) with respect to which the owner is, under such sec- 12 USC 1715^, tions or regulations issued thereunder— i7isz-i. " (i) limited as to the rate of return on his investment in the project, and "(ii) limited as to rentals or occupancy charges for units in the project. "(2) APPROVED DISPOSITION.—The term 'approved disposition' means a sale or other disposition of a qualified housing project to the tenants or occupants of units in such project, or to a cooperative or other nonprofit organization formed solely for the benefit of such tenants or occupants, which sale or disposition is approved by the Secretary of Housing and Urban Development under section 221(d)(3) or 236 of the National Housing Act or regulations issued under such sections. "(3) REINVESTMENT PERIOD.—The reinvestment period, with respect to an approved disposition of a qualified housing project, is the period beginning one year before the date of such approved disposition and ending— " (A) one year after the close of the first taxable year in which any part of the gain from such approved disposition is realized, or " (B) subject to such terms and conditions as may be specified by the Secretary or his delegate, at the close of such later date as the Secretary or his delegate may designate on application by the taxpayer. Such application shall be made at such time and in such manner as the Secretary or his delegate prescribes by regulations. •'(4) N E T AMOUNT REALIZED.—The net amount realized on an

approved disposition of a qualified housing project is the amount realized reduced by— " (A) the expenses paid or incurred which are directly connected with such approved disposition, and " (B) the amount of taxes (other than income taxes) paid or incurred which are attributable to such approved disposition. "(c) SPECIAL RULES.—For purposes of applying subsection (a)(2) with respect to an approved disposition— "(1) no property acquired by the taxpayer before the date of the approved disposition shall be taken into account unless such property is held by the taxpayer on such date, and "(2) no property acquired by the taxpayer shall be taken into account unless, except as provided in subsection (d), the unadjusted basis of such property is its cost within the meaning of section 1012. " (d) BASIS OF OTHER QUALIFIED HOUSING PROJECT.—If the tax-

payer makes an election under subsection (a) with respect to an approved disposition, the basis of the qualified housing project described in subsection (a)(2) shall be its cost reduced by an amount equal to the amount of gain not recognized by reason of the application of subsection (a).

68A Stat. 296. ^^ " ^ ^ ^°^^

�