Page:United States Statutes at Large Volume 94 Part 2.djvu/1384

 94 STAT. 2662

PUBLIC LAW 96-499—DEC. 5, 1980 "(1) FOR A RESIDENCE.—A residence meets the requirements of this subsection only if— "(A) it is a single-family residence which can reasonably be expected to become the principal residence of the mortgagor within a reasonable time after the financing is provided, and "(B) it is located within the jurisdiction of the authority issuing the obligation. "(2) FOR AN ISSUE.—An issue meets the requirements of this subsection only if all of the residences for which owner-financing is provided under the issue meet the requirements of paragraph (1). "(e) 3-YEAR REQUIREMENT.—

"(1) IN GENERAL.—An issue meets the requirements of this subsection only if each mortgagor to whom financing is provided under the issue had a present ownership interest in a principal residence of such mortgagor at no time during the 3-year period ending on the date the mortgage is executed. For purposes of the preceding sentence, the mortgagor's interest in the residence with respect to which the financing is being provided shall not be taken into account. "(2) EXCEPTIONS.—Paragraph (1) shall not apply with respect to— "(A) any financing provided with respect to a targeted area residence, "(B) any qualified home improvement loan, and "(C) any qualified rehabilitation loan. "(f) PURCHASE PRICE REQUIREMENT.—

"(1) IN GENERAL.—An issue meets the requirements of this subsection only if the acquisition cost of each residence the owner-financing of which is to be provided under the issue does not exceed 90 percent of the average area purchase price applicable to such residence. "(2) AVERAGE AREA PURCHASE PRICE.—For purposes of paragraph (1), the term 'average area purchase price' means, with respect to any residence, the average purchase price of single family residences (in the statistical area in which the residence is located) which were purchased during the most recent 12-month period for which sufficient statistical information is available. The determination under the preceding sentence shall be made as of the date on which the commitment to provide the financing is made (or, if earlier, the date of the purchase of the residence). "(3) SEPARATE APPLICATION TO NEW RESIDENCES AND OLD RESI-

DENCES.—For purposes of this subsection, the determination of average area purchase price shall be made separately with respect to— "(A) residences which have not been previously occupied, and "(B) residences which have been previously occupied. "(4) SPECIAL RULE FOR 2 TO 4 FAMILY RESIDENCES.—For purposes

of this subsection, to the extent provided in regulations, the average area purchase price shall be made separately with respect to 1 family, 2 family, 3 family, and 4 family residences. (5) SPECIAL RULE FOR TARGETED AREA RESIDENCES.—In the case of a targeted area residence, paragraph (1) shall be applied by substituting '110 percent' for '90 percent'. "(6) EXCEPTION FOR QUALIFIED HOME IMPROVEMENT LOANS.—

Paragraph (1) shall not apply with respect to any qualified home improvement loan.

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