Page:United States Statutes at Large Volume 94 Part 2.djvu/1389

 PUBLIC LAW 96-499—DEC. 5, 1980

94 STAT. 2667

"(i) construction period loans, "(ii) bridge loans or similar temporary initial financing, and (iii) in the case of a qualified rehabilitation, an existing mortgage, shall not be treated as the acquisition or replacement of an existing mortgage for purposes of subparagraph (A). "(3) CERTAIN REQUIREMENTS MUST BE MET WHERE MORTGAGE IS

ASSUMED.—An issue meets the requirements of this subsection only if a mortgage with respect to which owner-financing has been provided under such issue may be assumed only if the requirements of subsections (d), (e), and (f), are met with respect to such assumption, "(k) TARGETED AREA RESIDENCES.—

"(1) IN GENERAL.—For purposes of this section, the term 'targeted area residence' means a residence in an area which is either— "(A) a qualified census tract, or "(B) an area of chronic economic distress. "(2) QUALIFIED CENSUS TRACT.—

(A) IN GENERAL.—For purposes of paragraph (1), the term 'qualified census tract' means a census tract in which 70 percent or more of the families have income which is 80 percent or less of the statewide median family income. "(B) DATA USED.—The determination under subparagraph (A) shall be made on the basis of the most recent decennial census for which data are available. "(3) AREA OF CHRONIC ECONOMIC DISTRESS.—

"(A) IN GENERAL.—For purposes of paragraph (1), the term 'area of chronic economic distress' means an area of chronic economic distress— "(i) designated by the State as meeting the standards established by the State for purposes of this subsection, and "(ii) the designation of which has been approved by the Secretary and the Secretary of Housing and Urban Development. "(B) CRITERIA TO BE USED IN APPROVING STATE DESIGNA-

TIONS.—The criteria used by the Secretary and the Secretary of Housing and Urban Development in evaluating any proposed designation of an area for purposes of this subsection shall be— "(i) the condition of the housing stock, including the age of the housing and the number of abandoned and substandard residential units, "(ii) the need of area residents for owner-financing under this section, as indicated by low per capita income, a high percentage of families in poverty, a high number of welfare recipients, and high unemployment rates, "(iii) the potential for use of owner-financing under this section to improve housing conditions in the area, and "(iv) the existence of a housing assistance plan which provides a displacement program and a public improvements and services program. "(1) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes of this section—

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