Page:United States Statutes at Large Volume 94 Part 2.djvu/1390

 94 STAT. 2668

PUBLIC LAW 96-499—DEC. 5, 1980 "(1) MORTGAGE.—The term 'mortgage' includes any other owner-financing. "(2) BOND.—The term 'bond' includes any obligation. "(3) STATE.—The term 'State' includes a possession of the United States and the District of Columbia. "(4) STATISTICAL AREA.—

"(A) IN GENERAL.—The term 'statistical area' means— "(i) a standard metropolitan statistical area, and "(ii) any county (or the portion thereof) which is not within a standard metropolitan statistical area. "(B)

STANDARD METROPOLITAN STATISTICAL AREA.—The

term 'standard metropolitan statistical area' means the area in and around a city of 50,000 inhabitants or more (or equivalent area) as defined by the Secretary of Commerce. "(C) DESIGNATION WHERE ADEQUATE STATISTICAL INFORMATION NOT AVAILABLE.—For purposes of this paragraph, if

there is insufficient recent statistical information with respect to a county (or portion thereof) described in subparagraph (A)(ii), the Secretary may substitute for such county (or portion thereof) another area for which there is sufficient recent statistical information. "(D) DESIGNATION WHERE NO COUNTY.—In the case of any portion of a State which is not within a county, subparagraphs (A)(ii) and (C) shall be applied by substituting for 'county' an area designated by the Secretary which is the equivalent of a county. "(5) ACQUISITION COST.—

"(A) IN GENERAL.—The term 'acquisition cost' means the cost of acquiring the residence as a completed residential unit. "(B) EXCEPTIONS.—The term 'acquisition cost' does not include— "(i) usual and reasonable settlement or financing costs, "(ii) the value of services performed by the mortgagor or members of his family in completing the residence, and "(iii) the cost of land which has been owned by the mortgagor for at least 2 years before the date on which construction of the residence begins. "(C) SPECIAL RULE FOR QUALIFIED REHABILITATION LOANS.—

In the case of a qualified rehabilitation loan, for purposes of subsection (f), the term 'acquisition cost' includes the cost of the rehabilitation. "(6) QUALIFIED HOME IMPROVEMENT LOAN.—The term 'qualified home improvement loan' means the financing (in an amount which does not exceed $15,000)— "(A) of alterations, repairs, and improvements on or in connection with an existing residence by the owner thereof, but "(B) only of such items as substantially protect or improve the basic livability or energy efficiency of the property. "(7) QUALIFIED REHABILITATION LOAN.—

' (A) IN GENERAL.—The term 'qualified rehabilitation loan' means any owner-financing provided in connection with— "(i) a qualified rehabilitation, or "(ii) the acquisition of a residence with respect to which there has been a qualified rehabilitation,

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