Page:United States Statutes at Large Volume 94 Part 2.djvu/1393

 PUBLIC LAW 96-499—DEC. 5, 1980

94 STAT. 2671

(B) it was reasonable to expect that the bond issue, as developed by the staff, would be promptly approved by the governing body of the housing authority, then such action by such staff shall be treated as the official action of such governing body. (3) SPECIAL RULES RELATING TO SIZE OF ISSUE.—

(A) IN GENERAL.—Except as provided in subparagraph (B), an issue does not qualify for the exception provided by paragraph (1) if the issue size exceeds the intended issue size. (B) EXCEPTION.—In the case of an issue to provide ownerfinancing for residences for which as of April 24, 1979, there was no documentation relating to intended issue size, paragraph (1) shall not apply unless— (i) substantially all of the proceeds of the issue (exclusive of issuance costs and a reasonably required reserve) are to be used to provide owner-financing for one to four family residences (one unit of which is owner occupied) and not to acquire or replace existing mortgages (within the meaning of section 103A(j)(2) of the Internal Revenue Code of 1954), and Ante, p. 2660. (ii) substantially all of the proceeds referred to in clause (i) are committed by firm commitment letters (similar to those used in owner-financing not provided with tax-exempt bonds) to such owner-financing before the day which is 9 months after the date of issue of the obligations. (C) ISSUE SIZE DEFINED.—For purposes of this paragraph, the term "issue size" means the aggregate face amount of obligations issued pursuant to the issue. (D) INTENDED ISSUE SIZE.—For purposes of this paragraph, the term "intended issue size" means the aggregate face amount of obligations which a reasonable individual would reasonably conclude from the documentation before April 25, 1979, was the issue size which the governing body of the issuing authority intended to issue. (4) LOCAL REFERENDUM HELD BEFORE J U N E 13, 1979.—

(A) IN GENERAL.—For purposes of paragraph (1), if— (i) on April 25, 1979, legislation was pending in a State legislature, (ii) on April 27, 1979, such legislation was amended to authorize local governmental units to issue tax-exempt obligations, (iii) before June 13, 1979, such legislation was enacted and a local governmental unit in such State held a referendum with respect to the issuance of obligations to finance owner-occupied residences, and (iv) any action with respect to the issuance of such obligations by the governing body of such local governmental unit would have met the requirements of paragraph (1) if such legislation had been in effect, and such referendum had been held, when that action was taken, then such legislation shall be treated as in effect, and such referendum shall be treated as having been held, at the time when such action was taken. (B) DOLLAR LIMIT FOR LOCAL GOVERNMENTAL UNITS.—The

aggregate amount of obligations which may be issued by local governmental units with respect to the area comprising

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