Page:United States Statutes at Large Volume 96 Part 1.djvu/518

 96 STAT. 476

PUBLIC LAW 97-248—SEPT. 3, 1982 (b) DISPOSITION OF NONMORTGAGE INVESTMENT IN CASE OF LOSS.—

26 USC 103A.

Paragraph (3) of section 103A(i) (relating to n o n m o r t g a g e investment requirements) is amended by adding a t the end thereof the following new subparagraph: "(D)

N O DISPOSITION IN CASE OF LOSS.—This paragraph

shall not require the sale or disposition of any investment if such sale or disposition would result in a loss which exceeds the a m o u n t which would be paid or credited to the mortgagors under paragraph (4)(A) (but for such sale or disposition) at the time of such sale or disposition." (c)

REQUIREMENT

THAT

MORTGAGORS

BE

FIRST

TIME

HOME-

BUYERS.—Subsection (e) of section 103A (relating to 3-year requirement) is amended to read as follows: "(e) 3-YEAR REQUIREMENT. —

"(1) IN GENERAL.—An issue meets the requirements of this subsection only if 90 percent or more of the lendable proceeds of such issue a r e used to finance the residences of mortgagors who had no present ownership i n t e r e s t in the i r principal residences a t any t i m e during the 3-year period ending on the date the i r mortgage is executed. "(2) EXCEPTIONS.—For purposes of paragraph (1), the proceeds of a n issue which a r e used— "(A) to provide financing with respect to targeted a r e a residences, "(B) to provide qualified h o m e improvement loans, and "(C) to provide qualified rehabilitation loans, shall not be t a k e n into account. "(3) MORTGAGOR'S INTEREST I N RESIDENCE BEING F I N A N C E D. —

For purposes of paragraph (1), a mortgagor's i n t e r e s t in the residence with respect to which the financing is being provided shall not be t a k e n into account." (d)

INCREASE I N MAXIMUM P U R C H A S E P R I C E. — S u b s e c t i o n (f)

of

section 103A (relating to purchase price requirement) is amended— (1) by striking out "90 p e r c e n t " each place it a p p e a r s and inserting in lieu thereof "110 p e r c e n t " and (2) by striking out "110 p e r c e n t " in paragraph (5) and inserting in lieu thereof "120 percent". (e) T R E A T M E N T OF COOPERATIVE H O U S I N G CORPORATIONS.—Subsec-

tion (1) of section 103A (relating to other definitions and special rules) is amended by adding at the end thereof the following new paragraph: "(10) COOPERATIVE HOUSING CORPORATIONS.—

"(A) IN GENERAL.—In the case of any cooperative housing corporation— "(i) each dwelling u n i t shall be t r e a t e d as if it were actually owned by the person entitled to occupy such dwelling u n i t by reason of his ownership of stock in the corporation, and "(ii) any indebtedness of the corporation allocable to the dwelling u n i t shall be t r e a t e d as if it were indebtedness of the shareholder entitled to occupy the dwelling unit. "(B)

ADJUSTMENT TO TARGETED AREA REQUIREMENT. — I n

the case of any issue to provide financing to a cooperative housing corporation with respect to cooperative housing not located in a targeted area, to the extent provided in regulations, such issue may be combined with 1 or more other

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