[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2913 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2913

  To amend the Internal Revenue Code of 1986 to clarify the mortgage 
    subsidy bond benefits for residences located in disaster areas.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 7, 1997

 Mr. Ramstad introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to clarify the mortgage 
    subsidy bond benefits for residences located in disaster areas.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF SPECIAL MORTGAGE SUBSIDY BOND RULES FOR 
              RESIDENCES LOCATED IN DISASTER AREAS.

    Paragraph (11) of section 143(k) of the Internal Revenue Code of 
1986 is amended to read as follows:
            ``(11) Special rules for residences located in disaster 
        areas.--
                    ``(A) Home improvement loans for repairs.--In the 
                case of financing provided by a qualified home 
                improvement loan for the repair of damage to a 
                residence located in a disaster area which was 
                sustained as a result of the disaster--
                            ``(i) the limitation under paragraph (4) 
                        shall be increased (but not above $100,000) to 
                        the extent such loan is for the repair of such 
                        damage, and
                            ``(ii) subsection (f) (relating to income 
                        requirement) shall be applied as if such 
                        residence were a targeted area residence.
                    ``(B) Purchase of replacement home.--In the case of 
                financing provided to acquire a residence located in a 
                disaster area by mortgagors whose prior residence was 
                in such area and was destroyed or otherwise rendered 
                uninhabitable as a result of the disaster--
                            ``(i) subsection (d) (relating to 3-year 
                        requirement) shall not apply, and
                            ``(ii) subsections (e) and (f) (relating to 
                        purchase price requirement and income 
                        requirement) shall be applied as if such 
                        residence were a targeted area residence.
                    ``(C) Financing must be provided within 2 years 
                after disaster declaration.--This paragraph shall apply 
                only to financing provided within 2 years after the 
                date of the disaster declaration.
                    ``(D) Disaster area.--For purposes of this 
                paragraph, the term `disaster area' means an area 
                determined by the President to warrant assistance from 
                the Federal Government under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act (as in 
                effect on the date of the enactment of the Taxpayer 
                Relief Act of 1997).
                    ``(E) Application of paragraph.--This paragraph 
                shall apply only with respect to bonds issued after 
                November 7, 1997, and before January 1, 1999.''.
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