[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2714 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2714

To amend the Internal Revenue Code of 1986 to provide a higher purchase 
 price limitation applicable to mortgage subsidy bonds based on median 
                             family income.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 13, 2000

Mrs. Lincoln (for herself, Mr. Hatch, Mr. Hutchinson, Mr. Jeffords, and 
  Mr. Breaux) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a higher purchase 
 price limitation applicable to mortgage subsidy bonds based on median 
                             family income.

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

SECTION 1. INCREASE IN PURCHASE PRICE LIMITATION UNDER MORTGAGE SUBSIDY 
              BOND RULES BASED ON MEDIAN FAMILY INCOME.

    (a) In General.--Paragraph (1) of section 143(e) of the Internal 
Revenue Code of 1986 (relating to purchase price requirement) is 
amended to read as follows:
            ``(1) In general.--An issue meets the requirements of this 
        subsection only if the acquisition cost of each residence the 
        owner-financing of which is provided under the issue does not 
        exceed the greater of--
                    ``(A) 90 percent of the average area purchase price 
                applicable to the residence, or
                    ``(B) 3.5 times the applicable median family income 
                (as defined in subsection (f)(4)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.
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