,,ii  #aag? ,,congress  #b;d ,session   
,s4 #ddde  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #bb1 #bjbb,ms4   
,cortez ,ma/o introduc$ ! foll[+ bill2  
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 exp& h\s+ inve/m5t ) mortgage rev5ue   
bonds1 & = o!r purposes4  #a4 ,%ort     
title2 table ( cont5ts  7a7 ,%ort title 
,?is ,act may be cit$ z ! ,af=dable     
,h\s+ ,bond ,enhancem5t ,act4  7b7      
,am5dm5t ( #aihf ,code ,except z o!rwise
 expressly provid$1 :5ev] 9 ?is ,act an 
am5dm5t or repeal is express$ 9 t]ms (  
an am5dm5t to1 or repeal (1 a section or
 o!r provision1 ! ref]5ce %all be       
consid]$ to be made to a section or o!r 
provision ( ! ,int]nal ,rev5ue ,code (  
#aihf4  7c7 ,table ( cont5ts ,! table ( 
cont5ts = ?is ,act is z foll[s3 ,sec4   
#a4 ,%ort title2 table ( cont5ts4,sec4  
#b4 ,report+ requirem5ts = bond         
usage4,sec4 #c4 ,use ( c>ry=w>d bond    
au?ority4,sec4 #d4 ,elim9ation (        

ref9anc+ limitation = mortgage rev5ue   
bonds4,sec4 #e4 ,increase 9 f9anc+ limit
 = qualifi$ home improvem5t loans4,sec4 
#f4 ,revision ( recapture tax = mortgage
 rev5ue bonds4,sec4 #g4 ,modify+        
calculation ( cr$it = int]e/ paid on    
c]tifi$ indebt$ness4,sec4 #h4 ,ext5sion 
( p]iod = mortgage cr$it c]tificate to  
be 9 effect4,sec4 #i4 ,ext5sion ( p]iod 
to revoke election to issue mortgage    
cr$it c]tificates4,sec4 #aj4 ,adju/m5t (
 public notice requirem5t4,sec4 #aa4    
,elim9ation ( report+ requirem5t4  #b4  
,report+ requirem5ts = bond usage  7a7  
,9 g5]al ,section #adf is am5d$ by add+ 
at ! end ! foll[+3  7o7 ,report+ ,n lat]
 ?an ,april #a ( ea* cal5d> ye>1 !      
,secret>y %all submit a report to !     
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate1 ! ,committee on    
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives1 ! ,committee on ,ways &
 ,means ( ! ,h\se ( ,repres5tatives1 & !
 ,committee on ,f9ance ( ! ,s5ate1      
conta9+ in=mation1 z provid$ to !       

,secret>y by ,/ate & local issu+        
au?orities1 :i* specifies = ea* ,/ate-- 
7#a7 ! purposes = :i* any ,/ate ceil+ & 
c>ry=w>d "u subsection 7f7 applicable to
 su* ,/ate = ! prec$+ cal5d> ye> 0 us$1 
&  7#b7 ! total am\nt (-- 7,a7 any      
excess am\nts describ$ 9 p>agraph 7#a7 (
 subsection 7f7 = :i* ! issu+ au?ority  
did n elect to treat z a c>ry=w>d "u su*
 subsection1 &  7,b7 any am\nt ( any    
c>ry=w>d "u su* subsection :i* expir$   
pursuant to p>agraph 7#c77;,a7 ( su*    
subsection4  4  7b7 ,effective date ,!  
am5dm5t made by ?is section %all apply  
to cal5d> ye>s beg9n+ aft] ! date (     
enactm5t ( ?is ,act4  #c4 ,use (        
c>ry=w>d bond au?ority  7a7 ,9 g5]al    
,p>agraph 7#c7 ( section #adf7;f7 is    
am5d$-- 7#a7 by /rik+ subp>agraph 7,a7 &
 ins]t+ ! foll[+3  7,a7 ,9 g5]al ,if any
 issu+ au?ority-- 7i7 elects a c>ry=w>d 
"u p>agraph 7#a7 ) respect to any       
c>ry=w>d purpose1  7ii7 receives a      
c>ry=w>d "u p>agraph 7#d77;,b77i7 )     
respect to any c>ry=w>d purpose1 or     

7iii7 r$esignates a c>ry=w>d "u p>agraph
 7#d77;,b77ii7 = any c>ry=w>d purpose1  
any private activity bonds issu$ by su* 
au?ority ) respect to su* purpose at any
 "t dur+ ! #c cal5d> ye>s foll[+ !      
cal5d> ye> 9 :i* ! c>ry=w>d arose %all n
 be tak5 into acc\nt "u subsection 7a7  
to ! ext5t ! am\nt ( su* bonds issu$ at 
or prior to su* "t does n exce$ ! am\nt 
( ! c>ry=w>d elect$1 receiv$1 or        
r$esignat$ = su* purpose1 provid$ t su* 
am\nt has n be5 subsequ5tly transf]r$ to
 ano!r issu+ au?ority or r$esignat$ =   
ano!r purpose pursuant to p>agraph      
7#d77;,b74  1 &  7#b7 9 subp>agraph     
7,b71 by ins]t+ 1 or receiv$ or         
r$esignat$ =1 aft] ) respect to4  7b7   
,election ,p>agraph 7#d7 ( section      
#adf7;f7 is am5d$ to read z foll[s3     
7#d7 ,election  7,a7 ,9 g5]al ,except z 
provid$ 9 subp>agraph 7,b71 any election
 "u ?is subsection 7& any id5tification 
or specification conta9$ !re971 once    
made1 %all be irrevocable4  7,b7        
,exception = h\s+  7i7 ,transf] ,9 !    

case ( any c>ry=w>d elect$ "u p>agraph  
7#a7 by an issu+ au?ority ) respect to  
any c>ry=w>d purpose1 dur+ ! p]iod      
describ$ 9 p>agraph 7#c77;,a7 ) respect 
to su* c>ry=w>d1 su* issu+ au?ority may 
transf] su* c>ry=w>d to any issu+       
au?ority )9 ! same ,/ate t is au?oriz$  
to issue qualifi$ mortgage bonds or     
exempt facility bonds describ$ 9 section
 #adb7;a77#g74  7ii7 ,r$esignation ,9 ! 
case ( any c>ry=w>d-- 7,i7 elect$ "u    
p>agraph 7#a7 by an issu+ au?ority )    
respect to any c>ry=w>d purpose :i* has 
n be5 transf]r$ pursuant to clause 7i71 
or  7,,ii7 receiv$ by an issu+ au?ority 
pursuant to clause 7i7 ) respect to any 
c>ry=w>d purpose1  dur+ ! p]iod describ$
 9 p>agraph 7#c77;,a7 ) respect to su*  
c>ry=w>d1 su* issu+ au?ority may        
r$esignate su* c>ry=w>d to be = !       
purpose ( issu+ qualifi$ mortgage bonds 
or mortgage cr$it c]tificates1 or = !   
purpose ( issu+ exempt facility bonds   
describ$ 9 section #adb7;a77#g74  7iii7 
,/ate direction ,9 ! case ( a ,/ate :i* 

has enact$ a law describ$ 9 subsection  
7e77#a71 su* ,/ate may1 by law1         
prohibit1 limit1 require1 or o!rwise    
direct transf] or r$esignation by issu+ 
au?orities )9 su* ,/ate 7except 9 ! case
 ( a con/itutional home rule city7      
pursuant to ?is subp>agraph4  4  7c7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to elections made "u 
section #adf7;f7 ( ! ,int]nal ,rev5ue   
,code ( #aihf aft] ,decemb] #ca1 #bjbb4 
#d4 ,elim9ation ( ref9anc+ limitation = 
mortgage rev5ue bonds  7a7 ,9 g5]al     
,section #adc7;i77#a7 is am5d$ by add+  
at ! end ! foll[+3  7,d7 ,exception =   
ref9anc+ = c]ta9 mortgagors  7i7 ,9     
g5]al ,! ref9anc+ ( a mortgage on a     
resid5ce ( a mortgagor :o1 z ( ! date ( 
su* ref9anc+1 satisfies ! pr9cipal      
resid5ce requirem5ts "u subsection      
7c77#a7 & ! income requirem5ts "u       
subsection 7f7 %all n be treat$ z !     
acquisition or replacem5t ( an exi/+    
mortgage = purposes ( subp>agraph 7,a74 
7ii7 ,special rule ,9 apply+ clause 7i7 

to any ref9anc+1 subsection 7d7 %all n  
apply4  4  7b7 ,effective date ,!       
am5dm5t made by ?is section %all apply  
to ref9anc+ loans clos$ on or aft] !    
date ( enactm5t ( ?is ,act4  #e4        
,increase 9 f9anc+ limit = qualifi$ home
 improvem5t loans  7a7 ,increase 9      
f9anc+ limit ,p>agraph 7#d7 ( section   
#adc7k7 is am5d$ by /rik+ #ae1jjj &     
ins]t+ #ej1jjj4  7b7 ,inflation adju/m5t
 ,p>agraph 7#d7 ( section #adc7k71 z    
am5d$ by subsection 7a71 is am5d$-- 7#a7
 by r$esignat+ subp>agraphs 7,a7 & 7,b7 
z clauses 7i7 & 7ii71 respectively1 & by
 mov+ su* clauses 7z s r$esignat$7 #b   
ems to ! "r1  7#b7 by /rik+ ,! t]m &    
ins]t+ ! foll[+3  7,a7 ,9 g5]al ,! t]m  
1 &  7#c7 by add+ at ! end ! foll[+3    
7,b7 ,inflation adju/m5t  7i7 ,9 g5]al  
,9 ! case ( any cal5d> ye> beg9n+ aft]  
#bjbb1 ! #ej1jjj am\nt 9 subp>agraph    
7,a7 %all be increas$ by an am\nt equal 
to-- 7,i7 su* doll> am\nt1 multipli$ by 
7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u 
section #a7;f77#c7 = su* cal5d> ye>1    

det]m9$ by sub/itut+ #bjba = #bjaf 9    
subp>agraph 7,a77ii7 !re(4  7ii7 ,r\nd+ 
,if any increase "u clause 7i7 is n a   
multiple ( #ajj1 su* increase %all be   
r\nd$ to ! ne>e/ multiple ( #ajj4  4    
7c7 ,effective dates  7#a7 ,increase 9  
f9anc+ limit ,! am5dm5ts made by        
subsection 7a7 %all apply to loans made 
on or aft] ! date ( enactm5t ( ?is ,act4
  7#b7 ,inflation adju/m5t ,! am5dm5ts  
made by subsection 7b7 %all apply to    
cal5d> ye>s beg9n+ aft] ,decemb] #ca1   
#bjbb4  #f4 ,revision ( recapture tax = 
mortgage rev5ue bonds  7a7 ,9 g5]al     
,subp>agraph 7,c7 ( section #adc7m77#d7 
is am5d$ to read z foll[s3  7,c7 ,hold+ 
p]iod p]c5tage ,! t]m hold+ p]iod       
p]c5tage means ! p]c5tage det]m9$ 9     
accordance ) ! foll[+ table3 ,if !      
disposition occurs dur+ a ye> aft] !    
te/+ date :i* is3,! hold+ p]iod p]c5tage
 is3,! #a/ su* ye>#bj,! #bnd su*        
ye>#dj,! #crd su* ye>#fj,! #d? su*      
ye>#hj,! #e? su* ye>#ajj4  4  7b7       
,con=m+ am5dm5t ,section                

#adc7m77#g77;,b77ii7 is am5d$ by /rik+  
#i-ye> p]iod & ins]t+ #e-ye> p]iod4  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ,decemb] #ca1 #bjba4  #g4   
,modify+ calculation ( cr$it = int]e/   
paid on c]tifi$ indebt$ness  7a7 ,9     
g5]al ,section #be is am5d$-- 7#a7 9    
subsection 7a7-- 7,a7 9 p>agraph 7#a71  
by /rik+ subp>agraph 7,b7 & ins]t+ !    
foll[+3  7,b7 ! orig9al pr9cipal am\nt (
 ! c]tifi$ indebt$ness am\nt on :i*     
int]e/ 0 paid or accru$ by ! taxpay]    
dur+ ! taxable ye>4  1 &  7,b7 9        
p>agraph 7#b7-- 7i7 9 ! head+1 by /rik+ 
:]e cr$it rate exce$s #bj p]c5t1 &  7ii7
 9 subp>agraph 7,a71 by /rik+ ,if !     
c]tificate cr$it rate exce$s #bj p]c5t1 
! & ins]t+ ,!1 &  7#b7 9 subsection     
7d7-- 7,a7 by /rik+ p>agraph 7#a7 &     
ins]t+ ! foll[+3  7#a7 ,9 g5]al  7,a7   
,c]tificate cr$it rate ,subject to      
subp>agraph 7,b71 ! c]tificate cr$it    
rate specifi$ 9 any mortgage cr$it      
c]tificate %all n be less ?an #a p]c5t  

or m ?an #e p]c5t4  7,b7 ,v>iable rate  
,) respect to any mortgage cr$it        
c]tificate1 ! issu+ au?ority may elect  
to specify a diff]5t c]tificate cr$it   
rate = ea* ye> ( ! t]m ( ! mortgage4  1 
&  7,b7 9 p>agraph 7#b7-- 7i7 9 ! head+1
 by /rik+ c]tificate cr$it rates &      
ins]t+ am\nt ( cr$it c]tificates1 &     
7ii7 9 subp>agraph 7,a77ii71 by ins]t+  
av]age annual be=e c]tificate cr$it     
rate4  7b7 ,effective date ,! am5dm5ts  
made by ?is section %all apply to       
mortgage cr$it c]tificates issu$ aft]   
,decemb] #ca1 #bjba4  #h4 ,ext5sion (   
p]iod = mortgage cr$it c]tificate to be 
9 effect  7a7 ,9 g5]al ,section         
#be7;e77#c77;,b7 is am5d$ by /rik+      
second & ins]t+ f\r?4  7b7 ,effective   
date ,! am5dm5ts made by ?is section    
%all apply to mortgage cr$it c]tificates
 issu$ aft] ,decemb] #ca1 #bjbb4  #i4   
,ext5sion ( p]iod to revoke election to 
issue mortgage cr$it c]tificates  7a7 ,9
 g5]al ,section #be7;c77#b7 is am5d$ by 
add+ at ! end ! foll[+3  7,c7           

,revocation ( election to issue mortgage
 cr$it c]tificates ,= purposes ( any    
election made by an issu+ au?ority "u   
subp>agraph 7,a77ii7 dur+ any cal5d>    
ye>1 su* issu+ au?ority may subsequ5tly 
elect to r$uce ! nonissu$ bond am\nt 7z 
def9$ 9 subsection 7d77#b77;,b77 = su*  
cal5d> ye>1 provid$ t su* election is   
made n lat] ?an ! end ( ! succe$+ cal5d>
 ye>4  4  7b7 ,effective date ,! am5dm5t
 made by ?is section %all apply to      
elections made by an issu+ au?ority "u  
section #be7;c77#b77;,a77ii7 ( !        
,int]nal ,rev5ue ,code ( #aihf aft]     
,decemb] #ca1 #bjbb4  #aj4 ,adju/m5t (  
public notice requirem5t  7a7 ,9 g5]al  
,section #be7;e77#e7 is am5d$ by /rik+  
#ij days & ins]t+ #cj days4  7b7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to notices provid$   
aft] ,decemb] #ca1 #bjbb4  #aa4         
,elim9ation ( report+ requirem5t  7a7 ,9
 g5]al ,section #be is am5d$ by /rik+   
subsection 7g74  7b7 ,con=m+ am5dm5ts   
,section #fgji is am5d$-- 7#a7 by /rik+ 

subsection 7c71 &  7#b7 by r$esignat+   
subsection 7d7 z subsection 7c74  7c7   
,effective date ,! am5dm5ts made by ?is 
section %all take effect on ! date (    
enactm5t ( ?is ,act4