,,ii  #aai? ,,congress  #b;d ,session   
,s4 #cijd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,febru>y #bd1 #bjbf,ms4
 ,w>r5 7= h]self1 ,mr4 ,m]kley1 ,ms4    
,klobu*>1 ,ms4 ,smi?1 ,mr4 ,blum5?al1   
,ms4 ,duckwor?1 ,mr4 ,durb91 ,mr4       
,he9ri*1 ,ms4 ,hirono1 ,mr4 ,ka9e1 ,mr4 
,kim1 ,mr4 ,m>key1 ,mr4 ,murphy1 ,mr4   
,s*atz1 ,mr4 ,s&]s1 ,mr4 ,s*iff1 ,mr4   
,van ,holl51 ,mr4 ,wel*1 & ,mr4 ,book]7 
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to d5y int]e/ &   
depreciation d$uctions = c]ta9 taxpay]s1
 & = o!r purposes4  #a4 ,%ort title ,?is
 ,act may be cit$ z ! ,am]ican          
,home[n]%ip ,act4  #b4 ,disall[ance (   
d$uction = int]e/ paid on real prop]ty  
own$ by c]ta9 real prop]ty own]s  7a7 ,9
 g5]al ,section #afc ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ subsection 7n7 z subsection  
7o7 & by ins]t+ aft] subsection 7m7 !   
foll[+ new subsection3  7n7 ,int]e/ paid

 on resid5tial r5tal prop]ty own$ by    
c]ta9 real prop]ty own]s  7#a7 ,9 g5]al 
,no d$uction %all be all[$ "u ?is *apt] 
= any int]e/ paid or accru$ 9 connection
 )-- 7,a7 any applicable resid5tial     
prop]ty 9 :i* an in/itutional inve/m5t  
entity 7directly or indirectly7 holds a 
majority int]e/1 or  7,b7 s+le-family   
resid5tial prop]ty 9 :i* a l>ge own]    
7directly or indirectly7 holds a        
majority int]e/4  7#b7 ,exception =     
sales to individuals or qualifi$        
nonpr(it organizations  7,a7 ,9 g5]al   
,p>agraph 7#a7 %all n apply ) respect to
 int]e/ paid or accru$ 9 ! taxable ye> 9
 :i* applicable resid5tial prop]ty is   
sold4  7,b7 ,exception ,subp>agraph 7,a7
 %all n apply unless ! sale describ$ 9  
su* subp>agraph is-- 7i7 a sale to an   
individual = use z ! pr9ciple resid5ce (
 ! individual 7)9 ! mean+ ( section     
#aba71 or  7ii7 a sale to any qualifi$  
nonpr(it organization4  7,c7 ,qualifi$  
nonpr(it organization  7i7 ,9 g5]al ,=  
purposes ( ?is p>agraph1 ! t]m qualifi$ 

nonpr(it organization means any         
organization :i*-- 7,i7 is n organiz$ = 
pr(it1 &  7,,ii7 has z a pr9cipal       
purpose ! creation1 developm5t1 or      
pres]vation ( af=dable h\s+4  7ii7      
,c]ta9 organizations includ$ ,! t]m     
qualifi$ nonpr(it organization %all     
include-- 7,i7 any community developm5t 
corporation 7z def9$ 9 section #bjd7;b7 
( ! ,dep>tm5t ( ,vet]ans ,affairs &     
,h\s+ & ,urban ,developm5t1 & ,indep5d5t
 ,ag5cies ,appropriations ,act1 #aiig   
7#ab ,u4,s4,c4 #agaez-#aa;a7b7771       
7,,ii7 any community h\s+ developm5t    
organization 7z def9$ 9 section #ajd ( !
 ,cran/on-,gonzalez ,national ,af=dable 
,h\s+ ,act 7#db ,u4,s4,c4 #abgjd771     
7,,iii7 any community-bas$ developm5t   
organization qualifi$ "u section        
#egj4bjd ( title #bd1 ,code ( ,f$]al    
,regulations1 z 9 effect on ! date ( !  
enactm5t ( ?is subsection1  7,,iv7 any  
l& bank1  7,v7 any resid5t-own$         
coop]ative or community l& tru/1 &      
7,,vi7 any subsidi>y ( a public h\s+    

ag5cy 7z def9$ 9 section #c7;b77#f7 ( ! 
,unit$ ,/ates ,h\s+ ,act ( #aicg 7#db   
,u4,s4,c4 #adcg;a7b77#f7774  7iii7  ,l& 
bank  ,= purposes ( ?is subp>agraph1 !  
t]m l& bank means a gov]nm5t entity1    
ag5cy1 or program1 or a special purpose 
nonpr(it entity =m$ by "o or m units (  
gov]nm5t 9 accordance ) ,/ate or local  
l& bank enabl+ law1 t has be5 designat$ 
by "o or m ,/ate or local gov]nm5ts to  
acquire1 /ew>d1 & dispose ( vacant1     
ab&on$1 or o!r problem prop]ties 9      
accordance ) locally det]m9$ priorities 
& goals4  7iv7 ,community l& tru/ ,=    
purposes ( ?is subp>agraph1 ! t]m       
community l& tru/ means a nonpr(it      
entity1 a ,/ate1 a unit ( local         
gov]nm5t1 or an in/rum5tality ( a ,/ate 
or unit ( local gov]nm5t t-- 7,i7 is n  
manag$ by1 or an affiliate (1 a =-pr(it 
organization1  7,,ii7 has z a prim>y    
purpose ( acquir+1 develop+1 or hold+ l&
 to provide h\s+ t is p]man5tly af=dable
 to l[- & mod]ate-income p]sons1        
7,,iii7 monitors prop]ties to ensure    

af=dability is pres]v$1  7,,iv7 provides
 h\s+ t is p]man5tly af=dable to l[- &  
mod]ate-income p]sons us+ a gr\nd lease1
 de$ cov5ant1 or o!r simil> legally     
en=ceable measure1 det]m9$ acceptable by
 ! ,secret>y1 t-- 7aa7 keeps h\s+       
af=dable to l[- & mod]ate-income p]sons 
= n less ?an #cj ye>s1 &  7bb7 enables  
l[- & mod]ate-income p]sons to r5t or   
pur*ase ! h\s+ = home[n]%ip1 &  7,v7    
ma9ta9s preemptive pur*ase options to   
pur*ase ! prop]ty if su* pur*ase w\ld   
all[ ! h\s+ to rema9 af=dable to l[- &  
mod]ate-income p]sons4  7#c7 ,exception 
= new s+le-family h\s+  7,a7 ,9 g5]al ,9
 ! case ( a s+le-family resid5tial      
prop]ty ! orig9al use ( :i* beg9s ) an  
eligible taxpay] aft] ,decemb] #ca1     
#bjbc1 p>agraph 7#a7 %all n apply to    
int]e/ paid or accru$ by su* eligible   
taxpay] ) respect to su* prop]ty 9 any  
taxable ye> dur+ ! #e-taxable-ye> p]iod 
beg9n+ ) ! taxable ye> 9 :i* prop]ty is 
plac$ 9 s]vice4  7,b7 ,eligible taxpay] 
,= purposes ( ?is p>agraph1 ! t]m       

eligible taxpay] means ! p]son :o       
con/ruct$ ! s+le-family resid5tial      
prop]ty4  7#d7 ,exception = new         
multi-family h\s+  7,a7 ,9 g5]al        
,p>agraph 7#a7 %all n apply to any      
multi-family resid5tial prop]ty !       
orig9al use ( :i* beg9s ) an eligible   
taxpay] aft] ,decemb] #ca1 #bjbc4  7,b7 
,eligible taxpay] ,= purposes ( ?is     
p>agraph1 ! t]m eligible taxpay] means !
 p]son :o con/ruct$ ! multi-family      
resid5tial prop]ty4  7,c7 ,multi-family 
resid5tial prop]ty ,= purposes ( ?is    
p>agraph1 ! t]m multi-family resid5tial 
prop]ty means any applicable resid5tial 
prop]ty :i* has #e or m dwell+ units 7z 
def9$ 9 section                         
#afh7;e77#b77;,a77ii77,i774  7#e7       
,exception to pres]ve un9habitable h\s+ 
7,a7 ,9 g5]al ,9 ! case ( any int]e/    
paid or accru$ ) respect to debt :i* is 
incurr$ = ! prim>y purpose (            
sub/antially rehabilitat+ previ\sly     
un9habitable applicable resid5tial      
prop]ty1 p>agraph 7#a7 %all n apply to  

int]e/ paid or accru$ 9 any taxable ye> 
dur+ ! #e-taxable-ye> p]iod beg9n+ )    
taxable ye> 9 :i* su* debt is orig9ally 
paid or accru$4  7,b7 ,un9habitable ,=  
purposes ( ?is p>agraph1 ! t]m          
un9habitable means1 ) respect to        
applicable resid5tial prop]ty1 prop]ty t
 is n fit = human occupancy1 conta9s    
s]i\s defects pos+ risks to heal? or    
safety1 or does n meet /ructural or core
 sy/em elem5ts ( local build+ codes4    
7,c7 ,sub/antial rehabilitation ,=      
purposes ( ?is p>agraph1 ! t]m          
sub/antial rehabilitation means1 )      
respect to applicable resid5tial        
prop]ty1 /ructural repairs or rebuild+1 
) ! co/ ( rehabilitation g5]ally be+ a  
significant portion ( ! prop]ty's value 
aft] ! "w is complet$4  7#f7 ,exception 
= af=dable h\s+ ,p>agraph 7#a7 %all n   
apply to any int]e/ paid or accru$ )    
respect to any prop]ty-- 7,a7 :i* is    
,f$]ally assi/$ h\s+ 7z def9$ 9 section 
#egi ( ! ,quality ,h\s+ & ,"w           
,responsibility ,act ( #aiih71 or  7,b7 

7i7 :i*-- 7,i7 has receiv$ an allocation
 ( h\s+ cr$it doll> am\nt "u section    
#db7;h7 = su* taxable ye> or any prior  
taxable ye>1 or  7,,ii7 is a build+     
describ$ 9 section #db7;h77#d77;,b71 &  
7ii7 = :i* an ext5d$ l[-income h\s+     
commitm5t describ$ 9 section #db7;h77#f7
 is 9 effect z ( ! end ( ! taxable ye>4 
7#g7 ,def9itions ,= purposes ( ?is      
subsection-- 7,a7 ,in/itutional inve/m5t
 entity ,! t]m ,in/itutional inve/m5t   
entity means-- 7i7 any issu] t is exempt
 f regi/ration "u section #c7;c7 ( !    
,inve/m5t ,company ,act ( #aidj1 or     
7ii7 any o!r inve/m5t vehicle t pools   
funds exclusively f accr$it$ inve/ors z 
def9$ 9 section #bcj4eja ( title #ag1   
,code ( ,f$]al ,regulations 7or any     
successor regulation74  7,b7 ,l>ge own] 
7i7 ,9 g5]al ,= purposes ( ?is          
subsection1 ! t]m l>ge own] means any   
p]son :o 7directly or indirectly7 holds 
a majority int]e/ 9 s+le-family         
resid5tial r5tal prop]ties :i* 9 !      
aggregate conta9 #ej or m dwell+ units4 

7ii7 ,aggregation rules ,= purposes (   
?is subp>agraph1 all p]sons treat$ z a  
s+le employ] "u subsection 7a7 or 7b7 ( 
section #eb1 or subsection 7m7 or 7o7 ( 
section #dad1 %all be treat$ z "o       
taxpay] = purposes ( ?is section4  7iii7
 ,modifications  7,i7 ,9 g5]al ,=       
purposes ( apply+ clause 7ii7-- 7aa7    
section #eb7;a7 %all be appli$ by       
sub/itut+ compon5t memb]s = memb]s1 &   
7bb7 = purposes ( apply+ section        
#eb7;b71 ! t]m trade or bus9ess %all    
include any activity treat$ z a trade or
 bus9ess "u p>agraph 7#e7 or 7#f7 (     
section #dfi7;c7 7det]m9$ )\t reg>d to !
 phrase ,to ! ext5t provid$ 9           
regulations 9 su* p>agraph 7#f774       
7,,ii7 ,compon5t memb] ,= purposes ( ?is
 subp>agraph1 ! t]m compon5t memb] has !
 mean+ giv5 su* t]m by section          
#aefc7;b71 except t ! det]m9ation %all  
be made )\t reg>d to subp>agraphs 7,b71 
7,c71 7,d7 or 7,e7 ( p>agraph 7#b7 !re(4
  7,,iii7 ,no inf]5ce ,! modifications  
made by subclause 7,i7 %all n be con/ru$

 to create any inf]5ce ) respect to !   
prop] application ( section #eb )       
respect to any o!r provision ( ?is      
title4  7,c7 ,applicable resid5tial     
prop]ty  7i7 ,9 g5]al ,! t]m applicable 
resid5tial prop]ty means any prop]ty :i*
 is-- 7,i7 resid5tial r5tal prop]ty 7z  
def9$ 9 section #afh7;e77#b77;,a77i771  
7,,ii7 a manufactur$ h\s+ community1 or 
7,,iii7 a manufactur$ home 7z def9$ 9   
section #fjc ( ! ,national ,manufactur$ 
,h\s+ ,con/ruction & ,safety ,/&>ds ,act
 ( #aigd 7#db ,u4,s4,c4 #edjb77 :i* is n
 resid5tial r5tal prop]ty 7z s def9$74  
7ii7 ,manufactur$ h\s+ community ,! t]m 
manufactur$ h\s+ community means a      
resid5tial real e/ate developm5t ) lots 
on :i* factory-built homes1 includ+     
manufactur$ homes1 are locat$1 toge!r ) 
support+ infra/ructure4  7,d7           
,s+le-family resid5tial prop]ty ,! t]m  
s+le-family resid5tial prop]ty means any
 applicable resid5tial prop]ty :i*      
conta9s #d or few] dwell+ units 7z def9$
 9 section #afh7;e77#b77;,a77ii77,i774  

7#h7 ,regulations ,! ,secret>y %all     
prescribe su* regulations z may be      
necess>y or appropriate to c>ry out !   
purposes ( ?is subsection1 includ+--    
7,a7 regulations = id5tify+ ! am\nt (   
int]e/ paid or accru$ 9 connection )    
applicable resid5tial prop]ty &         
s+le-family resid5tial prop]ty1 includ+ 
any int]e/ paid or accru$ ?r\gh indirect
 f9anc+ arrangem5ts1  7,b7 regulations1 
9 consultation ) ! ,secret>y ( ,h\s+ &  
,urban ,developm5t1 = id5tify+ &1 to !  
ext5t provid$ by ! ,secret>y1           
sub/antiat+ ! am\nt ( int]e/ paid or    
accru$ ) respect to debt :i* is incurr$ 
= ! prim>y purpose ( sub/antially       
rehabilitat+ previ\sly un9habitable     
applicable resid5tial prop]ty "u        
p>agraph 7#e71 &  7,c7 regulations to   
prev5t ! avoidance ( ! purposes ( ?is   
subsection4  4  7b7 ,application to     
capitaliz$ am\nts  7#a7 ,9 g5]al        
,section #bfc;,a7f77#b7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,d7

 ,exception = c]ta9 int]e/ ( c]ta9 real 
prop]ty own]s ,subp>agraph 7,a7 %all n  
apply to any int]e/ = :i* a d$uction    
w\ld be disall[$ "u section #afc7n74  4 
7#b7 ,c>ry+ *>ges ,section #bff ( su*   
,code is am5d$-- 7,a7 by /rik+ ,no      
d$uction & ins]t+ ! foll[+3  7a7 ,9     
g5]al ,no d$uction  1 &  7,b7 by add+ at
 ! end ! foll[+ new subsection3  7b7    
,special rule = c]ta9 int]e/ ( c]ta9    
real prop]ty own]s ,no election may be  
made "u ?is section to treat z *>geable 
to capital acc\nt any int]e/ = :i* a    
d$uction w\ld be disall[$ "u section    
#afc7n74  4  7c7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4  #c4 ,disall[ance (
 depreciation 9 connection ) prop]ty (  
c]ta9 real prop]ty own]s  7a7 ,9 g5]al  
,section #afg ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by r$esignat+         
subsection 7i7 z subsection 7j7 & by    
ins]t+ aft] subsection 7h7 ! foll[+ new 
subsection3  7i7 ,d$uction disall[$ =   

c]ta9 real prop]ty own]s  7#a7 ,9 g5]al 
,no d$uction %all be all[$ "u ?is       
section =-- 7,a7 any applicable         
resid5tial prop]ty 9 :i* an in/itutional
 inve/m5t entity 7directly or           
indirectly7 holds a majority int]e/1 or 
7,b7 s+le-family resid5tial prop]ty 9   
:i* a l>ge own] 7directly or indirectly7
 holds a majority int]e/4  7#b7         
,exceptions ,rules simil> to ! rules (  
p>agraphs 7#b71 7#c71 7#d71 7#e71 & 7#f7
 ( section #afc7n7 %all apply = purposes
 ( ?is subsection4  7#c7 ,def9itions ,= 
purposes ( ?is subsection-- 7,a7        
,applicable resid5tial prop]ty ,! t]m   
applicable resid5tial prop]ty means--   
7i7 any prop]ty describ$ 9 section      
#afc7n77#g77;,c71 &  7ii7 any           
improvem5ts to real prop]ty :i*-- 7,i7  
are directly relat$ to dwell+ units     
conta9$ on prop]ty describ$ 9 clause    
7i71 &  7,,ii7 are locat$ on ! site (   
su* dwell+ units4  7,b7 ,s+le-family    
resid5tial prop]ty ,! t]m s+le-family   
resid5tial prop]ty means-- 7i7 any      

prop]ty describ$ 9 section              
#afc7n77#g77;,d71 &  7ii7 any           
improvem5ts to real prop]ty :i*-- 7,i7  
are directly relat$ to dwell+ units     
conta9$ on prop]ty describ$ 9 clause    
7i71 &  7,,ii7 are locat$ on ! site (   
su* dwell+ units4  7,c7 ,in/itutional   
inve/m5t entity2 l>ge own] ,! t]ms      
in/itutional inve/m5t entity & l>ge own]
 h ! respective mean+s giv5 su* t]ms "u 
section #afc7n74  7#d7 ,regulations ,!  
,secret>y %all prescribe su* regulations
 z may be necess>y or appropriate to    
c>ry out ! purposes ( ?is subsection1   
includ+ regulations to prev5t !         
avoidance ( ! purposes ( ?is subsection4
  4  7b7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ! date ( !     
enactm5t ( ?is ,act4  #d4 ,prohibition  
on sale or provision ( ,f$]ally back$   
mortgage loans to c]ta9 inve/ors  7a7   
,def9itions ,9 ?is section3 7#a7 ,cov]$ 
entity ,! t]m cov]$ entity means-- 7,a7 
! ,dep>tm5t ( ,h\s+ & ,urban            

,developm5t1 includ+ ! ,f$]al ,h\s+     
,adm9i/ration & ! ,gov]nm5t ,national   
,mortgage ,association2  7,b7 !         
,dep>tm5t ( ,vet]ans ,affairs2  7,c7 !  
,dep>tm5t ( ,agriculture2  7,d7 ! ,f$]al
 ,national ,mortgage ,association2  7,e7
 ! ,f$]al ,national ,mortgage           
,corporation2 &  7,f7 any o!r ,f$]al    
ag5cy t is sell+ or o!rwise dispos+ (   
cov]$ resid5tial prop]ty4  7#b7 ,cov]$  
resid5tial prop]ty ,! t]m cov]$         
resid5tial prop]ty-- 7,a7 means         
resid5tial real prop]ty or a manufactur$
 h\s+ community2 &  7,b7 does n         
include-- 7i7 ,f$]ally assi/$ h\s+1 z   
def9$ 9 section #egi ( ! ,quality ,h\s+ 
& ,"w ,responsibility ,act ( #aiih 7#db 
,u4,s4,c4 #acffd72 or  7ii7 any         
resid5tial prop]ty t uses tax cr$its "u 
section #db ( ! ,int]nal ,rev5ue ,code (
 #aihf4  7#c7 ,f$]ally back$ mortgage   
loan ,! t]m ,f$]ally back$ mortgage loan
 has ! mean+ giv5 ! t]m 9 section       
#djbb7;a7 ( ! ,,c>es ,act 7#ae ,u4,s4,c4
 #ijef7;a774  7#d7 ,in/itutional        

inve/m5t entity2 l>ge own] ,! t]ms      
in/itutional inve/m5t entity & l>ge own]
 h ! mean+s giv5 ^? t]ms 9 subp>agraphs 
7,a7 & 7,b77i7 ( section #afc7n77#g7 ( !
 ,int]nal ,rev5ue ,code ( #aihf1 z add$ 
by ?is ,act4  7#e7 ,manufactur$ h\s+    
community ,! t]m manufactur$ h\s+       
community means a resid5tial real e/ate 
developm5t ) lots on :i* factory-built  
homes1 includ+ manufactur$ homes 7z     
def9$ 9 section #fjc ( ! ,national      
,manufactur$ ,h\s+ ,con/ruction &       
,safety ,/&>ds ,act ( #aigd 7#db        
,u4,s4,c4 #edjb771 are locat$1 toge!r ) 
support+ infra/ructure4  7#f7           
,resid5tial real prop]ty ,! t]m         
resid5tial real prop]ty has ! mean+ giv5
 ! t]m 9 section #ajjd ( ! ,resid5tial  
,lead-,bas$ ,pa9t ,haz>d ,r$uction ,act 
( #aiib 7#db ,u4,s4,c4 #dhea;b74  7b7   
,prohibition on sale ,a cov]$ entity may
 n sell or o!rwise dispose ( ,f$]ally   
back$ mortgage loans or cov]$ resid5tial
 prop]ties to a l>ge own] or an         
in/itutional inve/m5t entity1 includ+ a 

loan or prop]ty t is-- 7#a7 a nonp]=m+  
or re-p]=m+ loan2  7#b7 a =eclos$ home2 
7#c7 a real e/ate-own$ prop]ty2 or  7#d7
 any o!r real e/ate-relat$ asset held by
 ! cov]$ entity4  7c7 ,prohibition on   
f9anc+  7#a7 ,9 g5]al ,a cov]$ entity   
may n issue1 insure1 gu>antee1 or       
securitize any mortgage loan :]e !      
borr[] is a l>ge own] or an in/itutional
 inve/m5t entity1 unless ! mortgage loan
 is relat$ to-- 7,a7 ! con/ruction or   
rehabilitation ( h\s+ ) af=dability use 
re/rictions2 or  7,b7 ! ref9ance ( exi/+
 loans relat$ to su* h\s+1 & su*        
ref9ance w n result 9 ! elim9ation (    
af=dability use re/rictions4  7#b7      
,application ,! prohibition "u p>agraph 
7#a7 %all n apply ) respect to a        
mortgage loan t is issu$1 insur$1       
gu>ante$1 or securitiz$ be=e ! date (   
enactm5t ( ?is ,act4  #e4 ,inve/m5ts 9  
h\s+ supply & home[n]%ip  7a7           
,def9itions ,9 ?is section3 7#a7 ,heir  
prop]ty ,! t]m heir prop]ty means       
resid5tial prop]ty = :i* title pass$ by 

op]ation ( law ?r\gh inte/acy & is held 
by #b or m heirs z t5ants 9 common4     
7#b7 ,qualifi$ homebuy] ,! t]m qualifi$ 
homebuy] means a homebuy] t meets all ( 
! foll[+ requirem5ts3 7,a7 ,income ,!   
h\sehold ( ! homebuy] has an income t   
does n exce$-- 7i7 #abj p]c5t ( m$ian   
income = ! area 7z det]m9$ by !         
,secret>y ( ,h\s+ & ,urban ,developm5t7 
)9 :i*-- 7,i7 ! home to be acquir$ us+  
assi/ance "u ?is section is locat$2 or  
7,,ii7 ! place ( resid5ce ( ! homebuy]  
is locat$2 or  7ii7 9 ! case ( a        
homebuy] acquir+ a home t is locat$ 9 a 
high-co/ area1 z det]m9$ by ! ,secret>y 
( ,h\s+ & ,urban ,developm5t1 #adj p]c5t
 ( ! m$ian income = ! area )9 :i* ! home
 to be acquir$ us+ assi/ance "u ?is     
section is locat$4  7,b7 ,fir/-"t       
homebuy] ,! homebuy]1 z self-atte/$ by !
 homebuy]1 is a fir/-"t homebuy]1 z     
def9$ 9 section #ajd ( ! ,cran/on       
,gonzalez ,national ,af=dable ,h\s+ ,act
 7#db ,u4,s4,c4 #abgjd71 except t-- 7i7 
= ! purposes ( ?is section1 ! ref]5ce 9 

su* section #ajd to title ,,ii %all be  
consid]$ to ref] to ?is section2 &  7ii7
 own]%ip ( heir prop]ty %all n be treat$
 z own+ a home = purposes ( det]m9+ :e!r
 a borr[] qualifies z a fir/-"t         
homebuy]4  7,c7 ,fir/-g5]ation homebuy] 
,! homebuy]1 z self-atte/$ by !         
homebuy]1 is-- 7i7 an individual-- 7,i7 
^: p>5ts or legal gu>dians d n1 or did n
 at ! "t ( _! dea?1 to ! be/ ( !        
individual's k1 h any pres5t own]%ip    
int]e/ 9 a resid5ce 9 any ,/ate1 exclud+
 own]%ip ( heir prop]ty or own]%ip (    
*attel2 &  7,,ii7 ^: sp\se or dome/ic   
p>tn] has n1 dur+ ! #c-ye> p]iod end+ ^u
 acquisition ( ! eligible home to be    
acquir$ us+ su* assi/ance1 _h any pres5t
 own]%ip int]e/ 9 a resid5ce 9 any      
,/ate1 exclud+ own]%ip ( heir prop]ty or
 own]%ip ( *attel1 :e!r ! individual is 
a co-borr[] on ! loan or n2 or  7ii7 an 
individual :o has at any "t be5 plac$ 9 
fo/] c>e or in/itutional c>e ^: sp\se or
 dome/ic p>tn] has n1 dur+ ! #c-ye>     
p]iod end+ ^u acquisition ( ! home to be

 acquir$ us+ assi/ance "u ?is section1  
_h any own]%ip int]e/ 9 a resid5ce 9 any
 ,/ate1 exclud+ own]%ip ( heir prop]ty  
or own]%ip ( *attel1 :e!r su*           
individuals are co-borr[]s on ! loan or 
n4  7b7 ,transf]s ,= fiscal ye> #bjbf & 
ea* fiscal ye> !reaft]1 !re are h]eby   
appropriat$ am\nts equal to ! foll[+    
p]c5tages ( sav+s 7z e/imat$ by !       
,secret>y ( ! ,treasury7 result+ f !    
limits on d$uctions e/abli%$ "u sections
 #afc7n7 & #afg7;i7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf1 z add$ by ?is ,act3 7#a7
 #hj p]c5t ( su* am\nts to ! ,secret>y (
 ,h\s+ & ,urban ,developm5t to provide  
additional fund+ = ! ,,home ,inve/m5t   
,p>tn]%ips program "u subtitle ,a (     
title ,,ii ( ! ,cran/on-,gonzalez       
,national ,af=dable ,h\s+ ,act 7#db     
,u4,s4,c4 #abgda et seq471 to be        
allocat$ 9 accordance ) ! =mula "u t    
program1 except t su* am\nts %all n be  
subject to ! requirem5ts "u section #bca
 ( su* ,act 7#db ,u4,s4,c4 #abgga71 = ! 
foll[+ purposes3 7,a7 ,acquisition (    

af=dable h\s+1 & associat$              
rehabilitation or pres]vation ( su*     
acquir$ h\s+4  7,b7 #fj p]c5t ( ! #hj   
p]c5t "u ?is p>agraph to be us$ = new   
con/ruction ( af=dable h\s+1 ) at lea/  
half ( su* funds to be us$ = new        
con/ruction ( af=dable h\s+ = ! b5efit (
 extremely l[-income h\seholds4  7#b7   
#bj p]c5t ( su* am\nts to ! ,secret>y ( 
,h\s+ & ,urban ,developm5t to e/abli% a 
fund to provide grants ( assi/ance on   
behalf ( qualifi$ homebuy]s1 ! am\nt (  
:i* %all n exce$ ! great] ( #bj1jjj or  
#aj p]c5t ( ! pur*ase price = ea*       
qualifi$ homebuy]1 = d[n paym5ts1 clos+ 
co/s1 & int]e/ rate buyd[ns associat$ ) 
acquir+ own]-occupi$ prim>y resid5ces4  
#f4 ,increase antitru/ monitor+ = real  
prop]ty own]s  7a7 ,h\s+ acquisitions   
review & transp>5cy  7#a7 ,def9itions ,9
 ?is section3 7,a7 ,resid5tial prop]ty  
,! t]m resid5tial prop]ty-- 7i7 means   
prop]ty t is zon$ or int5d$ to be us$ z 
a dwell+ = individuals or h\seholds1    
includ+ multifamily h\s+1 condom9iums1  

manufactur$ homes1 or s+le-family homes2
 &  7ii7 does n include any place (     
%ort-t]m lodg+4  7,b7 ,inve/m5t r5tal   
prop]ty ,! t]m inve/m5t r5tal prop]ty   
means real prop]ty t-- 7i7 w n be r5t$  
to an entity1 includ+ any entity ( !    
acquir+ p]son1 except = ! sole purpose (
 ma9ta9+1 manag+1 or sup]vis+ ! op]ation
 ( ! real prop]ty2 &  7ii7 w be held    
solely = r5tal or inve/m5t purposes4    
7,c7 ,place ( %ort-t]m lodg+ ,! t]m     
place ( %ort-t]m lodg+ means a hotel1   
motel1 inn1 %ort-t]m r5tal1 or o!r place
 ( lodg+ t adv]tises at a price t is a  
nightly1 h\rly1 or weekly rate4  7#b7   
,am5dm5ts mak+ h\s+ transactions        
reportable  7,a7 ,s+le acquisition      
,section #g;,a7a7 ( ! ,clayton ,act 7#ae
 ,u4,s4,c4 #ah;a7a77 is am5d$ by add+ at
 ! end ! foll[+3 ,= purposes ( ?is      
subsection1 all acquisitions (          
resid5tial prop]ty 7z def9$ 9 section   
#f7;a7 ( ! ,am]ican ,home[n]%ip ,act by 
any p]son )9 a s+le cal5d> ye> %all be  
deem$ to be a s+le acquisition &        

notification pursuant to ?is subsection 
%all be fil$ by ! acquir+ p]son ^u      
acquir+ ! prop]ty t br+s su* s+le       
acquisition )9 any requirem5t describ$ 9
 p>agraph 7#b7 :5 aggregat$ ) all o!r   
prior acquisitions ( resid5tial prop]ty 
by ! p]son 9 t cal5d> ye>44  7,b7       
,exemption  ,section #g;,a7c77#a7 ( !   
,clayton ,act 7#ae ,u4,s4,c4            
#ah;a7c77#a77 is am5d$ by ins]t+ 1      
unless ! transaction includes resid5tial
 prop]ty or inve/m5t r5tal prop]ty 7z   
def9$ 9 section #f7;a7 ( ! ,am]ican     
,home[n]%ip ,act71 includ+ 9 ! =m ( a   
real e/ate inve/m5t tru/1 t is n solely 
int5d$ = ! p]sonal use ( an individual44
  7,c7 ,code ( ,f$]al ,regulations ,!   
,f$]al ,trade ,commission1 ) !          
concurr5ce ( ! ,assi/ant ,attorney      
,g5]al 9 *>ge ( ! ,antitru/ ,division ( 
! ,dep>tm5t ( ,ju/ice1 %all1 by rule1 9 
accordance ) section #eec ( title #e1   
,unit$ ,/ates ,code-- 7i7 am5d "p #hjb (
 title #af1 ,code ( ,f$]al ,regulations 
to con=m ) ! am5dm5ts to section        

#g;,a7a7 ( ! ,clayton ,act 7#ae         
,u4,s4,c4 #ah7;a77 made by ?is p>agraph2
 &  7ii7 resc9d any rules exempt+       
resid5tial prop]ty or inve/m5t r5tal    
prop]ty pursuant to section             
#g;,a7d77#b77;,b7 ( t ,act4  7#c7       
,rulemak+ ,! ,f$]al ,trade ,commission1 
) ! concurr5ce ( ! ,assi/ant ,attorney  
,g5]al 9 *>ge ( ! ,antitru/ ,division ( 
! ,dep>tm5t ( ,ju/ice & by rule1 9      
accordance ) section #eec ( title #e1   
,unit$ ,/ates ,code1 %all issue rules   
relat+ to ! =m & docum5t>y mat]ial &    
in=mation relevant to any acquisition or
 aggregat$ acquisitions ( resid5tial    
prop]ty is necess>y & appropriate "u    
section #g;,a7a7 ( ! ,clayton ,act 7#ae 
,u4,s4,c4 #ah;a7a771 z am5d$ by p>agraph
 7#b71 to enable ! ,f$]al ,trade        
,commission & ! ,assi/ant ,attorney     
,g5]al to det]m9e :e!r su* acquisition  
or aggregat$ acquisitions may violate ! 
antitru/ laws1 z def9$ 9 subsection 7a7 
( ! fir/ section ( ! ,clayton ,act 7#ae 
,u4,s4,c4 #ab74  7b7 ,presumption (     

unlawful m]g] or acquisition  7#a7 ,s5se
 ( ,congress ,x is ! s5se ( ,congress   
t-- 7,a7 m>ket conc5tration & ! *ange 9 
m>ket conc5tration due to a m]g] or     
acquisition c be an important indicator 
( ! m]g] or acquisition's risk (        
sub/antially less5+ competition2 &  7,b7
 9 a l&m>k case1 ! ,supreme ,c\rt       
correctly expla9$ t ! int5se            
congressional conc]n ) ! tr5d t[>d      
conc5tration w>rants disp5s+1 9 c]ta9   
cases1 ) elaborate pro( ( m>ket         
/ructure1 m>ket behavior1 or probable   
anticompetitive effects4 ,unit$ ,/ates  
v4 ,philadelphia ,national ,bank1 #cgd  
,u4,s4 #cba 7#aifc74  7#b7 ,presumption 
7,a7 ,9 g5]al ,= ! avoidance ( d\bt1 !  
,dep>tm5t ( ,ju/ice & ! ,f$]al ,trade   
,commission %all apply ! presumption t  
an acquisition involv+ resid5tial       
prop]ty increas+ ! relevant m>ket %>e ( 
! acquir+ p]son to m ?an #cj p]c5t      
violates ! antitru/ laws1 z def9$ 9     
subsection 7a7 ( ! fir/ section ( !     
,clayton ,act 7#ae ,u4,s4,c4 #ab71 & t  

su* acquisition con/itutes an unfair    
me?od ( competition "u section #e ( !   
,f$]al ,trade ,commission ,act 7#ae     
,u4,s4,c4 #de74  7,b7 ,rule (           
con/ruction ,! cl>ification describ$ 9  
subp>agraph 7,a7 %all n be read to limit
 ! use ( ! presumption "u t subp>agraph 
9 o!r m>kets1 ca/ d\bt on o!r           
presumptions 9 antitru/ en=cem5t1 or    
sugge/ t a m>ket %>e t is less ?an #cj  
p]c5t is presumptively lawful4