A bill to amend the Internal Revenue Code of 1986 to permanently extend qualified mortgage bonds and low-income housing credit, and for other purposes.

Amends the Internal Revenue Code to permanently extend the period during which qualified mortgage bonds and mortgage credit certificates may be issued. (Under current law, authority for these programs is due to expire as of 1990.) Modifies the method of determining high housing cost areas.

Provides for the permanent extension of the low-income housing credit. Modifies the determination of the eligible basis of any building in a difficult development area to include the adjusted basis of the real property upon which the building is located. Revises the formula for allocating unused housing credit carryovers among qualified States.