Economic Growth and Affordable Housing Act of 1992

Economic Growth and Affordable Housing Act of 1992 - Title I: First-Time Homebuyer Credit - Allows a first-time homebuyer who purchases a principal residence a tax credit of ten percent of the purchase price, not to exceed $5,000. Limits such credit to one residence and requires acquisition between December 31, 1992, and January 1,1993.

Title II: Modifications of Passive Loss Rules - Amends the Internal Revenue Code to provide for the treatment of rental and nonrental real estate activities under the limitations on losses from passive activities.

Title III: Penalty-Free Distributions From IRA's for First Homes - Allows penalty-free withdrawals from individual retirement plans for a first-home purchase.

Title IV: Low-Income Housing Credit and Qualified Mortgage Bonds - Makes the low-income housing credit permanent law. Expands the ten-year anti-churning rule waiver to certain projects substantially assisted, financed, or operated under the National Housing Act. Allows units occupied by certain full-time students to qualify for such credit. Authorizes the Treasury Department to waive penalties for certain de minimis errors and recertifications. Requires that certain community service facilities in projects in qualified census tracts be included in the eligible basis as functionally related and subordinate facilities.

Permanently extends the period during which qualified mortgage bonds and mortgage credit certificates may be issued.

Title V: Enterprise Zones - Subtitle A: Designation of Enterprise Zones - Authorizes the Secretary of Housing and Urban Development to designate enterprise zones for purposes of providing tax and regulatory relief and improving local services. Limits choices to areas nominated by States and local governments. Limits the total number of areas that may be designated, and the time period of the designation.

Authorizes the Secretary to designate a zone only if the area meets certain locational, demographic, unemployment, and poverty criteria. Requires nominating local governments, as a condition of the Secretary's designation, to agree in writing to follow a course of action that may include reducing tax rates, improving local services, simplifying or streamlining regulation of business, and providing job training to area residents.

Describes areas to which the Secretary must give preference in selecting areas for designation.

Requires the Secretary to report to the Congress every two years on the effects of such enterprise zones' designation in accomplishing the purposes of this Act.

Subtitle B: Federal Income Tax Incentives - Allows a nonrefundable income tax credit to enterprise zone employees for five percent of any wages earned that do not exceed a specified amount. Phases out such credit. Provides for the nonrecognition of capital gain on the sale of enterprise zone property. Allows a taxpayer a deduction on the aggregate amount paid for the purchase of enterprise stock on its original issue by a qualified issuer.

Requires any gain from the disposition of the stock to be treated as ordinary income.

Excludes enterprise zone capital gains from income computation of alternative minimum taxes.

Subtitle C: Regulatory Flexibility - Amends Federal law to revise the definition of "small entity" for purposes of the analysis of regulatory functions to include qualified business, government, and nonprofit enterprises operating within enterprise zones.

Authorizes Federal agencies, upon request by a designating government, to waive or modify rules and regulations pertaining to the implementation of projects or activities within an enterprise zone. Requires agencies to approve the request if the resulting benefits of job creation, community development, or economic revitalization outweigh the public interest in retaining the rule unchanged.

Disallows waiver or modification of a rule that would directly violate a statutory requirement or present a danger to the public health and safety.

Subtitle D: Establishment of Foreign-Trade Zones in Enterprise Zones - Requires the Foreign-Trade Zone Board to consider on a priority basis and to expedite the processing of applications for the establishment of foreign-trade zones within enterprise zones. Requires the Secretary of the Treasury to give priority to, and expedite applications for, the establishment of ports of entry necessary to establish such zones.

Subtitle E: Repeal of Title VII of the Housing and Community Development Act of 1987 - Repeals title VII (enterprise zone development) of the Housing and Community Development Act of 1987.