To amend the Internal Revenue Code of 1986 to clarify the mortgage subsidy bond benefits for residences located in disaster areas.

Amends the Internal Revenue Code with respect to mortgage subsidy bond benefits for residences located in disaster areas to: (1) raise, from $15,000 to $100,000, the maximum amount allowed for a qualified home improvement loan; (2) consider, for income requirements, such a residence as if it were a targeted area residence; and (3) set forth provisions concerning purchase of a replacement home.