Amends the Internal Revenue Code to revise requirements for the exclusion of interest on mortgage subsidy bonds.
Includes as an element of a good faith effort to satisfy such requirements a showing that the issuer of bonds conducts periodic audits and prosecutes any cases of fraud. Provides that an issuer's diligent effort to correct a failure to meet a particular requirement will cure such a failure.
Revises the arbitrage requirements to increase the amount by which interest rates on tax-exempt mortgage subsidy bonds may exceed the interest rates on mortgages financed with such bonds. Specifies that issuers are not required to dispose of any investment and realize a loss in order to satisfy arbitrage restrictions.
Repeals the registration requirements for bond issues.
Revises requirements for residential rental property bond issues relating to the median income level of occupants and the term of the low-income occupancy.
Referred to House Committee on Ways and Means.
Introduced in Senate
Read second time and referred to Senate Committee on Finance.
Subcommittee on Taxation and Debt Management took the following actions.
Committee on Finance requested executive comment from OMB; Treasury Department.
Subcommittee on Taxation and Debt Management. Hearings held.
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