A bill to amend the Internal Revenue Code of 1954 to clarify certain requirements which apply to mortgage subsidy bonds, to make tax-exempt bonds available for certain residential rental property, and for other purposes.

Amends the Internal Revenue Code to revise requirements for the tax exclusion of interest on mortgage subsidy bonds.

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.

Increases the amount by which the acquisition cost of a residence financed with such bonds may exceed the average area purchase price. Revises prior residency requirements for mortgagors.

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.