26 C.F.R. § 1.42-3. - § 1.42-3 Treatment of Buildings Financed With Proceeds From a Loan Under an Affordable Housing Program Established Pursuant to Section 721 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (firrea).

Current as of January 1, 1970
Section 1.42-3 - § 1.42-3 Treatment of Buildings Financed With Proceeds From a Loan Under an Affordable Housing Program Established Pursuant to Section 721 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (firrea).
Section 1.42-2 - § 1.42-2 [reserved]Section 1.42-4 - § 1.42-4 Application of Not-for-profit Rules of Section 183 to Low-income Housing Credit Activities.

§ 1.42-3 Treatment of buildings financed with proceeds from a loan under an Affordable Housing Program established pursuant to section 721 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).

(a) Treatment under sections 42(i) and 42(b). A below market loan funded in whole or in part with funds from an Affordable Housing Program established under section 721 of FIRREA is not, solely by reason of the Affordable Housing Program funds, a below market Federal loan as defined in section 42(i)(2)(D). Thus, any building with respect to which the proceeds of the loan are used during the tax year is not, solely by reason of the Affordable Housing Program funds, treated as a federally subsidized building for that tax year and subsequent tax years for purposes of determining the applicable percentage for the building under section 42(b).

(b) Effective date. The rules set forth in paragraph (a) of this section are effective for loans made after August 8, 1989.

[56 FR 48734, Sept. 26, 1991]

Disclaimer. This may not be the most current version of this information. Users should consult official sources to verify information on this site is recent and current. Marble does not warrant or represent the accuracy, completeness or reliability of the information contained on this site.