12 2 STA T . 2 893PUBLIC LA W 11 0– 289 —J UL Y 30 , 2008 ‘ ‘ (B)tois s ueanyb on d a f te rc a l endar year 201 0 .’ ’. (b) TEMPORA R YRUL E F OR US EOF Q UAL I FIE DM OR TG AGE BO N DS P RO C EEDS FOR S U B PRIME REFINANCING L OANS. — (1) I N GENERAL.—Section 1 43 ( k ) (relatin g to ot h er defini - tions and s p ecial rules) is a m ended by adding at the end the follo w ing new paragraph
‘‘(12) SPECIAL RULES FOR SUBPRIME REFINANCINGS.— ‘‘( A ) IN GENERAL.— N otwithstanding the re q uirements of subsection (i)(1) , the proceeds of a qualified mortgage issue may be used to refinance a mortgage on a residence which was originally financed by the mortgagor through a qualified subprime loan. ‘‘(B) SPECIAL RULES.—In applying subparagraph (A) to any refinancing— ‘‘(i) subsection (a)(2)( D )(i) shall be applied by sub- stituting ‘12-month period’ for ‘42-month period’ each place it appears, ‘‘(ii) subsection (d) (relating to 3-year requirement) shall not apply, and ‘‘(iii) subsection (e) (relating to purchase price requirement) shall be applied by using the market v alue of the residence at the time of refinancing in lieu of the acquisition cost. ‘‘( C ) QUALIFIED SUBPRIME LOAN.—The term ‘qualified subprime loan’ means an ad j ustable rate single-family resi- dential mortgage loan made after December 31, 2001, and before J anuary 1, 200 8 , that the bond issuer determines would be reasonably likely to cause financial hardship to the borrower if not refinanced. ‘‘(D) TERMINATION.—This paragraph shall not apply to any bonds issued after December 31, 2010.’’. (c) E FFECTI V E DATE.—The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act. SEC.302 2. R E P E ALOF AL T ER N AT IV E M INIM U MTA X LIMITATIONS ON TAX - EXEMPT H OUSIN GB ON D S , LO W -INCOME HOUSING TAX CREDIT, AND REHABILITATION CREDIT. (a) TA X -EXEMPT INTEREST ON CERTAIN H OUSING BONDS EXEMPTED F ROM ALTERNATIVE MINIMUM TAX.— (1) IN GENERAL.—Subparagraph (C) of section 57 (a)(5) (relating to specified private activity bonds) is amended by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respec- tively, and by inserting after clause (ii) the following new clause: ‘‘(iii) EXCEPTION FOR CERTAIN H OUSING BONDS.— For purposes of clause (i), the term ‘private activity bond’ shall not include any bond issued after the date of the enactment of this clause if such bond is— ‘‘(I) an e x empt facility bond issued as part of an issue 9 5 percent or more of the net proceeds of which are to be used to provide qualified residen- tial rental projects (as defined in section 142(d)), ‘‘(II) a qualified mortgage bond (as defined in section 143(a)), or ‘‘(III) a qualified veterans’ mortgage bond (as defined in section 143(b)). 26USC143note.Ap p licab ilit y .
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