PUBLIC LAW 103-66 —AUG. 10, 1993 107 STAT. 439 of the status of the prospective tenant as such a holder,". (5) HOME ASSISTANCE NOT TO RESULT IN CERTAIN BUILD- INGS BEING FEDERALLY SUBSIDIZED. —Paragraph (2) of section 42(i) (relating to determination of whether building is federally 26 USC 42. subsidized) is amended by adding at the end thereof the following new subparagraph: "(E) BUILDINGS RECEIVING HOME ASSISTANCE.— "(i) IN GENERAL.— Assistance provided under the HOME Investment Partnerships Act (as in effect on the date of the enactment of this subparagraph) with respect to any building shall not be taken into account under subpara|praph (D) if 40 percent or more of the residential units in the building are occupied by individuals whose income is 50 percent or less of area median gross income. Subsection (d)(5)(C) shall not apply to any building to which the preceding sentence applies.
- (ii) SPECIAL RULE FOR CERTAIN HIGH-COST HOUS-
ING AREAS.— In the case of a building located in a city described in section 142(d)(6), clause (i) shall be applied by substituting *25 percent' for *40 percent'." (6) EFFECTIVE DATES.— 26 USC 42 note. (A) IN GENERAL. — Except as provided in subparagraphs (B) and (C), the amendments made by this subsection shall apply to— (i) determinations under section 42 of the Internal Revenue Code of 1986 with respect to hoiising credit dollar amounts allocated from State housing credit ceilings after June 30, 1992, or (ii) buildings placed in service after June 30, 1992, to the extent paragraph (1) of section 42(h) of such Code does not apply to any building by reason of paragraph (4) thereof, but only with respect to bonds issued after such date. (B) WAIVER AUTHORITY AND PROHIBITED DISCRIMINA- TION.—The amendments made by paragraphs (3) and (4) shall take effect on the date of the enactment of this Act. (C) HOME ASSISTANCE.—The amendment made by paragraph (2) shall apply to periods after the date of the enactment of this Act. (c) ELECTION TO DETERMINE RENT LIMITATION BASED ON NUM- 26 USC 42 note. BER OF BEDROOMS AND DEEP RENT SKEWING.— (1) In the case of a building to which the amendments made by subsection (e)(1) or (n)(2) of section 7108 of the Revenue Reconciliation Act of 1989 did not apply, the taxpayer may elect to have such amendments apply to such bmlding if the taxpayer has met the requirements of the procedures described in section 42(m)(l)(B)(iii) of the Internal Revenue Code of 1986. (2) In the case of the amendment made by such subsection (e)(l), such election shall apply only with respect to tenants first occupying any unit in the building after the date of the election. (3) In the case of the amendment made by such subsection (n)(2), such election shall apply only if rents of low-income
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