114 STAT. 2763A-612 PUBLIC LAW 106-554—APPENDIX G (b) PREFERENCE FOR COMMUNITY REVITALIZATION PROJECTS LOCATED IN QUALIFIED CENSUS TRACTS. —Clause (ii) of section 42(m)(l)(B) is amended by striking "and" at the end of subclause (I), by adding "and" at the end of subclause (II), and by inserting after subclause (II) the following new subclause: "(III) projects which are located in qualified census tracts (as defined in subsection (d)(5)(C)) and the development of which contributes to a concerted community revitalization plan,". SEC. 133. ADDITIONAL RESPONSIBILITIES OF HOUSING CREDIT AGEN- CIES. (a) MARKET STUDY; PUBLIC DISCLOSURE OF RATIONALE FOR NOT FOLLOWING CREDIT ALLOCATION PRIORITIES. — Subparagraph (A) of section 42(m)(l) (relating to responsibilities of housing credit agencies) is amended l3y striking "and" at the end of clause (i), by striking the period at the end of clause (ii) and inserting a comma, and by adding at the end the following new clauses: "(iii) a comprehensive market study of the housing needs of low-income individuals in the area to be served by the project is conducted before the credit allocation is made and at the developer's expense by a disinterested party who is approved by such agency, and "(iv) a written explanation is available to the general public for any allocation of a housing credit dollar amount which is not made in accordance with established priorities and selection criteria of the housing credit agency.". (b) SITE VISITS. — Clause (iii) of section 42(m)(l)(B) (relating to qualified allocation plan) is amended by inserting before the period "and in monitoring for noncompliance with habitability standards through regular site visits". SEC. 134. MODIFICATIONS TO RULES RELATING TO BASIS OF BUILDING WHICH IS ELIGIBLE FOR CREDIT. (a) ADJUSTED BASIS TO INCLUDE PORTION OF CERTAIN BUILD- INGS USED BY LOW-INCOME INDIVIDUALS WHO ARE NOT TENANTS AND BY PROJECT EMPLOYEES. —Paragraph (4) of section 42(d) (relating to special rules relating to determination of adjusted basis) is amended— (1) by striking "subparagraph (B)" in subparagraph (A) and inserting "subparagraphs (B) and (C)"; (2) by redesignating subparagraph (C) as subparagraph (D); and (3) by inserting after subparagraph (B) the following new subparagraph: "(C) INCLUSION OF BASIS OF PROPERTY USED TO PROVIDE SERVICES FOR CERTAIN NONTENANTS.— "(i) IN GENERAL.—The adjusted basis of any building located in a qualified census tract (as defined in paragraph (5)(C)) shall be determined by taking into account the adjusted basis of property (of a character subject to the allowance for depreciation and not otherwise taken into account) used throughout the taxable year in providing any community service facility. "(ii) LIMITATION.— The increase in the adjusted basis of any building which is taken into account by reason of clause (i) shall not exceed 10 percent of
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