12 2 STA T . 2 870PUBLIC LA W 110 – 28 9—J UL Y3 0 , 2008 insura n ceth at the rati o o f the l oan p rocee d s to the actual cost of the pro j ect is less than 80 percent , su b section ( a ) of this section shall not appl y.‘ ‘(c) DEFIN I T I O N S . —F or purposes of this section, the follo w in g definitions shall apply
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and ( 5 ) by inserting ‘‘(a) R E QU I R E M ENT.—’’ after ‘‘ 2 2 7 .’’. (c) O T H ER P RO V ISIONS RE GA R D ING T REATMENT OF M ORTGAGES C OVERING TA X CREDIT PRO J E C TS.—Title I Iof the N ational H ousing A ctisa m ended by inserting after section 227 ( 1 2 U . S .C. 1715r) the following new section: ‘ ‘ SEC.2 2 8 . TR E A T M E N T OF MORT G AGES CO V ER I NG TA X CRE D IT P RO J ECTS. ‘‘(a) DEFINITION.—For purposes of this section, the term ‘insured mortgage co v ering a ta x credit project’ means a mortgage insured under any provision of this title that is executed in connection with the construction, rehabilitation, purchase, or refinancing of a multifamily housing project for which e q uity provided through any low - income housing tax credit pursuant to section 4 2of the Internal Revenue Code of 1 9 8 6 (26 U.S.C. 42). ‘‘(b) ACCE P TANCE OF L ETTERS OF CREDIT.—In the case of an insured mortgage covering a tax credit project, the Secretary may not require the escrowing of equity provided by the sale of any low-income housing tax credits for the project pursuant to section 42 of the Internal Revenue Code of 1986, or any other form of security, such as a letter of credit. ‘‘(c) ASSET MANAGEMENT REQUIREMENTS.—In the case of an insured mortgage covering a tax credit project for which project the applicable tax credit allocating agency is causing to be per- formed periodic inspections in compliance with the requirements of section 42 of the Internal Revenue Code of 1986, such project shall be exempt from requirements imposed by the Secretary regarding periodic inspections of the property by the mortgagee. To the extent that other compliance monitoring is being performed with respect to such a project by such an allocating agency pursuant to such section 42, the Secretary shall, to the extent that the Secretary determines such monitoring is sufficient to ensure compli- ance with any requirements established by the Secretary, accept such agency’s evidence of compliance for purposes of determining compliance with the Secretary’s requirements. ‘‘(d) STREAM L INED PROCESSING PILOT PROGRAM.— ‘‘(1) IN GENERAL.—The Secretary shall establish a pilot program to demonstrate the effectiveness of streamlining the review process, which shall include all applications for mortgage insurance under any provision of this title for mortgages executed in connection with the construction, rehabilitation, purchase, or refinancing of a multifamily housing project for which equity provided through any low-income housing tax credit pursuant to section 42 of the Internal Revenue Code of 1986. The Secretary shall issue instructions for implementing the pilot program under this subsection not later than the expiration of the 180-day period beginning upon the date of the enactment of the Housing Tax Credit Coordination Act of 2008. ‘‘(2) REQUIREMENTS.—Such pilot program shall provide for— Intruc t io n s.Deadl ine. 12USC 1 7 1 5 s.
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