100 STAT. 2202
PUBLIC LAW 99-514—OCT. 22, 1986 manner as such partnership's taxable income for such year is allocated among such partners. "(B) PARTNERSHIPS TO WHICH PARAGRAPH APPLIES.—This
paragraph shall apply to any partnership— "(i) which has 35 or more partners each of whom is a natural person or an estate, and "(ii) which elects the application of this paragraph. fi
"(C) SPECIAL RULES.— "(i) HUSBAND AND WIFE TREATED AS i PARTNER.—For
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purposes of subparagraph (B)(i), a husband and wife (and their estates) shall be treated as 1 partner. "(ii) ELECTION IRREVOCABLE.—Any election under subparagraph (B), once made, shall be irrevocable. "(6) No RECAPTURE ON DISPOSITION OF BUILDING WHERE BOND
POSTED.—In the case of a disposition of a building, the taxpayer shall be discharged from liability for any additional tax under this subsection by reason of such disposition if— "(A) the taxpayer furnishes to the Secretary a bond in an amount satifactory to the Secretary and for the period required by the Secretary, and "(B) it is reasonably expected that such building will continue to be operated as a qualified low-income building for the remaining compliance period with respect to such building, "(k) APPLICATION OF AT-RISK RULES.—For purposes of this section— "(1) IN GENERAL.—Except as otherwise provided in this subsection, rules similar to the rules of section 46(c)(8) (other than subparagraph (D)(ivXD thereof), section 46(c)(9), and section 47(d)(1) shall apply in determining the qualified basis of any building in the same manner as such sections apply in deter„;. mining the credit base of property. "(2) SPECIAL RULES FOR DETERMINING QUALIFIED PERSON.—For
purposes of paragraph (1)— "(A) IN GENERAL.—If the requirements of subparagraphs -u; i ' (B), (C), and (D) are met with respect to any financing borrowed from a qualified nonprofit organization (as defined in subsection (h)(5)), the determination of whether such financing is qualified commercial financing with respect to any qualified low-income building shall be made without regard to whether such organization— B;;. "(i) is actively and regularly engaged in the business of lending money, or "(ii) is a person described in section 46(c)(8)(D)(ivXn). • "(B) FINANCING SECURED BY PROPERTY.—The requirements of this subparagraph are met with respect to any financing if such financing is secured by the qualified lowincome building. "(C) PORTION OF BUILDING ATTRIBUTABLE TO FINANCING.—
.,
y.
The requirements of this subparagraph are met with respect to any financing for any taxable year in the compliance period if, as of the close of such taxable year, not more than 60 percent of the eligible basis of the qualified lowincome building is attributable to such financing (reduced by the principal and interest of any governmental financing which is part of a wrap-around mortgage involving such financing).
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