SECTION 2. BACKGROUND

.01 State Housing Credit Ceiling

(1) Section 42(h)(1) provides generally that any building (other than a building a certain percentage of which is financed with proceeds of taxexempt private activity bonds) is eligible for the low-income housing credit under § 42 only if it receives an allocation of a housing credit dollar amount from the state or local housing credit agency (state agency) of the jurisdiction in which the building is located.

(2) Section 42(h)(3)(A) provides that the aggregate housing credit dollar amount that a state agency may allocate for any calendar year is the portion of the state housing credit ceiling (credit ceiling) allocated to the state agency for the calendar year.

(3) Section 42(h)(3)(C) defines the credit ceiling as an amount equal to the sum of four components. One component, the ‘‘population component,’’ equals $1.25 multiplied by the state population.

(4) Section 42(h)(3)(G) provides that for purposes of § 42(h), population is determined in accordance with § 146(j).

order for a private activity bond to be a ‘‘qualified bond’’ is that the issue of which the bond is a part must meet the applicable requirements of § 146.

(3) Section 146(a) provides that a private activity bond meets the requirements of § 146 if the aggregate face amount of the issue of private activity bonds of which it is a part, when added to the aggregate face amount of taxexempt private activity bonds previously issued by the issuing authority (issuing authority) during the calendar year, does not exceed the issuing authority’s volume cap for the calendar year.

(4) The volume cap for any issuing authority is defined by § 146(b) as a percentage of the state ceiling for the calendar year.

(5) Section 146(d) defines the state ceiling applicable to any state for any calendar year after 1987 as the greater of $50 multiplied by the state population or $150,000,000.

(6) Section 146(j) provides that population determinations of any state (or issuing authority) are made with respect to any calendar year on the basis of the most recent census estimate of the resident population of the state (or issuing authority) released by the Bureau of the Census before the beginning of that calendar year.

.03 Population Figures

1995–1 C.B. 293, for use by state agencies, states, and issuing authorities in determining the 1995 calendar year credit ceiling and volume cap.