Part III. Administrative, Procedural, and Miscellaneous

Pub. L. 103–465 (GATT).

The average yield on the 30-year Treasury Constant Maturities for January 1997 is 6.83 percent. The following rates were determined for the plan years beginning in the month shown below.

Weighted Average Interest Rate Update

Notice 97–16

Notice 88–73 provides guidelines for determining the weighted average interest rate and the resulting permissible

range of interest rates used to calculate current liability for the purpose of the full funding limitation of § 412(c)(7) of the Internal Revenue Code as amended by the Omnibus Budget Reconciliation Act of 1987 and as further amended by the Uruguay Round Agreements Act,

90% to 110% Permissible Range

Month Year Weighted Average

90% to 107% Permissible Range

February 1997 6.88 6.19 to 7.36 6.19 to 7.57

qualified census tract or an area of chronic economic distress. A ‘‘qualified census tract’’ means a census tract in which 70 percent or more of the families have income which is 80 percent or less of the statewide median family income, based on the most recent decennial census for which data are available. See Rev. Proc. 93–38, 1993–2 C.B. 483, for the most recent list of qualified census tracts for each state and the District of Columbia; that list is based on data from the 1990 census. Section 143(j)(3) defines an ‘‘area of chronic economic distress’’ (‘‘ACED’’) as an area (i) designated by the state as meeting the standards established by the state for purposes of § 143(j), and (ii) the designation of which has been approved by the Secretary of Treasury and the Secretary of Housing and Urban Development in accordance with criteria set forth in § 143(j)(3)(B). See Rev. Proc. 88–31, 1988–1 C.B. 832, for the procedures to obtain an ACED designation.

.05 When determining the portion of the proceeds that must be made available for owner-financing of targeted area residences under the 40 percent limitation in § 143(h)(2), issuers of mortgage revenue bonds may rely upon the amount produced by the following safe harbor formula described in § 6a.103A– 2(h)(3) of the temporary Income Tax Regulations (issued under former § 103A(h) of the 1954 Code):

P = .2 (X x Z) where

Drafting Information

The principal author of this notice is Donna Prestia of the Employee Plans Division. For further information regarding this notice, call (202) 622–6076 between 2:30 and 4:00 p.m. Eastern time (not a toll-free number). Ms. Prestia’s number is (202) 622–7377 (also not a toll-free number).

26 CFR 601.201: Rulings and determination let- ters. (Also Part I, Sections 25, 103, 143; 1.25–4T, 1.103–1, 6a.103A–2.)

Rev. Proc. 97–17