SEC. 3. APPLICATION

The qualified census tracts for Puerto Rico and the Virgin Islands as listed below are based on the 1990 census. In 1990, the Bureau of the Census provided data for all areas. Thus, the list of qualified census tracts includes tracts in Block Numbering Areas (BNA) in nonmetropolitan counties as well as tracts in MSAs. Previously, the Bureau of the Census provided tractlevel data only for metropolitan areas.

County or Equivalent Qualified Census Tracts

PUERTO RICO Adjuntas Municipio . . . . . . . . . 9563.00 9565.00 Aguadilla Municipio . . . . . . . . 4008.00 Arecibo Municipio . . . . . . . . . 3013.00 Catano Municipio . . . . . . . . . . 0204.04 Juana Diaz Municipio . . . . . . 0719.02 Lares Municipio . . . . . . . . . . . 9583.00 Mayaguez Municipio . . . . . . . 0809.00 0812.01 0812.02 0812.03 Ponce Municipio . . . . . . . . . . . 0704.00 0708.00 0713.00 0716.02

378 1995–2 C.B.

County or Equivalent Qualified Census Tracts San Juan Municipio . . . . . . . . 0002.00 0006.00 0013.00 0029.00 0035.01 0040.00 0048.00 0054.02 0082.01 San Sebastian Municipio . . . . 9686.00 VIRGIN ISLANDS

. . . . . . . . . . . . . . . . . . . . . . . . . . 9703.00

ing the maximum income of mortgagors for whom financing may be provided by qualified mortgage bonds. Section 25(c)(2)(A)(iii)(IV) provides that recipients of mortgage credit certificates must meet the income requirements of section 143(f). Generally, under sections 143(f)(1) and 25(c)(2)(A)(iii)(IV), these income requirements are met only if all ownerfinancing under a qualified mortgage bond and all certified indebtedness amounts under a mortgage credit certificate program are provided to mortgagors whose family income is 115 percent or less of the applicable median family income. Under section 143(f)(6), the income limitation is reduced to 100 percent of the applicable median family income if there are fewer than three individuals in the family of the mortgagor.

.04 Section 143(f)(4) provides that the term ‘‘applicable median family income’’ means the greater of (A) the area median gross income for the area in which the residence is located, or (B) the statewide median gross income for the state in which the residence is located.

.05 Section 143(f)(5) of the Code provides for an upward adjustment of the income limitations in certain high housing cost areas. Under section 143(f)(5)(C), a high housing cost area is a statistical area for which the housing cost/income ratio is greater than 1.2. The housing cost/income ratio is determined under section 143(f)(5)(D) by dividing (a) the applicable housing price ratio by (b) the ratio that the area median gross income bears to the median gross income for the United States. The applicable housing price ratio is the new housing price ratio (new housing average purchase price for the area divided by the new housing average purchase price for the United States) or the existing housing price ratio (existing housing average area purchase price divided by the existing housing average purchase price for the United States), whichever results in the housing cost/income ratio being closer to 1. This income adjustment applies only to bonds issued and nonissued bond amounts elected after December 31, 1988.

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