[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.42-3]

[Page 151]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.42-3  Treatment of buildings financed with proceeds from a loan under an Affordable Housing Program established pursuant to section 721 of the Financial 
          Institutions Reform, Recovery, and Enforcement Act of 1989 
          (FIRREA).

    (a) Treatment under sections 42(i) and 42(b). A below market loan 
funded in whole or in part with funds from an Affordable Housing Program 
established under section 721 of FIRREA is not, solely by reason of the 
Affordable Housing Program funds, a below market Federal loan as defined 
in section 42(i)(2)(D). Thus, any building with respect to which the 
proceeds of the loan are used during the tax year is not, solely by 
reason of the Affordable Housing Program funds, treated as a federally 
subsidized building for that tax year and subsequent tax years for 
purposes of determining the applicable percentage for the building under 
section 42(b).
    (b) Effective date. The rules set forth in paragraph (a) of this 
section are effective for loans made after August 8, 1989.

[56 FR 48734, Sept. 26, 1991]