(3) CONFORMING AMENDMENTS.—
(A) Section 147(c) of the Internal Revenue
Code of 1986 (relating to limitation on use for
land acquisition) is amended by adding at the
end the following new paragraph:
‘‘(4) SPECIAL RULE FOR INDUSTRIAL PARKS.—
In the case of a bond described in section
142(a)(17), paragraph (1)(A) shall be applied by
substituting ‘50 percent’ for ‘25 percent’.’’.
(B) Section 147(e) of such Code (relating
to no portion of bonds may be issued for
skyboxes, airplanes, gambling establishments,
etc.) is amended by striking ‘‘A private activity
bond’’ and inserting ‘‘Except in the case of a
bond described in section 142(a)(13), a private
activity bond’’.
(b) SMALL ISSUE BONDS.—Section 144(a)(12) of the
Internal Revenue Code of 1986 (relating to termination
of qualified small issue bonds) is amended—
(1) by striking ‘‘any bond’’ in subparagraph
(A)(i) and inserting ‘‘any bond described in subpara-
graph (B)’’,
(2) by striking ‘‘a bond’’ in subparagraph
(A)(ii) and inserting ‘‘a bond described in subpara-
graph (B)’’, and
(3) by striking subparagraph (B) and inserting
the following:
‘‘(B) BONDS FOR FARMING PURPOSES.—A
bond is described in this subparagraph if it is
issued as part of an issue 95 percent or more
of the net proceeds of which are to be used to
provide any land or property not in accordance
with section 147(c)(2).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to bonds issued after December
31, 1995.
SEC. 204. INCREASE IN AMOUNT OF QUALIFIED SMALL
ISSUE BONDS PERMITTED FOR FACILITIES
TO BE USED BY RELATED PRINCIPAL USERS.
(a) IN GENERAL.—Clause (i) of section 144(a)(4)(A)
of the Internal Revenue Code of 1986 (relating to
$10,000,000 limit in certain cases) is amended by striking
‘‘$10,000,000’’ and inserting ‘‘$50,000,000’’.
(b) CLERICAL AMENDMENT.—The heading of para-
graph (4) of section 144(a) of the Internal Revenue Code
of 1986 is amended by striking ‘‘$10,000,000’’ and insert-
ing ‘‘$50,000,000’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to—
(1) obligations issued after the date of the en-
actment of this Act, and
(2) capital expenditures made after such date
with respect to obligations issued on or before such
date.
SEC. 205. SIMPLIFICATION OF ARBITRAGE INTEREST RE-
BATE WAIVER.
(a) IN GENERAL.—Clause (ii) of section 148(f)(4)(C)
of the Internal Revenue Code of 1986 (relating to excep-
tion from rebate for certain proceeds to be used to finance
construction expenditures) is amended to read as follows:
‘‘(ii) SPENDING REQUIREMENT.—The
spending requirement of this clause is met
if 100 percent of the available construction
proceeds of the construction issue are
spent for the governmental purposes of the
issue within the 3-year period beginning on
the date the bonds are issued.’’.
(b) CONFORMING AMENDMENTS.—
(1) Clause (iii) of section 148(f)(4)(C) of the
Internal Revenue Code of 1986 (relating to excep-
tion for reasonable retainage) is repealed.
(2) Subclause (II) of section 148(f)(4)(C)(vi) of
such Code (relating to available construction pro-
ceeds) is amended by striking ‘‘2-year period’’ and
inserting ‘‘3-year period’’.
(3) Subclause (I) of section 148(f)(4)(C)(vii) of
such Code (relating to election to pay penalty in lieu
of rebate) is amended by striking ‘‘, with respect to
each 6-month period after the date the bonds were
issued,’’ and ‘‘, as of the close of such 6-month pe-
riod,’’.
(4) Clause (viii) of section 148(f)(4)(C) of such
Code (relating to election to terminate 11⁄2 percent
penalty) is amended by striking ‘‘to any 6-month pe-
riod’’ in the matter preceding subclause (I).
(5) Clause (ii) of section 148(c)(2)(D) of such
Code (relating to bonds used to provide construction
financing) is amended by striking ‘‘2 years’’ and in-
serting ‘‘3 years’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to bonds issued after the date of
the enactment of this Act.
TITLE III—COMMUNITY-BASED
HOUSING DEVELOPMENT
SEC. 301. DEMOLITION AND DISPOSITION OF PUBLIC HOUS-
ING.
Section 18(b)(3) of the United States Housing Act
of 1937 (42 U.S.C. 1437p(b)(3)) is amended—
(1) in subparagraph (G), by striking ‘‘and’’ at
the end;
(2) in subparagraph (H), by adding ‘‘and’’ at
the end; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(I) provides, subject to the approval of
both the unit of general local government in
which the property on which the units to be de-
molished or disposed of are located and the
local public housing agency, for—
‘‘(i) the eventual reconstruction of
units on the same property on which the
units to be demolished or disposed of are
located; and
‘‘(ii) the ultimate relocation of dis-
placed tenants to that property;’’.