and the amount of such authority used with respect 
to each such county and municipality. 
TITLE II—HOUSING TAX 
INCENTIVES 
SEC. 201. TEMPORARY INCREASE IN VOLUME CAP FOR 
HOUSING BONDS ISSUED FOR AREAS MOST 
AFFECTED BY FORECLOSURE CRISIS. 
(a) IN GENERAL.—Subsection (d) of section 146 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(6) INCREASE AND SET ASIDE FOR HOUSING 
BONDS FOR 2009.— 
‘‘(A) INCREASE OF 2009.—In the case of 
calendar year 2009, the State ceiling for each 
foreclosure crisis State shall be increased by the 
sum of— 
‘‘(i) 
an 
amount 
equal 
to 
$10,000,000,000 multiplied by a frac-
tion— 
‘‘(I) the numerator of which is 
the number of foreclosures in such 
State, and 
‘‘(II) the denominator of which is 
the aggregate number of foreclosures 
in all foreclosure crisis States, plus 
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‘‘(ii) 
an 
amount 
equal 
to 
$10,000,000,000 multiplied by a frac-
tion— 
‘‘(I) the numerator of which is 
the number of single family residences 
in such State with mortgages that are 
more than 30 days past due, and 
‘‘(II) the denominator of which is 
the aggregate number of single family 
residences in all foreclosure crisis 
States with mortgages that more than 
30 days past due. 
‘‘(B) SET
ASIDE.—Any amount of the 
State ceiling for any foreclosure crisis State 
which is attributable to an increase under this 
paragraph shall be allocated solely for one or 
more qualified housing issues (as defined in 
paragraph (5)). The State shall ensure that 
such issues (to the extent attributable to an in-
crease under this paragraph) are used to fi-
nance housing in the counties and municipali-
ties of the State which experience the highest 
number of foreclosures, or have the highest 
number of residences with mortgages that are 
more than 30 days past due, per capita. 
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‘‘(C) FORECLOSURE
CRISIS
STATE.—For 
purposes of this paragraph, the term ‘fore-
closure crisis State’ means the 10 States deter-
mined by the Secretary as having been the most 
impacted by the foreclosure crisis. In making 
such determination the Secretary shall take into 
account the rate of foreclosures in the States, 
the rate of single family residences in the 
States with mortgages that are more than 30 
days past due, and such other factors as the 
Secretary determines appropriate.’’. 
(b) CARRYFORWARD
OF UNUSED LIMITATIONS.— 
Paragraph (6) of section 146(f) of the Internal Revenue 
Code of 1986 is amended— 
(1) by striking ‘‘subsection (d)(5)’’ in the text 
preceding subparagraph (A) and inserting ‘‘para-
graph (5) or (6) of subsection (d)’’, and 
(2) by striking ‘‘INCREASED
VOLUME
CAP 
UNDER SUBSECTION (D)(5)’’ in the heading thereof 
and inserting ‘‘TEMPORARY
INCREASED
VOLUME 
CAP’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
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SEC. 202. EXTENSION OF TIME FOR USING INCREASED VOL-
UME CAP FOR HOUSING BONDS. 
(a) IN GENERAL.—Subparagraph (B) of section 
146(f)(6) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘2010’’ and inserting ‘‘2011’’. 
(b) REPORT.—Not later than December 31, 2010, 
the Secretary of the Treasury shall submit a written re-
port to Congress regarding whether or not, considering the 
stability of the housing markets, the liberalization of the 
tax-exempt housing bond rules included in sections 
146(d)(5), 146(d)(6), and 143(k)(12) of the Internal Rev-
enue Code of 1986 should be extended beyond December 
31, 2011. 
SEC. 203. EXPANSION OF USE OF MORTGAGE REVENUE 
BONDS 
FOR 
MORTGAGE 
REFINANCING 
LOANS. 
(a) IN GENERAL.—Subparagraph (C) of section 
143(k)(12) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘adjustable rate’’. 
(b) EXTENSION OF PROGRAM.—Subparagraph (D) of 
section 143(k)(12) of such Code is amended by striking 
‘‘December 31, 2010’’ and inserting ‘‘December 31, 
2011’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
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SEC. 204. ALTERNATIVE MINIMUM TAX LIMITATIONS NOT 
APPLICABLE TO REFINANCINGS OF TAX-EX-
EMPT HOUSING BONDS. 
(a) IN GENERAL.—Clause (iii) of section 57(a)(5)(C) 
of the Internal Revenue Code of 1986 is amended by strik-
ing the last sentence thereof. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to refunding bonds issued after the 
date of the enactment of this Act. 
SEC. 205. CLARIFICATION OF APPLICABILITY TO HIGH 
FORECLOSURE IMPACT AREAS. 
(a) IN GENERAL.—Subsection (j) of section 143 of 
the Internal Revenue Code of 1986 is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by striking ‘‘or’’, 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘, or’’, and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) a high foreclosure area.’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(4) HIGH FORECLOSURE AREA.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘high foreclosure area’ 
means an area for which the rate of— 
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‘‘(i) foreclosures on mortgages on resi-
dences occurring during the preceding 12 
months, and 
‘‘(ii) notices provided to mortgagors 
during the preceding calendar quarter, 
specifying that payment of amounts due 
under a mortgage on a residence is at least 
30 days past due, 
exceeds 150 percent of the national rate. 
‘‘(B) DATE
USED.—The determination 
under subparagraph (A) shall be made on the 
basis of the best data available to a State on a 
quarterly basis.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
Æ 
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