‘‘(ii) the amount such agency deter-
mines at the time of the qualified comple-
tion event is necessary to ensure the finan-
cial feasibility of the project given the 
sources and uses of funds and the total fi-
nancing (including local, State, and Fed-
eral subsidies) planned for the project, or 
‘‘(iii) in the case of a qualified com-
pletion event that occurs after the 5-year 
period beginning on the date of the alloca-
tion referred to in clause (i), $0. 
‘‘(c) QUALIFIED DEVELOPMENT COST.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified devel-
opment cost’ means, with respect to a residence so 
much of the allowable development cost as the neigh-
borhood homes credit agency certifies, at the time of 
the completion event— 
‘‘(A) meets the standards promulgated 
under subsection (h)(1)(C), and 
‘‘(B) does not represent unreasonable fees 
by the taxpayer claiming the credit under sub-
section (a). 
‘‘(2) ALLOWABLE
DEVELOPMENT
COST.—The 
term ‘allowable development cost’ means— 
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‘‘(A) the cost of construction, substantial 
rehabilitation, demolition of any structure, and 
environmental remediation, and 
‘‘(B) in the case of an affordable sale, so 
much of the cost of acquiring buildings and 
land as does not exceed an amount equal to 75 
percent of the costs described in subparagraph 
(A). 
‘‘(3) 
PROPERTIES
WITH
MULTIPLE
RESI-
DENCES.—The allowable development cost of any 
residence shall include on a pro-rata basis the allow-
able development cost with respect to common areas 
or other comparable amenities. 
‘‘(d) QUALIFIED PROJECT.—For purposes of this 
section, the term ‘qualified project’ means a project that— 
‘‘(1) a neighborhood homes credit agency cer-
tifies will build or substantially rehabilitate 1 or 
more qualified residences located in one or more 
qualified census tracts, and 
‘‘(2) is designated by such agency as a qualified 
project under this section and is allocated (before 
such building or substantial rehabilitation begins) a 
portion of the amount allocated to such agency 
under subsection (g). 
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‘‘(e) QUALIFIED CENSUS TRACT.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified census 
tract’ means a census tract— 
‘‘(A) with— 
‘‘(i) a median gross income which 
does not exceed 80 percent of the applica-
ble area median gross income, 
‘‘(ii) a poverty rate that is not less 
than 130 percent of the applicable area 
poverty rate, and 
‘‘(iii) a median value for owner-occu-
pied homes that does not exceed applicable 
area median value for owner-occupied 
homes, or 
‘‘(B) that is— 
‘‘(i) in a nonmetropolitan county, 
‘‘(ii) with a median gross income 
which does not exceed the applicable area 
median gross income, and 
‘‘(iii) designated by a neighborhood 
homes credit agency under this clause. 
‘‘(2) ADDITIONAL
CENSUS
TRACTS
FOR
SUB-
STANTIAL REHABILITATION.—In the case of a resi-
dence that is intended for substantial rehabilitation 
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described in subsection (f)(5)(B), the term ‘qualified 
census tract’ includes a census tract that meets the 
requirements of paragraph (1)(A), without regard to 
clause (iii), and that is designated by the neighbor-
hood homes credit agency under this paragraph. 
‘‘(3) LIST
OF
QUALIFIED
CENSUS
TRACTS.— 
The Secretary of Housing and Urban Development 
shall make publically available a list of qualified cen-
sus tracts under paragraph (1)(A), a list of qualified 
census tracts under paragraph (1)(B), and a list of 
qualified census tracts under paragraph (2) for each 
year. 
‘‘(f) OTHER DEFINITIONS.—For purposes of this sec-
tion— 
‘‘(1) QUALIFIED RESIDENCE.—The term ‘quali-
fied residence’ means a residence that consists of— 
‘‘(A) a single-family home containing 4 or 
fewer residential units, 
‘‘(B) a condominium, or 
‘‘(C) a house or an apartment owned by a 
cooperative housing corporation (as defined in 
section 216(b)). 
‘‘(2) AFFORDABLE SALE.— 
‘‘(A) IN GENERAL.— 
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‘‘(i) IN GENERAL.—The term ‘afford-
able sale’ means a sale to a qualified home-
owner of a residence that the neighborhood 
homes credit agency certifies as meeting 
the standards promulgated under sub-
section (h)(1)(D) for a price that does not 
exceed— 
‘‘(I) in the case of any residence 
not described in subclause (II), (III), 
or (IV), the amount equal to the prod-
uct of 4 multiplied by the applicable 
area median gross income, 
‘‘(II) in the case of a single-fam-
ily home containing two residential 
units, 125 percent of the amount de-
scribed in subclause (I), 
‘‘(III) in the case of a single-fam-
ily home containing three residential 
units, 150 percent of the amount de-
scribed in subclause (I), or 
‘‘(IV) in the case of a single-fam-
ily home containing four residential 
units, 175 percent of the amount de-
scribed in subclause (I). 
‘‘(ii) RELATED PERSONS.— 
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‘‘(I) IN
GENERAL.—A sale be-
tween related persons shall not be 
treated as an affordable sale. 
‘‘(II) 
DEFINITION.—For 
pur-
poses of this section, a person (in this 
clause referred to as the ‘related per-
son’) is related to any person if the 
related person bears a relationship to 
such 
person 
specified 
in 
section 
267(b) or 707(b)(1), or the related 
person and such person are engaged 
in trades or businesses under common 
control (within the meaning of sub-
sections (a) and (b) of section 52). 
For purposes of the preceding sen-
tence, in applying section 267(b) or 
707(b)(1), ‘10 percent’ shall be sub-
stituted for ‘50 percent’. 
‘‘(3) APPLICABLE AREA.—The term ‘applicable 
area’ means— 
‘‘(A) in the case of a metropolitan census 
tract, the metropolitan area in which such cen-
sus tract is located, and 
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