Internal Revenue Bulletin:  2005-9 

February 28, 2005 

Rev. Proc. 2005-15


SECTION 1. PURPOSE

This revenue procedure provides issuers of qualified mortgage bonds, as defined in section 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in section 25(c), with (1) the nationwide average purchase price for residences located in the United States, and (2) average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam.

SECTION 2. BACKGROUND

.01 Section 103(a) provides that, except as provided in section 103(b), gross income does not include interest on any state or local bond. Section 103(b)(1) provides that section 103(a) shall not apply to any private activity bond that is not a “qualified bond” within the meaning of section 141. Section 141(e) provides, in part, that the term “qualified bond” means any private activity bond if such bond (1) is a qualified mortgage bond under section 143, (2) meets the volume cap requirements under section 146, and (3) meets the applicable requirements under section 147.

.02 Section 143(a)(1) provides that the term “qualified mortgage bond” means a bond that is issued as part of a qualified mortgage issue. Section 143(a)(2)(A) provides that the term “qualified mortgage issue” means an issue of one or more bonds by a state or political subdivision thereof, but only if: (i) all proceeds of the issue (exclusive of issuance costs and a reasonably required reserve) are to be used to finance owner-occupied residences; (ii) the issue meets the requirements of subsections (c), (d), (e), (f), (g), (h), (i), and (m)(7) of section 143; (iii) the issue does not meet the private business tests of paragraphs (1) and (2) of section 141(b); and (iv) with respect to amounts received more than 10 years after the date of issuance, repayments of $250,000 or more of principal on mortgage financing provided by the issue are used by the close of the first semiannual period beginning after the date the prepayment (or complete repayment) is received to redeem bonds that are part of the issue.

Average Area Purchase Price

.03 Section 143(e)(1) provides that an issue of bonds meets the purchase price requirements of section 143(e) if the acquisition cost of each residence financed by the issue does not exceed 90 percent of the average area purchase price applicable to such residence. Section 143(e)(5) provides that, in the case of a targeted area residence (as defined in section 143(j)), section 143(e)(1) shall be applied by substituting 110 percent for 90 percent.

.04 Section 143(e)(2) provides that the term “average area purchase price” means, with respect to any residence, the average purchase price of single-family residences (in the statistical area in which the residence is located) that were purchased during the most recent 12-month period for which sufficient statistical information is available. Under sections 143(e)(3) and (4), respectively, separate determinations are to be made for new and existing residences, and for two-, three-, and four-family residences.

.05 Section 143(e)(2) provides that the determination of the average area purchase price for a statistical area shall be made as of the date on which the commitment to provide the financing is made or, if earlier, the date of the purchase of the residence.

.06 Section 143(k)(2)(A) provides that the term “statistical area” means (i) a metropolitan statistical area (MSA), and (ii) any county (or the portion thereof) that is not within an MSA. Section 143(k)(2)(C) further provides that if sufficient recent statistical information with respect to a county (or portion thereof) is unavailable, the Secretary may substitute another area for which there is sufficient recent statistical information for such county (or portion thereof). In the case of any portion of a State which is not within a county, section 143(k)(2)(D) provides that the Secretary may designate as a county any area that is the equivalent of a county. Section 6a.103A-1(b)(4)(i) of the Temporary Income Tax Regulations (issued under section 103A of the Internal Revenue Code of 1954, the predecessor of section 143) provides that the term “State” includes a possession of the United States and the District of Columbia.

.07 Section 6a.103A-2(f)(5)(i) provides that an issuer may rely upon the average area purchase price safe harbors published by the Department of the Treasury for the statistical area in which a residence is located. Section 6a.103A-2(f)(5)(i) further provides that an issuer may use an average area purchase price limitation different from the published safe harbor if the issuer has more accurate and comprehensive data for the statistical area.

Qualified Mortgage Credit Certificate Program

.08 Section 25(c) permits a state or political subdivision to establish a qualified mortgage credit certificate program. In general, a qualified mortgage credit certificate program is a program under which the issuing authority elects not to issue an amount of private activity bonds that it may otherwise issue during the calendar year under section 146, and in their place, issues mortgage credit certificates to taxpayers in connection with the acquisition of their principal residences. Section 25(a)(1) provides, in general, that the holder of a mortgage credit certificate may claim a federal income tax credit equal to the product of the credit rate specified in the certificate and the interest paid or accrued during the tax year on the remaining principal of the indebtedness incurred to acquire the residence. Section 25(c)(2)(A)(iii)(III) generally provides that residences acquired in connection with the issuance of mortgage credit certificates must meet the purchase price requirements of section 143(e).

Income Limitations for Qualified Mortgage Bonds and Mortgage Credit Certificates

.09 Section 143(f) imposes limitations on the income of mortgagors for whom financing may be provided by qualified mortgage bonds. In addition, section 25(c)(2)(A)(iii)(IV) provides that holders of mortgage credit certificates must meet the income requirement of section 143(f). Generally, under sections 143(f)(1) and 25(c)(2)(A)(iii)(IV), the income requirement is met only if all owner-financing under a qualified mortgage bond and all mortgage credit certificates issued under a qualified mortgage credit certificate program are provided to mortgagors whose family income is 115 percent or less of the applicable median family income. Section 143(f)(5), however, generally provides for an upward adjustment to the percentage limitation in high housing cost areas. High housing cost areas are defined in section 143(f)(5)(C) as any statistical area for which the housing cost/income ratio is greater than 1.2.

.10 Under section 143(f)(5)(D), the housing cost/income ratio with respect to any statistical area is determined by dividing (a) the applicable housing price ratio for such area by (b) the ratio that the area median gross income for such area bears to the median gross income for the United States. The applicable housing price ratio is the new housing price ratio (new housing average area purchase price 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.

Average Area and Nationwide Purchase Price Limitations

.11 Average area purchase price safe harbors for each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam were last published in Rev. Proc. 2004-18, 2004-9 I.R.B. 529.

.12 The nationwide average purchase price limitation was last published in section 5.02 of Rev. Proc. 2004-18. Guidance with respect to the United States and area median gross income figures that are to be used in computing the housing cost/income ratio described in section 143(f)(5) was last published in Rev. Proc. 2004-24, 2004-16 I.R.B. 790.

.13 This revenue procedure uses FHA loan limits for a given statistical area to calculate the average area purchase price safe harbor for that area.  FHA sets limits on the dollar value of loans it will insure based on median home prices and conforming loan limits established by the Federal Home Loan Mortgage Corporation.  In particular, FHA sets an area’s loan limit at 95 percent of the median home sales price for the area, subject to certain floors and caps measured against conforming loan limits.

.14 To calculate the average area purchase price safe harbors in this revenue procedure, the FHA loan limits are adjusted to take into account the differences between average and median purchase prices.  Because FHA loan limits do not differentiate between new and existing residences, this revenue procedure contains a single average area purchase price safe harbor for both new and existing residences in a statistical area.  The Treasury Department and the Internal Revenue Service have determined that FHA loan limits provide a reasonable basis for determining average area purchase price safe harbors. If the Treasury Department and the Internal Revenue Service become aware of other sources of average purchase price data, including data that differentiate between new and existing residences, consideration will be given as to whether such data provide a more accurate method for calculating average area purchase price safe harbors.

.15 The average area purchase price safe harbors listed in section 4.01 of this revenue procedure are based on FHA loan limits released January 3, 2005. FHA loan limits are available for statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam. See section 3.03 of this revenue procedure with respect to FHA loan limits revised after January 3, 2005.

.16 OMB Bulletin No. 03-04, dated and effective June 6, 2003, revised the definitions of the nation’s metropolitan areas and recognized 49 new metropolitan statistical areas. The OMB bulletin no longer includes primary metropolitan statistical areas.

SECTION 3. APPLICATION

Average Area Purchase Price Safe Harbors

.01 Average area purchase price safe harbors for statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam are set forth in section 4.01 of this revenue procedure. Average area purchase price safe harbors are provided for single-family and two to four-family residences. For each type of residence, section 4.01 of this revenue procedure contains a single safe harbor that may be used for both new and existing residences. Issuers of qualified mortgage bonds and issuers of mortgage credit certificates may rely on these safe harbors to satisfy the requirements of sections 143(e) and (f). Section 4.01 of this revenue procedure provides safe harbors for MSAs and for certain counties and county equivalents. If no purchase price safe harbor is available for a statistical area, the safe harbor for “ALL OTHER AREAS” may be used for that statistical area (except for Alaska, for which a separate safe harbor is provided for statistical areas not listed).

.02 If a residence is in an MSA, the safe harbor applicable to it is the limitation of that MSA. If an MSA falls in more than one state, the MSA is listed in section 4.01 of this revenue procedure under each state.

.03 If the FHA revises the FHA loan limit for any statistical area after January 3, 2005, an issuer of qualified mortgage bonds or mortgage credit certificates may use the revised FHA loan limit for that statistical area to compute (as provided in the next sentence) a revised average area purchase price safe harbor for the statistical area provided that the issuer maintains records evidencing the revised FHA loan limit. The revised average area purchase price safe harbor for that statistical area is computed by dividing the revised FHA loan limit by .76.

.04 If, pursuant to section 6a.103A-2(f)(5)(i), an issuer uses more accurate and comprehensive data to determine the average area purchase price for a statistical area, the issuer must make separate average area purchase price determinations for new and existing residences. Moreover, when computing the average area purchase price for a statistical area that is an MSA, as defined in OMB Bulletin No. 03-04, the issuer must make the computation for the entire applicable MSA. When computing the average area purchase price for a statistical area that is not an MSA, the issuer must make the computation for the entire statistical area and may not combine statistical areas. Thus, for example, the issuer may not combine two or more counties.

.05 If an issuer receives a ruling permitting it to rely on an average area purchase price limitation that is higher than the applicable safe harbor in this revenue procedure, the issuer may rely on that higher limitation for the purpose of satisfying the requirements of section 143(e) and (f) for bonds sold, and mortgage credit certificates issued, not more than 30 months following the termination date of the 12-month period used by the issuer to compute the limitation.

Nationwide Average Purchase Price

.06 Section 4.02 of this revenue procedure sets forth a single nationwide average purchase price for purposes of computing the housing cost/income ratio under section 143(f)(5).

.07 Issuers must use the nationwide average purchase price set forth in section 4.02 of this revenue procedure when computing the housing cost/income ratio under section 143(f)(5) regardless of whether they are relying on the average area purchase price safe harbors contained in this revenue procedure or using more accurate and comprehensive data to determine average area purchase prices for new and existing residences for a statistical area that are different from the published safe harbors in this revenue procedure.

.08 If, pursuant to section 6.02 of this revenue procedure, an issuer relies on the average area purchase price safe harbors contained in Rev. Proc. 2004-18, the issuer must use the nationwide average purchase price set forth in section 5.02 of Rev. Proc. 2004-18 in computing the housing cost/income ratio under section 143(f)(5). Likewise, if, pursuant to section 6.05 of this revenue procedure, an issuer relies on the nationwide average purchase price published in Rev. Proc. 2004-18, the issuer may not rely on the average area purchase price safe harbors published in this revenue procedure.

SECTION 4. AVERAGE AREA AND NATIONWIDE AVERAGE PURCHASE PRICES

.01 Average area purchase prices for single-family and two to four-family residences in MSAs, and for certain counties and county equivalents are set forth below. The safe harbor for “ALL OTHER AREAS” (found at the end of the table below) may be used for a statistical area that is not listed below (except for Alaska, for which a separate safe harbor is provided for statistical areas not listed).

Area Name 1 Family 2 Family 3 Family 4 Family
ALASKA        
ANCHORAGE, AK (MSA) 301,250 339,303 412,237 475,658
DENALI BOROUGH, AK 316,137 404,668 489,126 607,879
JUNEAU CITY and BOROUGH, AK 289,342 325,921 395,987 456,908
YAKUTAT CITY AND BOROUGH, AK 316,137 404,668 489,126 607,879
All other areas in Alaska 250,000 290,779 351,474 436,800
ARIZONA        
FLAGSTAFF, AZ (MSA) 268,750 302,697 367,763 436,800
MOHAVE COUNTY, AZ 321,842 362,500 440,461 508,224
CALIFORNIA        
AMADOR COUNTY, CA 320,000 360,421 437,895 505,263
BAKERSFIELD, CA (MSA) 237,375 290,779 351,474 436,800
INYO COUNTY, CA 381,999 436,447 530,263 611,842
CALVERAS COUNTY, CA 350,000 394,211 478,947 552,632
CHICO, CA (MSA) 310,000 349,158 424,211 489,474
HUMBOLDT COUNTY, CA 294,342 331,521 402,829 464,803
FRESNO, CA (MSA) 295,000 332,263 403,684 465,789
LOS ANGELES-LONG BEACH-SANTA ANA, CA (MSA) 411,704 527,037 637,046 791,700
MADERA, CA (MSA) 268,750 302,697 367,763 436,800
MARIPOSA COUNTY, CA 246,842 290,779 351,474 436,800
MERCED, CA (MSA) 312,500 351,974 427,632 493,421
MODESTO, CA (MSA) 362,500 408,289 496,053 572,368
MONO COUNTY, CA 381,999 488,975 591,028 734,521
NAPA, CA (MSA) 411,704 527,037 637,046 791,700
OXNARD-THOUSAND OAKS-VENTURA, CA (MSA) 411,704 527,037 637,046 791,700
TUOLUMNE COUNTY, CA 326,842 368,158 447,303 516,118
REDDING, CA (MSA) 293,750 330,855 401,974 463,816
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA) 389,605 438,818 533,143 615,166
SACRAMENTO-ARDEN-ARCADE-ROSEVILLE, CA (MSA) 411,704 488,580 591,028 700,658
SALINAS, CA (MSA) 411,704 527,037 637,046 791,700
SAN DIEGO-CARLSBAD-SAN MARCOS, CA (MSA) 411,704 527,037 637,046 791,700
SAN FRANCISCO-OAKLAND-FREMONT, CA (MSA) 411,704 527,037 637,046 791,700
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA) 411,704 527,037 637,046 791,700
SAN LUIS OBISPO-PASO ROBLES, CA (MSA) 411,704 527,037 637,046 791,700
SANTA BARBARA-SANTA MARIA-GOLETA, CA (MSA) 411,704 527,037 637,046 791,700
SANTA CRUZ-WATSONVILLE, CA (MSA) 411,704 527,037 637,046 791,700
SANTA ROSA-PETALUMA, CA (MSA) 411,704 527,037 637,046 791,700
STOCKTON, CA (MSA) 399,938 450,457 547,283 631,480
NEVADA COUNTY, CA 381,999 475,868 578,158 667,105
MENDOCINO COUNTY, CA 373,750 420,961 511,447 590,132
VALLEJO-FAIRFIELD, CA (MSA) 411,704 520,921 632,895 730,263
VISALIA-PORTERVILLE, CA (MSA) 233,125 290,779 351,474 436,800
YUBA CITY, CA (MSA) 330,000 371,684 451,579 521,053
COLORADO        
ARCHULETA COUNTY, CO 263,487 296,768 360,561 436,800
BOULDER, CO (MSA) 381,999 471,645 573,026 661,184
COLORADO SPRINGS, CO (MSA) 272,103 306,472 372,350 436,800
DENVER-AURORA, CO (MSA) 344,222 440,609 532,532 631,579
LA PLATA COUNTY, CO 303,750 342,118 415,658 479,605
EAGLE COUNTY, CO 344,222 440,609 532,532 661,829
LAKE COUNTY, CO 344,222 440,609 532,532 661,829
FORT COLLINS-LOVELAND, CO (MSA) 280,000 315,368 383,158 442,105
GARFIELD COUNTY, CO 292,293 329,214 399,980 461,517
GRAND COUNTY, CO 293,750 330,855 401,974 463,816
GREELEY, CO (MSA) 286,875 323,112 392,566 452,961
GUNNISON COUNTY, CO 259,938 292,772 355,704 436,800
OURAY COUNTY, CO 262,500 295,658 359,211 436,800
PITKIN COUNTY, CO 381,999 488,975 591,028 734,521
ROUTT COUNTY, CO 270,000 304,105 369,474 436,800
SAN MIGUEL COUNTY, CO 344,222 401,250 487,500 562,500
SUMMIT COUNTY, CO 380,000 428,000 520,000 600,000
CONNECTICUT        
BRIDGEPORT-STAMFORD-NORWALK, CT (MSA) 411,704 527,037 637,046 791,700
HARTFORD-WEST HARTFORD-EAST HARTFORD, CT (MSA) 335,000 377,316 458,421 528,947
NEW HAVEN-MILFORD, CT (MSA) 381,999 435,039 528,553 609,868
NORWICH-NEW LONDON, CT (MSA) 293,750 330,855 401,974 463,816
LITCHFIELD COUNTY, CT 255,000 290,779 351,474 436,800
DISTRICT OF COLUMBIA        
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV (MSA) 411,704 516,697 627,763 724,342
DELAWARE        
DOVER, DE (MSA) 246,875 290,779 351,474 436,800
PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD (MSA) 312,500 351,974 427,632 493,421
FLORIDA        
CAPE CORAL-FORT MYERS, FL (MSA) 248,750 290,779 351,474 436,800
JACKSONVILLE, FL (MSA) 275,000 309,737 376,316 436,800
MONROE COUNTY, FL 381,999 488,975 591,028 734,521
MIAMI-FORT LAUDERDALE-MIAMI BEACH, FL (MSA) 368,421 414,958 504,154 581,717
NAPLES-MARCO ISLAND, FL (MSA) 393,750 443,487 538,816 621,711
ORLANDO, FL (MSA) 235,000 290,779 351,474 436,800
PORT ST. LUCIE-FORT PIERCE, FL (MSA) 311,842 351,250 426,776 492,434
SARASOTA-BRADENTON-VENICE, FL (MSA) 338,026 380,724 462,562 533,725
GEORGIA        
ATHENS-CLARKE COUNTY, GA (MSA) 232,375 290,779 351,474 436,800
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 299,875 337,754 410,355 473,487
BRUNSWICK, GA (MSA) 232,375 290,779 351,474 436,800
HAWAII        
HAWAII COUNTY, HI 278,750 313,961 381,447 440,132
HONOLULU, HI (MSA) 617,558 695,564 845,079 975,091
MAUI COUNTY, HI 381,250 429,408 521,711 601,974
KALAWAO COUNTY, HI 239,400 306,379 370,326 460,232
KAUAI COUNTY, HI 531,250 598,355 726,974 838,816
IDAHO        
BLAIN COUNTY, ID 336,250 378,724 460,132 530,921
TETON COUNTY, ID 369,407 438,453 532,699 614,653
ILLINOIS        
CHICAGO-NAPERVILLE-JOLIET, IL-IN-WI (MSA) 362,105 407,845 495,512 571,745
ST. LOUIS, MO-IL (MSA) 281,250 316,776 384,868 444,079
INDIANA        
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 235,646 290,779 351,474 436,800
CHICAGO-NAPERVILLE-JOLIET, IL-IN-WI (MSA) 362,105 407,845 495,512 571,745
INDIANAPOLIS, IN (MSA) 231,250 290,779 351,474 436,800
LOUISVILLE, KY-IN (MSA) 237,375 290,779 351,474 436,800
SCOTT COUNTY, IN 237,375 290,779 351,474 436,800
KANSAS        
KANSAS CITY, MO-KS (MSA) 265,313 298,826 363,059 436,800
KENTUCKY        
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 235,646 290,779 351,474 436,800
LOUISVILLE, KY-IN (MSA) 237,375 290,779 351,474 436,800
MARYLAND        
BALTIMORE-TOWSON, MD (MSA) 344,222 389,557 473,292 546,107
HAGERSTOWN-MARTINSBURG, MD-WV (MSA) 355,000 399,842 485,789 560,526
WASHINGTON COUNTY, MD 268,750 302,697 367,763 436,800
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV (MSA) 411,704 516,697 627,763 724,342
PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD (MSA) 312,500 351,974 427,632 493,421
MAINE        
PORTLAND-SOUTH PORTLAND-BIDDEFORD, ME (MSA) 327,500 368,868 448,158 517,105
MASSACHUSETTS        
BARNSTABLE TOWN, MA (MSA) 411,704 527,037 637,046 761,842
BOSTON-CAMBRIDGE-QUINCY, MA-NH (MSA) 411,704 527,037 637,046 787,396
DUKES COUNTY, MA 344,222 440,609 532,532 661,829
NANTUCKET COUNTY, MA 344,222 440,609 532,532 661,829
PITTSFIELD, MA (MSA) 237,500 290,779 351,474 436,800
PROVIDENCE-NEW BEDFORD-FALL RIVER, RI-MA (MSA) 369,407 472,891 571,567 710,309
SPRINGFIELD, MA (MSA) 237,500 290,779 351,474 436,800
WORCESTER, MA (MSA) 381,999 488,975 591,028 734,521
MICHIGAN        
LENAWEE COUNTY, MI 297,500 335,079 407,105 469,737
ANN ARBOR, MI (MSA) 297,500 335,079 407,105 469,737
DETROIT-WARREN-LIVONIA, MI (MSA) 297,500 335,079 407,105 469,737
HOLLAND-GRAND HAVEN, MI (MSA) 236,250 290,779 351,474 436,800
LANSING-EAST LANSING, MI (MSA) 250,000 290,779 351,474 436,800
MONROE, MI (MSA) 297,500 335,079 407,105 469,737
MINNESOTA        
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA) 306,250 344,934 419,079 483,553
ROCHESTER, MN (MSA) 238,125 290,779 351,474 436,800
MISSOURI        
KANSAS CITY, MO-KS (MSA) 265,313 298,826 363,059 436,800
ST. LOUIS, MO-IL (MSA) 281,250 316,776 384,868 444,079
MONTANA        
MISSOULA, MT (MSA) 243,750 290,779 351,474 436,800
NEW HAMPSHIRE        
MANCHESTER-NASHUA, NH (MSA) 381,999 488,975 591,028 734,521
BOSTON-CAMBRIDGE-QUINCY, MA-NH (MSA) 411,704 527,037 637,046 787,396
NEW JERSEY        
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ (MSA) 369,407 459,255 557,974 643,816
ATLANTIC CITY, NJ (MSA) 306,250 344,934 419,079 483,553
PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD (MSA) 312,500 351,974 427,632 493,421
NEW YORK-NEWARK-EDISON, NY-NJ-PA (MSA) 411,704 527,037 637,046 791,700
OCEAN CITY, NJ (MSA) 411,704 483,574 587,520 677,908
TRENTON-EWING, NJ (MSA) 381,250 429,408 521,711 601,974
NEW MEXICO        
LOS ALAMOS COUNTY, NM 318,750 359,013 436,184 503,289
SANTA FE, NM (MSA) 381,999 449,471 546,086 630,099
NEVADA        
CARSON CITY, NV (MSA) 333,750 375,908 456,711 526,974
DOUGLAS COUNTY, NV 381,999 446,250 542,237 625,658
LAS VEGAS-PARADISE, NV (MSA) 353,947 398,655 484,349 558,863
LYON COUNTY, NV 237,368 290,779 351,474 436,800
NYE COUNTY, NV 321,842 362,500 440,461 508,224
RENO-SPARKS, NV (MSA) 373,947 421,182 511,717 590,442
NEW YORK        
BUFFALO-NIAGARA FALLS, NY (MSA) 237,500 290,779 351,474 436,800
KINGSTON, NY (MSA) 293,750 330,855 401,974 463,816
NEW YORK-NEWARK-EDISON, NY-NJ-PA (MSA) 411,704 527,037 637,046 791,700
POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY (MSA) 356,250 401,250 487,500 562,500
ROCHESTER, NY (MSA) 243,750 290,779 351,474 436,800
NORTH CAROLINA        
CHARLOTTE-GASTONIA-CONCORD, NC-SC (MSA) 233,125 290,779 351,474 436,800
DURHAM, NC (MSA) 230,000 290,779 351,474 436,800
JACKSONVILLE, NC (MSA) 306,250 344,934 419,079 483,553
RALEIGH-CARY, NC (MSA) 231,053 290,779 351,474 436,800
VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) 375,122 422,507 513,325 592,299
OHIO        
AKRON, OH (MSA) 250,054 290,779 351,474 436,800
ASHTABULA COUNTY, OH 290,797 327,530 397,933 459,154
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 235,646 290,779 351,474 436,800
CLEVELAND-ELYRIA-MENTOR, OH (MSA) 290,797 327,530 397,933 459,154
COLUMBUS, OH (MSA) 274,738 309,441 375,957 436,800
DAYTON, OH (MSA) 239,072 290,779 351,474 436,800
OREGON        
BEND, OR (MSA) 285,875 321,986 391,197 451,382
CORVALLIS, OR (MSA) 292,375 329,307 400,092 461,645
EUGENE-SPRINGFIELD, OR (MSA) 227,500 290,779 351,474 436,800
JOSEPHINE COUNTY, OR 268,750 302,697 367,763 436,800
MEDFORD, OR (MSA) 312,500 351,974 427,632 493,421
PORTLAND-VANCOUVER-BEAVERTON, OR-WA (MSA) 281,250 316,776 384,868 444,079
PENNSYLVANIA        
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ (MSA) 369,407 459,255 557,974 643,816
NEW YORK-NEWARK-EDISON, NY-NJ-PA (MSA) 411,704 527,037 637,046 791,700
PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD (MSA) 312,500 351,974 427,632 493,421
PITTSBURGH, PA (MSA) 240,000 290,779 351,474 436,800
YORK-HANOVER, PA (MSA) 240,000 290,779 351,474 436,800
RHODE ISLAND        
PROVIDENCE-NEW BEDFORD-FALL RIVER, RI-MA (MSA) 369,407 472,891 571,567 710,309
SOUTH CAROLINA        
CHARLESTON-NORTH CHARLESTON, SC (MSA) 287,875 324,238 393,934 454,539
CHARLOTTE-GASTONIA-CONCORD, NC-SC (MSA) 233,125 290,779 351,474 436,800
GEORGETOWN COUNTY, SC 228,750 290,779 351,474 436,800
BEAUFORT COUNTY, SC 262,500 295,658 359,211 436,800
TENNESSEE        
NASHVILLE-DAVIDSON-MURFREESBORO, TN (MSA) 297,500 335,079 407,105 469,737
TEXAS        
AUSTIN-ROUND ROCK, TX (MSA) 233,750 290,779 351,474 436,800
UTAH        
WASATCH COUNTY, UT 231,250 290,779 351,474 436,800
KANE COUNTY, UT 268,750 302,697 367,763 436,800
PROVO-OREM, UT (MSA) 231,250 290,779 351,474 436,800
SALT LAKE CITY, UT (MSA) 306,250 344,934 419,079 483,553
ST. GEORGE, UT (MSA) 237,375 290,779 351,474 436,800
VERMONT        
BURLINGTON-SOUTH BURLINGTON, VT (MSA) 281,125 316,636 384,697 443,882
VIRGINIA        
CHARLOTTESVILLE, VA (MSA) 278,625 313,820 381,276 439,934
HARRISONBURG, VA (MSA) 232,500 290,779 351,474 436,800
CULPEPER COUNTY, VA 381,999 448,442 544,837 628,658
KING GEORGE COUNTY, VA 381,999 448,442 544,837 628,658
RICHMOND, VA (MSA) 281,250 316,776 384,868 444,079
VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC (MSA) 375,122 422,507 513,325 592,299
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV (MSA) 411,704 516,697 627,763 724,342
WINCHESTER, VA-WV (MSA) 312,500 351,974 427,632 493,421
WASHINGTON        
BELLINGHAM, WA (MSA) 265,938 299,530 363,914 436,800
BREMERTON-SILVERDALE, WA (MSA) 278,750 313,961 381,447 440,132
MOUNT VERNON-ANACORTES, WA (MSA) 256,250 290,779 351,474 436,800
JEFFERSON COUNTY, WA 236,250 290,779 351,474 436,800
SAN JUAN COUNTY, WA 381,999 479,934 583,092 672,829
ISLAND COUNTY, WA 366,842 413,179 502,039 579,276
OLYMPIA, WA (MSA) 243,625 290,779 351,474 436,800
PORTLAND-VANCOUVER-BEAVERTON, OR-WA (MSA) 281,250 316,776 384,868 444,079
SEATTLE-TACOMA-BELLEVUE, WA (MSA) 379,868 427,851 519,820 599,792
WISCONSIN        
CHICAGO-NAPERVILLE-JOLIET, IL-IN-WI (MSA) 362,105 407,845 495,512 571,745
MADISON, WI (MSA) 267,368 301,141 365,872 436,800
MILWAUKEE-WAUKESHA-WEST ALLIS, WI (MSA) 256,316 290,779 351,474 436,800
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (MSA) 306,250 344,934 419,079 483,553
RACINE, WI (MSA) 242,500 290,779 351,474 436,800
WEST VIRGINIA        
HAGERSTOWN-MARTINSBURG, MD-WV (MSA) 355,000 399,842 485,789 560,526
MORGANTOWN, WV (MSA) 228,125 290,779 351,474 436,800
WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV (MSA) 411,704 516,697 627,763 724,342
WINCHESTER, VA-WV (MSA) 312,500 351,974 427,632 493,421
WYOMING        
TETON COUNTY, WY 369,407 438,453 532,699 614,653
GUAM 237,500 290,779 351,474 436,800
PUERTO RICO        
FAJARDO, PR (MSA) 325,000 366,053 444,737 513,158
SAN JUAN-CAGUAS-GUAYNABO, PR (MSA) 325,000 366,053 444,737 513,158
VIRGIN ISLANDS        
ST. CROIX 287,500 323,816 393,421 453,947
ST. JOHN 246,447 290,779 351,474 436,800
ST. THOMAS 318,750 359,013 436,184 503,289
ALL OTHER AREAS $227,147 $290,779 $351,474 $436,800

.02 The nationwide average purchase price (for use in the housing cost/income ratio for new and existing residences) is $238,200.

SECTION 5. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2004-18 is obsolete except as provided in section 6 of this revenue procedure.

SECTION 6. EFFECTIVE DATES

.01 Issuers may rely on this revenue procedure to determine average area purchase price safe harbors for commitments to provide financing or issue mortgage credit certificates that are made, or (if the purchase precedes the commitment) for residences that are purchased, in the period that begins on February 10, 2005, and ends on the date as of which the safe harbors contained in section 4.01 of this revenue procedure are rendered obsolete by a new revenue procedure.

.02 Notwithstanding section 5 of this revenue procedure, issuers may continue to rely on the average area purchase price safe harbors contained in Rev. Proc. 2004-18, with respect to bonds sold, or for mortgage credit certificates issued with respect to bond authority exchanged, before March 12, 2005, if the commitments to provide financing or issue mortgage credit certificates are made on or before April 11, 2005.

.03 Except as provided in section 6.04, issuers must use the nationwide average purchase price limitation contained in this revenue procedure for commitments to provide financing or issue mortgage credit certificates that are made, or (if the purchase precedes the commitment) for residences that are purchased, in the period that begins on February 10, 2005, and ends on the date when the nationwide average purchase price limitation is rendered obsolete by a new revenue procedure.

.04 Notwithstanding sections 5 and 6.03 of this revenue procedure, issuers may continue to rely on the nationwide average purchase price set forth in Rev. Proc. 2004-18 with respect to bonds sold, or for mortgage credit certificates issued with respect to bond authority exchanged, before March 12, 2005, if the commitments to provide financing or issue mortgage credit certificates are made on or before April 11, 2005.

SECTION 7. PAPERWORK REDUCTION ACT

The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1877.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.

This revenue procedure contains a collection of information requirement in section 3.03. The purpose of the collection of information is to verify the applicable FHA loan limit that issuers of qualified mortgage bonds and qualified mortgage certificates have used to calculate the average area purchase price for a given metropolitan statistical area for purposes of section 143(e) and 25(c). The collection of information is required to obtain the benefit of using revisions to FHA loan limits to determine average area purchase prices. The likely respondents are state and local governments.

The estimated total annual reporting and/or recordkeeping burden is: 15 hours.

The estimated annual burden per respondent and/or recordkeeper: 15 minutes.

The estimated number of respondents and/or recordkeepers: 60.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

SECTION 8. DRAFTING INFORMATION

The principal authors of this revenue procedure are David E. White and Timothy L. Jones of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt & Government Entities). For further information regarding this revenue procedure, contact David E. White at (202) 622-3980 (not a toll-free call).


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