The 4% minimum applicable credit percentage does not apply to three situations modified by Rev. Rul. 2021-20, 2021-51 I.R.B. 875PDF and Rev. Proc. 2021-43, 2021-51 I.R.B. 882PDF.

(1) Situation 1. The 4 percent floor under section 42(b)(3) does not apply to the building in Situation 1, which is financed in part with a draw-down exempt facility bond issue that was issued in 2020 and on which one or more draws are taken after December 31, 2020.

(2) Situation 2. The 4 percent floor under section 42(b)(3) does not apply to the building in Situation 2, which is financed in part with proceeds of an exempt facility bond issue that was issued in 2020 and in part with proceeds of a different exempt facility bond issue that is issued in a de minimis amount after December 31, 2020.

(3) Situation 3. The 4 percent floor under section 42(b)(3) does not apply to the building in Situation 3, which receives an allocation of housing credit dollar amount in 2020 and a de minimis additional allocation after December 31, 2020.

The analysis in Rev. Rul. 2021-20, 2021-51 I.R.B. 875PDF applies only for purposes of determining whether the 4 percent floor under section 42(b)(3) applies to a building.