103 STAT. 2316 PUBLIC LAW 101-239—DEC. 19, 1989 (3) SCATTERED SITE PROJECTTS. —Section 42(g) (relating to quali- fied low-income housing project) is amended by adding at the end thereof the following new paragraph: "(7) SCATTERED SITE PROJEcrrs. —Buildings which would (but for their lack of proximity) be treated as a project for purposes of this section sncdl be so treated if all of the dwelling units in each of the buildings are rent-restricted (within the meaning of paragraph (2)) residential rental units." (4) OWNER-OCCUPIED BUILDINGS HAVING 4 OR FEWER UNFFS ELIGIBLE FOR CREDIT WHERE DEVELOPMENT PLAN.— SeCtion 42(i)(3) (defining low-income unit), as amended by subtitle H, is amended by adding at the end thereof the following new subparagraph: "CE) OWNER-OCCUPIED BUILDINGS HAVING 4 OR FEWER UNTTS ELIGIBLE FOR CREDTT WHERE DEVELOPMENT PLAN. — "(i) IN GENERAL. — Subparagraph (C) shall not apply •"' •. to the acquisition or rehabilitation of a building pursu- ant to a development plan of action sponsored by a State or local government or a qualified nonprofit organization (as defined in subsection (h)(5)(C)). (ii) LIMITATION ON CREDCT. —In the case of a building to which clause (i) applies, the applicable fraction shall ?-*•<, not exceed 80 percent of the unit fraction. "(iii) CERTAIN UNRENTED UNITS TREATED AS OWNER- ' -'-•-^ OCCUPIED. —In the case of a building to which clause (i) f applies, any unit which is not rented for 90 days or more shall be treated as occupied by the owner of the building as of the 1st day it is not rented." (5) BUILDINGS RECEIVING SECTION 8 MODERATE REHABIUTATION ASSISTANCE OR SIMILAR ASSISTANCE NOT ELIGIBLE FOR CREDIT. — Section 42(b)(l) (relating to applicable percentage for buildings placed in service during 1987) is amended by adding at the end thereof the following new flush sentence: "A building shall not be treated as described in subparagraph i (B) if, at any time during the credit period, moderate rehabilita- tion assistance is provided with respect to such building under section 8(e)(2) of the United States Housing Act of 1937." (i) APPLICATION OF CREDIT TO TRANSIHONAL HOUSING FOR THE HOMELESS; DENIAL OF CREDIT FOR SUBSTANDARD HOUSING. — (1) IN GENERAL.—Subparagraph (B) of section 42(i)(3) (defining low-income unit) is amended to read as follows: "(B) EXCEPTIONS.— "(i) IN GENERAL.—A unit shall not be treated as a low-income unit unless the unit is suitable for occu- pancy and used other than on a transient basis. "(u) SunABiLHY FOR OCCUPANCY.—For purposes of clause (i), the suitability of a unit for occupancv shall be determined under regulations prescribed by the Sec- retary taking into account local health, ssdfety, and building codes. "(iii) TuANsmoNAL HOUSING FOR HOMELESS.— For purposes of clause (i), a unit shall be considered to be used other than on a transient basis if the unit contains sleeping accommodations and kitchen and bathroom faciuties and is located in a building— "(I) which is used exclusively to facilitate the transition of homeless individuals (within the
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