Where section 42 credit is allowed the next-available-unit comparison set is the building rather than the project

bond.next_available_unit.building_substituted_where_credit_allowed · v1.0.0

For a project with respect to which credit is allowed under section 42, the second sentence of 142(d)(3)(B) is applied by substituting 'building (within the meaning of section 42)' for 'project'. On a 4% deal this is what narrows the bond next-available-unit comparison set from every comparable or smaller unit in the project to every comparable or smaller unit in the building, aligning it with the section 42 available unit rule. It is a substitution in one sentence only: the rest of 142(d), including the set-aside percentage, the annual income determination and the qualified project period, continues to be measured over the project. A bond project with no credit allocation gets no such substitution.

Confidence

high

Effective from

1986-10-22

Last reviewed

2026-08-30