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federalUnited StatesTax-Exempt Private Activity Bond Financed Residential Rental Propertyset_aside
In a city of five boroughs with population over five million the 40-60 test is applied as a 25-60 test
bond.set_aside.new_york_city_25_60_substitution · v1.0.0
For a project located in a city having 5 boroughs and a population in excess of 5,000,000, section 142(d)(6) applies the 40-60 test of 142(d)(1)(B) by substituting 25 percent for 40 percent. The income ceiling is unchanged at 60 percent of area median gross income; only the share of units required to be occupied by qualifying individuals falls. Form 8703 prints this as its own election box, '25-60 test (NYC only)'.
Section 142(d)(6) describes New York City by its structure rather than by name. No other United States city has five boroughs.
- Confidence
- high
- Effective from
- 1986-10-22
- Last reviewed
- 2026-08-30
Citations
All sources verified within 1 day- Internal Revenue Code Section 142 - Exempt facility bond, including 142(d) qualified residential rental project26 U.S.C. 142(d)(6)
- Form 8703, Annual Certification of a Residential Rental ProjectForm 8703 (Rev. 12-2021), instructions to line 1(c)