Rev. Rul. 98-3, 1998-2 I.R.B. 4.

INTERNAL REVENUE SERVICE
Revenue Ruling

LOW-INCOME HOUSING CREDIT, SATISFACTORY BOND; "BOND FACTOR" AMOUNTS FOR THE PERIOD OCTOBER THROUGH DECEMBER 1997

Published: January 12, 1998

Low-income housing credit; satisfactory bond; "factor" amounts for the period October through December 1997. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period October through December 1997. The ruling also corrects errors in the bond factor amounts for properties placed in service in 1987 and disposed of between January through September 1997.

In Rev. Rul. 90-60, 1990-2 C.B. 3, the Internal Revenue Service provided guidance to taxpayers concerning the general methodology used by the Treasury Department in computing the bond factor amounts used in calculating the amount of bpnd considered satisfactory by the Secretary under § 42(j)(6) of the Internal Revenue Code. It further announced that the Secretary would publish in the Internal Revenue Bulletin a table of "bond factor" amounts for dispositions occurring during each calendar month.

This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under § 42(j)(6) for dispositions of qualified low-income buildings or interests therein during the period October through December 1997 Table 2 provides a summary of the bond factor amounts for dispositions occurring during the period January through September 1997. Table 3 provides a summary of bond factor amounts for dispositions occurring during the period January through December 1996.

Table 1
Rev. Rul. 98-3

Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits

Calendar Year Building Placed in Service or, if Section42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Oct '97 79.95 79.99 82.52 85.46 88.88 92.76 96.76 100.63 104.47 108.59 112.52
Nov '97 79.95 79.78 82.30 85.23 88.65 92.52 96.51 100.38 104.22 108.38 112.52
Dec '97 79.95 79.57 82.09 85.01 88.42 92.28 96.26 100.13 103.99 108.20 112.52

Table 2
Rev. Rul. 98-3

Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits

Calendar Year Building Placed in Service or, if Section42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Jan '97 79.95 82.08 84.67 87.70 91.25 95.12 99.53 103.58 107.56 111.85 112.52
Feb '97 79.95 81.83 84.41 87.43 90.96 95.00 99.17 103.18 107.11 111.28 112.52
Mar '97 79.95 81.59 84.15 87.16 90.67 94.69 98.83 102.81 106.69 110.79 112.52
Apr '97 79.95 81.35 83.91 86.90 90.40 94.39 98.50 102.45 106.31 110.36 112.52
May '97 79.95 81.11 83.66 86.64 90.13 94.09 98.18 102.11 105.95 109.98 112.52
Jun '97 79.95 80.88 83.42 86.40 89.87 93.81 97.88 101.79 105.61 109.64 112.52
Jul '97 79.95 80.65 83.19 86.15 89.61 93.54 97.58 101.48 105.30 109.33 112.52
Aug '97 79.95 80.43 82.96 85.92 89.36 93.27 97.30 101.18 105.01 109.06 112.52
Sep '97 79.95 80.21 82.74 85.68 89.12 93.01 97.03 100.90 104.73 108.81 112.52

Rev. Rul. 98-3

Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits

Calendar Year Building Placed in Service or, if Section42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Jan '96 82.72 85.18 87.85 91.00 94.73 99.06 103.57 107.87 111.88 112.52
Feb '96 82.47 84.92 87.58 90.71 94.42 96.71 103.18 107.41 111.30 112.52
Mar '96 82.22 84.66 87.31 90.43 94.11 96.38 102.80 106.98 110.81 112.52
Apr '96 76.76 78.26 79.91 81.94 84.43 87.38 90.40 93.15 95.61 97.21
May '96 76.54 78.03 79.68 81.71 84.19 87.12 90.12 92.66 95.32 97.21
Jun '96 76.32 77.81 79.46 81.48 83.95 86.85 89.85 92.58 95.06 97.21
Jul '96 81.06 83.47 86.09 89.16 92.78 96.94 101.25 105.33 109.16 112.52
Aug '96 80.84 83.24 85.85 88.92 92.52 96.67 100.96 105.04 108.90 112.52
Sep '96 80.61 83.01 85.62 88.68 92.28 96.41 100.58 104.76 108.66 112.52
Oct '96 80.39 82.78 85.39 88.44 92.03 96.15 100.41 104.49 108.44 112.52
Nov '96 80.17 82.56 85.16 88.21 91.80 95.90 100.16 104.25 108.24 112.52
Dec '96 79.96 82.35 84.95 87.99 91.57 95.67 99.92 104.02 108.06 112.52

Due to a miscalculation, Rev. Rul. 97-16 1997-13 I.R.B. 4, Rev. Rul. 97-25, 1997-23 I.R.B. 4, and Rev. Rul. 97-34, 1997-34, I.R.B. 4, are in error regarding the specific bond factor amounts for buildings placed in service in calendar year 1987 and disposed of in calendar year 1997. The present revenue ruling provides a complete list of the corrected amounts. Taxpayers who posted bonds prior to the publication date of this revenue ruling based upon the above mentioned bond factor amounts may continue to rely on these figures under the authority of § 7805(b).

For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see the following revenue rulings: Rev. Rul. 90-60, 1990- 2 C.B. 3, for dispositions occurring during calendar years 1987, 1988, and 1989;

Rev. Rul. 90-88, 1990-2 C.B. 7, for dispositions occurring during calendar year 1990; Rev. Rul. 91-67, 1991-2 C.B. 13, for dispositions occurring during calendar year 1991;

Rev. Rul. 92-101, 1992-2 C.B. 9, for dispositions occurring during calendar year 1992; Rev. Rul. 93-83, 1993-2 C.B. 6, for dispositions occurring during calendar year 1993;

Rev. Rul. 94-71, 1994-2 C.B. 4, for dispositions occurring during calendar year 1994; and Rev. Rul. 95-83, 1995-2 C.B. 8, for dispositions occurring during calendar year 1995.

DRAFTING INFORMATION

The principal author of this revenue ruling is Jack Malgeri of the Office of Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. Malgeri at (202) 622- 3040 (not a toll-free call).

Rev. Rul. 98-3, 1998-2 I.R.B. 4.