Rev. Rul. 99-38, 1999-36 I.R.B. 335.

                       Internal Revenue Service
                                 Revenue Ruling

     LOW-INCOME HOUSING CREDIT; SATISFACTORY BOND; "BOND FACTOR" AMOUNTS FOR

                     THE PERIOD JULY THROUGH SEPTEMBER 1999

                          Published: September 7, 1999

Section 42.--Low-Income Housing Credit

  Low-income housing credit; satisfactory bond; "bond factor" amounts for the period July through September 1999. 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 July through September 1999.

  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 bond 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 July through September 1999.

                                                  Table 1
                                              Rev. Rul. 99-38
          Monthly Bond Factor Amounts for Dispositions Expressed
Calendar Year Building Placed in Service or, if Section 42(f)(1)
                                                   Year

As a Percentage of Total Credits
Election Was Made, the Succeeding Calendar
Month of       1987   1988   1989   1990   1991   1992   1993   1994   1995
  Disposition
Jul '99        45.71  60.18  75.06  76.18  79.16  82.50  85.93  89.30  92.70
Aug '99        45.71  60.18  75.06  75.97  78.94  82.27  85.69  89.04  92.44
Sep '99        45.71  60.18  75.06  75.77  78.73  82.05  85.45  88.80  92.19

1996    1997    1998    1999
96.38  100.22  104.36  107.43
96.11   99.95  104.10  107.43
95.85   99.69  103.86  107.43

  For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see the following revenue rulings: Rev. Rul.98-3, 1998-2 I.R.B. 4, for dispositions occurring during the calendar years 1996 and 1997; Rev. Rul. 98-13, 1998-11 I.R.B. 4, for dispositions occurring during the period January through March 1998; Rev. Rul. 98-31, 1998-25 I.R.B. 4, for dispositions occurring during the period April through June 1998; Rev. Rul. 98- 45, 1998-38 I.R.B. 4, for dispositions occurring during the period July through September 1998; Rev. Rul. 99-1, 1999-2 I.R.B. 4, for dispositions occurring during the period October through December 1998; Rev. Rul. 99-18, 1999-14 I.R.B. 3, for dispositions occurring during the period January through March 1999; and Rev. Rul. 99-24, 1999-21 I.R.B. 3, for dispositions occurring during the period April through June 1999.

DRAFTING INFORMATION

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

Rev. Rul. 99-38, 1999-36 I.R.B. 335.