Elimination of refinancing limitation for mortgage revenue bonds

(a) In general Section 143(i)(1) is amended by adding at the end the following: (D) Exception for refinancing for certain mortgagors (i) In general The refinancing of a mortgage on a residence of a mortgagor who, as of the date of such refinancing, satisfies the principal residence requirements under subsection (c)(1) and the income requirements under subsection (f) shall not be treated as the acquisition or replacement of an existing mortgage for purposes of subparagraph (A). (ii) Special rule In applying clause (i) to any refinancing— (I) subsection (d) shall not apply, and (II) subsection (e) shall be applied by using the market value of the residence at the time of refinancing in lieu of the acquisition cost.. (b) Effective date The amendment made by this section shall apply to refinancing loans made on or after the date of enactment of this Act.