Tax Notes logo

IRS Publishes Average Purchase Prices For New And Existing Homes.

FEB. 10, 2004

Rev. Proc. 2004-18; 2004-1 C.B. 529

DATED FEB. 10, 2004
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    For a summary of Rev. Proc. 94-55, 1994-2 C.B. 716, see Tax

    Notes, Sept. 12, 1994, p. 1410; for the full text, see Doc 94-

    7665 (38 pages), 94 TNT 161-17, or H&D, Aug. 17,

    1994, p. 2575.

    Part III

    Administrative, Procedural, and Miscellaneous

    [26 CFR 601.201]: Rulings and determination letters

    (Also: Part I, §§ 25, 103, 143)
  • Code Sections
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2004-2748 (16 original pages)
  • Tax Analysts Electronic Citation
    2004 TNT 28-8
Citations: Rev. Proc. 2004-18; 2004-1 C.B. 529

Obsoleted by Rev. Proc. 2005-15

Rev. Proc. 2004-18

SECTION 1. PURPOSE

This revenue procedure provides issuers of qualified mortgage bonds, as defined in section 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in section 25(c), with (1) the nationwide average purchase price for residences located in the United States, and (2) average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam.

SECTION 2. CHANGES

Average area purchase price safe harbors were last published in Rev. Proc. 94-55, 1994-2 C.B. 716, and were based on housing price estimates calculated by the Department of Housing and Urban Development from mortgage data collected by the Federal Housing Finance Board (FHFB). As more fully described in section 3 below, the average area purchase price safe harbors contained in this revenue procedure are based on the annual loan limits set by the Federal Housing Administration (FHA) on FHA-insured mortgages (FHA loan limits). Because FHA loan limits do not differentiate between new and existing residences, this revenue procedure sets forth a single average area purchase price that may be used as a safe harbor for both new and existing residences in each of the listed statistical areas. This revenue procedure also sets forth a single nationwide average purchase price.

This revenue procedure also reflects the Office of Management and Budget's (OMB) current definitions for the nation's metropolitan statistical areas (MSAs), as contained in OMB Bulletin No. 03-04, dated and effective June 6, 2003. The safe harbors provided in Rev. Proc. 94-55 were for MSAs defined in OMB Bulletin No. 93-17, dated and effective June 30, 1993.

SECTION 3. BACKGROUND

.01 Section 103(a) provides that, except as provided in section 103(b), gross income does not include interest on any state or local bond. Section 103(b)(1) provides that section 103(a) shall not apply to any private activity bond that is not a "qualified bond" within the meaning of section 141. Section 141(e) provides, in part, that the term "qualified bond" means any private activity bond if such bond (1) is a qualified mortgage bond under section 143, (2) meets the volume cap requirements under section 146, and (3) meets the applicable requirements under section 147.

.02 Section 143(a)(1) provides that the term "qualified mortgage bond" means a bond that is issued as part of a qualified mortgage issue. Section 143(a)(2)(A) provides that the term "qualified mortgage issue" means an issue of one or more bonds by a state or political subdivision thereof, but only if: (i) all proceeds of the issue (exclusive of issuance costs and a reasonably required reserve) are to be used to finance owner-occupied residences; (ii) the issue meets the requirements of subsections (c), (d), (e), (f), (g), (h), (i), and (m)(7) of section 143; (iii) the issue does not meet the private business tests of paragraphs (1) and (2) of section 141(b); and (iv) with respect to amounts received more than 10 years after the date of issuance, repayments of $250,000 or more of principal on mortgage financing provided by the issue are used by the close of the first semiannual period beginning after the date the prepayment (or complete repayment) is received to redeem bonds that are part of the issue.

Average Area Purchase Price

.03 Section 143(e)(1) provides that an issue of bonds meets the purchase price requirements of section 143(e) if the acquisition cost of each residence financed by the issue does not exceed 90 percent of the average area purchase price applicable to such residence. Section 143(e)(5) provides that, in the case of a targeted area residence (as defined in section 143(j)), section 143(e)(1) shall be applied by substituting 110 percent for 90 percent.

.04 Section 143(e)(2) provides that the term "average area purchase price" means, with respect to any residence, the average purchase price of single-family residences (in the statistical area in which the residence is located) that were purchased during the most recent 12-month period for which sufficient statistical information is available. Under sections 143(e)(3) and (4), respectively, separate determinations are to be made for new and existing residences, and for two-, three-, and four-family residences.

.05 Section 143(e)(2) provides that the determination of the average area purchase price for a statistical area shall be made as of the date on which the commitment to provide the financing is made or, if earlier, the date of the purchase of the residence.

.06 Section 143(k)(2)(A) provides that the term "statistical area" means (i) a metropolitan statistical area (MSA), and (ii) any county (or the portion thereof) that is not within an MSA. Section 143(k)(2)(C) further provides that if sufficient recent statistical information with respect to a county (or portion thereof) is unavailable, the Secretary may substitute another area for which there is sufficient recent statistical information for such county (or portion thereof). In the case of any portion of a State which is not within a county, section 143(k)(2)(D) provides that the Secretary may designate as a county any area that is the equivalent of a county. Section 6a.103A-1(b)(4)(i) of the Temporary Income Tax Regulations (issued under section 103A of the Internal Revenue Code of 1954, the predecessor of section 143) provides that the term "State" includes a possession of the United States and the District of Columbia.

.07 Section 6a.103A-2(f)(5)(i) provides that an issuer may rely upon the average area purchase price safe harbors published by the Department of the Treasury for the statistical area in which a residence is located. Section 6a.103A-2(f)(5)(i) further provides that an issuer may use an average area purchase price limitation different from the published safe harbor if the issuer has more accurate and comprehensive data for the statistical area.

Qualified Mortgage Credit Certificate Program

.08 Section 25(c) permits a state or political subdivision to establish a qualified mortgage credit certificate program. In general, a qualified mortgage credit certificate program is a program under which the issuing authority elects not to issue an amount of private activity bonds that it may otherwise issue during the calendar year under section 146, and in their place, issues mortgage credit certificates to taxpayers in connection with the acquisition of their principal residences. Section 25(a)(1) provides, in general, that the holder of a mortgage credit certificate may claim a federal income tax credit equal to the product of the credit rate specified in the certificate and the interest paid or accrued during the tax year on the remaining principal of the indebtedness incurred to acquire the residence. Section 25(c)(2)(A)(iii)(III) generally provides that residences acquired in connection with the issuance of mortgage credit certificates must meet the purchase price requirements of section 143(e).

Income Limitations for Qualified Mortgage Bonds and Mortgage Credit Certificates

.09 Section 143(f) imposes limitations on the income of mortgagors for whom financing may be provided by qualified mortgage bonds. In addition, section 25(c)(2)(A)(iii)(IV) provides that holders of mortgage credit certificates must meet the income requirement of section 143(f). Generally, under sections 143(f)(1) and 25(c)(2)(A)(iii)(IV), the income requirement is met only if all owner-financing under a qualified mortgage bond and all mortgage credit certificates issued under a qualified mortgage credit certificate-program are provided to mortgagors whose family income is 115 percent or less of the applicable median family income. Section 143(f)(5), however, generally provides for an upward adjustment to the percentage limitation in high housing cost areas. High housing cost areas are defined in section 143(f)(5)(C) as any statistical area for which the housing cost/income ratio is greater than 1.2.

.10 Under section 143(f)(5)(D), the housing cost/income ratio with respect to any statistical area is determined by dividing (a) the applicable housing price ratio for such area by (b) the ratio that the area median gross income for such area bears to the median gross income for the United States. The applicable housing price ratio is the new housing price ratio (new housing average area purchase price divided by the new housing average purchase price for the United States) or the existing housing price ratio (existing housing average area purchase price divided by the existing housing average purchase price for the United States), whichever results in the housing cost/income ratio being closer to 1.

Average Area and Nationwide Purchase Price Limitations

.11 Average area purchase price safe harbors for each state and the District of Columbia were last published in Rev. Proc. 94-55, 1994-2 C.B. 716. Average area purchase price safe harbors for Puerto Rico, Guam, and the Virgin Islands were last published in Rev. Proc. 93-15, 1993-1 C.B. 485. Average area purchase price safe harbors for the Northern Mariana Islands were last published in Rev. Proc. 87-19, 1987-1 C.B. 712. Average area purchase price safe harbors for American Samoa have not been published previously.

.12 Nationwide average purchase price limitations were last published in Rev. Proc. 94-55. Guidance with respect to the United States and area median gross income figures that are to be used in computing the housing cost/income ratio described in section 143(f)(5) was last published in Rev. Proc. 2003-29, 2003-1 C.B. 917.

.13 In Rev. Proc. 94-55, the average area purchase price safe harbors were based on housing price estimates derived from mortgage survey data collected by the FHFB. This revenue procedure uses FHA loan limits for a given statistical area to calculate the average area purchase price safe harbor for that area. FHA sets limits on the dollar value of loans it will insure based on median home prices and conforming loan limits established by the Federal Home Loan Mortgage Corporation. In particular, FHA sets an area's loan limit at 95 percent of the median home sales price for the area, subject to certain floors and caps measured against conforming loan limits.

.14 To calculate the average area purchase price safe harbors in this revenue procedure, the FHA loan limits are adjusted to take into account the differences between average and median purchase prices. Because FHA loan limits do not differentiate between new and existing residences, this revenue procedure contains a single average area purchase price safe harbor for both new and existing residences in a statistical area. The Treasury Department and the Internal Revenue Service have determined that FHA loan limits provide a reasonable basis for determining average area purchase price safe harbors. If the Treasury Department and the Internal Revenue Service become aware of other sources of average purchase price data, including data that differentiate between new and existing residences, consideration will be given as to whether such data provide a more accurate method for calculating average area purchase price safe harbors.

.15 The average area purchase price safe harbors listed in section 5.01 of this revenue procedure are based on FHA loan limits released December 31, 2003. FHA loan limits are available for statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam. See section 4.03 of this revenue procedure with respect to FHA loan limits revised after December 31, 2003.

.16 OMB Bulletin No. 03-04, dated and effective June 6, 2003, revised the definitions of the nation's metropolitan areas and recognized 49 new metropolitan statistical areas. As a result, this revenue procedure provides average area purchase safe harbors for statistical areas that differ from those published in Rev. Proc. 94-55. For example, OMB Bulletin No. 03-04 does not include primary metropolitan statistical areas, a type of statistical area that was included in Rev. Proc. 94-55.

SECTION 4. APPLICATION

Average Area Purchase Price Safe Harbors

.01 Average area purchase price safe harbors for statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam are set forth in section 5.01 of this revenue procedure. Average area purchase price safe harbors are provided for single-family and two to four-family residences. For each type of residence, section 5.01 of this revenue procedure contains a single safe harbor that may be used for both new and existing residences. Issuers of qualified mortgage bonds and issuers of mortgage credit certificates may rely on these safe harbors to satisfy the requirements of sections 143(e) and (f). Section 5.01 of this revenue procedure provides safe harbors for MSAs, and for certain counties and county equivalents. If no purchase price safe harbor is available for a statistical area, the safe harbor for "ALL OTHER AREAS" may be used for that statistical area (except for Alaska, for which a separate safe harbor is provided for statistical areas not listed).

.02 If a residence is in an MSA, the safe harbor applicable to it is the limitation of that MSA. If an MSA falls in more than one State, the MSA is listed in section 5.01 of this revenue procedure under each State.

.03 If the FHA revises the FHA loan limit for any statistical area after December 31, 2003, an issuer of qualified mortgage bonds or mortgage credit certificates may use the revised FHA loan limit for that statistical area to compute (as provided in the next sentence) a revised average area purchase price safe harbor for the statistical area provided that the issuer maintains records evidencing the revised FHA loan limit. The revised average area purchase price safe harbor for that statistical area is computed by dividing the revised FHA loan limit by .76.

.04 If, pursuant to section 6a.103A-2(f)(5)(i), an issuer uses more accurate and comprehensive data to determine the average area purchase price for a statistical area, the issuer must make separate average area purchase price determinations for new and existing residences. Moreover, when computing the average area purchase price for a statistical area that is an MSA, as defined in OMB Bulletin No. 03-04, the issuer must make the computation for the entire applicable MSA. When computing the average area purchase price for a statistical area that is not an MSA, the issuer must make the computation for the entire statistical area and may not combine statistical areas. Thus, for example, the issuer may not combine two or more counties.

.05 If an issuer receives a ruling permitting it to rely on an average area purchase price limitation that is higher than the applicable safe harbor in this revenue procedure, the issuer may rely on that higher limitation for the purpose of satisfying the requirements of section 143(e) and (f) for bonds sold, and mortgage credit certificates issued, not more than 30 months following the termination date of the 12-month period used by the issuer to compute the limitation.

Nationwide Average Purchase Price

.06 Section 5.02 of this revenue procedure sets forth a single nationwide average purchase price for purposes of computing the housing cost/income ratio under section 143(f)(5).

.07 Issuers must use the nationwide average purchase price set forth in section 5.02 of this revenue procedure when computing the housing cost/income ratio under section 143(f)(5) regardless of whether they are relying on the average area purchase price safe harbors contained in this revenue procedure or using more accurate and comprehensive data to determine average area purchase prices for new and existing residences for a statistical area that are different from the published safe harbors in this revenue procedure.

.08 If, pursuant to section 7.02 of this revenue procedure, an issuer relies on the average area purchase price safe harbors contained in Rev. Proc. 94-55, the issuer must use the nationwide average purchase prices set forth in Rev. Proc. 94-55 in computing the housing cost/income ratio under section 143(f)(5). Likewise, if, pursuant to section 7.05 of this revenue procedure, an issuer relies on the nationwide average purchase prices published in Rev. Proc. 94-55, the issuer may not rely on the average area purchase price safe harbors published in this revenue procedure.

SECTION 5. AVERAGE AREA AND NATIONWIDE AVERAGE PURCHASE PRICES

.01 Average area purchase prices for single-family and two to four-family residences in MSAs, and for certain counties and county equivalents. The safe harbor for "ALL OTHER AREAS" (found at the end of the table below) may be used for a statistical area that is not listed below (except for Alaska, for which a separate safe harbor is provided for statistical areas not listed).

 ____________________________________________________________________________

 

 Area Name                      1 Family    2 Family    3 Family    4 Family

 

 ____________________________________________________________________________

 

 ALASKA

 

 ANCHORAGE, AK (MSA)            $277,500    $312,553    $379,737    $438,158

 

 All other areas in Alaska      $250,000    $281,579    $342,105    $405,253

 

 

 ARIZONA

 

 FLAGSTAFF, AZ (MSA)            $228,325    $269,779    $326,084    $405,253

 

 MOHAVE COUNTY, AZ              $230,375    $269,779    $326,084    $405,253

 

 

 CALIFORNIA

 

 INYO COUNTY, CA                $353,750    $398,434    $484,079    $558,553

 

 CHICO, CA (MSA)                $231,875    $269,779    $326,084    $405,253

 

 HUMBOLDT COUNTY, CA            $212,500    $269,779    $326,084    $405,253

 

 FRESNO, CA (MSA)               $214,521    $269,779    $326,084    $405,253

 

 LOS ANGELES-LONG BEACH-

 

   SANTA ANA, CA (MSA)          $381,999    $488,975    $591,028    $734,521

 

 MADERA, CA (MSA)               $214,521    $269,779    $326,084    $405,253

 

 MERCED, CA (MSA)               $231,250    $269,779    $326,084    $405,253

 

 MODESTO, CA (MSA)              $290,475    $327,166    $397,492    $458,645

 

 NAPA, CA (MSA)                 $381,999    $488,975    $591,028    $710,526

 

 OXNARD-THOUSAND OAKS-

 

   VENTURA, CA (MSA)            $381,999    $488,975    $591,028    $734,521

 

 TUOLUMNE COUNTY, CA            $243,750    $274,539    $333,553    $405,253

 

 REDDING, CA (MSA)              $228,092    $269,779    $326,084    $405,253

 

 RIVERSIDE-SAN BERNARDINO-

 

   ONTARIO, CA (MSA)            $321,250    $361,829    $439,605    $507,237

 

 SACRAMENTO-ARDEN- ARCADE-

 

   ROSEVILLE, CA (MSA)          $369,407    $464,605    $564,474    $651,316

 

 SALINAS, CA (MSA)              $381,999    $488,975    $591,028    $734,521

 

 SAN DIEGO-CARLSBAD-SAN

 

   MARCOS, CA (MSA)             $381,999    $488,975    $591,028    $734,521

 

 SAN FRANCISCO-OAKLAND-

 

   FREMONT, CA (MSA)            $381,999    $488,975    $591,028    $734,521

 

 SAN JOSE-SUNNYDALE-SANTA

 

   CLARA, CA (MSA)              $381,999    $488,975    $591,028    $734,521

 

 SAN LUIS OBISPO-PASA ROBLES,

 

   CA (MSA)                     $381,999    $488,975    $591,028    $710,329

 

 SANTA BARBARA-SANTA MARIA-

 

   GOLETA, CA (MSA)             $381,999    $488,975    $591,028    $690,789

 

 SANTA CRUZ-WATSONVILLE, CA

 

   (MSA)                        $381,999    $488,975    $591,028    $734,521

 

 SANTA ROSA-PETALUMA, CA

 

   (MSA)                        $381,999    $488,975    $591,028    $734,521

 

 STOCKTON, CA (MSA)             $344,222    $397,730    $483,224    $557,566

 

 NEVADA COUNTY, CA              $312,500    $351,974    $427,632    $493,421

 

 MENDOCINO COUNTY, CA           $312,500    $351,974    $427,632    $493,421

 

 VALLEJO-FAIRFIELD, CA (MSA)    $381,999    $488,975    $591,028    $710,526

 

 YUBA CITY-MARYSVILLE, CA

 

   (MSA)                        $275,000    $309,737    $376,316    $434,211

 

 AMADOR COUNTY, CA              $218,750    $269,779    $326,084    $405,253

 

 MONO COUNTY, CA                $344,222    $399,079    $484,934    $559,539

 

 

 COLORADO

 

 

 BOULDER, CO (MSA)              $369,407    $438,453    $532,699    $614,653

 

 COLORADO SPRINGS, CO (MSA)     $260,500    $293,405    $356,474    $411,316

 

 DENVER-AURORA, CO (MSA)        $344,222    $440,609    $532,532    $631,579

 

 LA PLATA COUNTY, CO            $211,250    $269,779    $326,084    $405,253

 

 EAGLE COUNTY, CO               $344,222    $440,609    $532,532    $661,829

 

 LAKE COUNTY, CO                $344,222    $440,609    $532,532    $661,829

 

 FORT COLLINS-LOVELAND, CO

 

   (MSA)                        $280,000    $315,368    $383,158    $442,105

 

 GREELEY, CO, (MSA)             $286,875    $323,112    $392,566    $452,961

 

 SILVERTHRONE, CO (MSA)         $344,222    $401,250    $487,500    $562,500

 

 GARFIELD COUNTY, CO            $250,000    $286,825    $346,678    $430,855

 

 GRAND COUNTY, CO               $242,500    $273,132    $331,842    $405,253

 

 GUNNISON COUNTY, CO            $259,938    $292,772    $355,704    $410,428

 

 OURAY COUNTY, CO               $262,500    $295,658    $359,211    $414,474

 

 PITKIN COUNTY, CO              $224,161    $286,825    $346,678    $430,855

 

 ROUTT COUNTY, CO               $270,000    $304,105    $369,474    $426,316

 

 SAN MIGUEL COUNTY, CO          $344,222    $401,250    $487,500    $562,500

 

 

 CONNECTICUT

 

 BRIDGEPORT-STAMFORD-NORWALK,

 

   CT (MSA)                     $381,999    $434,964    $528,462    $609,764

 

 HARTFORD-EAST HARTFORD-WEST

 

   HARTFORD, CT (MSA)           $309,375    $348,454    $423,355    $488,487

 

 NEW HAVEN-MILFORD, CT (MSA)    $381,999    $435,039    $528,553    $609,868

 

 NEW LONDON-NORWICH, CT (MSA)   $268,750    $302,697    $367,763    $430,855

 

 LITCHFIELD COUNTY, CT          $255,000    $287,211    $348,947    $405,253

 

 WINDHAM COUNTY, CT             $224,161    $269,779    $326,084    $405,253

 

 

 DELAWARE

 

 DOVER, DE (MSA)                $224,375    $269,779    $326,084    $405,253

 

 PHILADELPHIA-CAMDEN-

 

   WILIMINGTON, PA-NJ-DE-MD

 

   (MSA)                        $300,459    $338,412    $411,154    $474,409

 

 

 DISTRICT OF COLUMBIA

 

 WASHINGTON-ARLINGTON-

 

   ALEXANDRIA, DC-VA-MD-WV

 

   (MSA)                        $381,999    $448,442    $544,837    $628,658

 

 

 FLORIDA

 

 JACKSONVILLE, FL (MSA)         $275,000    $309,737    $376,316    $434,211

 

 MONROE COUNTY, FL              $369,407    $449,822    $546,513    $630,592

 

 MIAMI-FORT LAUDERDALE-MIAMI

 

   BEACH, FL (MSA)              $311,625    $350,988    $426,434    $492,039

 

 NAPLES-MARCO ISLAND, FL

 

   (MSA)                        $282,500    $318,184    $386,579    $446,053

 

 SARASOTA-BRADENTON-VENICE,

 

   FL (MSA)                     $251,500    $283,268    $344,158    $405,253

 

 

 GEORGIA

 

 ALBANY, GA (MSA)               $213,125    $269,779    $326,084    $405,253

 

 ATHENS-CLARKE COUNTY, GA

 

   (MSA)                        $232,375    $269,779    $326,084    $405,253

 

 ATLANTA-SANDY SPRINGS-

 

   MARIETTA, GA (MSA)           $232,375    $269,779    $326,084    $405,253

 

 

 HAWAII

 

 HONOLULU, HI (MSA)             $490,625    $552,599    $671,382    $774,671

 

 HAWAII COUNTY, HI              $278,750    $313,961    $381,447    $440,132

 

 MAUI COUNTY, HI                $381,250    $429,408    $521,711    $601,974

 

 KAUAI COUNTY, HI               $368,750    $415,329    $504,605    $582,237

 

 KALAWAO COUNTY, HI             $239,400    $306,379    $370,326    $460,232

 

 

 IDAHO

 

 BLAINE COUNTY, ID              $336,250    $378,724    $460,132    $530,921

 

 

 ILLINOIS

 

 CHICAGO-NAPERVILLE-JOILET,

 

   IL-IN-WI (MSA)               $312,500    $351,974    $427,632    $493,421

 

 ST. LOUIS, MO-IL (MSA)         $243,974    $274,792    $333,859    $405,253

 

 

 INDIANA

 

 ANDERSON, IN (MSA)             $217,500    $269,779    $326,084    $405,253

 

 CHICAGO-NAPERVILLE-

 

   JOILETTE, IL-IN-WI (MSA)     $312,500    $351,974    $427,632    $493,421

 

 CINCINNATI-MIDDLETOWN,

 

   OH-KY-IN (MSA)               $235,646    $269,779    $326,084    $405,253

 

 INDIANAPOLIS, IN (MSA)         $217,500    $269,779    $326,084    $405,253

 

 LOUISVILLE, KY-IN (MSA)        $237,375    $269,779    $326,084    $405,253

 

 SCOTT COUNTY, IN               $237,375    $269,779    $326,084    $405,253

 

 

 KANSAS

 

 KANSAS CITY, MO-KS (MSA)       $256,250    $288,618    $350,658    $405,253

 

 LAWRENCE, KS (MSA)             $221,813    $269,779    $326,084    $405,253

 

 

 KENTUCKY

 

 CINCINNATI-MIDDLETOWN,

 

   OH-KY-IN (MSA)               $235,646    $269,779    $326,084    $405,253

 

 LOUISVILLE, KY-IN (MSA)        $237,375    $269,779    $326,084    $405,253

 

 

 MAINE

 

 PORTLAND-SOUTH PORTLAND,

 

   ME (MSA)                     $296,250    $333,671    $405,395    $467,763

 

 

 MARYLAND

 

 BALTIMORE-TOWSON, MD (MSA)     $344,222    $389,557    $473,292    $546,107

 

 HAGERSTOWN-MARTINSBURG,

 

   MD (MSA)                     $355,000    $399,842    $485,789    $560,526

 

 ST. MARY'S COUNTY, MD          $241,250    $271,724    $330,132    $405,253

 

 PHILADELPHIA-CAMDEN-

 

   WILMINGTON, PA-NJ-DE-MD,

 

   (MSA)                        $300,459    $338,412    $411,154    $474,409

 

 WASHINGTON-ARLINGTON-

 

    ALEXANDRIA, DC-MD-VA-WV

 

   (MSA)                        $381,999    $448,442    $544,837    $628,658

 

 

 MASSACHUSETTS

 

 BARNSTABLE TOWN, MA (MSA)      $374,875    $422,228    $512,987    $591,908

 

 BOSTON-CAMBRIDGE-QUINCY,

 

   MA-NH (MSA)                  $381,999    $488,975    $591,028    $734,521

 

 PITTSFIELD, MA (MSA)           $237,500    $269,779    $326,084    $405,253

 

 PROVIDENCE-NEW BEDFORD-FALL

 

   RIVER, RI-MA (MSA)           $369,407    $472,891    $571,567    $710,309

 

 SPRINGFIELD, MA (MSA)          $237,500    $269,779    $326,084    $405,253

 

 WORCESTER, MA (MSA)            $381,999    $488,975    $591,028    $734,521

 

 DUKES COUNTY, MA               $344,222    $440,609    $532,532    $661,829

 

 NANTUCKET COUNTY, MA           $344,222    $440,609    $532,532    $661,829

 

 

 MICHIGAN

 

 LENAWEE COUNTY                 $297,500    $335,079    $407,105    $469,737

 

 ANN ARBOR, MI (MSA)            $297,500    $335,079    $407,105    $469,737

 

 DETROIT-WARREN-LIVONIA,

 

   MI (MSA)                     $297,500    $335,079    $407,105    $469,737

 

 LANSING-EAST LANSING, MI

 

   (MSA)                        $250,000    $281,579    $342,105    $405,253

 

 MONROE, MI (MSA)               $231,250    $269,779    $326,084    $405,253

 

 BENZIE COUNTY, MI              $224,161    $270,937    $327,483    $407,022

 

 GRAND TRAVERSE COUNTY, MI      $224,161    $270,937    $327,483    $407,022

 

 KALKASKA COUNTY, MI            $224,161    $270,937    $327,483    $407,022

 

 LEELANAU COUNTY, MI            $224,161    $270,937    $327,483    $407,022

 

 

 MINNESOTA

 

 MINNEAPOLIS-ST. PAUL-

 

   BLOOMINGTON, MN-WI (MSA)     $291,000    $327,758    $398,211    $459,474

 

 GOODHUE COUNTY, MN             $224,875    $269,779    $326,084    $405,253

 

 ROCHESTER, MN (MSA)            $230,962    $269,779    $326,084    $405,253

 

 

 MISSISSIPPI

 

 JACKSON, MS (MSA)              $220,000    $269,779    $326,084    $405,253

 

 

 MISSOURI

 

 KANSAS CITY, MO-KS (MSA)       $256,250    $288,618    $350,658    $405,253

 

 ST, LOUIS, MO-IL (MSA)         $243,974    $274,791    $333,858    $405,253

 

 

 MONTANA

 

 MISSOULA, MT (MSA)             $241,250    $271,724    $330,132    $405,253

 

 

 NEVADA

 

 CARSON CITY, NV (MSA)          $256,250    $288,618    $350,658    $405,253

 

 DOUGLAS COUNTY, NV  `          $350,000    $394,211    $478,947    $552,632

 

 LAS VEGAS-PARADISE, NV (MSA)   $230,375    $269,779    $326,084    $405,253

 

 NYE COUNTY, NV                 $230,375    $269,779    $326,084    $405,253

 

 RENO-SPARKS, NV (MSA)          $255,625    $287,914    $349,803    $405,253

 

 

 NEW HAMPSHIRE

 

 BOSTON-CAMBRIDGE-QUINCY,

 

   MA-NH (MSA)                  $381,999    $488,975    $591,028    $734,521

 

 MERRIMACK COUNTY, NH           $218,166    $269,779    $326,084    $405,253

 

 MANCHESTER-NASHUA, NH (MSA)    $369,407    $472,891    $571,567    $710,309

 

 

 NEW JERSEY

 

 ALLENTOWN-BETHLEHEM-EASTON,

 

   PA-NJ (MSA)                  $369,407    $459,255    $557,974    $643,816

 

 ATLANTIC CITY, NJ (MSA)        $293,750    $330,855    $401,974    $463,816

 

 NEW YORK-NEWARK-EDISON,

 

   NY-NJ-PA (MSA)               $381,999    $488,975    $591,028    $734,521

 

 OCEAN CITY, NJ (MSA)           $293,750    $330,855    $401,974    $463,816

 

 PHILADELPHIA-CAMDEN-

 

   WILMINGTON, PA-NJ-DE-MD

 

   (MSA)                        $300,459    $338,412    $411,154    $474,409

 

 TRENTON-EWING, NJ (MSA)        $381,250    $429,408    $521,711    $601,974

 

 

 NEW MEXICO

 

 LOS ALAMOS COUNTY, NM          $318,750    $359,013    $436,184    $503,289

 

 SANTA FE, NM (MSA)             $343,125    $386,467    $469,539    $541,776

 

 

 NEW YORK

 

 CAYUGA COUNTY, NY              $211,250    $269,779    $326,084    $405,253

 

 BUFFALO-CHEEKTOWAGA-

 

   TONAWANDA, NY (MSA)          $228,750    $269,779    $326,084    $405,253

 

 NEW YORK-NEWARK-EDISON,

 

   NY-NJ-PA (MSA)               $381,999    $488,975    $591,028    $734,521

 

 POUGHKEEPSIE-NEWBURGH-

 

   MIDDLETOWN, NY (MSA)         $337,500    $380,132    $461,842    $532,895

 

 ROCHESTER, NY (MSA)            $218,750    $269,779    $326,084    $405,253

 

 SYRACUSE, NY (MSA)             $211,250    $269,779    $326,084    $405,253

 

 

 NORTH CAROLINA

 

 CHARLOTTE-GASTONIA-CONCORD,

 

   NC-SC (MSA)                  $221,582    $269,779    $326,084    $405,253

 

 DURHAM, NC (MSA)               $230,000    $269,779    $326,084    $405,253

 

 JACKSONVILLE, NC (MSA)         $306,250    $344,934    $419,079    $483,553

 

 LINCOLN COUNTY, NC             $221,582    $269,779    $326,084    $405,253

 

 RALEIGH-CARY, NC (MSA)         $230,000    $269,779    $326,084    $405,253

 

 ROWAN COUNTY, MC               $221,582    $269,779    $326,084    $405,253

 

 VIRGINIA BEACH-NORFOLK-

 

   NEWPORT NEWS, VA-NC (MSA)    $286,250    $322,408    $391,711    $451,974

 

 

 OHIO

 

 AKRON, OH (MSA)                $223,625    $269,779    $326,084    $405,253

 

 ASHTABULA COUNTY, OH           $290,797    $327,530    $397,933    $459,154

 

 CINCINNATI-MIDDLETOWN,

 

   OH-KY-IN (MSA)               $235,646    $269,779    $326,084    $405,253

 

 CLEVELAND-ELYRIA-MENTOR,

 

   OH (MSA)                     $290,797    $327,530    $397,933    $459,154

 

 COLUMBUS, OH (MSA)             $274,738    $309,441    $375,957    $433,796

 

 DAYTON, OH (MSA)               $225,000    $269,779    $326,084    $405,253

 

 SPRINGFIELD, OH (MSA)          $225,000    $269,779    $326,084    $405,253

 

 

 OREGON

 

 CORVALIS, OREGON (MSA)         $217,375    $269,779    $326,084    $405,253

 

 MEDFORD, OR (MSA)              $241,875    $272,428    $330,987    $405,253

 

 PORTLAND-VANCOUVER-

 

   BEAVERTON, OR-WA (MSA)       $249,875    $286,825    $346,678    $430,855

 

 

 PENNSYLVANIA

 

 ALLENTOWN-BETHLEHEM-EASTON,

 

   PA-NJ (MSA)                  $369,407    $459,255    $557,974    $643,816

 

 NEW YORK-NEWARK-EDISON,

 

   NY-NJ-PA (MSA)               $381,999    $488,975    $591,028    $734,521

 

 PHILADELPHIA-CAMDEN-

 

   WILMINGTON, PA-NJ-DE (MSA)   $300,459    $338,412    $411,154    $474,409

 

 PITTSBURGH, PA (MSA)           $228,188    $269,779    $326,084    $405,253

 

 READING, PA (MSA)              $217,382    $269,779    $326,084    $405,253

 

 YORK - HANOVER, PA (MSA)       $224,875    $269,779    $326,084    $405,253

 

 

 RHODE ISLAND

 

 PROVIDENCE-NEW BEDFORD-FALL

 

   RIVER, RI - MA (MSA)         $369,407    $472,891    $571,567    $710,309

 

 

 SOUTH CAROLINA

 

 CHARLESTON-NORTH CHARLESTON,

 

   SC (MSA)                     $261,250    $294,250    $357,500    $412,500

 

 CHARLOTTE-GASTONIA-CONCORD,

 

   NC-SC (MSA)                  $221,582    $269,779    $326,084    $405,253

 

 GEORGETOWN COUNTY, SC          $228,750    $269,779    $326,084    $405,253

 

 BEAUFORT COUNTY, SC            $262,500    $295,658    $359,211    $414,474

 

 JASPER COUNTY, SC              $262,500    $295,658    $359,211    $414,474

 

 

 TENNESSEE

 

 NASHVILLE-DAVIDSON-

 

   MURFREESBORO, TN (MSA)       $297,500    $335,079    $407,105    $469,737

 

 

 TEXAS

 

 HENDERSON COUNTY, TX           $224,875    $269,779    $326,084    $405,253

 

 AUSTIN - ROUND ROCK, TX

 

   (MSA)                        $233,750    $269,779    $326,084    $405,253

 

 HUTCHINSON COUNTY, TX          $224,875    $269,779    $326,084    $405,253

 

 DALLAS-FORT WORTH-

 

   ARLINGTON, TX (MSA)          $224,875    $269,779    $326,084    $405,253

 

 SAN ANGELO, TX (MSA)           $224,875    $269,779    $326,084    $405,253

 

 

 UTAH

 

 OGDEN-CLEARFIELD, UT (MSA)     $225,000    $269,779    $326,084    $405,253

 

 PROVO-OREM, UT (MSA)           $231,250    $269,779    $326,084    $405,253

 

 SALT LAKE CITY, UT (MSA)       $306,250    $344,934    $419,079    $483,553

 

 KANE COUNTY, UT                $228,325    $269,779    $326,084    $405,253

 

 WASATCH COUNTY, UT             $231,250    $269,779    $326,084    $405,253

 

 

 VERMONT

 

 BURLINGTON-SOUTH

 

   BURLINGTON, VT (MSA)         $281,125    $316,636    $384,697    $443,882

 

 

 VIRGINIA

 

 CHARLOTTESVILLE, VA (MSA)      $255,416    $287,678    $349,516    $405,253

 

 RICHMOND, VA (MSA)             $249,938    $281,509    $342,020    $405,253

 

 VIRGINIA BEACH-NORFOLK-

 

   NEWPORT, NEWS, VA-NC (MSA)   $286,250    $322,408    $391,711    $451,974

 

 WASHINGTON-ARLINGTON-

 

   ALEXANDRIA, DC-MD-VA-WV,

 

   (MSA)                        $381,999    $448,442    $544,837    $628,658

 

 

 WASHINGTON

 

 BELLINGHAM, WA (MSA)           $236,250    $269,779    $326,084    $405,253

 

 BREMERTON-SILVERDALE, WA

 

   (MSA)                        $262,500    $295,658    $359,211    $414,474

 

 MOUNT VERNON-ANACORLES,

 

   WA (MSA)                     $214,934    $269,779    $326,084    $405,253

 

 ISLAND COUNTY, WA              $326,868    $368,157    $447,293    $516,108

 

 OLYMPIA, WA (MSA)              $225,000    $269,779    $326,084    $405,253

 

 PORTLAND-VANCOUVER-

 

   BEAVERTON, OR-WA (MSA)       $249,875    $286,825    $346,678    $430,855

 

 SEATTLE-TACOMA-BELLVUE,

 

   WA (MSA)                     $345,125    $388,720    $472,276    $544,934

 

 JEFFERSON COUNTY, WA           $212,500    $269,779    $326,084    $405,253

 

 SAN JUAN COUNTY, WA            $260,028    $292,874    $355,828    $430,855

 

 

 WEST VIRGINIA

 

 HAGERSTOWN-MARTINSBURG,

 

   MD-WV (MSA)                  $355,000    $399,842    $485,789    $560,526

 

 WASHINGTON-ARLINGTON-

 

   ALEXANDRIA, DC-VA-MD-WV

 

   (MSA)                        $381,999    $448,442    $544,837    $628,658

 

 

 WISCONSIN

 

 CHICAGO-NAPERVILLE-JOILETT,

 

   IL-IN-WI (MSA)               $312,500    $351,974    $427,632    $493,421

 

 MADISON, WI (MSA)              $242,625    $273,272    $332,013    $405,253

 

 MILWAUKEE-WAUKESHA-WEST

 

   ALLIS, WI (MSA)              $233,125    $269,779    $326,084    $405,253

 

 MINNEAPOLIS-ST. PAUL-

 

   BLOOMINGTON, MN-WI (MSA)     $291,000    $327,758    $398,211    $459,474

 

 RACINE, WI (MSA)               $233,125    $269,779    $326,084    $405,253

 

 

 WYOMING

 

 TETON COUNTY, WY               $369,407    $438,453    $532,699    $614,653

 

 SUBLETTE COUNTY, WY            $224,375    $269,779    $326,084    $405,253

 

 

 GUAM

 

                                $237,500    $269,779    $326,084    $405,253

 

 

 PUERTO RICO

 

 FAJARDO, PR (MSA)              $325,000    $366,053    $444,737    $513,158

 

 SAN JUAN-CAGUAS-GUAYNABO,

 

   PR (MSA)                     $325,000    $366,053    $444,737    $513,158

 

 

 VIRGIN ISLANDS

 

 ST. CROIX                      $287,500    $323,816    $393,421    $453,947

 

 ST. JOHN                       $246,447    $277,578    $337,243    $405,253

 

 ST. THOMAS                     $318,750    $359,013    $436,184    $503,289

 

 

 ALL OTHER AREAS

 

                                $210,758    $269,779    $326,084    $405,253

 

 ____________________________________________________________________________

 

 

.02 Nationwide average purchase price (for use in the housing cost/income ratio for new and existing residences): $218,100

SECTION 6. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 94-55, Rev. Proc. 93-15, and Rev. Proc. 87-19 are obsolete except as provided in section 7 of this revenue procedure.

SECTION 7. EFFECTIVE DATES

.01 Issuers may rely on this revenue procedure to determine average area purchase price safe harbors for commitments to provide financing or issue mortgage credit certificates that are made, or (if the purchase precedes the commitment) for residences that are purchased, in the period that begins on February 10, 2004, and ends on the date as of which the safe harbors contained in section 5.01 of this revenue procedure are rendered obsolete by a new revenue procedure.

.02 Notwithstanding section 6 of this revenue procedure, issuers may continue to rely on the average area purchase price safe harbors contained in Rev. Proc. 87-19, Rev. Proc. 93-15, and Rev. Proc. 94-55 with respect to bonds sold, or for mortgage credit certificates issued with respect to bond authority exchanged, before March 11, 2004, if the commitments to provide financing or issue mortgage credit certificates are made on or before April 10, 2004.

.03 Except as provided in section 7.04, issuers must use the nationwide average purchase price limitation contained in this revenue procedure for commitments to provide financing or issue mortgage credit certificates that are made, or (if the purchase precedes the commitment) for residences that are purchased, in the period that begins on February 10, 2004, and ends on the date when the nationwide average purchase price limitation is rendered obsolete by a new revenue procedure.

.04 Notwithstanding sections 6 and 7.03 of this revenue procedure, issuers may continue to rely on the nationwide average purchase prices set forth in Rev. Proc. 94-55 with respect to bonds sold, or for mortgage credit certificates issued with respect to bond authority exchanged, before March 11, 2004, if the commitments to provide financing or issue mortgage credit certificates are made are made on or before April 10, 2004.

SECTION 8. PAPERWORK REDUCTION ACT

The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1877.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.

This revenue procedure contains a collection of information requirement in section 4.03. The purpose of the collection of information is to verify the applicable FHA loan limit that issuers of qualified mortgage bonds and qualified mortgage certificates have used to calculate the average area purchase price for a given statistical area for purposes of section 143(e) and 25(c). The collection of information is required to obtain the benefit of using revisions to FHA loan limits to determine average area purchase prices. The likely respondents are state and local governments.

The estimated total annual recordkeeping burden is: 15 hours.

The estimated annual burden per recordkeeper: 15 minutes.

The estimated number of recordkeepers: 60.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

SECTION 9. DRAFTING INFORMATION

The principal authors of this revenue procedure are Gary W. Bornholdt and Timothy L. Jones of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt & Government Entities). For further information regarding this revenue procedure contact Gary W. Bornholdt on (202) 622-3980 (not a toll free call).

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    For a summary of Rev. Proc. 94-55, 1994-2 C.B. 716, see Tax

    Notes, Sept. 12, 1994, p. 1410; for the full text, see Doc 94-

    7665 (38 pages), 94 TNT 161-17, or H&D, Aug. 17,

    1994, p. 2575.

    Part III

    Administrative, Procedural, and Miscellaneous

    [26 CFR 601.201]: Rulings and determination letters

    (Also: Part I, §§ 25, 103, 143)
  • Code Sections
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2004-2748 (16 original pages)
  • Tax Analysts Electronic Citation
    2004 TNT 28-8
Copy RID