SPECIAL RULES FOR MORTGAGE REVENUE BONDS.

SEC. 404. SPECIAL RULES FOR MORTGAGE REVENUE BONDS.(a) In General.—In the case of financing provided with respect to a qualified Hurricane Katrina recovery residence, subsection (d) of section 143 of the Internal Revenue Code of 1986 shall be applied as if such residence were a targeted area residence.(b) Qualified Hurricane Katrina Recovery Residence.—For purposes of this section, the term “qualified Hurricane Katrina recovery residence” means—(1) any residence in the core disaster area, and(2) any other residence if—(A) such other residence is located in the same State as the principal residence referred to in subparagraph (B), and(B) the mortgagor with respect to such other residence owned a principal residence on August 28, 2005, which—(i) was located in the Hurricane Katrina disaster area, and(ii) was rendered uninhabitable by reason of Hurricane Katrina.(c) Special Rule for Home Improvement Loans.—In the case of any loan with respect to a residence in the Hurricane Katrina disaster area, section 143(k)(4) of such Code shall be applied119 STAT. 2028 by substituting $150,000 for the dollar amount contained therein to the extent such loan is for the repair of damage by reason of Hurricane Katrina.(d) Application.—Subsection (a) shall not apply to financing provided after December 31, 2007.