A bill to amend the Internal Revenue Code of 1954 to clarify certain requirements which apply to mortgage subsidy bonds, and for other purposes.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to revise requirements for the exclusion of interest on mortgage subsidy bonds. Includes as an element of a good faith effort to satisfy such requirements a showing that the issuer of bonds conducts periodic audits and prosecutes any cases of fraud. Provides that an issuer's diligent effort to correct a failure to meet a particular requirement will cure such a failure. Revises the arbitrage requirements to increase the amount by which interest rates on tax-exempt mortgage subsidy bonds may exceed the interest rates on mortgages financed with such bonds. Specifies that issuers are not required to dispose of any investment and realize a loss in order to satisfy arbitrage restrictions. Repeals the registration requirements for bond issues. Revises requirements for residential rental property bond issues relating to the median income level of occupants and the term of the lower income occupancy.…