(a) The Internal Revenue Code (the "Code") imposes significant requirements and restrictions upon OHFA with respect to single family mortgage loans that can be financed through proceeds from the issuance of tax-exempt obligations. Under the limitations imposed by the Code, among other things:

1. (1) the amount of such obligations that may be issued in Oklahoma is limited;
2. (2) the acquisition cost for single family residences financed by the mortgage loans is presently limited to a ceiling of between $61,650 and $116,380 depending on the geographical area of the State;
3. (3) the mortgagor must use the residence financed as his/her principal residence;
4. (4) at all times, at least 95% in aggregate amount of the mortgage loans originated in Non-targeted areas must be to mortgagors who have not had any present ownership interest in a principal residence during the three-year period prior to the execution of the mortgage loan; and
5. (5) bond proceeds may not be applied to acquire or replace an existing mortgage, except for certain temporary initial financing.