4.7.2.4 Land and Used Property Limits

No more than 25% of the net proceeds of qualified private activity bonds may be used directly or indirectly for the acquisition of land or any interest therein. This restriction does not apply to qualified 501(c)(3) bonds, or to certain acquisitions of land by a governmental unit in connection with an airport, dock, or wharf, mass commuting facility, or high speed intercity rail facility. No part of the net proceeds of qualified private activity bonds may be used for the acquisition of previously used property or any interest therein. This restriction does not apply, however, with respect to any building (and equipment) if rehabilitation expenditures with respect to the building (and equipment) are at least equal to 15% of the cost of acquiring the building (and equipment) financed with the net proceeds of the issue.