WASHINGTON -- Key lawmakers are putting heat on the Department of Housing and Urban Development to amend proposed rules that would make it difficult for 501(c)(3) organizations to use tax-exempt financing to buy low-income housing units under a new federal program.

Congress passed legislation in 1990 to encourage private nonprofit entities to buy the units from private developers as a way of keeping them from being converted into expensive properties. But the regulations proposed by HUD in April to implement the program make the sale process too cumbersome and the debt financing needed for the purchases too costly, housing industry officials have warned.

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