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In the case of any property which is substantially constructed or renovated by the Owner, <br />the requirements of (a) and (b) above shall be treated as satisfied. For purposes of the preceding <br />sentence, property shall be treated as substantially constructed or renovated by the Owner if, <br />during any 24-month period beginning after the date on which the designation of the Qualified <br />Empowerment Zone took effect, additions to the basis with respect to such property in the hands <br />of the Owner exceed the greater of (i) an amount equal to 15 percent of the adjusted basis at the <br />beginning of such 24-month period in the hands of the Owner or (ii) $5,000. <br />For purposes of the requirements set forth in (b) above, if property is sold . and leased <br />back by the Owner within 3 months after the date such property was originally placed in service, <br />such property shall be treated as originally placed in service not earlier than the date on which . <br />such property is used under the leaseback. <br />"Qualified Zone Property Restrictions" means the restrictions described in Section 5 of <br />this Compliance Agreement. <br />"Real Property Expenditure Limitations" means the restrictions imposed by § 1.1394- <br />10)(2)(ii) of the Treasury Regulations that states if a lessee is the Principal User of real property <br />financed with Bond Proceeds, the Proceeds of the Bonds may be allocated to expenditures for <br />real property only to the extent of the property allocable to the lessee's leased space, including <br />expenditures for common areas. <br />"Remedial Actions" means any of the remedial actions defined in § 1.142-2 of the <br />Treasury Regulations. <br />"Resident Employee Computation Requirements" means the following computational <br />requirements for purposes of determining whether at least 35 percent of the employees of an <br />Empowerment Zone Business are residents of the Qualified Empowerment Zone; <br />(a) The term "employee" includes a self-employed individual within the <br />meaning of Section 401(c) of the Code; <br />(b) The resident employee percentage is determined on any reasonable basis <br />consistently applied throughout the Compliance Period. The "per -employee fraction" <br />described in (c) below and the "employee actual work hour fraction" described in (d) <br />below are both reasonable methods. <br />(c) The term "per -employee fraction" means the fraction, (i) the numerator of <br />which is, during the taxable year, the number of employees (A) who work at least 15 <br />hours a week for the Principal User, (B) who reside in the Qualified Empowerment Zone <br />and (C) who are employed for at least 90 days and (ii) the denominator of which is, <br />during the same taxable year, the aggregate number of all employees (A) who at least 15 <br />hours a week for the Principal User and (B) who are employed for at least 90 days. <br />(d) The term "employee actual work hour fraction" means the fraction, (i) the <br />numerator of which is the aggregate total actual hours of work for the Principal User of <br />employees who reside in the Qualified Empowerment Zone during the taxable year and <br />06-4514.05 18 <br />