To amend the Internal Revenue Code of 1986 to clarify the mortgage subsidy bond benefits for residences located in disaster areas.

Amends the Internal Revenue Code to revise mortgage revenue bond rules for the financing of home improvement loans for residences in disaster areas. Increases the limitation on such loans from $15,000 to $150,000. Waives certain income requirements for such loans and the three-year replacement requirement for residences destroyed in a disaster.