of this section— (1) Eligible employee (A) In general The term eligible employee means any individual— (i) employed by an employer, (ii) whose household income does not exceed 120 percent of the area median gross income (adjusted for household size) for the metropolitan statistical area (as defined in section 143(k)(2)(B)) in which the housing is located, and (iii) in the case of homeownership assistance, who is a qualified homebuyer. If the housing with respect to such employee is located in a high housing cost area (as defined in section 143(f)(5)(C)), the income limitation under subparagraph (B) shall be adjusted (but not reduced) by the application of the rule under section 143(f)(5) by substituting 120 percent for 115 percent in subparagraph (B)(I) thereof. (B) Certain employees not eligible The term eligible employee shall not include— (i) any individual described in subparagraph (A), (B), or (C) of section 51(i)(1), and (ii) any 5-percent owner (as defined in section 416(i)(1)(B)). (2) Qualified housing expenses (A) In general The term qualified housing expenses means rental assistance or homeownership assistance towards the lease or purchase of housing. (B) Rental assistance The term rental assistance means assistance with security deposits and rental payments. (C) Homeownership assistance The term homeownership assistance means assistance for the purchase of a principal residence, including— (i) payment of qualified acquisition costs (as defined in section 72(t)(8)(C)), (ii) providing (or reducing the costs of) financing, including the funding of a permanent interest rate buydown, (iii) contributions to second mortgage pools or low interest loan programs accessible to eligible employees, (iv) mortgage guarantee programs for the repayment of any loans in default that are secured by an eligible employee and guaranteed by the employer, (v) contributions to Individual Development Accounts (within the meaning of section 404(h) of the Social Security Act) which are designated exclusively for the purchase of a