and the specified homeowner if the amount paid or incurred by the taxpayer in the performance of such rehabilitation or reconstruction exceeds the dollar amount in effect under subsection (b)(3)(A). (B) Application of limitation to expenses paid or incurred after allocation A rule similar to the rule of section (b)(4) shall apply for purposes of this subsection. (4) Specified homeowner For purposes of this subsection, the term qualified homeowner means, with respect to a qualified residence, an individual— (A) who owns and uses such qualified residence as the principal residence of such individual as of the date that the written binding contract referred to in paragraph (3) is entered into, and (B) whose family income (determined as of such date) does not exceed the median family income for the applicable area (with respect to the census tract in which the qualified residence is located). (5) Additional census tracts in which owner-occupied residences may be located In the case of any qualified residence described in paragraph (1), the term qualified census tract includes any census tract which— (A) meets the requirements of subsection (c)(2)(A)(i) without regard to subclause (III) thereof, and (B) is designated by the neighborhood homes credit agency for purposes of this paragraph. (6) Modification of repayment requirement In the case of any qualified residence described in paragraph (1), subsection (g) shall be applied by beginning the 5-year period otherwise described therein on the date on which the qualified homeowner acquired such residence. (7) Related parties Paragraph (1) shall not apply if the taxpayer is the owner of the qualified residence described in paragraph (1) or is related (within the meaning of subsection (h)(6)(B)) to such owner. (8) Pyrrhotite remediation The requirement of subsection (c)(1)(C) shall not apply to a qualified rehabilitation under this subsection of a qualified residence that is documented by an engineer’s report and core testing to have a foundation that is adversely