agency determines that such acquisition is part of an arrangement with the taxpayer a purpose of which is to terminate such period, or . (b) Conforming amendment The second sentence of clause (i) of section 42(h)(6)(E) of the Internal Revenue Code of 1986 is amended by striking Subclause (II) and inserting Subclauses (I) and (II) . (c) Effective date The amendments made by this section shall apply to acquisitions by foreclosure (or instrument in lieu of foreclosure) after December 31, 2022. 311. Increase of population cap for difficult development areas (a) In general Subclause (II) of section 42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is amended by striking 20 percent and inserting 30 percent . (b) Effective date The amendment made by this section shall apply to designations made under section 42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 after December 31, 2023. 312. Increased cost oversight and accountability (a) In general Subparagraph (C) of section 42(m)(1) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (ix), by striking the period at the end of clause (x) and inserting , and , and by adding at the end the following new clause: (xi) the reasonableness of the development costs of the project. . (b) Effective date The amendments made by this section shall apply to allocations of credits under section 42 of the Internal Revenue Code of 1986 made after December 31, 2023. 313. Tax-exempt bond financing requirement (a) In general Subparagraph (B) of section 42(h)(4) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: In the case of buildings financed by an obligation first taken into account under section 146 in calendar years beginning after the date of the enactment of the Affordable Housing Credit Improvement Act of 2023 , the preceding sentence shall be applied by substituting 25 percent for 50 percent . . (b) Effective date The amendment made by this section shall apply to any building some portion of