The proposed regulations provide guidance relating to the average income test under section 42(g)(1)(C) of the Internal Revenue Code.  If a building is part of residential rental project that satisfies this test, the building may be eligible to earn low-income housing credits.  These proposed regulations affect owners of low-income housing projects, tenants in those projects, and State or local housing credit agencies that administer eligibility for low-income housing credits.  In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations concerning the recordkeeping and reporting requirements for the average income test under section 42(g)(1)(C).  The text of the temporary regulations also serves as the text of these proposed regulations.