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Affordable Housing Bond Enhancement Act
12/29/2022, 5:33 PM
Summary of Bill HR 8184
Specifically, the bill would increase the current cap on tax-exempt bonds for affordable housing projects from $35 per capita to $50 per capita. This increase would allow states and localities to issue more bonds to fund affordable housing initiatives, ultimately increasing the availability of affordable housing options for low and moderate-income individuals and families.
The Affordable Housing Bond Enhancement Act has garnered bipartisan support in Congress, with lawmakers from both parties recognizing the importance of addressing the affordable housing crisis in the country. Proponents of the bill argue that increasing the cap on tax-exempt bonds for affordable housing projects is a crucial step in expanding access to affordable housing and reducing homelessness. Opponents of the bill, however, raise concerns about the potential cost of increasing the cap on tax-exempt bonds and the impact it may have on the federal budget. They argue that other solutions, such as regulatory reform and public-private partnerships, may be more effective in addressing the affordable housing crisis. Overall, the Affordable Housing Bond Enhancement Act represents a significant effort to address the pressing issue of affordable housing in the United States. By increasing the cap on tax-exempt bonds for affordable housing projects, the bill aims to provide more funding for much-needed affordable housing initiatives and help alleviate the housing affordability crisis facing many Americans.
Congressional Summary of HR 8184
Affordable Housing Bond Enhancement Act
This bill modifies the Mortgage Revenue Bond (MRB) and the Mortgage Credit Certificate (MCC) programs of state housing finance agencies to expand the supply of affordable homes and homeownership for low- and moderate-income homebuyers.
The bill requires the Internal Revenue Service to annually report to the congressional banking and tax committees on the use by states of their private activity bond authority for housing investment. It also increases the MRB home improvement loan limit from $15,000 to $50,000.
The bill permits states to redesignate their carryforward authority and use it for housing investment and permits MRBs to be used to refinance home loans for borrowers who have incomes below 115% of median family income.
The bill modifies the recapture requirement for homeowners who receive a MRB-financed mortgage or an MCC and sell their residences within the first nine years of ownership and reduces the time in which a recapture tax may be assessed from nine to five years.
The bill revises the MCC benefit calculation to a simple percentage of the original loan balance. It also extends the MCC revocation period from two to four years.
The bill reduces the public notice requirement for MCC issuers from 90 days to 30 days and eliminates certain MCC reporting requirements.
