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Affordable Housing Bond Enhancement Act
5/2/2024, 1:46 PM
Summary of Bill S 1805
Under this act, state and local governments would be able to issue tax-exempt bonds to finance affordable housing projects. These bonds would have lower interest rates, making it more cost-effective for developers to build affordable housing units. The bill also includes provisions to streamline the approval process for these bonds, making it easier for governments to access this funding.
The Affordable Housing Bond Enhancement Act aims to address the growing issue of housing affordability in the United States. By providing financial assistance to state and local governments, this legislation seeks to increase the supply of affordable housing units and make it easier for low and moderate-income individuals and families to find housing that fits within their budget. Overall, the Affordable Housing Bond Enhancement Act is a bipartisan effort to tackle the affordable housing crisis in the US by providing financial support to state and local governments to increase the availability of affordable housing units.
Congressional Summary of S 1805
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 lendor reporting requirements.
