|Senator Catherine Cortez Masto (D-NV) and Representative Gwen Moore (D-WI) earlier today introduced the Affordable Housing Bond Enhancement Act. This legislation, which NCSHA has worked on closely with the senator’s and congresswoman’s offices, will expand the HFAs’ ability to provide affordable homeownership by strengthening the Mortgage Revenue Bond (MRB) and Mortgage Credit Certificate (MCC) programs.
The bill includes many of NCSHA’s long-standing priorities for improving Housing Bonds. These include:
- Increasing the MRB home improvement loan limit;
- Allowing MRBs to be used for refinancing loans;
- Providing HFAs additional flexibility in how they utilize housing bond authority;
- Simplifying how a borrower’s MCC benefit is calculated;
- Reducing the time period for the MRB and MCC recapture tax from nine years to five;
- Extending the amount of time HFAs can use converted MCC authority from two years to four;
- Allowing HFAs to reconvert MCC authority back into MRBs two years after the conversion, rather than one;
- Eliminating lenders’ MCC reporting requirements;
- Reducing the required MCC public comment period; and
- Requiring the Internal Revenue Service to report to Congress annually on states’ use of private activity bond authority.
NCSHA has written a section-by-section analysis of the bill that describes each of the provisions in more detail, as well as a one-page summary of the bill.
In her press release announcing the bill, Cortez Masto noted MRBs and MCCs “make mortgages more affordable so that families can have security, stability, and the chance to build wealth,” and she said the bill would provide “vital support” to working families looking to buy or renovate a home. Representative Moore credited the MRB and MCC programs with making “possible the dream of homeownership for millions of Americans” and said that she is “sponsoring this legislation to make homeownership more affordable for eligible households, giving more Americans, in Milwaukee and across the nation, the opportunity to own a home and build generational wealth for their families or make needed modifications to their home.”
In addition to NCSHA, the bill is supported by LISC, the National Association of REALTORS®, and Prosperity Now.