Affordable Housing Bond Enhancement Act
Summary
What This Bill Does
The bill requires the Treasury Secretary to submit annual reports to Congress on private activity bond usage by state, including state ceilings, carryforwards, and bonds issued for various purposes. Also requires electronic, exempts allows issuing authorities to transfer bond carryforward authority to other authorities within the same state for housing purposes, and to redesignate carryforwards for qualified mortgage bonds or exempt, and exempts eliminates the refinancing limitation for mortgage revenue bonds by allowing qualifying mortgagors who meet principal residence and income requirements to refinance without the transaction being treated. It relies on definition changes, exemptions, reporting requirements, and tax rate changes. The main policy areas are Housing, Finance, and Trade.
Who Benefits and How
State and local issuing authorities could face lower compliance burdens, State and local housing finance agencies could gain revenue opportunities, and Mortgage lenders participating in MCC programs could face lower compliance burdens.
Who Bears the Burden and How
Treasury Department would take on compliance duties, State and local bond issuing authorities would take on compliance duties, and Federal government (tax revenue) could lose revenue opportunities.
Key Provisions
- Requires the Treasury Secretary to submit annual reports to Congress on private activity bond usage by state, including state ceilings, carryforwards, and bonds issued for various purposes. Also requires electronic...
- Exempts allows issuing authorities to transfer bond carryforward authority to other authorities within the same state for housing purposes, and to redesignate carryforwards for qualified mortgage bonds or exempt...
- Exempts eliminates the refinancing limitation for mortgage revenue bonds by allowing qualifying mortgagors who meet principal residence and income requirements to refinance without the transaction being treated...
- Defines increases the maximum amount for qualified home improvement loans from $15,000 to $75,000 and adds an inflation adjustment for calendar years after 2026 based on cost-of-living adjustments.
- Creates revises the recapture tax schedule for mortgage revenue bonds by changing the holding period from 9 years to 5 years and establishing a graduated holding period percentage (20% to 100%) over 5 years instead of 9.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill requires the Treasury Secretary to submit annual reports to Congress on private activity bond usage by state, including state ceilings, carryforwards, and bonds issued for various purposes. Also requires electronic, exempts allows issuing authorities to transfer bond carryforward authority to other authorities within the same state for housing purposes, and to redesignate carryforwards for qualified mortgage bonds or exempt, and exempts eliminates the refinancing limitation for mortgage revenue bonds by allowing qualifying mortgagors who meet principal residence and income requirements to refinance without the transaction being treated.
Key Policy Areas
Housing, Finance, Trade
Primary Purpose
The bill requires the Treasury Secretary to submit annual reports to Congress on private activity bond usage by state, including state ceilings, carryforwards, and bonds issued for various purposes. Also requires electronic, exempts allows issuing authorities to transfer bond carryforward authority to other authorities within the same state for housing purposes, and to redesignate carryforwards for qualified mortgage bonds or exempt, and exempts eliminates the refinancing limitation for mortgage revenue bonds by allowing qualifying mortgagors who meet principal residence and income requirements to refinance without the transaction being treated.
Policy Domains
Affordable Housing Bond Enhancement Act
Identified Gains
- State and local issuing authorities
- State and local housing finance agencies
- Mortgage lenders participating in MCC programs
- Homeowners with federally-subsidized mortgages who sell early
- Homeowners with existing mortgage revenue bond-financed mortgages
Identified Costs
- Treasury Department
- State and local bond issuing authorities
- Federal government (tax revenue)
Sponsors
Legislative Progress
In CommitteeCommittee on Banking, Housing, and Urban Affairs. Hearings held.
Ms. Cortez Masto (for herself and Mr. Cassidy) introduced the …
Read twice and referred to the Committee on Finance.
Introduced in Senate
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
State and local bond issuing authorities, State and local certificate issuers, State and local housing finance agencies
Positive-direction: State and local housing finance agencies, State and local issuing authorities, State housing finance agencies
Negative-direction: State and local bond issuing authorities
First-time homebuyers using mortgage credit certificates, Homebuyers seeking mortgage credit certificates, Homebuyers using mortgage credit certificates
Congressional oversight committees, Federal government (tax revenue), Treasury Department
Positive-direction: Congressional oversight committees
Negative-direction: Federal government (tax revenue), Treasury Department
Mortgage lenders offering home improvement loans, Mortgage lenders participating in MCC programs, Mortgage lenders participating in bond programs
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
A loan secured by the residence with respect to which the loan was made, to the extent the loan does not exceed $75,000 (indexed for inflation after 2026)
Rate between 1% and 5% specified in mortgage credit certificate, which may vary annually over term of mortgage
A graduated percentage (20% to 100%) based on years after testing date used to calculate recapture tax on federally-subsidized mortgage
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology