Affordable Housing Bond Enhancement Act
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The Affordable Housing Bond Enhancement Act modifies tax rules for mortgage revenue bonds and mortgage credit certificates to make it easier for state and local authorities to finance affordable housing. It increases flexibility in how bond carryforward authority can be used and transferred between housing purposes.
Who Benefits and How
State and local housing finance agencies benefit from greater flexibility to transfer and redesignate bond carryforward authority for housing purposes. Homeowners and prospective homebuyers benefit from expanded refinancing options under mortgage revenue bond programs, increased home improvement loan limits (from $15,000 to $75,000), and modified mortgage credit certificate terms. The affordable housing development industry benefits from more flexible financing tools.
Who Bears the Burden and How
The Treasury Department faces new annual reporting requirements to Congress on private activity bond usage by state. State and local issuing authorities must submit bond information to the Secretary electronically and provide data for annual reports.
Key Provisions
- Allows transfer and redesignation of bond carryforward authority between housing purposes within the same state
- Eliminates refinancing limitations for mortgage revenue bonds for qualifying mortgagors
- Increases home improvement loan limit from $15,000 to $75,000 with inflation adjustment
- Modifies recapture tax schedule to reduce holding period from 9 to 5 years
- Adjusts mortgage credit certificate rules including rate limits and revocation periods
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
Amends the Internal Revenue Code to enhance mortgage revenue bonds and mortgage credit certificates to expand affordable housing investment
Key Policy Areas
Housing, Taxation, Finance
Primary Purpose
Amends the Internal Revenue Code to enhance mortgage revenue bonds and mortgage credit certificates to expand affordable housing investment
Policy Domains
Affordable Housing Bond Enhancement Act
Identified Gains
- State and local housing finance agencies
- Homeowners and homebuyers
- Affordable housing developers
- Mortgage lenders participating in bond programs
Identified Costs
- Treasury Department
- State and local issuing authorities (reporting burden)
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