To amend the Internal Revenue Code of 1986 to expand housing investment with mortgage revenue bonds, and for other purposes.
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
This bill expands housing finance programs by improving mortgage revenue bonds and mortgage credit certificates. It increases the limit for qualified home improvement loans from $15,000 to $50,000 with inflation adjustments, allows refinancing for eligible homeowners, and gives state and local housing authorities more flexibility in how they use their bond allocation.
Who Benefits and How
- Homeowners seeking home improvement loans: Loan limit increases from $15,000 to $50,000, making larger renovation projects eligible for tax-exempt financing.
- Homeowners wanting to refinance: Can now refinance mortgages through mortgage revenue bond programs if they still meet income requirements.
- State and local housing finance authorities: Gain flexibility to transfer and redesignate carryforward bond authority, extend mortgage credit certificate periods, and revoke certain elections.
Who Bears the Burden and How
- Federal Treasury: Loses tax revenue due to expanded tax-exempt bond authority and increased mortgage credit certificates.
- State and local issuing authorities: Must submit electronic reports on bond usage to Treasury and Congress.
- Homeowners selling within 5 years: Face recapture tax on federally-subsidized mortgages (reduced from 9-year period).
Key Provisions
- Increases qualified home improvement loan limit from $15,000 to $50,000 with inflation indexing
- Allows refinancing through mortgage revenue bonds for homeowners meeting income requirements
- Permits transfer and redesignation of carryforward bond authority between issuing authorities within a state
- Reduces recapture period from 9 years to 5 years for mortgage revenue bond subsidies
- Requires annual reporting to Congress on bond usage by state
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Expands housing investment by enhancing mortgage revenue bond programs and mortgage credit certificates, including increasing loan limits, easing refinancing restrictions, and improving program flexibility for state and local housing authorities.
Key Policy Areas
Housing, Tax Policy, Municipal Finance
Primary Purpose
Expands housing investment by enhancing mortgage revenue bond programs and mortgage credit certificates, including increasing loan limits, easing refinancing restrictions, and improving program flexibility for state and local housing authorities.
Policy Domains
Mortgage Revenue Bond and Credit Certificate Reforms
Identified Gains
Contextual inference, no direct clause citation- Homeowners seeking home improvements
- Homeowners seeking refinancing
- State and local housing finance authorities
- Low and moderate income first-time homebuyers
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal Treasury (tax expenditure)
- Homeowners selling homes within 5 years
- State and local issuing authorities (reporting)
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMs. Cortez Masto (for herself and Mr. Cassidy) introduced the …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
State and local housing finance authorities, State and local housing finance authorities issuing MCCs, State and local issuing authorities
Positive-direction: State and local housing finance authorities
Negative-direction: State and local housing finance authorities issuing MCCs, State and local issuing authorities
Congressional oversight committees, Department of the Treasury, Federal Treasury
Positive-direction: Congressional oversight committees
Negative-direction: Department of the Treasury, Federal Treasury, Federal Treasury (tax expenditure)
First-time homebuyers, First-time homebuyers using mortgage credit certificates, First-time homebuyers with mortgage credit certificates
Existing homeowners with federally-subsidized mortgages seeking to refinance, Homeowners seeking home improvement financing, Homeowners with federally-subsidized mortgages selling after 5 years
Positive-direction: Existing homeowners with federally-subsidized mortgages seeking to refinance, Homeowners seeking home improvement financing, Homeowners with federally-subsidized mortgages selling after 5 years
Negative-direction: Homeowners with federally-subsidized mortgages selling within 5 years
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 with principal amount not exceeding $50,000 (up from $15,000), with inflation adjustment after 2024
Percentage used to calculate recapture tax, ranging from 20% in year 1 to 100% in year 5 after testing date
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