Affordable Housing Bond Enhancement Act

The Affordable Housing Bond Enhancement Act would modify federal programs that help first-time homebuyers with lower incomes afford mortgages. Specifically, the bill would make improvements to Mortgage Revenue Bond (MRB) and Mortgage Credit Certificate (MCC) programs administered by state housing finance agencies. These programs have historically helped millions of families become homeowners by offering below-market interest rates and tax credits.

The bill would make several changes to expand these programs' effectiveness. It would increase the home improvement loan limit available through MRBs, allow states greater flexibility in using unused bond authority for housing investment, permit MRBs to be used for refinancing existing mortgages for qualifying borrowers, and simplify how mortgage credit certificate benefits are calculated. The bill would also require the IRS to provide annual reports on how states use their housing bond authority.

If enacted, these changes would aim to make homeownership more accessible and affordable for working families earning below area median income levels. However, the bill has only been introduced and referred to the House Committee on Ways and Means, so it has not yet advanced in the legislative process.