Yakym, Moore Introduce Bipartisan Affordable Housing Bond Enhancement Act

WASHINGTON, D.C.  –  Today, Congressman Rudy Yakym (R-IN-02) and Congresswoman Gwen Moore (D-WI-04) introduced the Affordable Housing Bond Enhancement Act, which would make homeownership more accessible and sustainable for working families.

“For too many first-time buyers, the American Dream of homeownership is slipping further out of reach,” Rep. Yakym said. “Updating these bonds and tax credits will help reduce interest costs and make it easier for hardworking Hoosiers to achieve that dream.”

“We need to fully leverage every resource to bring the dream of homeownership to more families, including in Milwaukee, where racial disparities in homeownership remain stark,” Rep. Moore said. “Since their inception, the Mortgage Revenue Bond (MRB) and Mortgage Credit Certificate (MCC) have helped 3.5 million low- and moderate-income families become homeowners. Our bicameral, bipartisan legislation makes important enhancements to these long-standing programs, so they can better serve Americans and their families.”

“The National Council of State Housing Agencies (NCSHA) thanks Representatives Rudy Yakym and Gwen Moore for taking the lead on this commonsense legislation to increase bond resources for affordable housing and make homeownership more affordable for working families,” Stockton Williams, Executive Director of NCSHA said. “Mortgage Revenue Bonds and Mortgage Credit Certificates historically have been the state housing finance agencies primary tool for financing affordable homeownership opportunities for low-and moderate-income households, having helped more than four million home buyers combined. This legislation will enact simple yet effective reforms that will allow MRBs and MCCs to serve even more homebuyers at a time when homeownership is increasingly out of reach for many Americans.”

Read the full bill text HERE.

Background:

The bill would update and expand the Mortgage Revenue Bond (MRB) and Mortgage Credit Certificates (MCC) programs that have helped more than four million working-class families purchase their first home.

The legislation would also help homeowners disaster-proof their houses to mitigate damage from increasingly common fires, devastating storms, and other natural disasters and would permit homeowners to refinance to a lower-cost mortgage.

Families with incomes of 115% of Area Median Income or less are able to receive discounted interest rates when they buy a home with an MRB. They also may be able to utilize an MCC that helps families qualify to buy a home and allows them to sustain homeownership over time. This bipartisan legislation makes updates and reforms to the MRB and MCC programs to better serve working families. Specifically, the Affordable Housing Bond Enhancement Act would:

• Simplify the administration of both MRB and MCC programs and make commonsense changes to ensure the tax benefits will aid working families.

• Add additional flexibility for homeowners, including allowing homeowners to refinance their mortgages.

• Increase the amount of money homeowners with MRB loans can direct towards making home health and safety improvements—including adding accessible bathrooms and ramps to help older and disabled Americans remain in their home, as well as supporting energy efficiency upgrades and disaster mitigation renovations. The bill raises the current funding limit of $15,000 to $75,000 and indexes it for inflation.

• Provide housing finance agencies with flexibility to extend loan and credit periods to account for delays due to supply chain issues or construction shortages. 

This is the House of Representatives Companion bill that was previously introduced by U.S. Senators Catherine Cortez Masto (D-NV.) and Bill Cassidy (R-LA.).

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