The Affordable Housing Bond Enhancement Act modifies federal tax rules to make it easier for states and local governments to issue bonds that finance affordable housing. The bill streamlines the process for issuing mortgage revenue bonds and mortgage credit certificates—financial tools that help first-time and moderate-income homebuyers access mortgages—by allowing unused bond authority to be carried forward longer, eliminating restrictions on refinancing mortgages, and increasing the loan limit for home improvements from $15,000 to $75,000 (with automatic inflation adjustments). The legislation also reduces the tax recapture period for early home sales from nine years to five years, makes various technical changes to make bond programs more flexible for states to administer, and reduces public notice requirements from 90 days to 30 days. Most provisions take effect in 2026, with the reporting requirements beginning for calendar years after enactment. The bill is sponsored by Representatives Yakym and Moore of Wisconsin and was referred to the House Ways and Means Committee.
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