Private activity bonds

The Senate advanced the One Big Beautiful Bill Act through a procedural vote, opening the legislation for debate followed by Monday's vote-a-rama.

Housing advocates are cheering the Senate's embrace of expanding Low Income Housing Tax Credits which ensures a volume increase and reduces a key bond threshold test.

IRS General Counsel Michael Desmond said Wednesday his office has received “a number of requests” for extending deadlines.

About half of the multifamily housing units built nationally that use the federal 4% Low Income Housing Tax Credit are financed with tax-exempt PABs.

Thirty states told the Council of Development Finance Agencies they issued mortgage revenue bonds in 2017 compared to only 18 that issued mortgage credit certificates.

A provision in the tax bill passed by the House of Representatives would only intensify the housing crunch by crippling affordable housing construction, developers and local government officials say.

The elimination of private activity bonds “would throw gasoline on a housing shortage," said John Chiang, California's treasurer.

Multifamily housing bond issuance more than doubled in 2016 to $14 billion.

Laura Whittall-Scherfee will direct a California agency that finances affordable housing.