Yesterday Representatives Darin LaHood (IL-16), Jimmy Panetta (CA-19), Blake Moore (UT-01), and Tom Suozzi (NY-01) introduced the First-Time Homebuyer Affordability Act in the House of Representatives. The bill would amend Section 146(g) of the Internal Revenue Code of 1986 (the “Code”) to exempt qualified mortgage bonds from the private activity bond volume cap.
Under current law, qualified mortgage bonds are subject to the unified state volume cap on private activity bonds under Section 146 of the Code. That cap is shared among numerous categories of qualified private activity bonds, including multifamily housing bonds, exempt facility bonds, student loan bonds, and others.
The First-Time Homebuyer Affordability Act would exempt qualified mortgage bonds from the volume cap requirements, joining existing exemptions for certain veterans’ mortgage bonds, 501(c)(3) bonds and other specified obligations.
kutakrock.com
Publications – Client Alert | August 11, 2026