| Housing Bond Provisions |
 |
|
|
 |
| Private Activity Bond Increase |
|
The Housing and Economic Recovery Act provides $11 billion in new tax-exempt Housing Bond authority in 2008 for single-family and multifamily housing development and rehabilitation. Oregon's share of the new bond authority is estimated at over $117 million. Any unused authority in 2008 and 2009 can be carried forward through 2010, but amounts carried forward must be used for housing issues.
While the extra bonding authority was authorized by Congress for immediate use (with the passage of the bill), in Oregon, there is an additional step before the new bond authority can be available for projects. As with all private activity bond authority, Oregon's Private Activity Bond Committee would need to allocate this new bond authority to OHCS before it could be used to issue bonds for any of its housing bond programs
As OHCS receives additional bond authority, more affordable homes or more multi-family units can be developed, rehabilitated, and preserved.
|
|
|
| Exemption from AMT |
|
The bill permanently exempts all non-refunding, tax-exempt housing bonds issued after the date of enactment from the Alternative Minimum Tax ("AMT"). This AMT relief will make these bonds more attractive to potential investors. Borrowers who use the Department's Residential Loan Program may also benefit if the Department is able to reduce interest rates.
|
|
|
| Mortgage Refinancing |
|
The bill also makes refinancing an eligible private activity bond use for 2008-2010 for adjustable rate single-family mortgages. This applies to mortgages made after December 31, 2001, and before January 1, 2008, where the bond issuer determines the refinancing is needed to avoid financial hardship to the borrower. OHCS does not currently have a refinancing program.
|
|
|
| Other Housing Bond Provisions |
|
The bill extends mortgage revenue bond disaster relief provisions - waiving income restrictions and purchase price thresholds in federally declared disaster areas. This will allow the revenue bonds to help more households in disaster affected areas.
The bill allows Housing Finance Agencies to use Housing Bonds for single-room occupancy units, effective for bonds issued after July 30, 2008.
|
|
|
|
