I 

118TH CONGRESS 

2D SESSION H. R. 9862 

To amend the Internal Revenue Code of 1986 to allow for the reallocation 

of unused volume cap for private activity bonds for qualified residential 

rental projects. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 27, 2024 

Ms. CROCKETT (for herself and Ms. LEE of California) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow for 

the reallocation of unused volume cap for private activity 

bonds for qualified residential rental projects. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Combating the Hous5 ing Supply Shortage Act of 2024’’. 


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1 SEC. 2. REALLOCATION OF UNUSED VOLUME CAP FOR PRI2 VATE ACTIVITY BONDS FOR QUALIFIED RESI3 DENTIAL RENTAL PROJECTS. 

4 (a) IN GENERAL.—Section 146 of the Internal Rev5 enue Code of 1986 is amended by adding at the end the 

6 following new subsection: 

7 ‘‘(o) REALLOCATION OF VOLUME CAP FOR HOUSING

8 PRODUCTION.— 

9 ‘‘(1) ISSUANCE OF SUPPLEMENTAL BONDS.— 

10 Any private activity bonds issued by an issuing au11 thority during a calendar year for projects described 

12 in section 142(a)(7) shall not be taken into account 

13 under subsection (a) to the extent the amount of 

14 such bonds does not exceed so much of the State’s 

15 supplemental residential rental limitation for such 

16 calendar year as is allocated to such issuing author17 ity by such State for such calendar year. 

18 ‘‘(2) SUPPLEMENTAL RESIDENTIAL RENTAL

19 LIMITATION.—For purposes of this subsection— 

20 ‘‘(A) IN GENERAL.—The term ‘supple21 mental residential rental limitation’ means, with 

22 respect to any State for any calendar year, the 

23 State’s housing need percentage of the national 

24 unused volume cap amount for such calendar 

25 year. 


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1 ‘‘(B) HOUSING NEED PERCENTAGE.—The 

2 ‘housing need percentage’ means, with respect 

3 to any State for any calendar year, the percent4 age determined by the Secretary as being equal 

5 to the quotient of— 

6 ‘‘(i) the aggregate face amount of 

7 multifamily housing bonds issued by such 

8 State during the second preceding calendar 

9 year, divided by 

10 ‘‘(ii) the aggregate face amount of 

11 such bonds issued by all States during 

12 such second preceding calendar year. 

13 ‘‘(C) ALLOCATIONS TO ISSUING AUTHOR14 ITY.—Except as otherwise provided by the Sec15 retary, the supplemental residential rental limi16 tation shall be allocated by the State to issuing 

17 authorities in such manner as the State pro18 vides. The aggregate amount of supplemental 

19 residential rental limitation taken into account 

20 under paragraph (1) as allocated by any State 

21 for any calendar year shall not exceed the sup22 plement residential rental limitation of such 

23 State for such calendar year. 

24 ‘‘(D) MULTIFAMILY HOUSING BONDS.— 

25 The term ‘multifamily housing bond’ means, 


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1 with respect to any State, any bond for projects 

2 described in section 142(a)(7) which is taken 

3 into account under subsection (a) with respect 

4 to an issuing authority of such State. 

5 ‘‘(3) NATIONAL UNUSED VOLUME CAP

6 AMOUNT.—For purposes of this subsection— 

7 ‘‘(A) IN GENERAL.—The term ‘national 

8 unused volume cap amount’ means, with respect 

9 to a calendar year, the amount which is esti10 mated by the Secretary as being equal to the 

11 sum of— 

12 ‘‘(i) the excess (if any) of— 

13 ‘‘(I) sum of the State ceilings for 

14 all States for the second preceding 

15 calendar year, over 

16 ‘‘(II) the sum of the aggregate 

17 face amount of private activity bonds 

18 taken into account under subsection 

19 (a) for the second preceding calendar 

20 year plus any portion of the amount 

21 described in subclause (I) which is 

22 carried forward under subsection (f), 

23 ‘‘(ii) the amount of any carryforward 

24 under subsection (f) which expired at the 


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1 close of the second preceding calendar 

2 year, plus 

3 ‘‘(iii) any supplemental residential 

4 limitation allocated under this subsection 

5 for the second preceding calendar year 

6 which was unused as of the close of such 

7 year. 

8 ‘‘(B) ADJUSTMENTS.—The Secretary shall 

9 make proper adjustments to the national un10 used volume cap amount for any calendar year 

11 to the extent the Secretary’s estimates for pre12 ceding calendar years were in excess of or less 

13 than the Secretary’s current estimates for such 

14 preceding calendar years. 

15 ‘‘(4) INFORMATION REPORTING.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 require each State to submit to the Secretary in 

18 such manner (including electronically) such in19 formation as the Secretary determines to be 

20 necessary or appropriate to carry out this sub21 section. In the case of any State which fails to 

22 provide the information referred to in the pre23 ceding sentence, the Secretary may reduce the 

24 State ceiling of such State for the calendar year 

25 following the calendar year in which such failVerDate Sep 11 2014 02:35 Oct 17, 2024 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H9862.IH H9862

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1 ure occurs by an amount equal to not more 

2 than 5 percent of the amount of such State ceil3 ing (determined without regard to this para4 graph) as the Secretary determines appropriate. 

5 ‘‘(B) PUBLICATION.—The Secretary shall, 

6 not later than December 31 of each year, pub7 lish the following information for the preceding 

8 calendar year: 

9 ‘‘(i) With respect to each State— 

10 ‘‘(I) the sum of the face amounts 

11 of bonds issued by such State that 

12 were not taken into account under 

13 subsection (a) through the operation 

14 of paragraph (1), 

15 ‘‘(II) the supplemental residential 

16 rental limitation for such State, and 

17 ‘‘(III) the housing need percent18 age of such State. 

19 ‘‘(ii) The amounts determined under 

20 clauses (i), (ii), and (iii) of paragraph 

21 (3)(A). 

22 ‘‘(iii) The amount and justification for 

23 any adjustment made under paragraph 

24 (3)(B).’’. 


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1 (b) EFFECTIVE DATE.— The amendment made by 

2 this section shall apply to bonds issued in calendar years 

3 beginning after the date of the enactment of this Act. 

Æ 


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