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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Combating the Hous-
ing Supply Shortage Act of 2024’’. 
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SEC. 2. REALLOCATION OF UNUSED VOLUME CAP FOR PRI-
VATE ACTIVITY BONDS FOR QUALIFIED RESI-
DENTIAL RENTAL PROJECTS. 
(a) IN GENERAL.—Section 146 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(o) REALLOCATION OF VOLUME CAP FOR HOUSING 
PRODUCTION.— 
‘‘(1) ISSUANCE OF SUPPLEMENTAL BONDS.— 
Any private activity bonds issued by an issuing au-
thority during a calendar year for projects described 
in section 142(a)(7) shall not be taken into account 
under subsection (a) to the extent the amount of 
such bonds does not exceed so much of the State’s 
supplemental residential rental limitation for such 
calendar year as is allocated to such issuing author-
ity by such State for such calendar year. 
‘‘(2) SUPPLEMENTAL
RESIDENTIAL
RENTAL 
LIMITATION.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘supple-
mental residential rental limitation’ means, with 
respect to any State for any calendar year, the 
State’s housing need percentage of the national 
unused volume cap amount for such calendar 
year. 
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‘‘(B) HOUSING NEED PERCENTAGE.—The 
‘housing need percentage’ means, with respect 
to any State for any calendar year, the percent-
age determined by the Secretary as being equal 
to the quotient of— 
‘‘(i) the aggregate face amount of 
multifamily housing bonds issued by such 
State during the second preceding calendar 
year, divided by 
‘‘(ii) the aggregate face amount of 
such bonds issued by all States during 
such second preceding calendar year. 
‘‘(C) ALLOCATIONS TO ISSUING AUTHOR-
ITY.—Except as otherwise provided by the Sec-
retary, the supplemental residential rental limi-
tation shall be allocated by the State to issuing 
authorities in such manner as the State pro-
vides. The aggregate amount of supplemental 
residential rental limitation taken into account 
under paragraph (1) as allocated by any State 
for any calendar year shall not exceed the sup-
plement residential rental limitation of such 
State for such calendar year. 
‘‘(D) MULTIFAMILY
HOUSING
BONDS.— 
The term ‘multifamily housing bond’ means, 
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close of the second preceding calendar 
year, plus 
‘‘(iii) any supplemental residential 
limitation allocated under this subsection 
for the second preceding calendar year 
which was unused as of the close of such 
year. 
‘‘(B) ADJUSTMENTS.—The Secretary shall 
make proper adjustments to the national un-
used volume cap amount for any calendar year 
to the extent the Secretary’s estimates for pre-
ceding calendar years were in excess of or less 
than the Secretary’s current estimates for such 
preceding calendar years. 
‘‘(4) INFORMATION REPORTING.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
require each State to submit to the Secretary in 
such manner (including electronically) such in-
formation as the Secretary determines to be 
necessary or appropriate to carry out this sub-
section. In the case of any State which fails to 
provide the information referred to in the pre-
ceding sentence, the Secretary may reduce the 
State ceiling of such State for the calendar year 
following the calendar year in which such fail-
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ure occurs by an amount equal to not more 
than 5 percent of the amount of such State ceil-
ing (determined without regard to this para-
graph) as the Secretary determines appropriate. 
‘‘(B) PUBLICATION.—The Secretary shall, 
not later than December 31 of each year, pub-
lish the following information for the preceding 
calendar year: 
‘‘(i) With respect to each State— 
‘‘(I) the sum of the face amounts 
of bonds issued by such State that 
were not taken into account under 
subsection (a) through the operation 
of paragraph (1), 
‘‘(II) the supplemental residential 
rental limitation for such State, and 
‘‘(III) the housing need percent-
age of such State. 
‘‘(ii) The amounts determined under 
clauses (i), (ii), and (iii) of paragraph 
(3)(A). 
‘‘(iii) The amount and justification for 
any adjustment made under paragraph 
(3)(B).’’. 
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(b) EFFECTIVE DATE.— The amendment made by 
this section shall apply to bonds issued in calendar years 
beginning after the date of the enactment of this Act. 
Æ 
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