I 
117TH CONGRESS 
2D SESSION 
H. R. 8184 
To amend the Internal Revenue Code of 1986 to expand housing investment 
with mortgage revenue bonds, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 22, 2022 
Ms. MOORE of Wisconsin 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 expand 
housing investment with mortgage revenue bonds, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Affordable Housing Bond Enhancement Act’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
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shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Reporting requirements for bond usage. 
Sec. 3. Use of carryforward bond authority. 
Sec. 4. Elimination of refinancing limitation for mortgage revenue bonds. 
Sec. 5. Increase in financing limit for qualified home improvement loans. 
Sec. 6. Revision of recapture tax for mortgage revenue bonds. 
Sec. 7. Modifying calculation of credit for interest paid on certified indebted-
ness. 
Sec. 8. Extension of period for mortgage credit certificate to be in effect. 
Sec. 9. Extension of period to revoke election to issue mortgage credit certifi-
cates. 
Sec. 10. Adjustment of public notice requirement. 
Sec. 11. Elimination of reporting requirement. 
SEC. 2. REPORTING REQUIREMENTS FOR BOND USAGE. 
(a) IN GENERAL.—Section 146 is amended by adding 
at the end the following: 
‘‘(o) REPORTING.—Not later than April 1 of each cal-
endar year, the Secretary shall submit a report to the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate, the Committee on Financial Services of the 
House of Representatives, the Committee on Ways and 
Means of the House of Representatives, and the Com-
mittee on Finance of the Senate, containing information, 
as provided to the Secretary by State and local issuing 
authorities, which specifies for each State— 
‘‘(1) the purposes for which any State ceiling 
and carryforward under subsection (f) applicable to 
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such State for the preceding calendar year was used, 
and 
‘‘(2) the total amount of— 
‘‘(A) any excess amounts described in 
paragraph (1) of subsection (f) for which the 
issuing authority did not elect to treat as a 
carryforward under such subsection, and 
‘‘(B) any amount of any carryforward 
under such subsection which expired pursuant 
to paragraph (3)(A) of such subsection.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to calendar years beginning after 
the date of enactment of this Act. 
SEC. 3. USE OF CARRYFORWARD BOND AUTHORITY. 
(a) IN GENERAL.—Paragraph (3) of section 146(f) 
is amended— 
(1) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) IN GENERAL.—If any issuing author-
ity— 
‘‘(i) elects a carryforward under para-
graph (1) with respect to any carryforward 
purpose, 
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‘‘(ii) receives a carryforward under 
paragraph (4)(B)(i) with respect to any 
carryforward purpose, or 
‘‘(iii) redesignates a carryforward 
under 
paragraph 
(4)(B)(ii) 
for 
any 
carryforward purpose, 
any private activity bonds issued by such au-
thority with respect to such purpose at any time 
during the 3 calendar years following the cal-
endar year in which the carryforward arose 
shall not be taken into account under sub-
section (a) to the extent the amount of such 
bonds issued at or prior to such time does not 
exceed the amount of the carryforward elected, 
received, or redesignated for such purpose, pro-
vided that such amount has not been subse-
quently transferred to another issuing authority 
or redesignated for another purpose pursuant to 
paragraph (4)(B).’’, and 
(2) in subparagraph (B), by inserting ‘‘, or re-
ceived or redesignated for,’’ after ‘‘with respect to’’. 
(b) ELECTION.—Paragraph (4) of section 146(f) is 
amended to read as follows: 
‘‘(4) ELECTION.— 
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‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), any election under this sub-
section (and any identification or specification 
contained therein), once made, shall be irrev-
ocable. 
‘‘(B) EXCEPTION FOR HOUSING.— 
‘‘(i) TRANSFER.—In the case of any 
carryforward elected under paragraph (1) 
by an issuing authority with respect to any 
carryforward purpose, during the period 
described in paragraph (3)(A) with respect 
to such carryforward, such issuing author-
ity may transfer such carryforward to any 
issuing authority within the same State 
that is authorized to issue qualified mort-
gage bonds or exempt facility bonds de-
scribed in section 142(a)(7). 
‘‘(ii) REDESIGNATION.—In the case of 
any carryforward— 
‘‘(I) elected under paragraph (1) 
by an issuing authority with respect 
to any carryforward purpose which 
has not been transferred pursuant to 
clause (i), or 
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‘‘(II) received by an issuing au-
thority pursuant to clause (i) with re-
spect to any carryforward purpose, 
during the period described in paragraph 
(3)(A) with respect to such carryforward, 
such issuing authority may redesignate 
such carryforward to be for the purpose of 
issuing qualified mortgage bonds or mort-
gage credit certificates, or for the purpose 
of issuing exempt facility bonds described 
in section 142(a)(7). 
‘‘(iii) STATE DIRECTION.—In the case 
of a State which has enacted a law de-
scribed in subsection (e)(1), such State 
may, by law, prohibit, limit, require, or 
otherwise direct transfer or redesignation 
by issuing authorities within such State 
(except in the case of a constitutional 
home rule city) pursuant to this subpara-
graph.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to elections made under section 
146(f) of the Internal Revenue Code of 1986 after Decem-
ber 31, 2022. 
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SEC. 4. ELIMINATION OF REFINANCING LIMITATION FOR 
MORTGAGE REVENUE BONDS. 
(a) IN GENERAL.—Section 143(i)(1) is amended by 
adding at the end the following: 
‘‘(D) EXCEPTION FOR REFINANCING FOR 
CERTAIN MORTGAGORS.— 
‘‘(i) IN GENERAL.—The refinancing of 
a mortgage on a residence of a mortgagor 
who, as of the date of such refinancing, 
satisfies the principal residence require-
ments under subsection (c)(1) and the in-
come requirements under subsection (f) 
shall not be treated as the acquisition or 
replacement of an existing mortgage for 
purposes of subparagraph (A). 
‘‘(ii) SPECIAL
RULE.—In applying 
clause (i) to any refinancing, subsection 
(d) shall not apply.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to refinancing loans closed on or 
after the date of enactment of this Act. 
SEC. 5. INCREASE IN FINANCING LIMIT FOR QUALIFIED 
HOME IMPROVEMENT LOANS. 
(a) INCREASE IN FINANCING LIMIT.—Paragraph (4) 
of section 143(k) is amended by striking ‘‘$15,000’’ and 
inserting ‘‘$50,000’’. 
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(b) INFLATION ADJUSTMENT.—Paragraph (4) of sec-
tion 143(k), as amended by subsection (a), is amended— 
(1) by redesignating subparagraphs (A) and 
(B) as clauses (i) and (ii), respectively, and by mov-
ing such clauses (as so redesignated) 2 ems to the 
right, 
(2) by striking ‘‘The term’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—The term’’, and 
(3) by adding at the end the following: 
‘‘(B) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of any 
calendar year beginning after 2022, the 
$50,000 amount in subparagraph (A) shall 
be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year, determined by 
substituting ‘2021’ for ‘2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(ii) ROUNDING.—If any increase 
under clause (i) is not a multiple of $100, 
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such increase shall be rounded to the near-
est multiple of $100.’’. 
(c) EFFECTIVE DATES.— 
(1) INCREASE
IN
FINANCING
LIMIT.—The 
amendments made by subsection (a) shall apply to 
loans made on or after the date of enactment of this 
Act. 
(2) INFLATION
ADJUSTMENT.—The amend-
ments made by subsection (b) shall apply to cal-
endar years beginning after December 31, 2022. 
SEC. 6. REVISION OF RECAPTURE TAX FOR MORTGAGE 
REVENUE BONDS. 
(a) IN GENERAL.—Subparagraph (C) of section 
143(m)(4) is amended to read as follows: 
‘‘(C) HOLDING
PERIOD
PERCENTAGE.— 
The term ‘holding period percentage’ means the 
percentage determined in accordance with the 
following table: 
‘‘If 
the 
disposition 
occurs 
during a year after the 
testing date which is: 
The holding period percentage 
is: 
The 1st such year ........................................................................
The 2nd such year .......................................................................
The 3rd such year ........................................................................
The 4th such year ........................................................................
The 5th such year ........................................................................
100.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
143(m)(7)(B)(ii) is amended by striking ‘‘9-year period’’ 
and inserting ‘‘5-year period’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
SEC. 7. MODIFYING CALCULATION OF CREDIT FOR INTER-
EST PAID ON CERTIFIED INDEBTEDNESS. 
(a) IN GENERAL.—Section 25 is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking subpara-
graph (B) and inserting the following: 
‘‘(B) the original principal amount of the 
certified indebtedness amount on which interest 
was paid or accrued by the taxpayer during the 
taxable year.’’, and 
(B) in paragraph (2)— 
(i) 
in 
the 
heading, 
by 
striking 
‘‘WHERE CREDIT RATE EXCEEDS 20 PER-
CENT’’, and 
(ii) in subparagraph (A), by striking 
‘‘If the certificate credit rate exceeds 20 
percent, the’’ and inserting ‘‘The’’, and 
(2) in subsection (d)— 
(A) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) IN GENERAL.— 
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‘‘(A) CERTIFICATE CREDIT RATE.—Subject 
to subparagraph (B), the certificate credit rate 
specified in any mortgage credit certificate shall 
not be less than 1 percent or more than 5 per-
cent. 
‘‘(B) VARIABLE
RATE.—With respect to 
any mortgage credit certificate, the issuing au-
thority may elect to specify a different certifi-
cate credit rate for each year of the term of the 
mortgage.’’, and 
(B) in paragraph (2)— 
(i) in the heading, by striking ‘‘CER-
TIFICATE
CREDIT
RATES’’ and inserting 
‘‘AMOUNT OF CREDIT CERTIFICATES’’, and 
(ii) in subparagraph (A)(ii), by insert-
ing ‘‘average annual’’ before ‘‘certificate 
credit rate’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to mortgage credit certificates 
issued after December 31, 2021. 
SEC. 8. EXTENSION OF PERIOD FOR MORTGAGE CREDIT 
CERTIFICATE TO BE IN EFFECT. 
(a) IN GENERAL.—Section 25(e)(3)(B) is amended 
by striking ‘‘second’’ and inserting ‘‘fourth’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to mortgage credit certificates 
issued after December 31, 2022. 
SEC. 9. EXTENSION OF PERIOD TO REVOKE ELECTION TO 
ISSUE MORTGAGE CREDIT CERTIFICATES. 
(a) IN GENERAL.—Section 25(c)(2) is amended by 
adding at the end the following: 
‘‘(C) REVOCATION OF ELECTION TO ISSUE 
MORTGAGE
CREDIT
CERTIFICATES.—For pur-
poses of any election made by an issuing au-
thority under subparagraph (A)(ii) during any 
calendar year, such issuing authority may sub-
sequently elect to reduce the nonissued bond 
amount (as defined in subsection (d)(2)(B)) for 
such calendar year, provided that such election 
is made not later than the end of the suc-
ceeding calendar year.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to elections made by an issuing 
authority under section 25(c)(2)(A)(ii) of the Internal 
Revenue Code of 1986 after December 31, 2022. 
SEC. 10. ADJUSTMENT OF PUBLIC NOTICE REQUIREMENT. 
(a) IN GENERAL.—Section 25(e)(5) is amended by 
striking ‘‘90 days’’ and inserting ‘‘30 days’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to notices provided after December 
31, 2022. 
SEC. 11. ELIMINATION OF REPORTING REQUIREMENT. 
(a) IN GENERAL.—Section 25 is amended by striking 
subsection (g). 
(b) CONFORMING AMENDMENTS.—Section 6709 is 
amended— 
(1) by striking subsection (c), and 
(2) by redesignating subsection (d) as sub-
section (c). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of enactment of 
this Act. 
Æ 
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