Tax-Exempt Housing Bonds FAQ (MRBs, Multifamily)

The Mortgage Revenue Bond (MRB) and tax-exempt multifamily housing bond programs (collectively, Housing Bonds) are financing tools used by state Housing Finance Agencies (HFAs) to finance low-interest mortgages for low- and moderate-income home buyers and to acquire, construct, and rehabilitate multifamily housing for low-income renters. HFAs, as well as other state and local governmental entities, sell tax-exempt bonds for housing and other activities with private ownership but that serve a public purpose (called “Private Activity Bonds”) to investors.

The Tax-Exempt Housing Bonds FAQ (last updated January 2020) covers the following:

• What are Housing Bonds?
• Are Housing Bonds one of the original uses of PAB authority?
• How do HFAs use Housing Bonds?
• How much bond authority do states have?
• What restrictions exist on the use of Housing Bonds?
• Why should Congress protect Housing Bonds?
• Would other tools for financing affordable housing be more efficient?
• What does this program cost?