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Tax-Exempt Housing Bonds FAQ (MRBs, Multifamily)

Published on January 4, 2020

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.

Construction - Housing BondsThe 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?