,,ii #aahth ,,congress #ast ,session ,s4 #ahje ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #f1 #bjbc ,ms4 ,cortez ,masto 7for herself and ,mr4 ,cassidy7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to expand housing investment with mortgage revenue bonds1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,affordable ,housing ,bond ,enhancement ,act4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,reporting requirements for bond usage4 ,sec4 #c4 ,use of carryforward bond authority4 ,sec4 #d4 ,elimination of ,refinancing ,limitation for ,mortgage ,revenue ,bonds4 ,sec4 #e4 ,increase in financing limit for qualified home improvement loans4 ,sec4 #f4 ,revision of recapture tax for mortgage revenue bonds4 ,sec4 #g4 ,modifying calculation of credit for interest paid on certified indebtedness4 ,sec4 #h4 ,extension of period for mortgage credit certificate to be in effect4 ,sec4 #i4 ,extension of period to revoke election to issue mortgage credit certificates4 ,sec4 #aj4 ,adjustment of public notice requirement4 ,sec4 #aa4 ,elimination of lender reporting requirement4 #b4 ,reporting requirements for bond usage 7a7 ,in general ,section #adf is amended by adding at the end the following3 7o7 ,reporting ,not later than ,december #ca of each calendar year1 the ,secretary shall submit a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 the ,committee on ,financial ,services of the ,house of ,representatives1 the ,committee on ,ways and ,means of the ,house of ,representatives1 and the ,committee on ,finance of the ,senate1 containing information1 as provided to the ,secretary by ,state and local issuing authorities1 which specifies for each ,state-- 7#a7 the ,state ceiling of the ,state for the preceding calendar year1 7#b7 the aggregate amount of carryforwards available to all issuing authorities in the ,state available as of the first day of such preceding calendar year1 7#c7 the total bond authority for such ,state for such preceding calendar year1 as represented by the sum of the amounts reported under paragraphs 7#a7 and 7#b71 7#d7 the aggregate amount of private activity bonds issued by issuing authorities in the ,state during such preceding calendar year for each purpose described in subsection 7f77#e71 including-- 7,a7 the amount of such bonds that were subject to the volume cap1 and 7,b7 the amount of such bonds that were issued pursuant to a carryforward under subsection 7f71 7#e7 the aggregate amount of carryforwards described in paragraph 7#b7 that expired after the last day of the preceding calendar year1 and 7#f7 total amount of any excess amounts described in paragraph 7#a7 of subsection 7f7 for the preceding calendar year which issuing authorities in the ,state did not elect to treat as a carryforward under such subsection4 4 7b7 ,electronic reports by issuers ,section #adi7;e7 is amended by adding at the end the following new paragraph3 7#d7 ,electronic reporting ,any statement required under paragraph 7#b7 shall be submitted electronically4 4 7c7 ,authority ,to disclose information ,section #fajc7;f7 is amended by adding at the end the following new paragraph3 7#f7 ,volume cap reporting ,the ,secretary may disclose to the committees described in section #adf7o7 the information required under such section4 4 7d7 ,effective date ,the amendment made by this section shall apply to calendar years beginning after the date of enactment of this ,act4 #c4 ,use of carryforward bond authority 7a7 ,in general ,paragraph 7#c7 of section #adf7;f7 is amended-- 7#a7 by striking subparagraph 7,a7 and inserting the following3 7,a7 ,in general ,if any issuing authority-- 7i7 elects a carryforward under paragraph 7#a7 with respect to any carryforward purpose1 7ii7 receives a carryforward under paragraph 7#d77;,b77i7 with respect to any carryforward purpose1 or 7iii7 redesignates a carryforward under paragraph 7#d77;,b77ii7 for any carryforward purpose1 any private activity bonds issued by such authority with respect to such purpose at any time during the #c calendar years following the calendar year in which the carryforward arose shall not be taken into account under subsection 7a7 to the extent the amount of such bonds issued at or prior to such time does not exceed the amount of the carryforward elected1 received1 or redesignated for such purpose1 as reduced by any amount subsequently transferred to another issuing authority or redesignated for another purpose pursuant to paragraph 7#d77;,b74 1 and 7#b7 in subparagraph 7,b71 by inserting 1 or received or redesignated for1 after with respect to4 7b7 ,election ,paragraph 7#d7 of section #adf7;f7 is amended to read as follows3 7#d7 ,election 7,a7 ,in general ,except as provided in subparagraph 7,b71 any election under this subsection 7and any identification or specification contained therein71 once made1 shall be irrevocable4 7,b7 ,exception for housing 7i7 ,transfer ,in the case of any carryforward elected under paragraph 7#a7 by an issuing authority with respect to any carryforward purpose1 during the period described in paragraph 7#c77;,a7 with respect to such carryforward1 such issuing authority may transfer such carryforward to any issuing authority within the same ,state that is authorized to issue qualified mortgage bonds or exempt facility bonds described in section #adb7;a77#g74 7ii7 ,redesignation ,in the case of any carryforward-- 7,i7 elected under paragraph 7#a7 by an issuing authority with respect to any carryforward purpose which has not been transferred pursuant to clause 7i71 or 7,,ii7 received by an issuing authority pursuant to clause 7i7 with respect to any carryforward purpose1 during the period described in paragraph 7#c77;,a7 with respect to such carryforward1 such issuing authority may redesignate such carryforward to be for the purpose of issuing qualified mortgage bonds or mortgage credit certificates1 or for the purpose of issuing exempt facility bonds described in section #adb7;a77#g74 7iii7 ,state direction ,in the case of a ,state which has enacted a law described in subsection 7e77#a71 such ,state may1 by law1 prohibit1 limit1 require1 or otherwise direct transfer or redesignation by issuing authorities within such ,state 7except in the case of a constitutional home rule city7 pursuant to this subparagraph4 4 7c7 ,effective date ,the amendments made by this section shall apply to elections made under section #adf7;f7 of the ,internal ,revenue ,code of #aihf after ,december #ca1 #bjbc4 #d4 ,elimination of refinancing limitation for mortgage revenue bonds 7a7 ,in general ,section #adc7;i77#a7 is amended by adding at the end the following3 7,d7 ,exception for refinancing for certain mortgagors 7i7 ,in general ,the refinancing of a mortgage on a residence of a mortgagor who1 as of the date of such refinancing1 satisfies the principal residence requirements under subsection 7c77#a7 and the income requirements under subsection 7f7 shall not be treated as the acquisition or replacement of an existing mortgage for purposes of subparagraph 7,a74 7ii7 ,special rule ,in applying clause 7i7 to any refinancing-- 7,i7 subsection 7d7 shall not apply1 and 7,,ii7 subsection 7e7 shall be applied by using the market value of the residence at the time of refinancing in lieu of the acquisition cost4 4 7b7 ,effective date ,the amendment made by this section shall apply to refinancing loans made on or after the date of enactment of this ,act4 #e4 ,increase in financing limit for qualified home improvement loans 7a7 ,increase in financing limit ,paragraph 7#d7 of section #adc7k7 is amended by striking #ae1jjj and inserting #ej1jjj4 7b7 ,inflation adjustment ,paragraph 7#d7 of section #adc7k71 as amended by subsection 7a71 is amended-- 7#a7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively1 and by moving such clauses 7as so redesignated7 #b ems to the right1 7#b7 by striking ,the term and inserting the following3 7,a7 ,in general ,the term 1 and 7#c7 by adding at the end the following3 7,b7 ,inflation adjustment 7i7 ,in general ,in the case of any calendar year beginning after #bjbd1 the #ej1jjj amount in subparagraph 7,a7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year1 determined by substituting #bjbc for #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding ,if any increase under clause 7i7 is not a multiple of #ajj1 such increase shall be rounded to the nearest multiple of #ajj4 4 7c7 ,effective dates ,the amendments made by this section shall apply to loans made after the last day of the calendar year which includes the date of the enactment of this ,act4 #f4 ,revision of recapture tax for mortgage revenue bonds 7a7 ,in general ,subparagraph 7,c7 of section #adc7m77#d7 is amended to read as follows3 7,c7 ,holding period percentage 7i7 ,in general ,the term holding period percentage means the percentage determined in accordance with the following table3 ,if the disposition occurs during a year after the testing date which is3,the holding period percentage is3 ,the #ast such year#bj ,the #bnd such year#dj ,the #crd such year#fj ,the #dth such year#hj ,the #eth such year#ajj4 7ii7 ,retirements of indebtedness ,if the ,federally-subsidized indebtedness is completely repaid during any year of the #d-year period beginning on the testing date1 the holding period percentage for succeeding years shall be zero4 4 7b7 ,conforming amendments 7#a7 ,section #adc7m77#b77;,b7 is amended by striking #i years and inserting #e years4 7#b7 ,section #adc7m77#g77;,b77ii7 is amended by striking #i-year period and inserting #e-year period4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbd4 #g4 ,modifying calculation of credit for interest paid on certified indebtedness 7a7 ,in general ,section #be is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a71 by striking subparagraph 7,b7 and inserting the following3 7,b7 the certified indebtedness amount on which interest was paid or accrued by the taxpayer during the taxable year4 1 and 7,b7 in paragraph 7#b7-- 7i7 in the heading1 by striking where credit rate exceeds #bj percent1 and 7ii7 in subparagraph 7,a71 by striking ,if the certificate credit rate exceeds #bj percent1 the and inserting ,the1 and 7#b7 in subsection 7d7-- 7,a7 by striking paragraph 7#a7 and inserting the following3 7#a7 ,in general 7,a7 ,certificate credit rate ,the certificate credit rate specified in any mortgage credit certificate shall not be less than #a percent or more than #e percent4 7,b7 ,annual rate ,with respect to any mortgage credit certificate1 the issuing authority may elect to specify a different annual certificate credit rate for each year of the term of the mortgage4 1 and 7,b7 in paragraph 7#b7-- 7i7 in the heading1 by striking certificate credit rates and inserting amount of credit certificates1 and 7ii7 in subparagraph 7,a77ii71 by inserting average annual before certificate credit rate4 7b7 ,effective date ,the amendments made by this section shall apply to mortgage credit certificates issued on or after the first day of the second calendar year that begins after the date of the enactment of this ,act4 #h4 ,extension of period for mortgage credit certificate to be in effect 7a7 ,in general ,section #be7;e77#c77;,b7 is amended by striking second and inserting fourth4 7b7 ,effective date ,the amendments made by this section shall apply to mortgage credit certificates with respect to which the limitation under section #be7;d77#b77;,a7 of the ,internal ,revenue ,code of #aihf is determined by reference to nonissued bond amounts 7a defined in section #be7;d77#b77;,b7 of such ,code7 relating to calendar years after ,december #ca1 #bjbb4 #i4 ,extension of period to revoke election to issue mortgage credit certificates 7a7 ,in general ,section #be7;c77#b7 is amended by adding at the end the following3 7,c7 ,revocation of election to issue mortgage credit certificates 7i7 ,in general ,for purposes of any election made by an issuing authority under subparagraph 7,a77ii7 during any calendar year1 such issuing authority may subsequently elect to reduce the nonissued bond amount 7as defined in subsection 7d77#b77;,b77 for such calendar year1 provided that such election is made not later than the end of the succeeding calendar year4 7ii7 ,coordination with private activity bond carryforward limitation ,under rules established by the ,secretary1 nothing in clause 7i7 shall be construed to permit an issuing authority to issue bonds under section #adf7;f77#c7 for a calendar year after the close of the period prescribed for issuing such bonds under such section4 4 7b7 ,effective date ,the amendment made by this section shall apply to elections made by an issuing authority under section #be7;c77#b77;,a77ii7 of the ,internal ,revenue ,code of #aihf after ,december #ca1 #bjbc4 #aj4 ,adjustment of public notice requirement 7a7 ,in general ,section #be7;e77#e7 is amended by striking #ij days and inserting #cj days4 7b7 ,effective date ,the amendments made by this section shall apply to notices provided after ,december #ca1 #bjbc4 #aa4 ,elimination of lender reporting requirement 7a7 ,in general ,section #be7;g7 is amended-- 7#a7 by striking each person who makes a loan which is a certified indebtedness amount under any mortgage credit certificate and inserting each person who issues a mortgage credit certificate1 and 7#b7 by striking the second sentence thereof4 7b7 ,conforming amendments ,section #fgji7;c7 is amended by striking ,in the case of any report required under the second sentence of section #be7;g71 the and inserting ,the4 7c7 ,effective date ,the amendments made by this section shall take effect on the date of enactment of this ,act4