Washington, D.C. – Today, Representatives Darin LaHood (IL-16), Jimmy Panetta (CA-19), Blake Moore (UT-01), and Tom Suozzi (NY-01) introduced the First-Time Homebuyer Affordability Act, bipartisan legislation to expand access to low-interest mortgages for first-time, low- to medium-income homebuyers.
“Rising housing costs are being felt in rural, urban, and suburban communities across Illinois,” said Rep. LaHood. "The First-Time Homebuyer Affordability Act is a commonsense, bipartisan solution that will help more first-time homebuyers access affordable, low-interest mortgages without taking resources away from other critical housing programs. By expanding access to financing, we can help more hardworking families achieve homeownership, strengthen our communities, and build long-term financial security. I'm proud to work with my colleagues on both sides of the aisle to advance practical policies that make the American Dream more attainable."
"Too many working families and first-time homebuyers are locked out of homeownership by high mortgage rates and rising housing costs," said Rep. Panetta. "Our bipartisan First-Time Homebuyer Affordability Act would remove Mortgage Revenue Bonds from the Private Activity Bond cap, allowing California to offer qualified homebuyers lower-interest mortgages while preserving resources for affordable rental housing. Housing affordability is no longer just a coastal issue nor just a Democratic issue, but an issue that requires this type of bipartisan solution for working families all across our country.”
"Homeownership is becoming increasingly out of reach for young families,” said Rep. Moore. “Removing Mortgage Revenue Bonds from the Private Activity Bond cap will make housing more accessible by allowing states to offer additional lower-interest mortgages to qualifying families, opening the door to homeownership for more Utahns and Americans across the nation. I’m proud to co-lead the First-Time Homebuyer Affordability Act to lower the barrier to entry for homeownership."
“Too many Americans are being priced out of homeownership,” said Rep. Suozzi. “The First-Time Homebuyer Affordability Act will make it easier for states and local governments to issue more mortgage revenue bonds, therefore lowering borrowing costs for more first-time and low- and middle-income homebuyers. I’m proud to co-lead this commonsense bill to make homeownership more accessible and affordable for more families.”
The legislation is supported by the Illinois Housing Development Authority (IHDA), the National Council of State Housing Agencies (NCSHA), the Council of Development Finance Agencies (CDFA), the Mortgage Bankers Association (MBA), the National Association of Home Builders (NAHB), and RBC Capital Markets.
“This year alone, the Illinois Housing Development Authority (IHDA) has helped more than 3,000 families purchase their first home through our down payment assistance programs,” said IHDA Executive Director Kristin Faust. “With the passage of this legislation, IHDA will be able to provide even greater support through enhanced assistance and lower interest rates, doubling the number of homebuyers we can assist in overcoming the hurdles to homeownership. This bill will directly increase buyers’ purchasing power, help the missing middle, and lower monthly mortgage expenses - creating more homes for families, strengthening communities, and stimulating local economies.”
“The First-Time Homebuyer Affordability Act is the most significant bipartisan federal legislation to lower the cost of homeownership for first-time home buyers in decades,” said NCSHA Executive Director Stockton Williams. “The bill would provide lower-interest home mortgage loans to hundreds of thousands of working households who are ready to become homeowners but for today’s relatively high-rate environment.”
“This bill represents a transformational opportunity for homeownership in America at a time when the affordability crisis has never been greater,” said Cory Hoeppner, Head of National Housing Group at RBC Capital Markets. “The ability for State Housing Finance Agencies to offer significantly more lower rate mortgages to first time homebuyers will help boost the U.S. real estate market.”
“Increasing resources for programs that enable Americans to purchase their first home is critical. The First-Time Homebuyer Affordability Act will ensure that state housing finance agencies can fully fund affordable homeownership programs. We commend Reps. LaHood, Moore, Panetta, and Suozzi for working to make the American dream of homeownership more attainable," said Bill Owens, Chairman of the National Association of Home Builders.
Background:
Mortgage Revenue Bonds are a longstanding financing tool used by state and local housing agencies to support affordable homeownership opportunities – particularly for first-time, low- to moderate-income homebuyers. These bonds help reduce borrowing costs and expand access to below-market mortgage financing.
Under current law, mortgage bonds are subject to annual Private Activity Bond (PAB) volume caps, which limit the amount of financing states can provide each year. In many states, growing housing demand and rising home prices have strained these caps and reduced the availability of affordable mortgage assistance programs.
The First-Time Homebuyer Affordability Act would exempt qualified mortgage bonds from the PAB cap – expanding financing capacity and allow housing agencies to better meet housing needs in their communities.
Full text of the bill can be found HERE.
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