CHFA eNews: Home Finance
chfa enews - home finance 
  November 14, 2017
important mcc update

On November 9th, the Senate unveiled its proposed tax reform legislation, a week following the release of the House’s tax reform bill. The Senate and House proposals differ significantly on some key issues including private activity bonds (PABs). The House’s proposal eliminates the tax exemption relating to PABs issued after December 31, 2017, which would prohibit the issuance of Mortgage Credit Certificates (MCCs) on loans closed after 12.31.2017. The Senate’s proposal preserves all provisions related to PABs, including for single family bonds and MCCs.

Although the exact terms and timing of the finalized tax reform legislation are not yet known, we wanted you to be aware of the potential restriction on issuing MCCs on loans closed after year end as you work with borrowers who may be looking to utilize an MCC for a purchase in 2018.

CHFA has been and will continue to be actively engaged with its delegation liaisons, local coalition partners, and key stakeholders to ensure they are aware of the detrimental impact that the elimination of tax exempt PABs, including MCC programs, could have in Colorado. We urge all of our participating lenders, as well, to stay engaged with the Colorado Congressional delegation and to make your voices heard. CHFA will continue to monitor the status of the proposed legislation and provide any updates, if needed, regarding CHFA’s MCC program.

For more information about Private Activity Bonds and how CHFA uses them to support affordable housing and community development, please visit www.chfainfo.com/preservePABs.

CHFA Home Finance
303.297.7376 or 888.320.3688 Denver
970.241.2341 or 800.877.8450 Western Slope


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