Reallocation of unused volume cap for private activity bonds for qualified residential rental projects

(a)

In general

Section 146 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(o)

Reallocation of volume cap for housing production

(1)

Issuance of supplemental bonds

Any private activity bonds issued by an issuing authority during a calendar year for projects described in section 142(a)(7) shall not be taken into account under subsection (a) to the extent the amount of such bonds does not exceed so much of the State’s supplemental residential rental limitation for such calendar year as is allocated to such issuing authority by such State for such calendar year. (2)

Supplemental residential rental limitation

For purposes of this subsection— (A)

In general

The term supplemental residential rental limitation means, with respect to any State for any calendar year, the State’s housing need percentage of the national unused volume cap amount for such calendar year. (B)

Housing need percentage

The housing need percentage means, with respect to any State for any calendar year, the percentage determined by the Secretary as being equal to the quotient of— (i)the aggregate face amount of multifamily housing bonds issued by such State during the second preceding calendar year, divided by (ii)the aggregate face amount of such bonds issued by all States during such second preceding calendar year. (C)

Allocations to issuing authority

Except as otherwise provided by the Secretary, the supplemental residential rental limitation shall be allocated by the State to issuing authorities in such manner as the State provides. The aggregate amount of supplemental residential rental limitation taken into account under paragraph (1) as allocated by any State for any calendar year shall not exceed the supplement residential rental limitation of such State for such calendar year. (D)

Multifamily housing bonds

The term multifamily housing bond means, with respect to any State, any bond for projects described in section 142(a)(7) which is taken into account under subsection (a) with respect to an issuing authority of such State. (3)

National unused volume cap amount

For purposes of this subsection— (A)

In general

The term national unused volume cap amount means, with respect to a calendar year, the amount which is estimated by the Secretary as being equal to the sum of— (i)the excess (if any) of— (I)sum of the State ceilings for all States for the second preceding calendar year, over (II)the sum of the aggregate face amount of private activity bonds taken into account under subsection (a) for the second preceding calendar year plus any portion of the amount described in subclause (I) which is carried forward under subsection (f), (ii)the amount of any carryforward under subsection (f) which expired at the close of the second preceding calendar year, plus (iii)any supplemental residential limitation allocated under this subsection for the second preceding calendar year which was unused as of the close of such year. (B)

Adjustments

The Secretary shall make proper adjustments to the national unused volume cap amount for any calendar year to the extent the Secretary’s estimates for preceding calendar years were in excess of or less than the Secretary’s current estimates for such preceding calendar years. (4)

Information reporting

(A)

In general

The Secretary shall require each State to submit to the Secretary in such manner (including electronically) such information as the Secretary determines to be necessary or appropriate to carry out this subsection. In the case of any State which fails to provide the information referred to in the preceding sentence, the Secretary may reduce the State ceiling of such State for the calendar year following the calendar year in which such failure occurs by an amount equal to not more than 5 percent of the amount of such State ceiling (determined without regard to this paragraph) as the Secretary determines appropriate. (B)

Publication

The Secretary shall, not later than December 31 of each year, publish the following information for the preceding calendar year: (i)With respect to each State— (I)the sum of the face amounts of bonds issued by such State that were not taken into account under subsection (a) through the operation of paragraph (1), (II)the supplemental residential rental limitation for such State, and (III)the housing need percentage of such State. (ii)The amounts determined under clauses (i), (ii), and (iii) of paragraph (3)(A). (iii)The amount and justification for any adjustment made under paragraph (3)(B).

(b)

Effective date

The amendment made by this section shall apply to bonds issued in calendar years beginning after the date of the enactment of this Act.