CDFA Reports Record Multifamily Housing Bond Issuance in 2016

Published by Michael Novogradac on Friday, September 15, 2017 - 12:00am

In 2016, the 50 states and the District of Columbia reported issuing a record $14 billion in multifamily housing bonds, representing 112 percent increase over the $6.6 billion reported issued in 2015, according to the Council of Development Finance Agencies (CDFA). The $18.5 billion in reported multifamily and single family mortgage revenue bond issuance represents a 65.3 percent increase in the portion of the cap going towards housing from 2015, when states reported a total of $11.1 billion for housing bonds issuance.

This record issuance for multifamily bonds comes at a time when Congress is considering the tax exemption for all private activity bonds. In 2014, then House Ways and Means Committee Chairman Dave Camp, R-Mich., proposed to repeal the tax exemption for all private activity bonds in tax reform legislation. Congress is looking at much of the Camp proposal as it considers tax reform legislation this fall.

States reported abandoning $9.6 billion in unused volume cap allocation at the end of 2016, $889 million less than the $10.5 billion abandoned in 2015.

In 2016, the 50 states and the District of Columbia received $35.2 billion in new volume cap allocation, according to CDFA in its report “CDFA Annual Volume Cap Report: An Analysis of 2016 Private Activity Bond & Volume Cap Trends.”  CDFA reports that the 2016 cap is an increase of 1 percent from 2015. This was in addition to more than $63.9 billion in existing carryforward allocation, making the total accessible amount of national volume cap approximately $97.3 billion, a new record in bond cap availability. CDFA reported states issuing a record $20.3 billion in all private activity bonds in 2016, a 55 percent increase from $13.1 billion in 2015.

Of this total available, the combination of multifamily housing bonds and single family mortgage revenue bonds issuances represent 52.6 percent of 2016 cap and 90.6 percent of 2016 issuance, substantial increases from 32 percent of 2015 cap and 85 percent of 2015 issuance.

The graphic below describes what CDFA found related to bonds issued for multifamily housing. 

 

Blog Chart Multifamily Housing Highlights
Click to Enlarge