CDFA Reports Record Multifamily Housing Bond Issuance in 2017
In 2017, the 50 states and the District of Columbia reported issuing a record $15.3 billion in multifamily rental housing bonds, representing a 9.3 percent increase from the previous record $14 billion reported issued in 2016, according to the Council of Development Finance Agencies (CDFA). The $21 billion in reported combined multifamily and single family mortgage revenue bond issuance represents a 13.6 percent increase in the portion of the cap used for housing from 2016, when states reported a total of $18.5 billion for housing bond issuance.
This record issuance for multifamily bonds comes during the year when Congress considered repealing the tax exemption for all private activity bonds, a proposal originally made in 2014 by then House Ways and Means Committee Chairman Dave Camp, R-Mich.
In 2017, the 50 states and the District of Columbia received $35.3 billion in new private activity bond volume cap allocation, according to CDFA in its report “CDFA Annual Volume Cap Report: An Analysis of 2017 Private Activity Bond & Volume Cap Trends.” CDFA reports that the 2016 cap is an increase of 0.6 percent from 2016. This was in addition to more than $55.1 billion in existing carryforward allocation, making the total accessible amount of national volume cap approximately $90.4 billion. CDFA reported states issuing a record $24.9 billion in all private activity bonds in 2017, a 22 percent increase from $20.4 billion in 2016.
Of this total available, the combination of multifamily housing bonds and single family mortgage revenue bonds issuances represent 59.3 percent of 2017 cap and 84.4 percent of 2017 issuance.
The graphic below describes what CDFA found related to bonds issued for multifamily housing.