Episode 136: First-Time Homebuyer Act Could Free Up PAB Cap for

The First-Time Homebuyer Affordability Act (H.R. 10075) was introduced by a bipartisan House quartet — Reps. LaHood, Panetta, Moore, and Suozzi — with a provision that carries major implications for multifamily affordable housing finance: exempting qualified mortgage bonds from the Private Activity Bond volume cap. If enacted, the bill would effectively end the competition between single-family mortgage bonds and multifamily 4% LIHTC bond deals for the same finite pool of state cap authority. Key Takeaways: H.R. 10075 would exempt qualified mortgage bonds from the PAB volume cap, directly reducing single-family demand on cap that multifamily deals also compete for. In 2023, $9,143.8 billion of total PABs issued went to single-family programs, versus $21,677.3 billion for multifamily — per the CDFA 2021–2023 Annual Volume Cap Report. 4% LIHTC deals are structurally dependent on Private Activity Bond financing; any expansion of effective cap availability translates to more viable multifamily pipelines. The bill is bipartisan — two Republican and two Democratic co-sponsors — improving its odds relative to single-party legislation. States with chronically oversubscribed volume cap would see the most direct benefit, as fewer competing claims on the pool means more allocable authority for multifamily deals. The policy mechanism is additive, not redistributive — it doesn't eliminate the single-family program, it removes it from the cap calculation. Developers and syndicators in high-demand cap states should monitor this bill's progress as the broader tax legislative calendar unfolds. This bill won't move in isolation — its fate is tied to the broader tax and housing finance legislative environment in Congress. But the mechanism is straightforward and the bipartisan framing is an asset. For affordable housing deal-makers in volume-cap-constrained markets, this is one of the more consequential single-family bills to watch precisely because of what it would do for multifamily. Stay close to your state HFA on cap availability regardless of outcome — but a favorable ruling here would materially change the calculus for 4% pipeline planning. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.