To amend the Internal Revenue Code of 1986 to provide an elective exception from the volume cap on tax-exempt bonds for certain exempt facility bonds for qualified residential rental projects, and for other purposes.
Key claim: HR9906 would amend the Internal Revenue Code to let issuers elect an exception from the private-activity bond volume cap for certain exempt facility bonds financing qualified residential rental projects.
Abstract
(HR9906 · 119th Congress) Latest action (2026-07-23): Referred to the House Committee on Ways and Means.
Why this matters
The private-activity bond volume cap is a binding constraint in many states on the 4% LIHTC pipeline, since tax-exempt multifamily bonds must be issued under the state cap to trigger the credits. An elective exception for qualified residential rental projects would increase the debt-financing headroom available to affordable multifamily developers without requiring states to reallocate cap from other private-activity uses, affecting the scale and geography of rental production.