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<br />Lame Ducks Limit <br />Housing. Bonds <br /> <br />House and Senate conferees approved a <br />measure allowing restricted use of <br />tax-exempt single-family and multi- <br />family mortgage revenue bonds for three <br />years as part of the budgp.t reconcilia- <br />tion package. <br /> <br />After 19 months of work on the contro- <br />versial issue, House Ways and Means <br />Committee conferees worked out a compro- <br />_e pl an with the Senate Fi nance <br />Wnmittee conferees that essenti ally <br />modifies the House-passed mortgage bond <br />bill. The new mortgage bond measure <br />p1 aces a state 1 imit on the mortgage <br />bond volume, sets home price limits, <br />modifies the House and Senate transition <br />rules and terminates the use of the <br />financing tool after three years. <br /> <br />The following changes have been made to <br />~ Ullman Bill (HR 5741): <br /> <br />- the volume cap was increased to 91 or <br />$200 million, whichever is greater; <br />- the allocation was changed to a 50-50 <br />state and local split unless state <br />legislation provides otherwi~e; <br />income restrictions were deleted; <br />- purchase price 1 imits were increased <br />from 80 to 90% of the average area <br />purchase price; the termination date <br />was extended to December 1983; <br />- effective date of the bill was <br />changed to January 1, 1981; <br />registration of bonds were deferred <br />one year and registration will begin <br />January 1, 1982; <br /> <br />2 <br /> <br />do\'mpayment requ i rement was deleted, <br />and; <br />20% of the units in a project outside <br />a targeted area must be Section 8 <br />eligible and 15% of the units in a <br />project in a targeted area must be <br />Section 8 eligible. <br /> <br />(' <br /> <br />Apparently, the remaining provlslons of <br />HR 5641 still apply, including the <br />definition of single family, the first <br />time homebuyer provlslon, and the <br />arbitrage limitation of one percent. <br /> <br />Programs of the <br />New Administration <br /> <br />When the new Administration takes office <br />in January, they may implement a whole <br />new approach to housi ng and communi ty <br />development that could emphasize less <br />government involvement and greater <br />reliance on private industry. <br /> <br />,--, <br />( <br /> <br />The results of the November election <br />cOtitd bring with it a shift to a block <br />grant program to finance assisted hous- <br />ing, conversion of the Urban Development <br />Act i on Grant program to a block grant <br />approach, abandonment of the concept of <br />a moderate-income housing initiative, <br />fewer federal controls on community <br />development block grants, and a negoti- <br />ated FHA interest rate. <br /> <br />Election Brings Consensus <br /> <br />L; <br /> <br />The combination of Reagan's election and <br />the Republican gains in Congress create <br />a consensus that is bound to bring com- <br />