URBAN ECONOMIC POLICY

TRANSPORTATION AND COMMUNICATIONS

JOBS, EDUCATION
AND THE WORKFORCE


INTERNATIONAL AFFAIRS

HEALTH AND
HUMAN SERVICES

ENERGY AND ENVIRONMENT

CRIMINAL AND SOCIAL JUSTICE

COMMUNITY DEVELOPMENT AND HOUSING
Preserving Section 8 Housing
Celebrating the 25th Anniversary of the
Community Development
Block Grant (CDBG) Program

Community
Reinvestment Act (CRA)

The Shelter Plus Care Program
Section 202/811 Gap Funding
Federal Home Loan
Banks
Sunset of Hope VI Program
Housing for the Elderly
Celebrating Homeownership Week
The Historic Homeownership Assistance Act
Public Insurance
Funding for
Empowerment Zones and Strategic Planning
Communities

Housing and Community Development Committee Resolution on the President's FY2000 Budget for the Department of Housing and Urban Development

ARTS, CULTURE AND RECREATION

MISCELLANEOUS

USCM HOME

RESOLUTIONS INDEX

COMMUNITY DEVELOPMENT AND HOUSING

FEDERAL HOME LOAN BANKS

WHEREAS, Section 149(b) of the Internal Revenue Code permits Government Sponsored Agencies (GSES) such as FANNIEMAE, the Federal National Mortgage Association and the Government National Mortgage Association (GINNYMAE) as well as the Federal Housing Administration and the Veteran's Administration to issue letters of credit to credit enhance tax exempt economic development bonds; and

WHEREAS, the Federal Home Loan Banks were omitted from the list of GSES permitted to issue such letters of credit due to the fact that the Federal Home Loan Banks were not issuing letters of credit to credit enhance bonds when the other GSES were listed; and

WHEREAS, amending Section 149(b) to add the Federal Home Loan Banks to the list of other GSES permit bonds would allow the Federal Home Loan Banks to better carry out their ongoing mission of supporting housing and community development lending; and

WHEREAS, obtaining credit enhancement from triple A rated Federal Home Loan Banks for tax exempt economic development bonds would significantly lower the costs to municipalities and therefore increase their capacity to create jobs and generate new tax revenue for the municipalities and the federal government; and

WHEREAS, the proposed amendment has been scored by the Joint Tax Committee at only $6 million over five years which loss of revenue will be recouped many times over by local economic development,

NOW, THEREFORE, BE IT RESOLVED that The U.S. Conference of Mayors urges the Congress to pass an amendment to Section 149(b) of the Internal Revenue Code adding "any letter of credit issued by a Federal Home Loan Bank" to the list of permissible letters of credit enhancing tax exempt economic development bonds.

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