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Mortgage Revenue Bonds (MRBs)

Special tax-exempt bonds issued by state and local governments to provide lower-interest mortgages to eligible first-time homebuyers and other qualified individuals, typically those with lower or moderate incomes.

Mortgage Credit Certificates (MCCs)

A federal tax credit program that allows eligible first-time homebuyers to claim a portion of their annual mortgage interest as a direct tax credit, reducing their federal income tax liability.

Carryforward Bond Authority

Unused capacity or allocation for issuing tax-exempt bonds from a previous year that a state or local government is allowed to use in a future year.

Private Activity Bonds

A type of bond issued by state or local governments where more than 10% of the proceeds are used for a private business activity and more than 10% of the debt service is paid from private sources. These bonds are often subject to state volume caps.

Recapture Tax

A tax that may be owed by homeowners who purchased their home using a mortgage revenue bond if they sell the home within a certain period (e.g., nine years) and experience a significant gain from the sale, especially if their income has increased substantially.

State Ceiling (Volume Cap)

A limit set by federal law on the total amount of certain tax-exempt private activity bonds, including mortgage revenue bonds, that a state can issue in a given calendar year.