New Bill Aims To Give First-time Homebuyers An Advantage

A bipartisan duo of U.S. senators on Tuesday introduced a bill aimed at expanding housing affordability for first-time homebuyers, the latest example of a bipartisan legislative effort focused on the cost of housing.

The “Affordable Housing Bond Enhancement Act,” which Sens. Catherine Cortez Masto (D-Nev.) and Bill Cassidy (R-La.) introduced together in 2023, has been reintroduced into the Senate as the pair aims to expand housing affordability options for first-time homebuyers through an expansion of two federal programs: the Mortgage Revenue Bond (MRB) and Mortgage Credit Certificates (MCC) programs.

Here’s how it all works:

Provisions of the bill

The MRB program helps prospective homebuyers who are at a certain area’s median income (AMI), who may not have enough money to meet down payment and closing costs. It features mortgage loans with interest rates that are below market rates.

The MCC is a tax credit program which comes in the form of “certificates issued by [housing finance agencies (HFAs)] that increase the federal tax benefits of owning a home and helps low- and moderate-income, first-time homebuyers offset a portion of the amount they owe in mortgage interest,” according to guidance from the Federal Deposit Insurance Corporation (FDIC).

The bill from Cortez Masto and Cassidy seeks to simplify the administrations of both programs, and change them to ensure they would be primarily assistive for working families, according to language of the bill reviewed by HousingWire. It would permit refinances to add more flexibility for the programs’ beneficiaries, while also allowing for those with MRB mortgages to direct more funds to renovations that might be able to help them to age in place.

These include “adding accessible bathrooms and ramps to help older and disabled Americans remain in their home, as well as supporting energy efficiency upgrades and disaster mitigation renovations,” according to the office of Cortez Masto. “The bill raises the current funding limit of $15,000 to $75,000 and indexes it for inflation.”

HFAs would also be given “flexibility to extend loan and credit periods to account for delays due to supply chain issues or construction shortages,” the office explained.

“Hardworking families deserve the safety and security of a roof over their heads, said Sen. Cortez Masto in a statement. “These tax credits and interest rate reductions will give working Nevadans a meaningful break as they take the important step of buying a first home. I will continue working in a bipartisan way to make sure that Nevadans have access to secure, affordable housing.”

Cassidy emphasized the lack of affordability in the housing market, particularly for people seeking to break into it for the first time.

“Buying a home is increasingly out of reach for first-time buyers. This addresses that issue,” said Sen. Cassidy. “By giving them a boost, we get them on the ladder of homeownership.”

Prior effort, recent congressional housing moves

The 2023 version of the bill was first introduced that June and was referred to the Senate Finance Committee, but hung in limbo there for the better part of a year. Interestingly, the bill was revived in April 2024 when it garnered a hearing from the Senate Banking Committee, but never progressed beyond that point.

At that hearing, Christopher Volzke – the deputy executive director of the Wyoming Community Development Authority – spoke in favor of the bill during a prepared statement.

“This bill would  make a number of simple, but effective changes to the [MRB] and [MCC] programs,” he said. “MRBs and  MCCs are the primary means by which State [HFAs] finance their affordable home ownership programs.”

Lawmakers have been increasingly active in 2025 on the housing front. Cortez Masto had previously joined Democratic colleagues in both the Senate and the House of Representatives seeking to to update the formula for determining the allocation of affordable housing vouchers to growing cities, alongside Sen. Ruben Gallego (D-Ariz.) and Rep. Dina Titus (D-Nev.).

A cadre of bicameral Democratic lawmakers led by Sen. Alex Padilla (D-Calif.) also recently reintroduced the “Housing for All Act” that would bolster investments in federal programs — including some that have been targeted by the Trump administration for funding reductions. But there has been other bipartisan action as well.

These include the introduction by Sens. Mike Rounds (R-S.D.) and Tina Smith (D-Minn.) to implement sweeping reforms to the federal Rural Housing Service (RHS), the most it has seen in decades. Also garnering bipartisan support is the reintroduction of the “Neighborhood Homes Investment Act” (NHIA); the the Affordable Housing Credit Improvement Act; and renewed movement on the controversial topic of trigger leads.

This month also brought the announcement of a bipartisan joint effort with Reps. Emmanuel Cleaver (D-Mo.) and Mike Flood (R-Neb.) to begin a public listening program to hear what the public feels works — and doesn’t — about two particular programs from HUD: the Community Development Block Grant (CDBG) and the Home Investment Partnership Program (HOME) programs.