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State and federal housing associations and agencies are expressing sharp concerns about a potential new method for setting the average purchase price for homes financed through qualified mortgage bonds and mortgage certificates. Their comments came in response to IRS's Revenue Procedure 2012-25. In that guidance, IRS said the government is considering a possible new method that would use Department of Housing and Urban Development data on county median housing purchase prices. In recent letters to IRS, the National Association of Home Builders, the Virginia Housing Development Authority, and the Minnesota Housing Finance Agency all say they were worried that such a method would limit the number of affordable homes and restrict credit to first-time home buyers, among other negative impacts.
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