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Show 1 . , I gun shines over Utah housing I1 lItah Housing Finance Agency I Si) i once agam 8 6 ' hp below market interest rates J f moderate income Utah buyers as Congress extended u AMncy's authority to issue tax- 4 2i?3rW avenue Bonds ,RR) for another four years, f 'Sa which raises its capital I through the sale of MRB's, has been l hf to do an issue since S SSber 31, 1983 when the j Jhority to issue tax-exempt bonds was "sunset" as sated in the. Mortgage Subsidy Bond Tax Act (MSBTA) of 1980. On Friday, June 22, House and Senate Conferees approved a massive tax bill which included a section that extended state government's authority to issue MRB's until Jan. 1, 1988. The 1984 Tax Reform Act, passed by both the House and the Senate, was signed into law July 18 by President Reagan. In anticipation of the extension, UHFA began preliminary work on a new issue during the month of June. "We hope to have a new issue of bonds out by this fall," according to Grant S. Whitaker, Acting Executive Director of UHFA. "Before a new issue of bonds can be done, the Agency must deter: mine whether favorable market conditions exist for the sale of the bonds. It is the Agency's goal to provide a mortgage rate not to exceed 11.95 percent." With the passage of the Tax Reform Act, experts expect a rush of Housing Agencies into the market which could have an adverse effect on bond prices and interest rates. "We expect to see more housing bonds on the market during the next six months than during a normal six month period," said Whitaker. "What effect this will have on our bonds when we are ready to enter the market, is still unknown." |
