Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Public Works and Environmental Services
Division: Housing Finance Authority
Information
Requested Action
title
MOTION TO ADOPT Resolution, the title of which is as follows:
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF BROWARD COUNTY, FLORIDA AUTHORIZING THE IMPLEMENTATION OF A MORTGAGE CREDIT CERTIFICATE (“MCC”) PROGRAM BY THE HOUSING FINANCE AUTHORITY OF BROWARD COUNTY, FLORIDA (“HFA”); AUTHORIZING THE EXCHANGE OF A NOT TO EXCEED AMOUNT OF $50,000,000 OF SINGLE FAMILY PRIVATE ACTIVITY BOND ALLOCATION FOR NOT TO EXCEED $12,500,000 OF MORTGAGE CREDIT CERTIFICATE AUTHORITY; APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF THE MASTER PROGRAM ADMINISTRATION GUIDELINES; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF PARTICIPATION AGREEMENTS BETWEEN THE HFA AND LENDING INSTITUTIONS DESIRING TO PARTICIPATE IN THE MCC PROGRAM; AUTHORIZING CERTAIN OFFICIALS OF THE HFA TO TAKE ALL ACTIONS NECESSARY IN CONNECTION WITH THE IMPLEMENTATION OF THE MCC PROGRAM; PROVIDING CERTAIN OTHER FINDINGS AND DETAILS WITH RESPECT THERETO; AND PROVIDING AN EFFECTIVE DATE.
body
Why Action is Necessary
Formal Board action is necessary for the adoption of a Resolution.
What Action Accomplishes
Enables the adoption of a Resolution.
Goal Related Icon(s)
☒County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None taken.
Summary Explanation/Background
THE PUBLIC WORKS AND ENVIRONMENTAL SERVICES DEPARTMENT AND THE HOUSING FINANCE AUTHORITY RECOMMEND APPROVAL OF THE ABOVE MOTION.
This item supports the Goal of the Broward County Board of County Commissioner’s (“Board”) of “Ensuring residents have an affordable place to live by offering sustainable, compatible, innovative, accessible, affordable housing options for all income levels, including integrated, permanent supportive housing and zoning that helps residents build equity.”
The 1986 Tax Reform Act allows the Housing Finance Authority (“HFA”) to exchange its single-family private activity bond allocation for Mortgage Credit Certificates (“MCC”) in order to provide housing purchase assistance through federal income tax credits. An MCC is a federal income tax credit that is used in conjunction with a first mortgage loan from a participating lender, excluding loans funded via mortgage revenue bonds or qualified veterans’ mortgage bond loans.
An MCC entitles the borrower to an annual federal tax credit equal to: (a) if the MCC rate is equal to or less than 20%, the rate listed within the MCC multiplied by the annual interest paid on the mortgage loan; or (b) if the rate is greater than 20%, the lesser of: (i) the MCC rate times the annual interest paid on the mortgage loan, or (ii) $2,000.
The MCC reduces the borrower’s mortgage interest deduction by an amount equal to the tax credit for the same tax year. The credit cannot exceed the borrower’s federal income tax liability after all other credits and deductions have been applied. However, any unused portion of the credit may be carried forward for up to three subsequent years. Borrowers remain eligible to receive the tax credit (a dollar-for-dollar federal income tax reduction) during each year they occupy the home as their principal residence. For example, a 30-year mortgage loan of $200,000 originated on January 1, with an interest rate of 5% will accrue approximately $10,000 of mortgage interest in the first year. Presuming a 20% MCC rate, the borrower would receive a federal income tax credit of $2,000.
The HFA’s 2023 MCC Program expires on December 31, 2025. On March 19, 2025, the HFA authorized publication of the notice of intent to establish a new MCC Program (“2026 MCC Program”). The public notice was prepared by Bond Counsel and published on July 14, 2025, and July 15, 2025.
On September 17, 2025, the HFA adopted Resolution 2025-013 (Exhibit 2) authorizing the exchange of up to $10,000,000 of single-family bond allocation Mortgage Credit Certificates, Series 2026, with a maximum MCC authority of $2,500,000.
Adoption of the proposed Resolution (Exhibit 1) authorizes the HFA to exchange up to $50,000,000 of single-family private activity bond allocation to issue MCCs with a maximum aggregate total amount of $12,500,000; authorizes the execution and delivery of the Master Program Administration Guidelines; and authorizes execution and delivery of Participation Agreements between the HFA and lending institutions facilitating the origination of mortgages and desiring to participate in the MCC Program. The proposed Resolution permits the HFA to exchange the balance of the $50,000,000 allocation over the next three years, as needed, without further approval of the Board. In connection with the 2026 MCC Program, the HFA intends to exchange up to $10,000,000 of single-family private activity bond allocation to issue its Mortgage Credit Certificates, Series 2026, with maximum proceeds amount of $2,500,000 available to eligible homebuyers.
Source of Additional Information
Ralph Stone, Executive Director, Housing Finance Authority, 954-357-5320.
Fiscal Impact
Fiscal Impact/Cost Summary
No fiscal impact.