Housing groups and bond dealers are urging the Internal Revenue Service not to adopt a proposed change in the way the average area purchase price is determined associated with mortgages financed with the proceeds of single-family housing bonds.

The groups are concerned that the change the IRS is considering could lower average area purchase prices, squeeze off credit access for buyers, and shrink the pool of homes that qualify for financing provided by mortgage revenue bonds and mortgage credit certificates. The change could further disrupt the already-weak housing market, the groups argued in comment letters recently sent to the IRS.

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