Lawmakers in the Senate yesterday voted 84 to 12 to approve a housing bill that would expand the private activity bond cap by $10 billion and allow state and local housing finance agencies to use the excess capacity to issue bonds to refinance and provide new mortgages, as well as finance multi-family housing developments.

The $10 billion of new mortgage revenue bonds would be exempt from the alternative minimum tax. The bill also would provide $4 billion of Community Development Block Grant program funds that could be used to purchase and refurbish foreclosed homes.

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