Lawmakers in the Senate and House have introduced bipartisan legislation to eliminate a regulatory hurdle for Federal Home Loan Bank member institutions when seeking to fund community development projects.
Currently, FHLB member institutions are allowed to support municipalities when setting up housing-related tax-exempt bonds but are unable to do so for many other community development projects, such as infrastructure, according to the bill’s sponsors. The Municipal Investment and Neighborhood Transformation, or MINT, Act would include non-housing community development projects as eligible for letters of credit from FHLBank member institutions.
“The MINT Act permanently restores letters of credit supporting non-housing tax-exempt bonds as a proven tool that empowers local communities to finance critical infrastructure – including schools, healthcare facilities, water systems, and other essential projects – more affordably,” Ryan Donovan, president and CEO of the Council of Federal Home Loan Banks, said in a statement in support of the bill.
The bill was introduced in the Senate by Sens. Catherine Cortez Masto (D-Nev.) and Todd Young (R-Ind.) and in the House by Reps. Lisa McClain (R-Mich.) and Sam Liccardo (D-Calif.).
