The National Association of Real Estate Brokers Inc., based here, has opposed legislation that would abolish the use of tax-exempt mortgage revenue bonds (except for multifamily housing) originated by local governments.
Harold A. Dawson, president of NAREB said the use of the bonds should be limited to providing lower-interest mortgages for low-to-moderate-income home buyers and for upgrading deteriorating neighborhoods.
The president of the predominantly black real estate brokers' group said tax-exempt bonds are a sound method of financing housing used by cities as part of a strategy to aid low-to-moderate-income families, particularly blacks and other racial minorities, choosing to remain in the cities.
The Carter administration recently has supported legislation introduced in the House to lessen the use of tax-exempt local bonds for housing purchases because of the loss of tax income to the U.S. Treasury. The Mortgage Bankers Association of America and the U.S. League of Savings Associations have supported the legislation, designed to curb the use of tax-exempt local bonds to provide mortgage money for home buyers.
In another announcement, the NAREB expressed opposition to the Senate Budget Committee's proposed $4 billion slash in a $26.8 billion administration recommendation for federally assisted housing programs.