District of Columbia Housing Revenue Bonds Statement on Signing H.R. 3824 Into Law.

I have today signed into law H.R. 3824, which allows the District of Columbia City Council to delegate its authority to issue housing revenue bonds to its housing finance agency and exempts the bonds' revenues from the congressional appropriations process. In addition, this bill would allow the District to issue housing revenue bonds which are tax exempt.

In the 1981 budget which I sent to the Congress in January, I recommended legislation to restrict the use of tax-free mortgage subsidy bonds to certain limited circumstances. Multifamily housing revenue bonds can serve an important and desirable function. But if permitted to grow without restriction, single-family revenue bonds would direct little of the money to the families who need it most.

Further, the bonds contribute to inflation by increasing the Federal deficit, adding to demand for housing, and frustrating efforts of the Federal Reserve Board to restrict expansion of credit. The House has already passed H.R. 5741, which implements some of my recommendations. I continue to support legislation along these lines.

I have signed H.R. 3824 so that the District of Columbia may compete on an equal basis with other States and localities in the housing bond market. Any broader bond legislation that is subsequently enacted should apply equally to the District and the rest of the Nation.