Mortgage Credit Certificates

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Kutak Rock’s national public finance lawyers have a long history of advising state and local housing finance agencies with respect to Mortgage Credit Certificate programs. Mortgage Credit Certificates (MCCs) are federal tax credits issued by housing finance agencies that provide financial assistance to eligible new homebuyers and existing homeowners. A homeowner holding an MCC receives an annual federal tax credit which the homeowner can apply against his or her federal tax liability in each year the MCC is effective.

In general, the rules and guidelines applicable to MCC programs are the same as those familiar to housing finance agencies providing tax-exempt single-family revenue bond programs. Our firm'sextensive experience with the single-family bond programs of nearly every state housing finance agency and numerous other local housing finance agencies is particularly helpful to clients conducting MCC programs.  Such experience, especially when combined with that of our nationally recognized municipal tax department, uniquely qualifies us to advise housing agencies as to all matters relating to MCCs.

Our national public finance and tax attorneys work with housing agencies desiring to establish new MCC programs by preparing and reviewing all necessary program manuals, notices, governmental consents, federal and state filings and other related documentation, ensuring that such programs comply with both state law and federal tax law. We review, modify and update existing MCC programs in light of ever-changing market conditions and statutory/regulatory environments.  We provide ongoing program and tax advice, and we assist with periodic reporting and filing requirements.  We also have obtained favorable Private Letter Rulings from the IRS on behalf of housing agencies conducting MCC programs.   And when necessary, we counsel housing agencies through federal and state audits of their MCC programs.