First Amendment to the Rules and Regulations of the Corporation Applicable to the Mortgage Credit Certificate Program

Regulation Authority:

R.I. Gen. Laws 42-55-5(5)

Purpose and Reason:

This amendment clarifies Rhode Island Housing’s policies and procedures relating to the agency’s mortgage credit certificate program, commonly known as the FirstHomes Tax Credit Program (the “Program”). As the designee for the State of Rhode Island, Rhode Island Housing administers this federal homeownership tax incentive, which is provided for in the Internal Revenue Code. Under the Program, qualified borrowers receive a tax credit against their federal income tax liability in proportion to the interest they have paid on a qualifying mortgage loan. While the Internal Revenue Code and implementing regulations provide the substantive criteria for the Program, this rule describes Rhode Island Housing’s administration of the Program. This rule aims chiefly to simplify Program operations by allowing for certain criteria (which are established by the IRS and change from time to time) to be published by Program Bulletin. This rule also contains amendments that will correct typographical errors, improve readability, enhance the efficiency of Program operations and make transparent certain obligations that, up to now, have only appeared in lenders’ participation contracts. There are no substantive differences between the final rule and the rule as proposed.