On July 30, 2008, President Bush signed into law the provisions of the Housing and Economic Recovery Act of 2008 (the “2008 Housing Act”). The legislation contains sweeping provisions to safeguard Fannie Mae and Freddie Mac, to assist struggling homeowners at risk of losing their homes, and to generally support the housing finance markets.

This advisory focuses on the provisions relating primarily to multifamily residential developments financed with tax-exempt bonds under Section 142(a)(7) of the Internal Revenue Code of 1986, as amended (the “Code”). However, as noted below, some of these changes will also benefit qualified mortgage bond and qualified veterans’ mortgage bond financings under Section 143 of the Code.

Please read full advisory for more important information.