Housing bonds are a type of municipal revenue bond that are issued by state or local governments to finance affordable housing development projects. These bonds provide an affordable financing option for governments, as well as tax advantages for lenders. Mortgages provided through these bonds are limited to first-time homebuyers, who must have an income no higher than the area median income, and the price of a home purchased cannot exceed 90% of the area's average purchase price.

The funds raised by housing bonds can be used to finance a range of housing projects, including building new housing units, renovating existing ones, improving infrastructure, and offering loan guarantees and grants. In addition, the funds can be used to create voucher and rental assistance programs.

With housing becoming increasingly expensive in cities and towns across the US, housing bonds can help make housing more accessible to lower-income households. By providing cheaper financing options and grant funding, housing bonds can make it easier for people to find and purchase a home. In addition, the income limitations and purchase price caps imposed by these bonds can ensure that people who cannot otherwise afford a home have access to one and that the property values of the neighborhood are not adversely affected.

The issuance of housing bonds also helps create jobs in the construction and real estate industries, as well as other ancillary businesses. This, in turn, can help stimulate economic growth in the area, providing a greater number of employment opportunities and increasing the overall quality of life in the community.

Overall, housing bonds have proven to be an effective tool for making housing more accessible and affordable, while also providing economic benefits to the issuer and its lenders. They have the potential to improve the lives of many people, and should be considered as a viable option in the effort to alleviate the housing affordability crisis in the US.