A bill to amend the Internal Revenue Code of 1954 with respect to the issuance of mortgage revenue bonds.

Amends the Internal Revenue Code to exclude from gross income interest on certain mortgage revenue bonds issued by a State or political subdivision thereof, but only if: (1) all proceeds of such issue (exclusive of issuance costs and a reasonably required reserve) are to be used to finance owner-occupied residences; (2) the maximum annual income of eligible individuals does not exceed 150 percent of the median family income for the defined statistical area in which the residence is located; (3) the aggregate amount of bonds issued on a certain date, when added to the aggregate amount of such bonds issued within 36 months prior to such date, does not exceed 25 percent of the total amount of all first mortgage loans on owner-occupied residential real property within the State or political subdivision during such 36-month period; and (4) any such obligation is issued within 24 months after the date of enactment of this Act.

Applies such tax exclusion to interest on all mortgage revenue bonds issued by a State housing finance agency.

Directs the Secretaries of the Treasury and of Housing and Urban Development to make a joint study of the impact of such treatment of mortgage revenue bonds on the national economy, the rate of inflation, the housing industry, employment, and the market for tax- exempt securities. Requires a report to Congress on the results of such study within 12 months after the date of enactment of this Act.