This bill amends the Internal Revenue Code of 1986 to establish an elective exception from the volume cap on tax-exempt bonds for certain exempt facility bonds. These bonds are specifically for qualified residential rental projects aimed at preserving, improving, or replacing existing qualified low-income buildings whose compliance period has ended but extended use period has not, or federally or state-assisted buildings. This exception allows issuing authorities to bypass the state volume cap, facilitating financing for crucial affordable housing rehabilitation. Furthermore, for bonds exempted under this provision, the bill modifies the prohibition on acquisition of existing property, increasing the allowable percentage for acquisition from 15 percent to 50 percent of net proceeds. It also provides an exception from the Low-Income Housing Tax Credit limitation for obligations that would otherwise be subject to the volume cap. These changes collectively aim to enhance the financial viability and accessibility of projects focused on rehabilitating and maintaining affordable housing stock.