WASHINGTON -- The Department of Housing and Urban Development will partially ease rules barring the use of tax-exempt bonds to help finance projects under the housing affordability law enacted last year, to HUD officials said yesterday.

But some municipal lobbyists said the department's decision to allow general obligation bonds to be eligible for the program does not go far enough, and they said they will continue to urge HUD to permit private-activity bonds to be used in the program as well.

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