Serving as Alabama’s administrator of the Housing Credit program, AHFA helps developers buy land or buildings and build or repair housing to be rented to low-income families at affordable rates. This financial incentive encourages developers to increase the supply of rental housing for economically disadvantaged families. Housing credits provide a dollar-for-dollar reduction to an developer’s federal tax liability. In turn, the developer must reserve a percentage of the units for the area’s lower-income residents, based upon the area’s median income. The credits are awarded annually through a competitive application process to ensure the credits are distributed throughout the state to areas with the greatest needs.
Since the program’s creation, AHFA has issued more than $200 million in Housing Credits to build or repair roughly 740 apartment complexes housing more than 35,000 families.
Download Housing Credits Brochure