AHFA offers a variety of rental programs designed to provide clean, safe and modestly priced housing opportunities to thousands of Alabamians who are not ready for homeownership or for elderly or disabled people, many of whom are on fixed incomes and may prefer living independently in a group setting.
Through the HOME Investment Partnerships Program, the Low-Income Housing Tax Credit, and Multifamily Bonds, AHFA helps finance the construction or rehabilitation of affordable housing. In return, the developers of the affordable housing must reserve a portion of the development's units for lower-income residents.
For more detailed information on AHFA's rental programs, please select the appropriate link below:
HOME Investment Partnerships Program
The HOME Investment Partnerships program is a federally funded program that provides annual allocations that may be used by developers to buy land and build affordable housing.
As Alabama's HOME program administrator, AHFA directs an application cycle on a competitive basis. Funding decisions are based on strict project selection criteria and a point scoring system outlined in the application package. In addition, AHFA’s compliance staff is responsible for monitoring HOME-assisted developments and conducting on-site visits. They check rental property annually for compliance with HUD tenant incomes, rent levels and Housing Quality Standards.
Alabama combines HOME funding with another multifamily housing program—Housing Credits. This method of stretching scarce resources is just one example of the measures AHFA takes to ensure its programs benefit the greatest number of Alabamians possible.
Since inception, Alabama has been awarded roughly $219 million to finance approximately 8,500 apartment units in 222 complexes.
Low-Income Housing Tax Credits
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.
AHFA provides financing for multifamily housing through Multifamily Bonds, which offer developers lower-than-market interest rates in exchange for reserving a portion of their units for tenants earning less than the area’s median income. Multifamily bonds are issued on a project-specific basis.
Because most of these bonds are tax-exempt, developers receive more favorable interest rates, reducing their interest expense and allowing them to set lower rents. Taxable bonds may be issued as well to offer additional funds for the production of affordable rental housing.
Since the program’s inception in 1983, AHFA has issued almost $850 million in multifamily bonds for developers to purchase, repair or build 111 apartment complexes with more than 17,000 units throughout the state.