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What are Multifamily Bonds?

AHFA issues multifamily housing revenue bonds (bonds) on a project-specific basis for the acquisition, renovation, and new construction of affordable rental housing.

Bonds provide debt financing to developers using proceeds from the sale of tax-exempt bonds in exchange for developers reserving a portion of their units for tenants earning less than the area’s median income.

Because most of these bonds are tax-exempt, developers may also qualify for housing credits. The sale of these credits offer developers additional funds for the production of affordable rental housing. Combining these funding sources ensures programs benefit the greatest number of Alabamians possible by encouraging the leveraging of additional loan, grant, and philanthropic sources.

Download the Multifamily Bond Allocation Policy

How to Apply


The initial step for any applicant seeking tax-exempt bond volume cap allocation from AHFA is to submit a written application for a declaration of official intent. Upon filing the application, the applicant must pay an application fee of $10,000 in the form of a check made payable to AHFA. The application will not be deemed submitted until AHFA determines it is complete.

Upon the filing of an application, AHFA will conduct its review for completeness. AHFA will execute and deliver a written declaration of official intent with respect to the proposed project and bond issue no sooner than 30 days after the date on which AHFA deems the application is complete.

To view a list of the current pending, awarded, returned, and terminated projects, see the Multifamily Housing Revenue Bonds Application Summary Report.

PLEASE NOTE (Effective September 20, 2024): 

  •  The closing dates for all applications vary based on multiple factors, including readiness to close, environmental approvals, the coordination and timing of other financing sources, among other issues.
  • Applications involving Workforce Housing Tax Credits (“WHTC”) will be prioritized for processing and awarding of bond cap per state law.
  • Subject to prioritization of WHTC applications, all applications which meet AHFA Bond closing requirements will be scheduled for closing on a “Prepared to Close” basis as set out in the Bond Policy, regardless of when the application was submitted. Closings are subject to bond cap then available; bond cap is not reserved.
  • Pending the release of the 2025 AHFA Multifamily Tax Exempt Bond Financing application package, all prior submitted applications and new applications submitted after February 1, 2025, will await processing until the issuance of AHFA’s annual allocation of bond cap.
  • If there is no available bond cap for the remainder of the calendar year 2025, then all pending applications may be considered for 2026 bond cap, subject to availability, among other issues, and without guarantee.

AHFA makes no representations or warranties regarding the availability of private activity bond cap for allocation pursuant to the Multifamily Tax-Exempt Bond Authority Program.

AHFA reserves the right to modify, suspend or amend the Multifamily Housing Revenue Bond Policy in any respect at any time, with or without notice, and AHFA in its sole discretion may impose additional conditions, restrictions, and requirements.

AHFA Bond Application Receipt Notification Letter

This letter is merely a summary and is not intended to include all necessary information. Applicant is solely responsible for satisfying all applicable requirements for the Credits, the Volume Cap and the Bonds, and the Applicant must review the QAP and the Bond Policy carefully in their entirety in order to ensure that all applicable requirements are met.

Download the AHFA Bond Application Receipt Notification Letter