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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. The application will not be deemed submitted until it is complete. A non-refundable application fee of $7,500 in the form of a check made payable to AHFA must be submitted with the completed application.

If AHFA determines that the application is complete and otherwise satisfactory, 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 the application is deemed complete.

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

Special Notice: 

The potential closing dates of pending applications may vary based on multiple factors, including readiness to close, environmental approvals, the coordination and timing of other financing sources, among other issues, AHFA will continue to accept new applications subject to the following terms and conditions:

  • Current applications which meet all AHFA Bond closing requirements will be processed and closed on a first-come, first-served basis subject to AHFA requirements and available AHFA bond cap.
  • Pending the release of the 2023 AHFA Multifamily Tax Exempt Bond Financing application package, all new applications submitted after May 17, 2023, will be waitlisted and processed on a first-come, first-served basis, subject to available bond cap, if returned or de-obligated. If there is no available 2023 bond cap for the remainder of the calendar year, then all applications submitted after May 17, 2023, may be considered for 2024 bond cap subject to availability and without guarantee.
  • "First-come, first-served” for applications received after May 17, 2023, will be determined by the date in which an applicant has both (1) delivered a fully executed bond commitment agreement (which will not occur until the application, including environmental review, is deemed complete) and (2) paid the commitment fee.

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 this 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