Workforce Housing Tax Credit Program

On May 9, 2024, the State of Alabama enacted Act No. 2024-302 entitled “The Alabama Workforce Housing Tax Credit Act” (the “Act”), which established a new workforce housing tax credit (“Workforce Housing Credit”) program. The Workforce Housing Credit program encourages and promotes continued investment in affordable rental housing for low-income households located in areas near to employers with expanding or recently created workforce jobs. Through these investments, the program is intended to increase the number of affordable housing units available to Alabamians seeking employment in areas of economic growth. The primary benefit to Qualified Taxpayers is a dollar-for-dollar reduction in certain Alabama state tax liabilities.

The Act designates Alabama Housing Finance Authority (“AHFA”) as the administrator of the Workforce Housing Credit program and provides that the Workforce Housing Credit should be awarded to qualified applicants according to certain priorities.

AHFA has adopted the Workforce Housing Tax Credit Policy for the State of Alabama in compliance with the Act as the “qualified allocation plan’ thereunder and related requirements contained in Section 42 of the Internal Revenue Code of 1986 (“Section 42”), AHFA’s Qualified Allocation Plan for Low-Income Housing Tax Credits published by AHFA in accordance with Section 42 (the “QAP”) and, where applicable, AHFA’s Multifamily Bond Policy (the “Bond Policy”). The Policy also includes input from the Alabama Department of Commerce, the Alabama Insurance Commission (“DOI”) and the Alabama Revenue Department (“DOR”).

The Policy incorporates applicable provisions of the QAP and Bond Policy and shall be interpreted and administered in a manner that is consistent with AHFA’s interpretation and administration of the QAP and the Bond Policy. The policy also includes additional provisions specific to the Act.

Current Applications

• 2025 Workforce Housing Tax Credit with Multifamily Housing Revenue Bond Funded Applications

AHFA Workforce Housing Tax Credit Policy

• AHFA 2025 Workforce Housing Tax Credit Policy 9/18/2024
  • 2025 AHFA Environmental Policy Requirements
    • Suggested Format – HUD Part 50/58 Environmental Review with HTF Environmental Provisions - 24 CFR § 93.301(f) (1) New Construction
    • Suggested Format for Determining Compliance with Environmental Provisions - 24 CFR § 93.301(f) (1) New Construction
  • 2025 AHFA Design Quality Standards and Construction Manual
• 2024 Workforce Housing Tax Credit with Multifamily Housing Revenue Bond Notice of Intent to Apply Submission List

AHFA will accept Applications for Workforce Housing Tax Credits with Multifamily Housing Revenue Bonds on January 7, 2025.

New construction projects that received approval to apply during the Notice of Intent to Apply cycle may submit an application for Workforce Housing Tax Credits with Multifamily Housing Revenue Bonds. Please join our mailing list to be notified of application dates.

2025 Workforce Housing Tax Credit with Multifamily Housing Revenue Bond Application Forms & Instructions

• 2025 Application Forms
• 2025 Application Index Pages
• Application Instructions

2025 Workforce Housing Tax Credit with Multifamily Housing Revenue Bond Applications Cycle Results of the 6th Tiebreaker.

• 2025 Results of the 6th Tiebreaker

Documents Required Prior to the Submission of the Notice of Intent to Apply Package

• Notice of Intent to Apply Log - tentatively September of 2025

2024 AHFA Workforce Housing Tax Credit with Multifamily Housing Revenue Bond Notice of Intent to Apply Document Package

• Notice of Intent to Apply Profile/Checklist and Accompanying Forms
• Notice of Intent to Apply Index Pages
• Application Instructions

For information on future Notice of Intent to Apply dates, please see the Multifamily Notices page at Multifamily Notices | Alabama Housing Finance Authority (ahfa.com) and sign up to receive email notices by joining our mailing list located on the AHFA website.

For questions regarding the Workforce Housing Tax Credit Program, please send an email to [email protected].