Serving as Alabama’s administrator of the Housing Credit program, AHFA helps developers build or rehabilitate 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 a 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.
HOME Investment Partnerships
HOME, a federally funded program, provides annual allocations that may be used by developers to construct new, affordable housing.
As Alabama's HOME program administrator, AHFA directs an application cycle on a competitive basis. 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.
Housing Credits and HOME, as primary AHFA funding sources, are often utilized with other supplemental housing resources administered by AHFA, from time to time. This method, which encourages leveraging of additional loan, grant and philanthropic sources, is an example of the measures AHFA takes to ensure its programs benefit the greatest number of Alabamians possible.