For Immediate Release
June 30, 2015
Contact: Kristi Gates
email@example.com | 334.244.9200
MONTGOMERY—On June 24, the staff and board of the Alabama Housing Finance Authority announced the 19 multifamily housing developments selected to receive allocations of 2015 Low-Income Housing Tax Credits (Housing Credits) or Housing Credits combined with HOME Investment Partnerships Program (HOME) funds. The HOME funds combined with Housing Credits awards are contingent upon approval of AHFA’s 2015 HOME Action Plan to be approved by HUD.
The approved developments will create 1,071 units of affordable housing across Alabama. A detailed recipient list with project locations and funding amounts is available at http://www.ahfa.com/multifamily.aspx. Typically, construction on these approved developments begins within 6 months, with an expected completion date within 18-24 months.
AHFA Executive Director Robert Strickland said, “We are honored to administer these allocations that encourage developers to increase the supply of rental housing for economically disadvantaged families.”
Housing Credits provide a dollar-for-dollar reduction to an investor’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. HOME, a federally funded program, provides annual allocations that may be used by developers to construct new, affordable housing.
As Alabama’s administrator of these programs, AHFA directs an application cycle on a competitive basis. As part of the highly competitive funding process, the applications were evaluated in accordance with both the Housing Credit and HOME allocation plans. The applications were point-scored, which includes site visits and assessment of creditworthiness of the applicant/owners, principals, general contractor and management company. Each application was then underwritten for financial feasibility.
Housing Credits and HOME funds, as primary AHFA funding sources, are often utilized with other supplemental housing resources. This method, encouraging developers to leverage additional loan, grant, and philanthropic resources, is one of the measures AHFA takes to ensure programs help the most Alabamians possible.
AHFA, established by an act of the Alabama Legislature in 1980, is a public corporation dedicated to improving the quality of affordable housing for low- to moderate-income Alabamians. Its programs have provided opportunities for more than 105,000 families to live in homes they can afford.