Multifamily Development Relief Update | September 2022 Multifamily News from AHFA
September 2022 Multifamily News from AHFA
AHFA Multifamily Relief Measures
Through the COVID Pandemic and subsequent (and continuing) labor and material shortages, supply-chain delays, and economic challenges, the AHFA Multifamily Division has been in the office, closely monitoring these issues nationally, regionally, and locally. AHFA utilizes the resources available within the programs it administers to comprehensively support, assist, and preserve affordable housing developments and their beneficiaries in Alabama.
To date, AHFA implemented the following measures:
- Suspended onsite compliance inspections and onsite application inspections of Acq/Rehab properties 2020 – 2022 (Multifamily COVID-19 Notice 20-01)
- Extended deadlines for 2019 Projects (Multifamily COVID-19 Notice 20-02)
- Modified AHFA Compliance Monitoring (Multifamily COVID-19 Notice 20-03)
- Provided Major Disaster Area Temporary Relief Application (Multifamily COVID-19 Notice 20-05)
- Waived extension fees
- Provided 2020 Plan Amendment (COVID-19 Amendment)
- Extended deadlines for 2021 Application Threshold Requirements
- Allowed the use of Project Reserves for COVID-19 related special uses (Addendum E to 2020 Plans)
- Provided HOME Loan Payment Forbearance (Addendum E to 2020 Plans)
- Provided additional funds or exchange of credits for projects awarded in 2018 – 2020 (Addendum E to 2022 Plans)
- Provided the ERA – Imminent Eviction Prevention Initiative (September 2021)
- Provided the ERA – Streamlined Application Processing Program for AHFA-Funded Projects (September 2021)
- Allowed 2022 Grant of Relief for Deadlines Related to the Low-Income Housing Credit (ref IRS Notice 2022-05) for eligible 2018 – 2020 projects
- Provided the ERA – Alabama Continuum of Care for the Homeless (ARCH) Streamlined Application Process (February 2022)
- Provided the ERA – AHFA Property Bulk Rental Assistance Program (April 2022)
- Provided relief measures for projects awarded 2021 funds (Addendum E to DRAFT AHFA 2023 Plans)
Collectively taken, these measures provide a means for developers, owners, managers, and ultimately tenants to reduce the risks and stressors brought on by the pandemic. Moving forward, AHFA will continue to monitor conditions impacting affordable housing in Alabama and work to create strategies to help minimize those factors. As new relief measures are implemented by federal agencies and congressional or presidential actions, AHFA will expand the tools available within statutory and regulatory limitations. Developers, owners, managers, and tenants may use these tools to comprehensively reduce unnecessary risks to affordable housing. AHFA does not have the power, authority, or responsibility to guarantee a successful business endeavor for those who undertake affordable housing development, ownership, or management.
As the creators of housing opportunities for Alabamians, we encourage you to fully utilize the resources available through AHFA to support the success of and always reduce the risks to your current and future projects and people, especially during these unstable conditions.
The President declared a Major Disaster for the State of Alabama on March 28, 2020, because of the COVID-19 Pandemic. As the incident is considered ongoing and an incident period end date has yet to be determined, the Internal Revenue Service allows owners of multifamily housing developments financed with AHFA-administered Housing Credits to extend the carryover 10-percent basis requirement for a period of no longer than six months or the placed-in-service date requirement due to a major disaster for a period of no longer than six months. Since this notice does not include an end date, you must consult with your legal and accounting representatives to determine if your development may potentially qualify under this declaration before submitting a request to AHFA.
Information regarding the AHFA Application for Temporary Relief in a Major Disaster Area is available on the AHFA website. Questions and application submissions should be directed to email@example.com.
Alabama Housing Finance Authority | www.AHFA.com