Multifamily Bonds
Multifamily Bonds supports developers with financing to acquire, renovate, or build affordable multifamily rental housing in Alabama, with a portion of homes reserved for income-qualified tenants.
Funder: Alabama Housing Finance Authority
Due Dates: November 1, 2026 (2026 cycle end) | November 1, 2027 (2027 cycle end)
Funding Amounts: Project-specific bond debt financing, with potential Housing Credits
Summary: Financing for developers acquiring, renovating, or constructing affordable multifamily rental housing in Alabama.
Key Information: Bond cap is not reserved, and Workforce Housing Tax Credit applications receive priority.
Description
The Alabama Housing Finance Authority (AHFA) issues project-specific Multifamily Housing Revenue Bonds to finance the acquisition, renovation, and new construction of affordable rental housing throughout Alabama. Developers receive debt financing from bond-sale proceeds in exchange for reserving a portion of units for income-qualified tenants. Most bonds are tax-exempt, and developers may also qualify for Housing Credits, whose sale provides additional development funds.
The program encourages developers to combine bond financing and Housing Credits with other loans, grants, and philanthropic resources. Subject to Workforce Housing Tax Credit priorities, AHFA prioritizes acquisition and renovation of existing affordable housing before eligible new construction. Multifamily tax-exempt bond availability depends on the state’s annual bond volume cap remaining after AHFA’s single-family mortgage program needs.
