Workforce Housing Tax Credit Program
Workforce Housing Tax Credit Program supports low-income families through investment in new affordable rental housing near growing Alabama employers, expanding housing options in areas of job growth.
This grant was recently updated
AHFA replaced the tentative January 2027 application timing with January 6, 2027, for Workforce Housing Tax Credits with Multifamily Housing Revenue Bonds; the Application Log is due January 4, 2027. Final application forms, index pages and instructions are now available, replacing draft and pending materials.
Funder: Alabama Housing Finance Authority
Due Dates: September 2, 2026 (NOI log) | September 3, 2026 (NOI package) | January 4, 2027 (Application log) | January 6, 2027 (Application)
Funding Amounts: $5 million annual credit pool, plus carryovers and recaptures; up to $2 million per project
Summary: State tax credits support new affordable family rental housing near expanding or recently created jobs in Alabama.
Key Information: The 2027 bond application requires approval to apply through the Notice of Intent cycle.
Description
The Alabama Housing Finance Authority (AHFA) administers the Workforce Housing Tax Credit Program, established by Alabama’s Workforce Housing Tax Credit Act on May 9, 2024. It encourages investment in affordable rental housing for low-income households near employers with expanding or recently created jobs. The goal is to increase housing options for Alabamians seeking employment in areas of economic growth. Qualified taxpayers receive a dollar-for-dollar reduction in certain Alabama state tax liabilities.
The program supports new construction available to families alongside federal Low-Income Housing Tax Credits, including projects using Multifamily Housing Revenue Bonds. AHFA allocates credits under its Workforce Housing Tax Credit Policy, incorporating applicable provisions of its Qualified Allocation Plan (QAP) and Bond Policy. Priorities include rural workforce areas, childcare assistance, and financially feasible developments.
