December 2019
AHFA Board of Directors Meets in December
The AHFA Board of Directors met December 18. The business of the meeting included the annual election officers and an election to convert expiring 2016 private activity bond cap to Mortgage Credit Certificates. The Board also approved resolutions honoring members Peter Weiss, who passed away in November, and Ted Watts, whose term is ending.
Board Recognizes Vice Chairman Ted Watts at His Last Meeting as a Member
At its December 18 meeting, the AHFA Board of Directors recognized Ted Watts for 32 years of distinguished and outstanding service to the citizens of Alabama as a member of the Board.

Mr. Watts was first appointed in 1988 and has been reappointed four consecutive times. He will complete his last term on January 1, 2020. In 1995, Mr. Watts was elected as Vice Chairman of the Board and has been reelected as Vice Chairman annually ever since.

Mr. Watts has brought a wealth of experience and talent to the Board as a builder, including service as President of the Alabama Home Builders Association and as Chairman of the Alabama Home Builders Self Insurance Fund, and 48 years working in the home building and commercial real estate industries.

Mr. Watts has honorably served AHFA and the citizens of Alabama with dignity and integrity and has earned the respect and admiration of everyone associated with AHFA and the affordable housing industry.

AHFA commends Ted Watts for his invaluable contributions and extensive work as a member of the Board helping to increase housing opportunities for low-to-moderate income citizens in the State of Alabama.
Success Story: Raven Peggins, McCalla

While the list of many accolades that Raven Peggins can claim includes honors graduate, Blazers cheerleader, hip-hop dance teacher and nurse, it is move-up homebuyer and two-time Step Up customer that brought AHFA staff to her door in December.

The 26-year-old family nurse practitioner decided to sell her townhouse in Helena and purchase a house in her hometown of McCalla to make the commute to her job at UAB's Kirklin Clinic more convenient.

Peggins used AHFA's Step Up program with her first home purchase in 2016 on the advice of her lender Dolan Williams with First Bank in Birmingham. She was happy to use Step Up again when he recommended it for her new home purchase.

Step Up provides down payment assistance and a competitive 30-year, fixed interest rate for homebuyers who earn less than $97,300 and meet standards for creditworthiness. The down payment funds are secured by a 10-year second mortgage and are combined with a 30-year, fixed-rate first mortgage.

For even greater savings, Step Up can be combined with a Mortgage Credit Certificate - a tax credit that frees up income to qualify for a mortgage.

AHFA's down payment assistance and mortgage tax credits make homeownership affordable across Alabama.
Register for AHFA's 2020 Application Workshop in January
Registration is now open for AHFA's HOME/Housing Credit/Housing Trust Fund Application Workshop scheduled for Friday, January 10 at the Montgomery Marriott Prattville Hotel & Conference Center at Capital Hill in Prattville. 

During the workshop, AHFA staff will discuss changes in the 2020 Plans to include application, underwriting, environmental and compliance procedures, and new DMS online application elements.

For more information or to register, visit  
Housing Trust Fund Application Cycle Opens for Approved 2018/2019 HOME/HC Projects
Applications for the National Housing Trust Fund (HTF) Program are being accepted by AHFA for the remaining 2018 and 2019 allocated funds. To be considered for this funding pool, applications must be received by AHFA prior to 5 p.m. on Friday, March 6, 2020.

New construction projects that received AHFA HOME or Housing Credit awards may also submit an application for HTF. Previously funded projects must have committed to provide 5 percent of the total proposed units for tenants with disabilities or homeless populations and be in compliance with the HTF program, inclusive of the 30 percent AMI restriction and the 30-year affordability period.

For more information, application forms and instructions, visit .
AHFA Announces Our First Step Up TPO Partnership
Earlier this year, we announced a change to the Step Up program in order to improve accessibility and began allowing participating lenders with wholesale TPO Operations to deliver third party-originated loans.

On December 5, AHFA staff hosted a training for Renasant Bank in Birmingham as the first participating lender to offer this service.

This service essentially opens up the Step Up program to all mortgage lenders. Step Up is AHFA’s flagship homeownership program designed specifically for low- to moderate-income homebuyers who can afford a mortgage, but need help with the down payment.

All servicing is retained by AHFA and serviced in house. We do not compete for bank customers, and institutions are able to continue their relationship with customers without any threat of cross-selling from us.

If your institution is interested in delivering third party-originated Step Up loans, contact Cathy James at for more information.
In 2000, the Alabama Affordable Housing Association (AAHA) created an education scholarship program for residents of member-owned apartment properties in Alabama. The scholarship funds are donated by the owners, contractors, architects, accountants, property management companies, investors, lenders, developers, and various vendors that make up AAHA’s membership as well as other non-member individuals. Since its inception, the AAHA resident scholarship fund has awarded more than $750,000 in college and vocational scholarships. 

Meet Paris Morgan of Alexander City:

A resident of Cornerstone Apartments in Alexander City with her mother and her younger brother, Paris is a 2019 graduate of Benjamin Russell High School and started her college career at Central Alabama Community College.

“I want to go to our local community college, Central Alabama Community College, and later transfer to South Alabama for pre-med, get into medical school, and become an OB-GYN,” she said.

Composed and focused, Morgan was a very involved student, including serving as co-captain of the cheerleading squad, in addition to holding down a part-time job. "I worked at Dominos," she said. "Having a job … that was just extra money that was coming in. It really showed me how to be organized.”

Since she is a resident of Cornerstone, a 56-unit family development financed in part by HOME Investment Partnerships Program funds and Housing Credits administered by AHFA, Morgan was able to apply for the AAHA scholarship. "We’ve been living there ever since I was in second grade,” she said. “Cornerstone is very lovely and peaceful. We love it.”

As a 2019 AAHA scholarship winner, Morgan will receive $1,500 to use toward her college expenses. “It’s going to benefit me a lot,” she said. “I don’t want to go into debt. That’s one thing I really don’t want to do. This scholarship will help keep me out of debt.”

The first child in her family to go to college, Morgan is excited about the challenges ahead of her. "I get to be a role model, but it’s pretty exciting just to have my mom happy,” she said. “The most exciting thing is that I get to venture into a new environment and a new setting … to do something different.”

Morgan, along with the other 2019 scholarship recipients, was honored during AAHA’s annual conference last May. For more information about the resident scholarship program, please contact Arrice Faught, AAHA’s executive director, at or 205.758.1158.     
Welcome, CenterState Bank!
AHFA is pleased to welcome CenterState Bank as a participating lender in the Step Up program.

Step Up provides down payment assistance and a competitive 30-year, fixed interest rate for homebuyers who earn less than $97,300 and meet standards for creditworthiness.

CenterState Bank has offices conveniently located in Auburn, Birmingham, Fairhope, Gulf Shores, Huntsville, Madison and Opelika to serve potential home buyers. For more information, visit .
AHFA Offices to Close for January Holidays
AHFA, ServiSolutions, and Hardest Hit Alabama will be closed Monday, January 20 in observance of the King/Lee holiday. Please make a note of this date.
Alabama Housing Finance Authority | Montgomery, Alabama | 334.244.9200 | Email | Website