May 2020
Compliance COVID-19 FAQs
To help the development community continue to navigate through the ongoing COVID-19 pandemic, Multifamily’s Compliance Department has compiled a list of FAQs they have received. All answers are based on currently available information and is subject to change as new information is received.

We will send notification of any changes via emails to those signed up to receive Multifamily emails. If you have not signed up for these emails, you can do so by clicking here .

Q: Has AHFA suspended its compliance audits/inspections of multifamily funded properties?

A: Since HUD suspended all REAC inspections, we have suspended all physical inspections and will be completing electronic file reviews. We will contact the management for information they will need for a household file review.

Q: Will services that require resident gatherings be suspended until conditions improve?

A: Due to the governor’s limits for gatherings, services that require resident gatherings can be suspended temporarily during this time of uncertainty. If a quarterly or seasonal resident service has been suspended due to COVID-19, it should be conducted later in the year once the governor states it is appropriate.

Q: During this time of national emergency many leasing offices and corporate offices are closed for resident and management personnel safety. Will AHFA allow electronic signatures for leases, tenant income certifications, and verifications?

A: In the interest of protecting residents and management personnel, we are following the guidance HUD’s Office of Multifamily Housing offered to stakeholders on April 2, 2020. This guidance allows electronic signatures during this time of social distancing. Owners should discuss with their legal counsel to ensure electronic methods are acceptable for state law and regulatory purposes. When wet signatures are possible to obtain again, please do so.

To read the rest of the FAQs, click here . If you have any compliance-related questions, send an email to .
HOME Replacement Reserve Account Guidelines
The replacement reserve account is established by the borrower(s) at the time of the HOME loan closing and must be maintained for the entire 20-year affordability period. AHFA has established specific requirements for the replacement reserve accounts to safeguard the availability of funds for capital needs as the project will require for maintaining a viable project throughout the 20-year affordability period.

  • No withdrawals may be requested within the first 60 months after the AHFA HOME loan has closed.

  • A request for withdrawal will be approved or denied by written notification to the owner or management company within 30 days of receipt of the request.

  • A request for withdrawal may not be made more than 120 days after the invoice date.

  • A single withdrawal may not draw the reserve balance below a balance equal to 12 months of reserve deposits as specified in the HOME Commitment/Written Agreement.

  • If a single item request exceeds $5,000, an inspection may be done prior to the release of funds.

  • The owner will make all requests using the Replacement Reserve Withdrawal Request Form. The management company may prepare the form, but the form must have the owner’s signature to be considered valid and complete.

  • At least two bids must be provided for all materials and/or work performed, excluding the purchase of household appliances.

  • Reserve requests related to repair items which result from a tenant-related incident(s) must be supported with documentation regarding the tenant’s collected or uncollected security deposit and the of the use of the deposit toward the amount of the reserve request. 

  • If any approved withdrawals from the account are subsequently found to be misrepresented, incomplete or excessive, the owner will be required to reimburse the reserve account.

The full AHFA HOME Replacement Reserve Account Policy and Replacement Reserve Withdrawal Request Form can be found at .
Alabama Housing Finance Authority |