October 2025 Multifamily News from AHFA

ADEM’s Brownfields Program Offers Grants, Site Cleanup Assistance to Multifamily Housing Developers

For developers seeking to secure funds for multifamily housing, clearing AHFA’s threshold environmental requirements is a critical part of the application process. In addition to AHFA’s required compliance with the Environmental Protection Agency (EPA) and the Department of Housing and Urban Development (HUD), the Alabama Department of Environmental Management (ADEM) plays a key role.


To learn more about ADEM’s services, AHFA interviewed Sonja Favors, who serves as ADEM’s Industrial Hazards Waste Branch Chief. Favors explained ADEM’s role and shared how ADEM assists developers, helps local governments, and provides guidance for AHFA developments.


Favors runs ADEM’s Brownfields Redevelopment and Voluntary Cleanup program, which oversees the voluntary assessment and cleanup of contaminated brownfields sites. This provides significant liability protections during and after assessment and cleanup activities.


How does ADEM provide environmental protections for multifamily developments?


“Through our Voluntary Cleanup program, we offer what we call third-party liability protection. In layman’s terms, that means we become a part of the team when you include us in the process, and what we’re ensuring is that the work that you’re doing is overseen by environmental professionals with ADEM. In turn, we can say that the remedy is protective for the development, and we stand with that by providing a letter of concurrence saying that you’ve done everything needed for the property to be developed.”

“Environmental safety is imperative to ensure the quality of life for all residents, especially the great citizens of Alabama.”


Sonja Favors, ADEM

Why is environmental safety so critical for multifamily developments?


“Our mission at the agency is to ensure human health and protection of the environment with clean air, clean water, and making sure that any exposure you have doesn’t impair your lifestyle. When talking about where you live, where you spend a large portion of your time, we want to make sure that there isn’t anything that could have a negative impact. This is why it’s really important to involve us early in the process. Environmental safety is imperative to ensure the quality of life for all residents, especially the great citizens of Alabama.”

Sonja Favors, ADEM Industrial Hazards Waste Branch Chief

How does ADEM help developers apply for grants or access voluntary cleanup funds?


“The grant process is competitive and there are grants offered every year starting in the fall. You need to think about that early, as every grant that you apply for will need to have a letter of concurrence, which is a letter of support. You want this letter of concurrence because it shows that the state, through the Brownfield program, finds the project to be viable and supports the project. ADEM also helps determine if a project would align with any of the grants offered. We work with partners to bring information to developers and also host workshops that provide information on the Brownfield grants. I don’t think a lot of people understand that you want to create partnerships that provide opportunities to stack funds from the Brownfield program, the USDA, and other funding sources. Once a strong initial partnership is secured, others are more inclined to join in on a viable project. We also try to be a liaison for our federal colleagues so that developers can take advantage of all those resources that are available. We offer workshops to discuss available grants and explore forming these partnerships and hope to do one in the near future.”


What message would you like developers to take away from working with ADEM?


“Let us ADEM be a part of the team. It’s a team effort. We want to be here and be a resource. We want to help produce solutions because we truly believe that if we can be a part of the team, then it is beneficial for the citizens of this great state. We are not here to be a roadblock, but to have a hard hat on with a shovel seeing how we can help make life better for all those that we can.”


To learn more about ADEM’s role and assistance for developers, please plan to attend AHFA’s 2026 Application Workshop. Favors will present additional information directly to multifamily developers during a dedicated question and answer period.


Click here for more information on the Brownfields program.

Developers Dig in at Cottages at Georgia Road

AHFA Multifamily Administrator David Young recently helped break ground to celebrate the development of eight affordable housing units in downtown Birmingham.



Key leaders, including Woodlawn United President & CEO Mashonda S. Taylor, led the ceremony. This project will be made possible through AHFA’s award of $1,283,200 in National Housing Trust Funds.

Helpful Hints Offered for Ownership Change Orders


To expedite the review of an ownership change request, please refer to the following guidelines:


  • The buyer and seller must coordinate the assembly and submittal of a unified transfer package, rather than a fragmented collection of separate documents. 
  • Lender approval/acknowledgement letter(s) must be provided by every current lender (federal, state, local and/or commercial/FCU/private) that has a financial loan against the property, excluding AHFA, on their respective lender letterhead.  
  • Make sure to verify that the correct project name and number are referenced in the package.
  • AHFA requires notification if an Investor Special Limited Partner and an Investor Limited Partner are exiting at the same time before processing an Investor Limited Partnership change request.
  • Change order packages should not be mailed until you have received notification from AHFA that you have a complete and correct package to submit.

AHFA Helps Celebrate

60 Years of CAPNA

AHFA attended Community Action Partnership of North Alabama’s 60-year anniversary celebration in Decatur. This organization is one of the longest-thriving CHDO/nonprofit participants in AHFA programs, and we are excited to see them reach this major milestone.


AHFA sat down with CAPNA CEO Tim Thrasher to learn more about the organization’s commitment to affordable housing. Click the video to hear his reflections on the legacy of CAPNA and their experiences as a nonprofit in multifamily housing development. Stay tuned for a future installment of “Developer Tips for Success” to hear more about the unique opportunities and challenges they face.

CAPNA CEO Tim Thrasher and AHFA Multifamily Administrator David Young

Grand Opening at Freedom Village

AHFA dedicated $3.1 million in HOME funds and $1.5 million in tax credits resulting in an equity infusion of $13.4 million for Freedom Village, which held a grand opening ceremony on September 10, 2025. This development now provides 56 affordable housing units for Montgomery’s low-income seniors.

New Website Has Launched!


We’re excited that AHFA’s newly redesigned website has launched! Built with our partners in mind, the updated site offers improved navigation, streamlined access to program information, and a refreshed look to better serve you and your business.


We’d love to hear your thoughts. If you have feedback or suggestions, please email our Communications Department. Your input helps us continue improving how we serve you.

Holiday Closings Scheduled

VETERANS DAY

AHFA will be closed Tuesday, November 11 for Veterans Day. We will reopen at 8 a.m. on Wednesday, November 12.


THANKSGIVING HOLIDAYS

AHFA will be closed Thursday, November 27 and Friday, November 28 for the Thanksgiving holidays. We will reopen at 8 a.m. on Monday, December 1.

Alabama Housing Finance Authority | www.AHFA.com

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