April 2023 Multifamily News from AHFA

Tentative 2023 Competitive Application Cycle Dates Set

AHFA will accept competitive Low-Income Housing Tax Credit, HOME, and HTF applications for available funding on July 18, 2023. The Tentative 2023 Competitive Application Cycle timeline is as follows:

Due to the 2023 AHFA COVID-19 Relief Response Application Cycle, AHFA has a limited remainder of $7.7M in Housing Credits available to allocate during this 2023 Competitive Application Cycle. The total number of project applications recommended for funding will likely be limited based on the amount of available Housing Credits. The funding priorities established by AHFA to meet statutory funding set-asides are detailed in the 2023 AHFA Plans. Funding recommendations will be made in accordance with those priorities to the extent of the remaining available funding sources. Applicants are advised to review the 2023 Plans and Draft 2024 Plans (when released) before making competitive application decisions. All AHFA competitive application fees are non-refundable; applicants submit applications at their own risk.

Please note the following information:

Deviation Requests may be submitted to AHFA prior to, but no later than June 16, 2023, to avoid a fee.
Application Logs are due to AHFA via email by 5 pm CDT, Friday, July 14, 2023.
2023 Applications are due to AHFA by 5 pm CDT, Tuesday, July 18, regardless of the delivery method.
A drawing will be held on Wednesday, July 19, 2023, to determine the order of awards in the event of a tie. An impartial person will be selected to draw from all applicants. The results will be posted on AHFA's website at the conclusion of the drawing.

The preferred method to apply is via overnight delivery to the following address:

AHFA Multifamily Division

7460 Halcyon Point Drive, Suite 200

Montgomery, AL 36117

334-244-9200

If hand delivery is necessary, please call 334-244-9200 upon arrival at the AHFA parking area and let the receptionist know you are onsite to deliver a multifamily application. A member of the multifamily staff will meet you at the outer door of the building to receive the application package. Please do not attempt to enter the building. Application receipts will be delivered to applicants via email.

AHFA’s 2023 CHDO Workshop is scheduled for May 16in Montgomery. Limited seating is available. Click here and register now to reserve your spot.

HUD Publishes HOTMA Final Rule Preview

On January 31, 2023, HUD posted a preview of the Housing Opportunity through Modernization Act of 2016 (HOTMA) Final Rule. The HOTMA Final Rule Preview includes changes impacting the HOME and HTF programs. The effective date of the provisions will be established upon publication of the final rule in the Federal Register.

Helpful Tips for HOME & HTF Loan Closings

The person designated in the Project Application as the Project Contact is the single point of contact to whom all closing correspondence should be directed. Any changes to this contact are the responsibility of the Responsible Owner.
Submit the Certificate of Occupancy to AHFA upon receipt. Certificates of Occupancy are a critical step in the preparations for closing and the first document which should be submitted to AHFA.
Make note of the HOME Closing Deadline in the HOME or HTF Written Agreement. The closing deadline is an important date which should be met. However, should unforeseen delays in construction occur, an extension request (detailing delays and additional time requested) should be submitted to AHFA as soon as possible. Please note, not all extension requests may be granted as there are hard deadlines tied to program funding which, if not met, can result in the loss of funds.
A Closing Checklist and AHFA Closing Document Templates will be provided (or made available) to the Project Contact. Collect and prepare the documents required by AHFA prior to closing as soon as they become available. These documents should be submitted to AHFA (in hard copy and digital format) together, at one time. All documentation must be received before a tentative closing date is discussed.
Execute signatures on AHFA Certifications just prior to sending the document package to AHFA. All certifications must be original and should be dated as close to the closing as possible.
Disbursement of program funds will only occur after the AHFA’s Legal Counsel receives confirmation that the closing documents have been recorded and title will be issued.

Checking in with Scholarship Winner Khong Nguyen

AHFA shines its Student Spotlight on Khong Nguyen, a first-generation college student and a 2022 graduate of Alma Bryant High School in Irvington. He is attending the University of Alabama and plans to pursue a career in aerospace engineering.

In his scholarship application, Nguyen wrote, “My college education is being paid for through a mix of scholarships, grants, loans, and my own personal savings. This scholarship is going to help mitigate the impact that college would have on my financial future, and that allows me to have to spend less personal money on expenses such as school supplies and food.”

He lives in Bayou La Batre’s Bayou Bend Apartments, an affordable multifamily community financed in part by AHFA.

“Before moving into the apartment complex, I used to live in a small brick house,” he wrote. “That brick house was my sanctuary as a kid, a place where I could come home from the stress of school and meet my mom at the door, ready to tell her about my day.”

When Nguyen was in seventh grade, his father was arrested, and his family’s fortunes changed suddenly.

“Just like that, my life was uprooted, and my mom was on a search to try and find a place to live,” wrote Nguyen. “The idea of losing our home hurt as a child, but what I remember most of the experience was the fear and anxiousness of what would happen now. The anxiousness of my mother desperately attempting to find an affordable place to live with her low income, and the fear of what we would do if we couldn't find one. Affordable housing gives everyone an equal chance at having their own sanctuary, and that itself can provide both adults and children a chance at a new start. Just like how the affordable housing at Bayou Bend gave my family a second chance.”

Since 2000, the Alabama Affordable Housing Association (AAHA) has awarded $1 million in scholarships and provided assistance to more than 100 college graduates. Stay tuned for an upcoming video series on the scholarship program and this year’s winners.

2023 Manager of the Year Nominations Due April 28

Give your top managers the recognition they deserve by nominating them for the annual Manager of the Year award from AHFA. Site and property managers for any development financed with AHFA-administered HOME funds or Housing Credits are eligible. You may nominate more than one manager.

AHFA will review all nominations and select the top nominee. The winner will be announced at the 2023 Alabama Affordable Housing Association (AAHA) conference. Click here for a nomination package.

Alabama Housing Finance Authority | www.AHFA.com