February 2023 Multifamily News from AHFA

AHFA Staff Learns from NCSHA HFA Institute 2023

In January, AHFA sent staff to the HFA Institute hosted by the National Council of State Housing Agencies (NCSHA). NCSHA is a nonprofit, nonpartisan organization created to advance, through advocacy and education, the efforts of the nation’s state HFAs and their partners to provide affordable housing to those who need it. The HFA Institute held in Washington, D.C. provided an opportunity for AHFA staff to hear updates, breaking news, and expected developments in the coming year related to affordable housing directly from HUD Program Directors and policy makers. Trainers with decades of experience navigating affordable housing administration, underwriting, and compliance provided fresh perspectives on the challenges and opportunities presented by the current climate. AHFA staff met and shared ideas and information with staff members from HFAs across the country. As a largely rural state, Alabama’s housing needs are challenging. However, in many ways, Alabama is not alone in facing these types of challenges. Sharing insights with HFA staff from other states is beneficial to AHFA’s ongoing efforts to provide decent, safe, and affordable housing for Alabamians.  

HUD Release: Revised Handbook 1344.1; Federal Labor Standards Requirements in HUD Programs Available

The Office of Davis-Bacon and Labor Standards issued Handbook 1344.1 Revision 3, now publicly available on HUDCLIPS. Handbook 1344.1, Federal Labor Standards Requirements in Housing and Urban Development (HUD) Programs, provides a comprehensive description of how to comply with federal labor standards for housing and community development programs.


 

More information about the proposed rule can be found in HUD’s fact sheet and quick reference guide.

 

Please send any input you would like AHFA to consider for its comments to Dondra Houlditch by February 20. 

Preconstruction Conferences: How and Why

AHFA, as the designated administrator of the HOME Investment Partnerships Program (HOME), is responsible for ensuring that the federal regulations associated with the HOME Program are met. Several of these responsibilities are addressed during the AHFA Preconstruction Conference. After a project is issued an award of HOME funds, a Reservation Package is delivered to the project’s Responsible Owner. The Reservation Package details the project milestones and deadlines, and the documentation required to be submitted in advance, during and after the Preconstruction Conference. After the applicable milestones and deadlines have been met, the Responsible Owner and development team must attend a preconstruction conference before project construction begins.


Federal requirements addressed in the preconstruction conference:


During the preconstruction conference, AHFA will review the following requirements with the Responsible Owner and development team:

  • Construction inspections (timing and requirements)
  • Compliance with construction documents
  • Change orders
  • Final all-clear letter requirements (construction completion)
  • Project amenities
  •  Environment mitigation requirements (if applicable)
  • Drug-free workplace policy
  • Prevailing wage requirements for HUD Programs
  • Davis-Bacon requirements
  • Reporting of Davis-Bacon to AHFA
  • Employee interviews (HUD Form)
  • Section 3 requirements
  • Reporting of Section 3 to AHFA
  •  HUD reports and requirements

Materials related to the pre-construction and construction processes are available on the AHFA website.


Owners and their development team must work to understand and follow the applicable requirements. Failure to adhere to applicable federal regulations, regardless of the project’s completion and occupancy status, may result in HUD requiring the repayment of the HOME funds awarded to the project. Therefore, AHFA documents and retains records of the preconstruction conference and federal requirements covered with the project owner and development team.

Free Assistance in Capacity Building Offered

to Organizations Providing Rural Affordable Housing

Technical Assistance Collaborative (TAC) is offering free assistance through the HUD Rural Capacity Building Program (RCB) to organizations that wish to provide rural affordable housing options for people who have low to moderate incomes including supportive housing. The topic area will be one or both of the following and assistance will start in March 2023.


Emergency Preparedness and Disaster Recover Planning

Eligible entities could receive training, assistance assessing their disaster preparedness, organizational assessment to improve readiness, assistance to create an affordable housing portfolio, and/or help to create a disaster recovery plan.

 

Young Adult Focused Housing

Eligible entities could receive training, advice, and individualized support to increase their capacity and to prepare for developing housing for young adults. Activities may include organizational assessment and/or action planning for future housing development activities.

 

Eligible Entities

The following types of organizations who wish to provide housing to rural areas may be eligible for assistance:

  • Community Housing Development Organizations (CHDOs)
  • Community Development Corporations (CDCs)
  • Rural Community-Based Housing Development Organizations (RHDOs) - organizations currently or planning to engage in housing development as part of their mission
  • Local Governments
  • Tribal Communities


If you are interested in learning more, please contact TAC's Melany Mondello by the end of February with the topic area you would be interested in exploring. TAC will accept expressions of interest until capacity is reached.

Access Up to $750,000 for Your Affordable Housing Project

Applications for FHLBank Atlanta’s 2023 Affordable Housing Program (AHP) General Fund will be available beginning March 1, 2023.


The application deadline is March 31, 2023.

Holiday Office Closing

The AHFA offices will be closed on Monday, February 20 in observance of Presidents' Day.

Alabama Housing Finance Authority | www.AHFA.com
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