The “Working for Alabama” program, signed into law on May 9 by Governor Kay Ivey, opens a new chapter for our state’s affordable housing development community. Part of its approach includes implementation of the Workforce Housing Tax Credit.

AHFA is responsible for planning and administering the new credit, which will be structured like the Federal Low-Income Housing Tax Credit program. Key differences in the Workforce Housing Tax Credit are its focus on tenants in the workforce and preferences for providing childcare and reaching rural areas. AHFA has worked alongside the representatives of the Alabama Departments of Commerce and Revenue and the Alabama Insurance Commission to develop a strategic policy for launching the new program.

“Affordable housing brings value both to those who are served by the property and to their surrounding communities,” said AHFA Multifamily Administrator David Young. “Nevertheless, a negative perception persists when discussing the groups served by affordable housing in a community. The destigmatization of affordable housing is paramount for communities to fight the resistance against necessary developments for the elderly, our veterans, the disabled, and for the lower income workforce.”

AHFA recently analyzed the occupations of those who currently reside in affordable housing that would fall under this new tax credit. This report was based on the wage range suggested by the Lt. Governor's Workforce Development Plan published in January of this year. With hourly wages ranging from $10.90 to $29.06, these affordable housing tenants may include waiters, teachers, mail carriers, and police officers.

"With hourly wages ranging

from $10.90 to $29.06, these affordable housing tenants can include waiters, teachers, mail carriers, and police officers.

They are our communities’ essential workforce ..."

The Bethune Family

They include our communities’ essential workforce that stimulates local economic growth, provides daily services, and creates a sustainable life through affordable housing.

AHFA currently offers and has offered tax credits to developments which house families who may be employed in essential roles. Morgan Bethune and her sister Taylor were highlighted as a part of the AAHA student scholarship program in 2016. Like all eligible recipients, their family lived in an AHFA-funded affordable housing development. The Bethune family of four lived in Angela Meadows, an AHFA project funded by tax credits in Albertville. Their father, Robert Bethune, has served as a law enforcement officer in his community for nearly 24 years.

The new Workforce Housing Tax Credit is projected to help thousands of families like the Bethunes. It is projected to create more than 3,100 jobs and $1.1 billion in economic activity for the state of Alabama, according to “Alabama’s Workforce Housing Tax Credit Explained,” published by Eisner Amper.

AHFA has outlined the Draft 2025 Workforce Housing Tax Credit Policy, which interested parties can comment on during a 10-day period, which opened on August 15, 2024, and will conclude on August 28, 2024, at 5 P.M. You can review the policy here. For instructions on stakeholder feedback, click here.

After final approval of this policy, applicants may submit their Notices of Intent (NOI) to file an application. The NOI will require an advance review, including environmental, and the form will be available shortly after the completion of the 10-day commenting period. Formal applications are to be accepted in 2025.

Q: What are the key challenges or barriers to participating in this industry?

A: One key challenge today is a lack of information and marketing to college students about the affordable housing industry as a career choice. Another barrier is the lack of access to capital to support the financial requirements to carry a project from application to lease-up. This barrier prevents the industry from being adequately represented by the gender, racial, ethnic and age groups that it serves.

Q: What are some of the challenges you've experienced along the way that have helped you grow and led to your expertise?

A: I'm grateful to have great mentors on this affordable housing journey, but one challenge that helped me grow was understanding the value of inclusion, effective communication, and partnerships in this industry, both internally and externally. This can make the difference between “just an apartment complex” and the development of a strong community.

Labor Day Office Closing Scheduled

AHFA will be closed Monday, September 2 in observance of the federal Labor Day holiday.

We will reopen at 8 a.m. on Tuesday, September 3.