The disruption from the pandemic of the past three years has created significant challenges and offered important opportunities for all of us. No facet of life or industry is emerging untouched, and our work in affordable housing is no exception.
Although the nation’s economic picture is blurry – marked by inflation, ongoing supply chain issues, and higher mortgage interest rates, coupled with low unemployment and ample job opportunities for those ready to get back to work – AHFA continues to offer an attractive array of programs to help homebuyers and renters of modest means. There is cause for optimism as our communities recover and rebuild.
We achieved widespread coverage this year, helping improve housing situations for Alabama homeowners and household renters in all 67 counties. That includes financing, tax credits, and down payment assistance for 736 homebuyers, allocating funds for the construction and repair of 290 units of affordable multifamily housing, and distributing temporary federal emergency assistance to prevent eviction and foreclosure for 26,682 Alabama households.
These broad brushstrokes provide an overview of our activity. But each detail represents a neighbor helped – a teacher, a nurse, a sheriff’s deputy, a truck driver, a restaurant manager, a retiree, a veteran, and thousands more. We know we do not accomplish these goals alone, but in concert with our state’s home builders, lenders, realtors, developers, and other organizations who share our commitment to providing affordable housing opportunities throughout Alabama. We are profoundly grateful for their support.
Our 2022 Annual Report displays a gallery of portraits highlighting some of the entries received this year in our first kids’ art contest, designed to celebrate National Homeownership Month. We invited children throughout Alabama to submit original artwork showing the meaning and value of “home” in their lives. Their colorful entries illustrate the difference we make in communities across Alabama, both for the adults and for the young ones who get to grow up in safe, secure homes that their parents can afford.
Leadership
Homeownership Programs
AHFA offers a palette of programs for Alabama households who are ready to become homeowners. Our Step Up down payment assistance program is available to homebuyers who earn $130,600 or less and meet standards for creditworthiness. The program offers a competitive 30-year fixed rate and no sales price limits.
Qualified buyers can combine Step Up down payment assistance with an Affordable Income Subsidy Grant that helps with closing costs and a Mortgage Credit Certificate (MCC). An MCC is a dollar-for-dollar annual income tax credit for the life of the loan that increases available income to qualify for a mortgage. All three of these options help boost purchasing power for homebuyers of modest means.
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Birmingham home builder Joshua Dean of Precision Homecrafters joined the AHFA Board of Directors in October 2022. Listen as he gives a home builder's perspective on AHFA's homeownership financing options and shares his own experience as an AHFA customer.
Emma Jane Howell, age 8, Mobile
When describing her artwork, third-place winner Emma Jane Howell said, “The bubble around my head is a 'thinking bubble.' I am thinking about my home and my family.”
In a happy coincidence, Emma’s family became homeowners through AHFA. Mom Krystle credits the Step Up program’s down payment assistance and flexible underwriting guidelines for making the Howells’ purchase possible.
Emma said that she used crayons and markers to create her picture and that her favorite color is blue, just like the sea. She showed her love for her family by drawing a big, beautiful red heart in the center of her house. Emma mentioned how she feels safe in her home with her family and that her favorite time is game night.
Emma Jane's “thinking bubble” is a great reminder that home is, “a place of love, safety, comfort, and fun.”
Rental Programs
AHFA administers multifamily programs that create high-quality, affordable rental housing by providing funding and tax incentives. These programs help developers build or rehabilitate properties for Alabama’s low- to moderate-income families, disabled individuals, and elderly residents. AHFA is Alabama’s administrator of the federal HOME Investment Partnerships Program (HOME), Low Income Housing Tax Credit (LIHTC) program, and Housing Trust Fund. In addition, AHFA issues multifamily housing revenue bonds for the acquisition, renovation and new construction of affordable rental housing.
Since its beginning, AHFA has provided more than $1.2 billion in funding and tax incentives to help build or preserve 939 developments comprising 58,154 units found in every county across the state. Another 82 developments are in various stages of completion. They are gradually overcoming the challenges of post-pandemic material shortages, supply chain disruptions and fluctuating construction costs, and will eventually contribute to Alabama’s supply of safe and economical rental housing.
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Deborah Callahan downsized from a house to an apartment at Nathan's Ridge for her retirement years. She enjoys the safety, security and community of the Wetumpka development financed by AHFA-administered HOME funds and Housing Credits.
Makenzie Deanes, age 9, Madison
When asked to describe her artwork, contest winner Makenzie said, “This is a picture of my house and my family and how we roll.” Makenzie explained what each word written on the house means:
- Togetherness: "I love my family and I am very thankful."
- Love and Peace: "Our love and when we go to sleep."
- Good Times: "When we have fun together making TikTok videos, cooking out, jumping on our trampoline, and playing games. P.S. I win most of the time!”
Research consistently shows that homeownership is a key factor contributing to economic and emotional stability in Alabama households and communities. AHFA is committed to supporting affordable housing options so that kids like Makenzie can grow up in homes of their own.
AHFA-Administered Federal Pandemic Relief Programs
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Emergency Rental Assistance Alabama (ERA Alabama)
AHFA was authorized to administer a temporary emergency rental assistance program funded by the U.S. Department of Treasury as part of the Consolidated Appropriations Act of 2021. Known as ERA Alabama, the program was designed to provide short-term relief to eligible renters experiencing financial hardship due to the COVID-19 pandemic. Since the program opened in March 2021, more than 39,000 households representing all 61 Alabama counties in its jurisdiction have received $173.5 million in paid or pledged assistance for rent and utilities, largely in the state’s rural counties. Eight highly populated areas – Baldwin County, Jefferson County, Madison County, Mobile County, Montgomery County, Tuscaloosa County, the City of Birmingham, and the City of Huntsville – received separate funding allocations from the U.S. Treasury to administer their own programs. Due to its success, the program has begun to wind down and its application portal was closed in December.
Terrance Jackson is the property manager at Lodges on Lincoln in Selma, pictured above. He has helped residents at Lodges on Lincoln, as well as Magnolia Garden I and Magnolia Gardens II – also Olympia Management developments located in Selma – apply for assistance through ERA Alabama. Statewide, AHFA’s administration of the ERA Alabama program has prevented more than 2,400 imminent evictions to date.
“We have helped more than 21% of our residents apply for and receive ERA Alabama assistance. This funding enables our tenants the opportunity to not have to make the hard choices between paying rent, groceries, medical care and necessary utilities.” ~Terrance Jackson, Property Manager
Mortgage Assistance Alabama (MAA)
MAA is a federal, pandemic-related mortgage assistance program funded under the U.S. Treasury’s Homeowner Assistance Fund. Launched in the fall of 2021, MAA exceeded its program goals in November, receiving enough applications to fully commit its $100.5 million allocation from the U.S. Treasury to help low- and moderate-income Alabamians keep their homes. Alabama was one of the first seven states and U.S. territories to achieve this program milestone.
MAA was designed to prevent foreclosure by providing help with past due or delinquent mortgage expenses, future mortgage payment assistance or lien extinguishment for low- to moderate-income Alabamians who have experienced temporary, COVID-19 related financial hardship. MAA is part of the U.S. Treasury’s Homeowner Assistance Fund, a mortgage foreclosure prevention program funded by the American Rescue Plan Act of 2021.
Since the program opened in August 2021, 3,461 households in 65 of 67 Alabama counties have received $72.9 million in disbursed or pledged assistance and have avoided foreclosure. Additional applications in process will exhaust the remaining Treasury funding by December 2023.
Mack and Brenda Autwell of Ashville graciously revealed the devastating sequence of events – including COVID, job loss, other health crises, and a car crash – that left them feeling overwhelmed. In an emotional and uplifting story, they credited the MAA program with restoring their hope and their home.
"Within six weeks of applying for assistance our mortgage was paid for a year. You can't imagine the heavy weight that was lifted from my shoulders. If it hadn't been for Alabama Housing Finance Authority, and the MAA, we would have lost our home of 24 years." ~Mack Autwell, MAA Recipient
SERVISOLUTIONS
AHFA provides loan servicing activities to all customers under the tradename ServiSolutions. Not only does ServiSolutions manage all the mortgages funded by AHFA, but we also act as master servicer for other state housing finance agencies, currently servicing mortgages for customers in Arkansas, Mississippi, Missouri, and North Carolina. Additionally, ServiSolutions services mortgage loans on behalf of many Alabama-based community banks. Loan types serviced by ServiSolutions include FHA, VA, Rural Development, and conventional loans with or without mortgage insurance.
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Audited Financial Statements
The Alabama Housing Finance Authority is a public corporation and instrumentality of the State of Alabama created July 25, 1980, by Act No. 80-565 of the Alabama Legislature.
The bonds of the Alabama Housing Finance Authority are not obligations of the State of Alabama and are not repaid with tax dollars. AHFA is a self-sustaining organization which pays all operating expenses from program revenues.
