Affordable Housing Programs:

Annually, the federal government allocates to the states the authority to issue tax-exempt private activity bonds including bonds for low income multi-family housing.  The State of Arizona also allocates the bonding authority for single family housing to the different jurisdictions of the state by population.  The tax-exempt bonds are used by the Authorities of the State to issue Single Family Mortgage Revenue Bonds and to establish Mortgage Credit Certificate Programs and this allocation is referred to as volume cap.

The Authority also issues tax-exempt bonds to assist borrowers with the acquisition, renovation and new construction of rental housing and facilities.  The advantages to the borrowers include below-market rates, longer term loans and long term affordability.  
 

Multifamily Housing Revenue Bonds:

Allows for the insurance of tax-exempt and taxable bonds to assist nonprofit and for profit entities with the acquisition and renovation or new construction of multi-family rental housing in Phoenix. Bond financing provides long term financing at below market interest rates. Entities utilizing this financing mechanism must reserve a portion of the units in the complex for lower income households

Proceeds from tax-exempt multifamily housing bonds are primarily used for:

• New Construction
• Acquisition Rehabilitation