1. Alabama Housing Finance Authority’s
2016 Underwriting Standards for Multifamily Housing Overview
Reference Documents:
HOME Action Plan and
Housing Credit (HC) Qualified Allocation Plan

2. Outline 2016 Underwriting Standards
Historical 5-year Underwriting Data
AHFA Contact
Jeff Little
Alabama Housing Finance Authority

3. 2016 Underwriting Standards
First mortgage interest rate - 7%
Housing Credit pricing - .95
Operating expenses per unit - $4,425
Fixed 9% and/or 4% Housing Credit Rate
30% increase in basis for 2015 and 2016 designated QCT/DDAs
Jeff Little
Alabama Housing Finance Authority

4. Historical 5-year Underwriting Data
Operating and First Mortgage
2015
2014
2013
2012
2011
Assumptions
Vacancy Rate: 7%
Maximum Expenses per Unit:
$4,375
$4,325
$4,250
$4,200
$4,000
Conventional Rate:
7.00%
8.00%
8.25%
Conventional Term (HOME Term): 20
Debt Service Coverage:
1.20
Development Costs
Construction Period: 12 9
Project Reserves:
½ of exp. + 3mths of DS
Developer Fee:
15%
Housing Credit Price:
0.90
0.82
0.81
0.72
Jeff Little
Pro-Forma Assumptions: Income – 2%, Expenses – 3%, Vacancy – 7%
Alabama Housing Finance Authority

5. AHFA Point of Contact
Any questions regarding the 2016 AHFA Underwriting Process should be submitted via to:
Tyler Hunt
AHFA Underwriter
This document is not intended to usurp, conflict, or supplant the requirements identified in the 2016 AHFA HOME Action Plan or 2016 AHFA HC Qualified Allocation Plan.
Jeff Little
Alabama Housing Finance Authority