STATE LIHTC RESEARCH

Alabama
QAP scoring guide.

Alabama Housing Finance Authority (AHFA) · 2026 QAP

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● Verified guideChecked Sep 12, 2026View source QAP ↗

THE POINT TABLE

Competitive scoring

10 categories

Not separately published as a "typical winning score," but the QAP states a hard floor: "Projects with a net score of less than 70 points (Points Gained less Points Lost) will not be considered for allocation" (Addendum A, Project Selection Procedures). Actual competitive/winning scores will run higher than 70 in practice but no historical award-score data is published in the QAP or its addenda.

Select a category to read its scoring criteria.

Type of Construction

33 pts

Part of Project Characteristics. (a) Up to 25 points aggregate for extra unit/project amenities beyond required minimums, tiered 4/3/2 points per amenity (e.g., clubhouse, in-unit washer/dryer, security packages, storm shelter, playground, outdoor fitness area, picnic pavilion = 4 pts each; activity/arts center, senior gathering area, gazebo, computer center, splash pad, fitness room, bus shelter, access gate, walking trail = 3 pts each; basketball court, picnic area, storm doors, emergency pull cords, bike racks = 2 pts each). Plus, for New Construction only, up to 8 points for storm/thermal windows + insulated doors (4 pts) and full brick/approved exterior materials meeting a 40-50% brick-coverage spec (4 pts); OR for Rehabilitation only, up to 8 points for replacing entry doors/windows (2), kitchen cabinets/countertops (2), plumbing fixtures (2), and HVAC equipment (2), verified via Capital Needs Assessment and Architect's Certification.

Energy/Water Conservation and Healthy Living Environment

8 pts

Aggregate cap of 8 points across a menu of green/health features: 3 points each for high-SEER HVAC, Energy Star cool roof, in-unit dehumidifiers, or radiant barrier roof deck; 2 points each for vented range hoods, WaterSense fixtures, jumper ducts, LED lighting, humidistat bath fans, or Energy Star exhaust fans.

Rent Affordability

16 pts

(a) New Funds commitment from an AHFA-approved list (e.g., FHLB AHP, non-AHFA HOME, USDA RD 515, CDBG, Choice Neighborhoods, ICDBG/IHBG, Section 108, SLFRF), tiered by $/unit committed (up to 5 pts for the primary list, up to 3 pts for a secondary list of Capital Fund/PHA sales proceeds/RAD funds); (b) up to 3 points for an existing USDA RD 515 loan transfer/assumption letter, tiered by $/unit; (c) up to 2 points for rental/operating subsidy commitments (RD, HUD, or PHA) covering at least 25% of units; (d) 3 points for irrevocably committing to forgo a Qualified Contract request and remain a Qualified Affordable Housing Project for the full 30-year Extended Use Period.

Tenant Needs

5 pts

1 point for a 100% elderly-designated/set-aside project; 1 point for family-targeted projects with at least 15% of low-income units having 3+ bedrooms; up to 2 points for setting aside units for tenants with disabilities or homeless populations for a minimum 30 years (2 pts at 7%+ of units, 1 pt at 5-7%); 1 point for committing in writing to target households on public housing waiting lists; 1 point for exceeding minimum mobility/sensory accessibility unit requirements (5% mobility-accessible plus an additional 2% sensory-accessible).

Project Type

12 pts

Up to 10 points for rehabilitating a project with an existing AHFA HOME loan maturing within the QAP year (10 pts if the HOME loan is fully repaid, 8 pts for a 15-year extension); 5 points for rehabilitation of a prior-funded LIHTC project that is past its 15-year compliance period, has no current USDA 515 loan, and never received AHFA HOME funds; 4 points for rehabilitation qualifying for Alabama or Federal Historic Tax Credits; 2 points for rehabilitation of existing multifamily housing, replacement of demolished PHA housing, or replacement of housing destroyed in a Presidentially Declared Disaster area. (Note: sub-item point values sum to more than the stated 12-point section maximum, implying the sub-items are not all mutually stackable, though the QAP text does not spell out the exact combination rule.)

Location

10 pts

2 points for each of up to 5 qualifying neighborhood services (grocery store, convenience store, hospital/doctor's office, pharmacy, bank/credit union) within 3 miles (5 miles in USDA-defined Rural Areas) of the site, measured by odometer from site entrance. Uncapped point deductions apply for proximity to incompatible uses (junk yards, salvage/waste facilities, industrial/distribution facilities, airports, prisons, railroads, adult entertainment, etc.) — 5 points deducted if adjacent (2 for acquisition/rehab of an 85%+-occupied prior-funded project), 2 points if within 0.3 miles (1 for acquisition/rehab of an 85%+-occupied prior-funded project); plus up to 2 points deducted for unsatisfactory street/sidewalk accessibility.

Applicant Characteristics: Minority/Women Participation

5 pts

5 points if minorities or women hold majority (51%+) ownership/control in the Ownership Entity or a Responsible Owner, or if the applicant guarantees at least 10% of total building cost is awarded to certified minority- or women-owned businesses (real estate, construction, appraisal, management, financial, legal, etc. firms), documented at application.

Applicant Characteristics: Responsible Owner Experience

5 pts

5 points to Ownership Entities whose Responsible Owner currently owns and has successfully developed Active AHFA Projects (Reservation Letter/HOME Written Agreement in 2000 or later) or non-AHFA projects placed in service in 2006 or later, at the level of 500+ units or 5+ projects.

Applicant Characteristics: Managing Agent Experience

10 pts

10 points for applicants with a sound, experienced managing agent currently managing 1,000+ low-income units or 10+ low-income projects (at least 20% of units low-income to count).

Points Lost: Non-Compliance / Portfolio Deductions

no maximum (uncapped deduction) pts

Deductions assessed against the Ownership Entity/Responsible Owner/Management Company for non-compliance on existing AHFA (and, per Addendum B, non-AHFA) projects: 5 points per occurrence for unapproved alteration of an approved project's original application; 5 points per occurrence for uncured non-compliance with any AHFA document, the HOME Loan Restructuring Policy, or an applicable agreement; 2 points per occurrence for specified Davis-Bacon compliance failures (unresolved wage issues, missing postings, payroll escrow triggers, missing Section 3/HUD 2516 reports); plus further uncapped deductions under Addendum B's Compliance Monitoring Procedures for post-inspection non-compliance (health/safety, unit, site, and common-area deficiencies).

Scoring source

Alabama 2027 Housing Credit QAP (Board-approved 6/10/26), Addendum A, "Alabama Housing Finance Authority's 2027 QAP Point Scoring System" (QAP pp. 31-43, internally paginated A-1 through A-13), Section A "Points Gained" and Section B "Points Lost." Threshold requirements at QAP Section II.C (pp. 12-18); tie-breaker and minimum-net-score rules at Addendum A "Project Selection Procedures" (pp. A-1 to A-3).

WHEN SCORES ARE CLOSE

Tie-breakers

Review the agency’s tie-breaker rules alongside the scoring criteria.

Fewest aggregate Responsible Owner participations across all applications recommended this cycle
Priority to applications also applying for HOME Funds
Priority to projects in tracts with median family income at or above 100% of county AMI
Priority to the county with fewest total units in active or allocated-but-unplaced AHFA projects
Priority to owners with no history of required inspections for material non-compliance
Priority to QCT projects backed by a revitalization plan approved in the last 5 years
Priority to projects planned for eventual tenant ownership via a homeownership conversion proposal
Among non-profit owner ties, least aggregate Developer participation across recommended applications
Public drawing by an impartial drawer in AHFA's boardroom next business day, posted on ahfa.com

MODEL ASSUMPTIONS

Underwriting parameters

Alabama 2026 Housing Credit Qualified Allocation Plan (adopted June 12, 2025), Section II.E.1(iii) "Determination of Financial Feasibility" (pp. 20-22) for DCR/reserves; Section II.F "Developer and Builder Fees" (p. 23); Section I.D "Fees" (pp. 8-10). Supplemented by companion documents published outside the QAP PDF at ahfa.com/multifamily/underwriting and ahfa.com/multifamily/multifamily-notices: "2026 Underwriting Assumptions" (Competitive Cycle Underwriting Updates presentation, dated January 2026) for vacancy rate, max expenses/unit, DSCR, conventional interest rate; "2026 Underwriting Historical Overview" (5-year underwriting data table) for year-over-year trend; and "Multifamily Fees" schedule (revised 12/11/2025) for the full post-award fee schedule.

OPERATING ASSUMPTIONS

Utility allowance

Preferred method: No single stated default. Use of the Rural Development or local PHA utility allowance is MANDATORY (not merely preferred) whenever the building/household receives RD assistance, is HUD-monitored, or receives project-based Section 8. Only when none of those triggers apply does the Ownership Entity get to choose among: local PHA schedule, utility-company letter, HUD USM, or a licensed engineer's energy-consumption model (chosen at application and locked until IRS Form(s) 8609 are issued).

None -- AHFA does not publish its own UA calculator/schedule (its DMS "Utility Allowance" screen is a compliance record-keeping entry form, not a UA-computation tool) ↗

AHFA Compliance Manual (revised 11-17-25), Section 4.6 "Utility Allowances," pp. 53-56 (duplicated at §§6.22, 8.7, 9.8 for the Bonds/DMS/HOME chapters); the AHFA 2026 QAP (6-12-25, gov-approved) has no utility-allowance section.

YOUR NEXT STEPS

Development guides for Alabama

PHASE 1Site sourcing and screening PHASE 2Site control, title, and the diligence clocks PHASE 3Electing the entitlement pathway PHASE 4Picking a credit program and competition bucket PHASE 5Restricted rents and the operating pro forma PHASE 6Cost, construction type and the labor package PHASE 7Building the capital stack and closing the gap PHASE 8Application assembly and submission PHASE 9The post-award clock: reservation to carryover PHASE 10Construction, the 10% test, and getting to 8609 PHASE 11Compliance monitoring through Alabama's 30-year tail

Use the LIHTC feasibility checklist →