State Housing Fund (SHF) Rental Development Programs
State Housing Fund Program Overview
The Arizona Department of Housing combines Federal HOME resources from the U.S. Department of Housing and Urban Development (HUD) with state resources from the State Housing Trust Fund (HTF) into a single housing program called the State Housing Fund (SHF).
State Housing Trust Funds (HTF): The HTF was established in 1988 by the AZ State Legislature to provide a flexible funding source to assist in meeting the housing needs of low-income families in Arizona. (A.R.S. 41-3955 and A.R.S. 44-313)
Federal HOME Funds (HOME): The HOME Investment Partnership Program (HOME) was created by the National Affordable Housing Act of 1990 (NAHA). The funds are allocated through HUD and are intended to “... increase the number of families served with decent, safe, sanitary, and affordable housing and expand the long-term supply of affordable housing...”. HOME funds are subject to all federal requirement and regulations that apply to the HOME program. [24 CFR Part 92 (Final Rule published Sept. 16, 1996; Revised Final Rule Amendments published Oct. 31, 2002)
SHF funds are available for the development of affordable permanent and transitional rental housing units in the form of GAP financing. Applications are accepted according to the schedule outlined in the Notice of Funding Availability (NOFA), which will provide the criteria required to apply. The Department utilizes Competitive funding criteria to make funding decisions. All financing is provided in the form of a loan; in return, the property must comply with long-term rent and tenant income restrictions. Applicants must read and understand the SHF Program Summary and Application Guide to evaluate whether a proposed project will meet SHF program requirements.
ADOH provides programs for the acquisition and/or rehabilitation of existing units when affordability will be retained or additional affordable units will be added to the housing stock.
Gap Financing for Low Income Housing Tax Credit (LIHTC) Projects:
SHF Gap Financing is available to tax credit projects and tax-exempt bond projects that are seeking an allocation of 4% tax credit under the Qualified Allocation Plan.