Affordable Multifamily Housing Bonds

PFA’s Affordable Housing Bond Program provides for-profit and nonprofit developers access to tax-exempt bonds to finance low-income multifamily and senior housing projects.

A qualified developer can finance a project at a lower interest rate than available through conventional financing because the interest paid to bondholders is exempt from federal income tax. In addition, the use of tax-exempt bonds also facilitates eligibility for the federal government’s 4% Low Income Housing Tax Credit Program.

Eligible Entities

Developers who agree to set aside a portion of a financed project’s units for low or very low income tenants are eligible for tax-exempt financing. A minimum of 20% of the units must be set aside for individuals earning no more than 50% of the area median income. Alternatively, developers have the option of providing 40% of the units to individuals at or below 60% of the area median income.


PFA understands the challenge of ensuring tenant income and rent compliance required to maintain the tax-exempt bond and tax credit eligibility. To assist affordable housing borrowers, PFA provides access to HCS housing compliance software to ensure tenant eligibility and streamline the ongoing reporting requirements associated with multifamily housing compliance.

Additional Requirements

Many affordable housing project financing requests are subject to availability and an award of volume cap allocation from the state in which the proposed project is located. PFA will assist potential borrowers in this effort when necessary.

Contact Us

For more information regarding PFA’s Affordable Housing Bond Program or project eligibility, please contact a PFA Program Manager.