Allegheny Housing Development Fund (AHDF)

Administered by ACED’s Housing & Human Services Division, the Allegheny County Housing Development Fund (AHDF) provides gap-financing support for affordable housing developments. It’s the most flexible housing program available to nonprofit and for-profit housing developers through the County.

Several funding sources may be available, including the Community Development Block Grant Program (CDBG) and the HOME Investment Partnerships Program (HOME). In addition, developers can leverage private mortgage, equity funds, Pennsylvania Department of Community and Economic Development programs, and Pennsylvania Housing Finance Agency programs such as Low Income Housing Tax Credits.

Funding assistance is available in two forms: “front-end” construction subsidies (for rental projects) where developers agree to rent project units to qualified low/moderate-income tenants for a period of up to 30 years; or “back-end” deferred second mortgages (targeted to for-sale housing projects) where developers agree to sell the units to qualified low/moderate-income households.

Projects submitted for AHDF financing can include the following:

  • New construction of low/moderate-income, multifamily or elderly rental housing.
  • Conversion of existing properties, such as old schools, warehouses and municipal buildings, into low/moderate-income, multifamily or elderly rental housing.
  • Rehabilitation of vacant, existing multifamily rental housing developments (of four units or more) for rent to low/moderate-income tenants.
  • New construction of single-family residences or townhomes for purchase by low/moderate-income buyers.
  • Rehabilitation for resale of existing single-family residences or townhomes for purchase by low/moderate-income buyers.

All the financing listed above is available in most areas of the County except opt-out municipalities. However, developments in McKeesport and Penn Hills are eligible for HOME-funded projects.

To be considered for financing, prospective developers/agencies should complete a pre-application; a Loan Review Committee then determines if the project is financially feasible and consistent with the County’s Consolidated Plan. Upon preliminary approval, staff is assigned to assist the developer/agency with completion of the full application documentation and progress towards development.