The Arizona housing-finance ecosystem
Arizona's housing pipeline draws on a mix of state agencies, federal pass-through programs, and local frameworks. Programs span the full spectrum: low-income rental, supportive housing for special-needs populations, workforce / missing-middle housing, homelessness prevention, first-time homebuyer assistance, mixed-use redevelopment, and disaster recovery. Below is a directory of every currently-active state-level and major-local program, organized by administering agency.
Arizona Department of Housing (ADOH)
ADOH is Arizona's state housing department, established 2002. ADOH allocates federal and state LIHTC, administers federal HOME, NHTF, and CDBG, and operates the State Housing Trust Fund. Arizona enacted a state LIHTC in 2022, expanding the state's capacity to finance affordable rental development.
Federal 9% LIHTC
Competitive · RentalADOH allocates Arizona's federal 9% LIHTC ceiling — approximately $26.0 million in 2026 following OBBBA's 12% increase. Annual competitive QAP process with 2026-2027 QAP approved by Governor Hobbs in late 2025.
4% LIHTC + Multifamily Bonds
Non-competitive · BondsNon-competitive 4% LIHTC paired with tax-exempt bonds — issued by ADOH and other local bond issuers in Arizona.
Arizona State LIHTC
State tax credit · Since 2022Arizona's state LIHTC program was enacted by SB 1124 in 2021 (effective for properties placed in service after June 30, 2022) but SUNSETTED December 31, 2025. HB2576, which would have extended the program through 2031, died in the legislature without passing (status: Introduced — Dead). As of 2026 the program is not available; ADOH allocates only the federal LIHTC.
Arizona State Housing Trust Fund
State capital subsidyArizona's state-funded housing trust fund administered by ADOH. Annual appropriations have increased substantially in recent years; supports affordable rental and homeownership development plus supportive housing.
HOME Investment Partnerships
Federal pass-throughADOH administers Arizona's HOME allocation for non-participating jurisdictions, primarily for multifamily rental development paired with LIHTC.
National Housing Trust Fund (NHTF)
Federal pass-through · ELIADOH administers Arizona's NHTF allocation for housing serving extremely-low-income households.
CDBG (state-administered)
Federal pass-through · Non-entitlementADOH administers federal CDBG for non-entitlement Arizona communities.
Section 811 Project Rental Assistance
Operating subsidy · DisabilityADOH administers Arizona's HUD Section 811 PRA allocation for extremely-low-income persons with disabilities.
Supportive Housing Programs
Supportive housing · Operating subsidyADOH state-funded operating subsidies for permanent supportive housing, deployed in coordination with the Arizona Department of Health Services and Department of Economic Security.
Manufactured Housing Administration
Manufactured housing · RegulatoryADOH is HUD-designated State Administrative Agency for Arizona's manufactured housing industry, implementing and enforcing state and federal laws governing manufactured housing.
Home Plus Mortgage Program
Homeownership · Below-market mortgageADOH's flagship single-family first-mortgage product — Home Plus — providing below-market rates with DPA grants for first-time and other eligible homebuyers.
Home Plus DPA
Homeownership · DPAADOH's down-payment assistance grant program providing up to 5% of loan amount in DPA combinable with Home Plus first mortgage.
ADOH Mortgage Credit Certificate
Homeownership · Federal tax creditFederal income-tax credit for eligible first-time buyers equal to a percentage of mortgage interest paid annually.
Local Industrial Development Authorities (IDAs) and major-city programs
Arizona's affordable housing financing relies heavily on local Industrial Development Authorities (IDAs) — special-purpose corporations chartered by municipalities and counties that issue tax-exempt bonds and confer property tax benefits on affordable housing. Phoenix, Tucson, and other major cities operate substantial local affordable housing programs.
Local IDA Bond Issuance
Tax-exempt bonds · Local issuersArizona's Industrial Development Authorities — including the Phoenix IDA, Tucson IDA, Maricopa County IDA, and others — issue tax-exempt private-activity bonds for multifamily affordable housing. Major source of bond financing supplementing direct ADOH activity.
City of Phoenix Affordable Housing
Local subsidy · Bond authorityPhoenix operates affordable housing programs through the Housing Department including multifamily gap subsidies, homebuyer assistance, and partnerships with the Phoenix IDA on bond-financed developments.
City of Tucson Affordable Housing
Local subsidyTucson's affordable housing programs through the Department of Housing and Community Development supporting multifamily and homeownership development.
Maricopa County Affordable Housing
Local subsidy · CountyMaricopa County's affordable housing programs through the Human Services Department supporting county-wide affordable housing development including homelessness response.
How Arizona programs typically combine
Programs combine differently depending on what you're building. A short reference of representative stacks across the program-type spectrum:
- Statewide 9% LIHTC: 9% LIHTC + State Housing Trust Fund + HOME (Arizona state LIHTC sunset Dec 31, 2025).
- 4% LIHTC + bonds (most common urban pattern): 4% LIHTC + Phoenix/Tucson IDA bonds + state LIHTC (sunset Dec 31, 2025, not renewed) + State Housing Trust Fund.
- Permanent supportive housing: 9% LIHTC + state LIHTC (sunset Dec 31, 2025, not renewed) + ADOH supportive housing operating + Section 811 PRA.
- Mixed-income workforce: 4% LIHTC + IDA bonds + state LIHTC (sunset Dec 31, 2025, not renewed) + local programs.
- Rural development: USDA Section 538 + 4% LIHTC + state LIHTC (sunset Dec 31, 2025, not renewed) + State Housing Trust Fund.
- First-time homebuyer: Home Plus mortgage + DPA grant + MCC.
Post-OBBBA implications
- Permanent 12% LIHTC increase: Arizona's annual 9% LIHTC ceiling is permanently larger starting 2026.
- 25% PAB financed-by test: for buildings placed in service after December 31, 2025, where at least 5% of aggregate basis is financed by bonds issued after December 31, 2025, materially expanding the pipeline of 4% LIHTC deals that can be supported per dollar of bond volume cap.
- Permanent OZ program: The Qualified Opportunity Zone program is made permanent under OBBBA via rolling 10-year designation cycles — the governor nomination window opens July 1, 2026 (Rev. Proc. 2026-14) and new designations take effect Jan 1, 2027; Rural OZ provisions may apply in qualifying portions of the state.
- Section 45L / 179D termination (June 30, 2026): Developers should ensure 45L-eligible homes are acquired on or before June 30, 2026 and that 179D-eligible construction begins on or before that date.
This is educational reference material for affordable-housing practitioners, not legal, tax, financial, or investment advice. State program details, funding levels, and rules change frequently — consult the relevant state agencies and qualified counsel before structuring any transaction. See Disclaimer.