State Housing Trust Fund

The Arizona Department of Housing (ADOH) has released its FY2025/26 Notice of Funding Availability (NOFA) for the State Housing Trust Fund (SHTF) specifically targeting tribal housing projects across the state. The SHTF Tribal Projects NOFA provides $5,000,000 in funding from the FY2024/25 allocation to support gap financing for transitional, rental, and single-family homebuyer housing initiatives undertaken by eligible tribal entities and their partners. Administered by ADOH, this competitive funding opportunity aims to increase the availability and quality of affordable housing within Arizona’s tribal communities. Funding will be awarded through a single competitive round, with applications due by May 29, 2026 at 4:00 PM MT. Eligible applicants include Tribes, Tribally Designated Housing Entities (TDHEs), their parent/holding companies, and nonprofit organizations working directly with Tribes on Tribal Trust Land. Applicants must propose projects located within the state of Arizona and may request up to $2,500,000 per project. Each Tribe or affiliated entity may only receive one award under this NOFA to ensure equitable distribution of funding across the state. Eligible project types are clearly defined and include transitional housing (up to 24 months), rental housing (including LIHTC-supported developments), and single-family homebuyer developments. Transitional housing may serve a variety of populations, including veterans, survivors of domestic violence, individuals with substance use disorders, people experiencing homelessness, and youth. Projects located on Tribal Trust Land must provide documented site control and meet specific approval and lease agreement requirements. For rental housing, a minimum lease of six months is required, and all projects must meet 80% Area Median Income (AMI) limits for eligible housing units. All funds will be disbursed as performance-based forgivable loans and are subject to a 20-year period of affordability. Applications must demonstrate financial feasibility and be fully sourced, excluding the ADOH gap financing being requested. The funds may be used only for acquisition, construction, or rehabilitation costs. Projects that receive awards must begin within twelve months of closing and be completed within twenty-four months. ADOH will hold 10% of the funding as retainage until completion. If transitional housing projects charge program fees, they must not exceed 30% of a household's income. Applicants are required to submit a comprehensive application including a Tribal Gap Application Workbook, Underwriting Workbook, confirmation forms, and all threshold documentation. This includes evidence of site control, applicant experience, floodway clearance, financial ability to proceed, and compliance with environmental and historic preservation requirements. All documentation must be submitted via the ADOH Rental Development Upload Portal. Additional requirements apply for projects located in floodplains or with historic structures. Evaluation of applications will follow a priority system: transitional housing receives first priority (with acquisition/rehab projects prioritized over new construction), followed by rental housing, and then single-family homebuyer projects. If multiple applications fall within the same priority and funding is insufficient to cover all, tiebreakers will be applied based on the length of applicable housing waitlists and the number of housing units proposed. ADOH retains the right to issue partial awards. Upon selection, awardees will be required to sign a Funding Agreement and Conditions, Covenants and Restrictions (CC&Rs) document. All financed properties must be compliant with the terms outlined in these agreements throughout the 20-year affordability period. ADOH will monitor project progress and may conduct inspections at various project completion stages. Final inspection and lease-up or sale of units to qualified buyers are required for closeout. This grant program is not recurring on a predefined annual basis, and future availability is subject to further notice by ADOH. Applicants are strongly encouraged to review the complete NOFA document and direct any clarification requests in writing to ADOH. The application portal and all required forms are available through the department’s website.

Prioritize transitional housing and submit only one application per tribe or related entity to remain eligible.