Volume Cap Timeline

Single Family Mortgage Revenue Bonds

January 1 to January 31 (ARS Section 35-913) Single Family Mortgage Revenue Bond (MRB) Reservation

The counties (Maricopa and Pima), cities (Phoenix, Tucson, and Mesa) with populations greater than 7%, and the Arizona Industrial Development Authority (AzIDA) can reserve a volume cap for single-family MRBs and mortgage credit certificates. The reserve is 30% of the total volume cap ($278,675,400.00 in 2024), and each local jurisdiction can reserve an amount based on its population percentage according to the decennial census, with the county subtracting the qualified cities’ population. Below is the 2024 MRB allocation.

2024 Single Family Mortgage Revenue Bond Allocation January 1 to March 31

Reservations are made with (Single Family Mortgage Revenue Bond Application). A reservation made by a local IDA for its jurisdiction allows it to apply a volume cap by March 31 or seek an extension. AzIDA can reserve for Rural volume cap to be used in the 13 counties outside of Pima and Maricopa County. If it does, it has 180 days to apply for it.

If AzIDA does not apply for it, a local can reserve it. If no one reserves it by January 31, the Director must allocate it to an IDA by the end of February. If an IDA does not reserve its allocation, such as Mesa, another IDA can reserve it, with AzIDA having the first right to reserve it. 

Timeline for Volume Cap Allocation Buckets

January 1 to March 31 (ARS Section 35-902)

2. 25% allocated to projects at the sole discretion of the director.
3. 30% allocated to qualified mortgage revenue bonds and qualified mortgage credit certificates. Including bonds and certificate programs for home improvement and rehabilitation.
4. 40% allocated to qualified residential rental projects.
5. 5% allocated to manufacturing projects.

Unless confirmed or extended, a request will expire by 5:00 p.m. on March 31, except for requests granted under the Director’s Discretion. 

April 1 to July 31 (ARS Section 35-906)

The remaining Volume Cap is reallocated.

1. The unallocated amount in Director’s Discretion continues as Director’s Discretion.
2. 60% of the remaining Volume Cap is allocated to Single-Family Mortgage Revenue Bonds or Residential Rental Bonds.
3. 40% of the remaining Volume Cap is allocated to Other.

Volume Cap for Single-Family Mortgage Revenue Bonds is limited to $35 million.

Volume Cap for all other sections is limited to $35 million until after August 31. (ARS Section 35-905)

After 5:00 June 1 (ARS Section 35-908)

For bonds issued after 5:00 p.m. June 1, if the principal amount of bonds issued is less than the principal amount set forth in the confirmation, a fee of one percent of the difference between the confirmation and the principal amount of the bonds shall be paid to the authority on filing the certificate of closing unless an exception applies.

September 1 to December 16

• No Volume Cap limits

April 1 to December 16

• A request made after March 31 shall expire within 90 days from the date of Confirmation or December 16 unless an extension is granted. Additionally, the applicant is required to pay a 1% Security Deposit unless there’s an exception. §35-906.

December 16

1. Allocations made after April 1 expire unless:
   1. Applicant applies for Volume Cap Carryforward. Applications are due by 5:00. 
   2. Applicants apply for an extension until December 26. ARS §35-910(B)
      1. by filing with the authority on or before 5:00 p.m. on December 16 a certificate certifying that the bonds will be issued before 5:00 p.m. December 26, and providing the authority with an additional security deposit equal to one percent of the principal amount stated in the confirmation.

December 26

• Extensions made via ARS §35-910(B) expire unless issued by 5:00 p.m.