Private Activity Bond Volume Cap

Volume Cap is the dollar limit set by federal statutes that borrowers use for certain tax-exempt private activity bonds. These bonds are for affordable housing, infrastructure projects, and, under some circumstances, manufacturing facilities and student loans. The interest paid on the bonds is exempt from federal and often state taxes, which provide lower capital costs for the borrowers and ultimately lead to more affordable housing and other projects. 

Each year, the state receives its Volume Cap ceiling, which represents $125 per state resident (IRC Sec. 146). Beginning with the 2017 cycle, the Arizona Finance Authority will allocate Arizona’s Volume Cap (Laws 2016 Ch. 372).

2024 Arizona Volume Cap: $928,918,000.00

Available as of 7/01/2024

Mortgage Revenue Bonds MCCs, and Residential Rental



Director’s Discretion






Total Available



Based on the applications in process, we do not have any more volume cap allocation available. Therefore, we will not be accepting more applications until further notice.

List of Allocations (2021 - Present)

Applying for Volume Cap

Volume Cap Timeline

Expired Volume Cap

Volume Cap Carryforward

Questions: [email protected]