The Corporation was formed to develop, manage and operate affordable housing and provide supportive and related services to support the mission of AHFC.
AHCC was incorporated on May 23, 2006, under the Alaska Nonprofit Corporation Act (AS 10.20) as a subsidiary of, but legally independent and separate from, AHFC.
In 1998, the four largest U.S. cigarette manufacturers ended a litigation effort against them by signing a Master Settlement Agreement (MSA) with Alaska and 45 other states.
The Alaska Housing Finance Corporation (AHFC) was authorized to create a subsidiary corporation to issue bonds that would be secured by a portion of Alaska's revenue payments under the MSA.
In response, AHFC's Board of Directors, at its annual meeting on August 30, 2000, approved the creation of the Northern Tobacco Securitization Corporation (NTSC), a nonprofit public corporation, to issue bonds on behalf of the State of Alaska.