Affordable Housing: Hundreds Of Homes Are the Right Thing For Alaska

A house is not just four walls. It is a home; a safe harbor that shelters, protects and nurtures people. Providing Alaskans access to affordable housing has been a charter of Alaska Housing Finance Corporation for more than 50 years.

Access to affordable housing is a nationwide issue affecting single residents, families, and seniors. Newly constructed affordable housing has never been more important than it is today to improve Alaska's ability to best serve residents in need. Access to affordable housing can have profound effects for residents, improving quality of life and transforming communities leading to better health, jobs, financial stability, security, and population diversity. Affordable housing is not a handout - it is a necessity.

Developing Sustainable Communities

In 2011, the state of Alaska passed legislation allowing AHFC to establish a subsidiary to further the mission of providing Alaskans access to safe, quality, affordable housing through the acquisition, development, management, or operation of affordable housing.

The Alaska Corporation for Affordable Housing was created as a non-profit organization with the ability to access resources that are not available to AHFC. ACAH develops or acquires properties to increase affordable housing opportunities statewide and bridge gaps that would be more challenging for private developers. This innovative approach helps to diversify housing supply types through a combination of tax incentives, grants, and subsidies, encouraging private sector investments in affordable housing development addressing Alaska's unique needs.

Building Hundreds of Housing Units

For more than a decade, ACAH has been effectively employing partnerships. Their first endeavor set the stage for community engagement collaborating with a local tribal entity, Cook Inlet Housing Authority, to bring 88 units of housing to Anchorage, Alaska, in 2015.

Through continued partnerships, ACAH has helped develop more than 200 units of affordable housing throughout the state, laying the groundwork for subsequent projects offering a new, progressive way of thinking about affordable housing. The innovative balance of public and private entities coalesces to provide newly constructed affordable housing units that would otherwise not exist.

The Borealis Park housing development in Fairbanks.

A Successful Framework

Combining resources through partnerships is the foundation for ACAH’s 2023/24 development in Fairbanks’ North Star Borough, the second largest populated area in the state. The economy is supported largely by neighboring military bases with ever-changing housing requirements. There is a lack of affordable housing in the area making it a natural choice to demonstrate how effective partnerships can respond to regional housing needs. The partnerships include: AHFC, Swell, LLC, North Star Management, LLC, Rasmuson Foundation, Weidner Apartment Homes, Enterprise, First National Bank Alaska, and Eide Bailly LLP.

Because of ACAH’s unique position, they are able to utilize federal funding from AHFC’s Public Housing department through HUD’s Moving to Work plan - unusual as not all public housing facilities are MTW entities. The Fairbanks development was the first project to qualify under this activity and utilized $13M in MTW funding to build 58 housing units. This funding represents almost 50% of the total development cost, reducing the need for permanent construction financing through a lender and simplifying the capital stack.

The development is spread across two separate sites: 

• The Meadows – 18 one-bedroom, accessible units for income eligible residents who are 55+. Completed and fully occupied as of August 2023.
• Borealis Park – 40 units of family housing for income eligible residents with an array of one-, two-, and three-bedroom rentals. Available Summer 2024.
  • All one-bedroom units are accessible, and 1 two-bedroom and 1 three-bedroom layouts will be accessible.

To continually encourage new construction from the private sector, ACAH utilizes 4% Low Income Housing Tax Credit deals, as opposed to competing for 9% deals. This allows ACAH to take advantage of investor contributions, while not posing a risk of the organization competing with developers in the private sector. This financial support, together with the generosity of the Rasmuson Foundation and Weidner Apartment Homes, means all 58 units are supported by sponsor-based rental assistance and serve households whose income is at or below 60% of the area median.

Valdez On the Horizon

Addressing Alaska’s aging housing stock and lack of rental properties statewide is a long-term endeavor. ACAH’s next venture is targeted for Valdez, where the lack of available and affordable housing is staggering. The city conducted an extensive needs assessment, offered development incentives, and identified a key piece of developable land. Community buy-in and establishing a baseline for area affordable housing needs were key.

The development targets households whose income is at or below 60% of the area median with 20 units of affordable housing projected to be completed by early 2026. The estimated $15M project includes 9 one-bedroom, 9 two-bedroom, and 2 three-bedroom duplex-style buildings. 

Serving Alaskans

Housing is much more than just a roof over one’s head. Affordable housing provides hope and the possibility of a better life and AHFC is leading the way to improve Alaska’s capacity to serve those in need.