Finding Local Solutions to Professional Housing Needs in Toksook Bay

Alaska Housing Finance Corporation’s Rural Professional Housing has been making an impact on communities statewide for more than 20 years.

Between 2004 and 2024, Rural Professional Housing supported 149 rural housing developments, resulting in 573 housing units across nearly 100 Alaska communities.  By building or rehabilitating units specifically for educators, public safety officers and healthcare professionals, the initiative helps rural communities attract and retain essential workers.

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In Toksook Bay in western Alaska, an energy efficient log cabin is being constructed from a house kit. Rural Alaska Community Action Program, Inc. (RurAL CAP) was awarded $309,571 in grant funding through AHFC’s 2025 Rural Professional Housing competitive funding round to administer the development.

Partnering with the Nunakauyak Traditional Council, RurAL CAP will combine these funds with grant funding through the Department of U.S. Forestry, Denali Commission, for the Toksook Bay Professional Housing Project.

Pinpoint on the Alaska map showing Nelson Island

Dismantling a Hiring Barrier

Located on Nelson Island in the Bethel Census Area, the city of Toksook Bay has a population of approximately 650 people, according to State of Alaska census data. At the time of the application for funds, there were no homes available for sale or lease in Toksook Bay. With overcrowding already a community concern, the lack of housing presented a primary barrier to attracting and retaining professionals with critical roles in the community.

The local sub-regional clinic of the Yukon-Kuskokwim Health Corporation had six position vacancies that were difficult to fill due to lack of housing as of October 2024. According to the funding application, the community hired a new village public safety officer but limited available housing posed a challenge for the new hire. Additionally, the housing shortage has made it difficult to keep the local K-12 school, Nelson Island, fully staffed.

Adding even one unit of dedicated professional housing is expected to have a significant impact for community safety and stability.

“This house will allow for the employment of a full-time Village Public Safety Officer,” says Bob Marquez, Rural Housing Development Director, RurAL CAP. “Toksook has never had a dedicated VPSO and is grateful to have this opportunity.”

Additionally, the unit will be available to educators and health care professionals who are working in Toksook Bay on a temporary basis.

A Uniquely Alaskan Design

By combining Rural Professional Housing grant funds from AHFC with a funding opportunity from Denali Commission, RurAL CAP and the Nunakauyak Traditional Council plan to build one of the first log cabins in Toksook Bay.

Denali Commission funds focus on the use of wood products from Alaska forests to help communities impacted by Typhoon Merbok, that hit western Alaska in September 2022 causing widespread damage to homes and community infrastructure. By utilizing a log cabin design and Alaska building materials, RurAL CAP aims to explore housing options that can be readily duplicated by others in the community.

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“The beauty of this project is that funds braid together to make possible a much-needed home for working professionals. Log cabins have been part of Alaska for hundreds of years and creating a pathway for products from Alaskan forests to communities on the coast allows people the opportunity to explore different housing options that they can also build themselves if they choose.” 

– Bob Marquez, Rural Housing Development Director, RurAL CAP 

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According to RurAL CAP,  polyurethane Structural Insulated Panels from Alaska Insulated Panels will be used for the floor and roof to contribute to the home's energy efficiency. The triple-pane, gas-filled, low-emissivity coated glass windows were selected specifically for the arctic climate, and air sealing will be a key focus during construction.

Community Collaboration

In rural Alaska, the cost of shipping supplies and equipment and hiring non-local contract workers can stand in the way of a successful development. Through partnership and collaboration, the Nunakauyarmiut Tribe and Nunakauyak Traditional Councils in Toksook Bay are finding ways to uplift their community and deliver much needed housing.

The Nunakauyarmiut Tribe received federal funds in 2022 to construct homes in Toksook Bay, creating an opportunity for the Nunakauyak Traditional Council and RurAL CAP to utilize existing tools and equipment and reduce costs for the Toksook Bay Professional Housing Project.

By using the equipment and tools provided by the Council rather than purchasing or renting heavy equipment and taking on steep shipping costs, the Toksook Bay Professional Housing Project estimates a cost saving of up to $200,000.

The development is also expected to benefit from the presence of a local, trained, skilled workforce. Local workers who gained experience working on previous federally-funded developments are ready to be employed on the Professional Housing Project. Hiring local workers supports the values of RurAL CAP while reducing the travel and housing costs associated with hiring non-local contract workers.

The Nunakauyak Traditional Council is providing the site for construction and will contribute toward the cost of hiring local workers, with an additional match of up to $100,000 in federal funds.

Construction began in July 2025 with tenant move-in expected as early as August 2026.