Military Facility Zone Lending: Exclusive to North Pole
2-4 housing units can be financed by Alaska Housing Finance Corporation
ANCHORAGE, Alaska, Sept. 10, 2021 — Answering the call to serve military families moving to the North Pole-Fairbanks area, Alaska Housing Finance Corporation today announces a new loan available to investors wishing to finance two-to-four unit residences in Alaska’s designated Military Facility Zone.
As with most of its residential lending, AHFC will rely on its private sector banks, credit unions and mortgage companies to offer the Military Facility Zone Loan to interested Alaskans. The loan fills an important gap in today’s market which is currently unavailable or offered at a higher cost from federal investors, including Fannie Mae and Freddie Mac.
House Bill 316 is the enabling legislation that was passed into law in 2012. The bill was modeled after legislation from other states, and Alaska’s first military facility zone was established by Alaska’s Department of Military and Veterans Affairs. Among the stated goals are to “promote expansion of infrastructure to benefit both military and civilian objectives…and clearly demonstrate the state’s continuing and substantive support for the armed services.” It was sponsored by Representative Steve Thompson and former Senator John Coghill.
AHFC’s Military Facility Zone Loan supports the Corporation’s mission of providing Alaskans access to safe, quality and affordable housing. Multiple studies have shown that existing residential housing in the area is insufficient to meet the needs of increased military personnel, their families and support staff.
AHFC’s Military Facility Zone Loan is available through June 30, 2024. The interest rate is set daily and will be published at ahfc.us. The rate today is 4.250% for a 30-year loan.
"The City of North Pole is the bedroom community in the heart of the Military Facility Zone for Eielson Air Force Base. The AHFC, by making this MFZ lending program available, makes it possible for builders and investors to have loans available to build duplexes, triplexes and quadplexes that shall begin to meet the needs of these deserving servicemembers and their families. As the ultimate sponsor of these families, I wholeheartedly support this program," said City of North Pole Mayor Mike Welch.
“The City of North Pole was the first and is currently the only designated Military Facility Zone in the State of Alaska with the stated purpose of supporting the defense of our nation, servicemembers, and their families. I applaud the AHFC team and their ability to tailor programs, such as this one, to help meet the growing housing demand in response to the new F-35 and KC-135 missions at Eielson Air Force Base,” said Fairbanks North Star Borough Mayor Bryce Ward. “This loan program provides investors and developers access to the much-needed capital to continue building affordable and sustainable housing to meet our community needs.”
“The AHFC Military Facility Zone Lending program demonstrates just how much Alaska appreciates and encourages a strong military presence in Alaska,” said Governor Mike Dunleavy. “The program will be crucial to meeting the surge in demand for quality housing now that the F-35 and KC-135 units are coming to Eielson Air Force Base.”
“As the demand for housing grows due to investments into Alaska’s military bases, including the F-35 squadrons at Eielson Air Force Base, our efforts to provide military housing amid the significant shortage we face must increase as well. I appreciate all those in the Interior who are coming together to find creative ways to do just that,” said U.S. Senator Lisa Murkowski.“Special thanks to the Alaska Housing Finance Corporation for recognizing the need to create greater opportunities for safe and affordable housing for our servicemembers.”
“The North Pole and Fairbanks communities have always steadfastly supported the Active Duty military assigned to the Interior. I commend local community efforts to continue this Alaskan tradition by addressing the military’s critical need for housing as we welcome the thousands of Airmen and their families who will accompany the arrival of additional F-35 and KC-135 aircraft at Eielson Air Force Base,” said U.S. Senator Dan Sullivan.
“Alaska is steeped in rich military tradition, and our military footprint in the Interior is only growing. As more servicemembers and their families call the Interior home, housing availability becomes even more critical. I want to thank AHFC for recognizing the great need for safe, affordable housing for our heroes by creating this new loan program to expand development,” said Congressman Don Young. “As more aircraft, including the F-35 and KC-135, arrive at Eielson, I will continue working with AHFC and other community leaders to ensure that those who sacrifice for us have a place to call home and raise their families.”
“I’m glad AHFC has stepped up to help to make more housing available for people moving to the North Pole area because of the Eielson AFB expansion. I encourage anyone interested to investigate this opportunity with their local banker,” said House District 3 Representative Mike Prax.
For 50 years, Alaska Housing Finance Corporation has provided Alaskans access to safe, quality and affordable housing through home financing, energy efficiency and weatherization programs, public housing and more. Since 1986, Alaska Housing has contributed more than $2 billion to the State of Alaska's General Fund.