New Home Construction Buyers May Earn $10,000 Rebate

Foundations poured in January 2025 eligible

ANCHORAGE, ALASKA, Dec. 2, 2024 –New housing construction will be boosted with a $10,000 rebate paid to eligible owner-occupied homebuyers in the new year. Funding comes from a $7 million state appropriation to Alaska Housing Finance Corporation and is intended to make more new housing available to more Alaskans and relieve pressure on markets due to a lack of inventory.

Homebuyers whose foundation is poured on or after Jan. 2, 2025 are eligible for the rebate following construction and submission of all required paperwork, including a certificate of occupancy and demonstration that the home meets a minimum 5-star plus energy efficiency standard. AHFC’s New Home Construction Rebate is modeled after a similar program available between 2008-2016 when more than 3,600 energy efficient homes were built.

“AHFC is proud of its role in building safe, quality, affordable housing for Alaskans. Our New Construction Home Rebate has the potential to build approximately 650 new homes and make more houses available to more families,” says Bryan Butcher AHFC CEO/executive director.

The source of funds for the state-funded New Home Construction Rebate is AHFC’s dividend of which 75% of the Corporation’s annual net income is available to the legislature for appropriation. AHFC estimates that half of first-time homebuyers used its mortgage programs last year and one-third of all home loans in Alaska were financed with the state corporation but an AHFC home loan is not required to earn the rebate.

The New Home Construction Rebate was among several legislative actions on housing supported by Governor Mike Dunleavy during the 2024 legislative session. Other initiatives included passage of House Bill 273 that adjusted AHFC’s loan-to-value ratios on its mortgages with an impact that requires a smaller down payment from homebuyers; investments in a public land housing development program, rural housing construction/ rehabilitation for public employees such as teachers, health professionals, public safety officials and other state positions that are identified as critical to the health and welfare of communities.

“As part of our Strong Families Strong Alaska initiative, we’ve prioritized housing affordability, especially for young families. The New Home Construction Rebate is one more incentive for families who choose to live and work in Alaska, and it reflects our ‘all of the above’ strategy’ that makes more housing more accessible,” says Governor Dunleavy.

Program information will be published at https://www.ahfc.us/efficiency. Applications for AHFC’s New Home Construction Rebate will be available Jan. 2, 2025, and the rebate will be available until funds are exhausted.

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Alaska Housing Finance Corporation provides Alaskans access to safe, quality and affordable housing through home financing, energy efficiency programs, public housing and more. Since 1986, Alaska Housing has contributed more than $2.1 billion to the State of Alaska's General Fund

Contact:
Stacy Barnes
Director, Governmental Relations and Public Affairs