SOURCE: Alaska Housing Finance Corporation

Alaska Housing Finance Corporation

May 06, 2010 12:25 ET

AHFC to Finance Military Housing in Interior Alaska and Anchorage Apartment Complex

ANCHORAGE, AK--(Marketwire - May 6, 2010) -  The Board of Directors for Alaska Housing Finance Corporation meeting in Fairbanks Tuesday approved financing for two multi-family rental housing projects that differ substantially in size, scope and complexity.

Campbell View Apartments LLC, a subsidiary of Anchorage Neighborhood Housing, was approved for a $1.8 million AHFC loan with an interest rate of 7.875 percent to be repaid over 30 years.

The loan will be used to purchase a multi-family complex in Southwest Anchorage near Jewell Lake Road and Dimond Boulevard. Three buildings at the site contain a total of 33 units of one-, two- and three-bedroom apartments that will rent at market rates. The project value is $2.4 million.

AHFC's board also approved a $159.4 million term loan to help finance a $417 million upgrade of military housing at Fort Wainwright in Fairbanks and at Fort Greely near Delta Junction. The U.S. Army, with approval of Congress, is contributing $176 million toward the project and is providing a Base Closure Guaranty.

According to AHFC CEO/Executive Director Dan Fauske, the Guaranty is an important consideration in making the long-term loan. The 40-year, 8 percent interest rate mortgage is to be repaid from the monthly rent payments made by the military families living in the new housing, he said. "Although current projections are for the number of Army personnel based in Alaska to remain stable in coming years, the Base Closure Guaranty will protect AHFC in the event of a base closure or personnel deployment of 30 percent or more," Fauske said.

Work on the military housing upgrade project for Forts Wainwright and Greely will take place in two phases. The initial phase covering the first seven years entails demolition of almost 800 inadequate homes, construction of 610 new ones, and extensive renovation of 150 existing homes. Subsequently, almost 1,700 homes will be rebuilt or renovated on Fort Wainwright and another 146 homes on Fort Greely over the life of the AHFC loan.

This project will be AHFC's fourth financing of military housing in Alaska. The first was for $54 million in the mid-1990s to build 366 housing units at Eielson AFB in Fairbanks. In 2001, AHFC provided a $48 million loan for the first phase of new housing at Elmendorf AFB in Anchorage and followed it up in 2004 with a $96 million loan for Phase II. All three have been paid as agreed and none remain in AHFC's loan portfolio.

Fauske said he is pleased that the board approved the AHFC staff's recommendations to finance both projects. "Whether it's the modest-sized commercial apartment venture in Anchorage or the need to provide housing for families of Army troops based in Alaska, financing quality rental housing is one of the critical ways we accomplish our mission.

"The AHFC team is proud to be a leader in the statewide network of government and non-government agencies that share the mission of providing Alaskans access to safe, quality and affordable housing," Fauske said.

In addition to financing single-family homes and multi-family housing projects, AHFC provides housing assistance to nearly 6,000 families statewide through the Housing Choice Vouchers and AHFC-owned rental housing. The public corporation provides special loan options for low- and moderate-income borrowers, veterans, teachers, health care professionals, and those living in rural areas of the state.

AHFC also administers the state energy and weatherization programs and special programs for the homeless and those seeking to become self-sufficient. AHFC has contributed more than $1.9 billion to Alaska's state budget revenues through annual cash transfers, capital projects and debt-service payments. The public corporation is self-supporting and has offices in 16 communities statewide. 

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