SOURCE: Alaska Housing Finance Corporation

April 18, 2008 20:06 ET

Teacher Housing for New Stuyahok and Rental Housing for Palmer Receive AHFC Financial Backing

ANCHORAGE, AK--(Marketwire - April 18, 2008) - Alaska Housing Finance Corporation (AHFC) received approval from its board of directors in late March to proceed with issuing term-loan financing commitments for multi-family housing proposals in two Alaska communities. The commitments are enabling both projects to move forward with their proposed operations.

The first consists of $1.2 million in two loans to the New Stuyahok Traditional Council for the development of 12 units of new teacher housing in New Stuyahok, located about 50 miles northeast of Dillingham in Southwest Alaska.

The second consists of a loan of just under $2 million to a private investor for the purchase of an existing complex of 36 family apartment units in Palmer.

The financing commitments for both multi-family housing investments consist of 30-year loans with fixed monthly payments.

The housing units being built this summer in New Stuyahok will be rented to teachers, and a lease with the Southwest Region School District will be used to repay the mortgage loans.

In addition to the loans, the New Stuyahok council and school district were awarded grants under the state/federal teacher housing grant program administered by AHFC. The grants are necessary to bridge the gap between the high cost of construction in remote Alaska and the amount of supportable financing for the twelve units.

Timely approval of the loan by AHFC's board was essential for the contractor to get the building materials aboard the barge to arrive in New Stuyahok in time for this year's construction season. The new teacher housing is scheduled to open later this year, in conjunction with the community's new public school building.

Regarding the Palmer multi-family housing loan, AHFC financing requires the investor to ensure that the apartment complex meets Alaska Building Energy Efficiency Standard (BEES) and that the housing units pass a required health and safety inspection.

Dan Fauske, Executive Director/CEO of AHFC, said that both projects are consistent with AHFC's mission to provide Alaskans access to safe, quality, and affordable housing. He said he is particularly pleased about the teacher housing for New Stuyahok.

Fauske has lived in Alaska's rural areas and knows firsthand how difficult the challenge is for communities to recruit and retain teachers. AHFC's teacher housing program, which started just five years ago, has been very successful in helping local school districts meet the challenge, Fauske said.

He also noted that the Mat-Su Borough's population has been the fastest growing in the state and families will need safe, quality rental housing. AHFC's long-term financing commitment of the 36-unit complex helps meet this need.

AHFC is a self-supporting public corporation with offices in 16 communities statewide. It provides statewide financing for multi-family complexes, congregate facilities, and single-family homes, with special loans for first-time home buyers, low- and moderate-income borrowers, veterans, teachers, nurses, public safety officers, and those living in rural areas of the state. AHFC also provides energy and weatherization programs, low-income rental assistance in 17 communities, and special programs for the homeless. Since 1986, AHFC has contributed more than $1.5 billion to Alaska's state budget revenues through cash transfers, capital projects and debt service payments.

For more information about the multi-family housing loans discussed in this news release, or for more information on AHFC, contact Corporate Communications Officer Sherrie Simmonds at 907-330-8447 or ssimmond@ahfc.state.ak.us.

Contact Information

  • Contact:
    Sherrie Simmonds
    Corporate Communications Officer
    907-330-8447
    Email Contact