Before adjourning for the year, Alaska legislators finalized plans to allocate millions of dollars toward housing projects statewide to address the ongoing housing shortage that residents have been grappling with. Alongside approving several housing-related bills promoting home ownership, these plans have yet to be forwarded to Governor Mike Dunleavy for approval or veto.
Central to this effort is the state-owned Alaska Housing Finance Corporation (AHFC), which oversees housing operations and extends home loans across the state. Last year, lawmakers sanctioned over $63 million for AHFC projects within the state’s capital budget, covering construction and renovation endeavors across Alaska. This year, the allocation surged to $77.2 million, with a substantial portion sourced from the state’s general-purpose spending account.
Bryan Butcher, CEO and executive director of AHFC, highlighted that the corporation’s programs are typically funded from its dividends paid to the state annually. This year, the dividend doubling to almost $48 million due to increased utilization of AHFC programs by Alaskans seeking lower interest rates for new homes has caused a notable uptick in activity.
Additionally, Governor Dunleavy proposed a $25 million down payment assistance program for new homebuyers in his State of the State address, although the legislature opted not to fund it directly. Instead, most of this allocation was directed towards AHFC, augmenting housing projects for public workers in rural Alaska.
This financial infusion, coupled with AHFC’s dividend, translates into intensified efforts towards housing initiatives. For instance, a previously inactive new-home rebate program received a $7 million boost, estimated to facilitate the construction of up to 700 new homes.
AHFC’s weatherization program, aimed at enhancing homeowners’ energy efficiency, will receive $25.5 million, an $8 million increase from the initial request. Additionally, legislative actions included the passage of House Bill 273, allowing AHFC to reduce the down payment required from first-time homebuyers, and Senate Bill 205, permitting AHFC to purchase a maintenance building in Anchorage to improve efficiency and address housing upkeep issues.
Another bill directs AHFC to establish a subsidiary acting as a “green bank” for renewable energy projects, potentially unlocking federal funding opportunities.
While these bills await gubernatorial approval, the state’s operating budget, including funding for AHFC projects, has already been transmitted to Governor Dunleavy. The governor has until June 28 to announce any vetoes or legally sign the budget.
