AHF - 2022 Annual Report

Faces of Alaska Housing 2022 Annual Report

Our Mission

Provide Alaskans Access To Safe, Quality, Affordable Housing

Alaska Housing Finance Corporation is a self-supporting public corporation in 13 communities statewide. Alaska Housing provides financing for multi-family complexes and single-family homes with loans and options for low- to moderate-income borrowers, veterans, teachers, nurses, public safety officers and those living in rural areas. AHFC also provides energy and weatherization programs, low-income rental assistance in 16 communities, and programs for those who are homeless and those seeking to become self-sufficient. Since 1986, Alaska Housing has contributed more than $2.19 billion to Alaska’s state budget through cash transfers, capital projects and debtservice payments. As of the end of Fiscal Year 2022, assets totaled $4.24 billion.

On the Cover: Stephanie and her daughter Tiamiaq, residents of AHFC family housing in Fairbanks. Photo by Kathleen Behnke. Photo Credits: Kathleen Behnke, First Bank, Philip Hill, Madison Smith. This publication was released in electronic format but is available upon email request to newsdesk@ahfc.us. Printing would have cost an estimated $11 per unit.

Letter to the Governor

Dear Governor Dunleavy and Lieutenant Governor Dahlstrom:

Fiscal Year 2022 represented a time of transition for Alaska Housing Finance Corporation. After two years of navigating the COVID-19 pandemic, we moved from managing crises to aiding in recovery. By connecting people to vital resources, our efforts have helped to improve the lives of Alaskans and strengthened our statewide communities.

The past year demonstrated the value of innovation and building meaningful partnerships. In collaboration with our statewide partners and nonprofit organizations, we continued to administer the federally funded Alaska Housing Rent Relief, providing nearly $262 million in federally funded assistance to renter households financially affected by COVID-19 to help them avoid eviction and serving 66,476 Alaskans as of June 30, 2022.

In February 2022, we were the first in the country to expand our rental assistance work to provide resources and housing for those who are homeless. Alaska Housing Stabilization and Recovery began using federal funds provided by U.S. Treasury. This comprehensive system uniquely addresses the intricacies of homelessness and provides a highly coordinated approach benefitting individuals and families, and is being replicated across the country. In the last two quarters of the year, 825 households had been assisted, including 175 who are younger than 18 years old.

In March 2022, we launched Alaska Housing Homeowner Assistance with $50 million available in federal funding to help Alaskans avoid foreclosure. Nearly 11,000 applications were received and funds began to be disbursed in June 2022. The power of our partnerships was again highlighted by Alaska’s mortgage servicers who unquestionably delivered relief to their borrowers faster than those who operate outside of our state.

Among the additional accomplishments achieved in Fiscal Year 2022:

Our dividend to the State of Alaska is $23.4 million and available for capital projects prioritized by you and the legislature, including community housing investment;

• Maintained high ratings among Wall Street’s national rating agencies, validating AHFC among the most financially strong in the country;

• Purchased 1,683 residential home loans valued at more than $515 million;

• Approved 132 condominium associations across the state for AHFC financing, representing 4,793 units eligible for an AHFC home loan;

• The foreclosure rate remained low at 0.16% and the delinquencies 30+ days dropped from 4.63% in Fiscal Year 2021 to 3.65% in Fiscal Year 2022;

Provided subsidy for an average of more than 12,000 Alaskans each night through AHFC’s Public Housing and voucher programs, and contributed more than $3 million each month to private sector landlords;

Completed energy efficiency improvements on 224 homes through Weatherization, reducing average energy consumption by 29% and relieving families from burdensome utility costs.

Together we have developed a solid foundation for Alaska’s recovery from the COVID-19 pandemic. As we look to the future, we will continue to work collaboratively with one unified goal – to provide safe, quality, affordable housing to Alaskans. We look forward to working with you.

Bryan D. Butcher Brent LeValley CEO/Executive Director Chair

The Honorable Michael J. Dunleavy The Honorable Nancy Dahlstrom Governor, State of Alaska Lieutenant Governor, State of Alaska

Board of Directors & CEO

Brent LeValley Board Chair

Vivian Stiver Business Owner Fairbanks

Jess Hall Hall Quality Homes Mat-Su

Heidi Hedberg Commissioner, Department of Health

Adam Crum Commissioner, Department of Revenue

Julie Sande Commissioner, Department of Commerce, Community & Economic Development

Bryan Butcher CEO & Executive Director Alaska Housing Finance Corporation

Homeownership

Bringing Homeownership Within Reach for Alaskans

For many people, owning a home is realizing a dream. Alaska Housing remains committed to ensuring individuals across the state have opportunities for homeownership that are within reach. That’s why we have worked with a variety of partners to ensure Alaska residents have as many options as possible for homeownership.

Alaska Housing has mortgages designed specifically for Alaskans. We provide homebuyer education classes that help Alaska residents better understand the homebuying process. We have relationships with lenders who prioritize finding the right housing loan for Alaskans.

We recognize that every person’s situation is unique. Alaska Housing is here to provide opportunities to recognize their dreams of homeownership.

Alaska Housing offers many types of loans to meet the needs of Alaskans. We work closely with mortgage companies, credit unions, local banks, and certain nonprofit agencies to provide borrowers with options to choose an Alaska-based lender.

Alaskans Fulfilling a Dream

Alaska Housing celebrated National Homeownership Month in June, a time to reflect on what it means to own a home and the steps it takes to get there.

From loans that specifically meet the needs of Alaskans to homebuyer education courses and providing COVID-19 relief funds that helped individuals remain in their homes, AHFC continues to be a resource for people looking to find the home of their dreams.

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‘They Helped Me Change My Life’

When Kristina moved to Alaska seven years ago, she was single and pregnant with nothing more than a suitcase and her dog.

She applied for public housing through AHFC, then acquired a Housing Choice Voucher to rent a home with a fenced yard through the Step program. Soon after, she began participating in Alaska Housing’s Jumpstart Program to continue her path to financial self-sufficiency.

Before long she was completing the HomeChoice™ homebuyer education course and on her way to buying a home of her own.

Alaska Institutions Lead the Way for Assistance

Alaskans have a reputation for taking care of each other, a trait that has been evident throughout the COVID-19 pandemic.

We saw an incredible example this year, as Alaska-based Mortgage Servicers were at the forefront of distributing federally-funded Alaska Housing Homeowner Assistance.

Alaska Housing worked closely with Mortgage Servicers from Alaska-based institutions to develop innovative solutions that allowed federal dollars from the Homeowner Assistance Fund to quickly be dispersed to Alaskans financially impacted by the pandemic.

Click to Find Out More

Click to Read Kristina’s Story

Community Development

Innovation Impacts the Lives of Alaskans

Innovation has become more than just another buzzword for the Planning and Program Development team at Alaska Housing — it’s a way of life.

Since the beginning of the COVID-19 pandemic, Alaska Housing worked with federal and state governments and collaborated with partner organizations to develop programs to meet the specific needs of Alaskans. This required creativity and ingenuity across a wide spectrum of housing-related topics.

Alaska Housing Rent Relief provided assistance for individuals financially impacted by the pandemic and began to wind down in 2022. At the same time Alaska Housing Homeowner Assistance began to provide funds for mortgage and/or utility expenses. Housing Stabilization and Recovery was launched in February 2022 to help homeless Alaskans get off the streets and into longer-term housing.

As interest rates rose for home loans, housing inventory tightened and the cost of rent climbed. The Planning and Program Development team continued to look for opportunities to develop affordable housing across the state. That included support of housing projects in Anchorage, Bethel, Mat-Su Valley, and Nome. It also provided housing options for critical workforce professionals in education, healthcare, and public safety.

The Planning and Program Development Department provided grants to and partnerships with organizations across the state in developing affordable housing. It included leading the distribution of millions of dollars in federal funding for renters and homeowners financially impacted by the COVID-19 pandemic. And it included collaborating with agencies and nonprofits around Alaska to assist individuals facing homelessness.

Supporting Military Personnel

In September 2021, Alaska Housing announced a new loan opportunity for investors looking to finance two- to four-unit residences in Alaska’s Military Facility Zone located in North Pole. The loan was designed to provide developers with a tool to build multi-family homes that can support the growing population of military personnel and their families at Eielson Air Force Base. The new loan opportunity was made possible through Alaska House Bill 316 that was passed into law in 2012, which included a stated goal to “promote expansion of infrastructure to benefit both military and civilian objectives.”

An Innovative Approach to Housing Homeless

Alaska Housing was looking for a forward-thinking, holistic approach to providing stable housing for the state’s homeless population. As Alaska Housing Rent Relief began to wind down, AHFC saw an opportunity to use Emergency Rental Assistance funds to assist Alaskans in need.

The Housing Stabilization and Recovery program was launched in February 2022, with a goal of getting people off the streets, out of shelters and into stabilized housing. Housing navigators then could work with clients to find a longer-term housing situation.

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Meeting a GOAL for Low-Income and Senior Housing

Alaska Housing’s Greater Opportunities for Affordable Living (GOAL) provides grants, loans, and federal tax credits to developers and project sponsors who build affordable rental housing for Alaskans who meet criteria. The funds are provided through a combination of federal and state contributions. In 2022, GOAL funds were awarded to six organizations to build permanent supportive housing and housing for low-income seniors:

Bethel Community Services — Housing First Cordes, LLC — Valdez Senior Housing Associates

• Nome Community Center — Home Plate

• Providence Health (Cook Inlet Housing Authority) — Providence Alaska House

• Swell, LLC — Centerpoint

• Wasilla PSH Associates II — Bridgeway II

Click to Learn More

Community Support

Building New Lives for Alaskans Through Housing

For many Alaskans, public housing offers more than just a place to live. It’s a place where resources are available that can lead them to financial independence. It’s a place where they can discover the pathway to a new career with educational scholarships and job readiness training. It’s a place that provides hope for people across the entire spectrum of our state’s population from senior citizens to veterans, survivors of abuse to youth leaving foster care.

The success stories are all around us. Individuals who began in public housing and have built new lives thanks to Alaska Housing programs and resources. Kids who have opportunities to learn and grow through summer camps and activities. In 2022, our public housing department remained committed to meeting the urgent and critical needs of families and individuals as a safety net, while providing opportunities for the future.

The Public Housing Department continued work toward our mission of providing safe, quality, affordable housing to Alaskans.

Choosing Her Own Path

Tabatha was a single mother of a child diagnosed with special needs and was struggling to make ends meet. A resident of public housing operated by AHFC, she reached out for help as challenges mounted.

Tabatha was able to use Alaska Housing resources to find a new housing situation and develop a plan for financial independence. She also took advantage of an Alaska Housing Education Scholarship to earn her nursing degree and in 2022 started a new job in the medical field.

Click to Read Tabatha’s Story

Alaska Education Scholarships

Education can be a pathway to success for many individuals. After a career in the military, Philip made it his mission to get a college degree and find a job to support his family. As a single father who was receiving rental housing assistance, Philip was eligible for an Alaska Housing Education Scholarship.

He has made the most of the opportunity, receiving his associate’s, bachelor’s and master’s degrees. He also enrolled in a Certificate in Executive Leadership program that he expects to complete in December 2022 and then begin pursuing work in global supply chain management.

Click to Read Phillip’s Story

Click to Watch the Video

Flying High at Summer Camp

For 13-year-old Owen and 11-year-old Lillian, Alaska Housing provided an opportunity to soar this summer. The siblings attended Alaska Aviation Museum’s week-long aviation camp in June through Alaska Housing’s federally funded Youth Summer Camp & Activity Scholarship.

Scholarships offer youth safe options for working families in public housing. Since it began in 2011, more than $350,000 in scholarships have been provided to 1,164 Alaska youth.

Click to read Owen’s and Lillian’s Story

Energy & Research

Innovative Solutions to Housing Challenges

Living in Alaska often requires an ability to think creatively and develop innovative solutions to challenges unique to our state. That can be particularly true when it comes to housing — whether due to extreme climate conditions, remote locations, or the high cost of materials.

Alaska Housing’s Research and Rural Development department is committed to identifying innovative opportunities that can improve access to and enhance the energy efficiency of housing. The team takes a multi-disciplinary approach to reaching that objective, including:

• Educating the public about energy efficiency topics and available resources;

• Providing innovative energy efficiency technologies that can benefit facility managers;

• Funding weatherization projects to improve efficiency and reduce costs to homes — in Fiscal Year 2022, 224 homes were improved by weatherization projects;

• Researching future construction modalities to enhance energy efficiency, reduce costs, and increase production opportunities.

Working with partners throughout Alaska, the Research and Rural Development department is helping make a difference today and in the future.

BMON System is Energy Innovation at Work

Alaska’s weather conditions can be a challenge for facility managers, particularly during winter months. Alaska Housing has developed a collaborative software/hardware solution that works to track critical facility maintenance data.

Known as the Building Monitoring (BMON) system, it provides data that is available to building managers at any time. This can help ensure facilities are operating as efficiently as possible during normal operations but also can identify and solve issues from anywhere.

In one example, facility managers at a Nome public housing location were able to resolve an issue remotely, preventing a mechanical freeze that would have been problematic for residents.

Providing Energy Efficiency Education for Alaskans

Alaska Housing serves as a resource for residents looking to improve energy efficiency in their homes.

That includes programmatic efforts across the state, as well as web-based information resources that can help Alaskans ensure their homes are as energy efficient as possible.

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Empowering Alaska Borrowers with Information

For Alaskans looking to buy a home, having as much information as possible can help them make the best possible decision.

Now, additional information has become available that provides the most recent energy ratings for a house on the market.

Alaska Multiple Listing Service has integrated its database of homes for sale with AHFC’s Alaska Retrofit Information Systems database, commonly known as ARIS.

This allows real estate professionals and prospective homebuyers to identify a home’s energy performance. Because more energy efficient houses can save homeowners money each year, this is important information for prospective buyers.

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Telling Our Stories

Making a Difference Every Day for Alaskans

Alaska Housing employees spent the last year helping to improve the lives of Alaskans. In every corner of the state, their hard work, dedication, and innovation has made a difference in the communities they serve.

The work has spanned a wide spectrum of housing-related topics. That included new opportunities such as Alaska Housing Homeowner Assistance, which provided federal funds to assist homeowners financially affected by the COVID-19 pandemic. The past year saw the development of Alaska Housing Stabilization and Recovery, an innovative new approach to assisting individuals facing homelessness. Both programs have relied on partnerships and collaboration with organizations to ensure their success.

Throughout the state our employees provided rental assistance that offered an opportunity for safe, quality, and affordable homes. They taught homebuyer education courses, giving individuals looking to buy a home valuable information about the process. They worked to keep mortgage loan programs updated and relevant so our partners could offer the best possible mortgage loans for people buying new homes or renovating their existing ones.

They maintained facilities, shared technology to make buildings more energy efficient, partnered with public and private entities to develop new housing options, and provided scholarships for educational opportunities as well as youth camp experiences.

Regardless of their roles or their job titles, Alaska Housing employees have made a positive impact on our state. We are grateful to them for all they do, each and every day.

Tackling Big Ideas to Help Alaskans

When Chelsea Arthur was looking for a new career challenge, she found that and more when she began working for Alaska Housing in January 2021.

One of her first assignments was helping shape Alaska Housing Rent Relief. She followed that with the development of Alaska Housing Stabilization and Recovery, an innovative new opportunity to help Alaskans facing homelessness.

“While the programs are different, they share something important that is truly impactful – almost surreal –knowing that our efforts, individually and collectively, are providing an avenue for safe housing,” Chelsea says.

In October 2022, Chelsea continued her career progression when she was named Operations and Development Manager at the Alaska Corporation for Affordable Housing (ACAH). A subsidiary of AHFC, the Alaska Corporation for Affordable Housing was created by the state legislature in 2011 to develop, manage, and operate affordable housing.

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Meeting Community Needs in Valdez

Michelle has managed AHFC’s public housing in Valdez for the past 15 years, which has given her insight into the needs of the community. As the only public housing employee in a small town, she gets to know her clients well and understands what is needed to assist them.

That drive to help others led her to join the local food bank, which furthered opportunities for collaboration between organizations to maximize resources.

“I like helping people,” Michelle says. “I’m drawn to that – meeting their basic needs.”

Worth His Weight in Gold

When Derrick Chan earned recognition in 2017 for his contributions to Alaska through the Governor’s Denali Peak Performance Awards Program, the nomination found a unique way to measure the value he brought to AHFC’s planning department. It noted that Derrick had found new revenue streams, secured private capital and reduced operating costs that amounted to his weight in gold – literally.

After three years in planning, Derrick moved to the finance department in 2017. His advice to new AHFC employees: “Work hard, have fun! You’re going to enjoy it here.”

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The Bottom Line

Operating Income Remains Strong

Alaska Housing continued to demonstrate a strong financial position in Fiscal Year 2022 with a net operating income of $2.23 million and a total net position of $1.6 billion as of June 30, 2022.

The value of Alaska Housing’s mortgage loan portfolio stood at $2.99 billion, while its bond portfolio that is used to finance the mortgage loans was $2.19 billion in FY 2022.

Energy Efficiency Loan Update

The Energy Efficiency Revolving Loan was created in 2010 by the Alaska Legislature when it passed Senate Bill 220. The Bill allows AHFC to go to Wall Street and bond for up to $250 million, providing financing for permanent energy efficient building improvements owned by regional educational attendance areas, University of Alaska, the state, or municipalities. Savings from improvements are used to repay the loan. No activity reported during FY22.

Alaska Housing Bond Issuance

AHFC issued $322.8 million in Fiscal Year 2022. That included:

• $122.8 million in General Mortgage Revenue Bonds II, Series A and B issued on January 12, 2022

• $200 million in State Capital Project Bonds II, 2022 Series A issued on June 1, 2022

Alaska Housing’s economic strategy is to redeem debt when it is beneficial to do so, much like a homeowner might refinance their loan to benefit from lower-cost debt. AHFC had $392.28 million in bond redemptions in Fiscal Year 2022.

In Good Standing with Wall Street

Alaska housing general obligation credit ratings remained strong in Fiscal Year 2022. In May 2022, S&P Global Ratings reaffirmed the AA+ issuer rating of the Corporation, based on several factors including:

• Very strong capital adequacy analysis

• Very large balance sheet

• Extremely strong financial position

• Extremely strong management and legislative mandate assessment

More information about Alaska Housing’s Fiscal Year 2022 financial information, as well as previous years, is available on our website.