AHFC loans assure affordable housing

PALMER — Alaska Housing Finance Corp. is providing big money for multi-family housing in Alaska.

Alaska Housing Finance Corp. (AHFC) recently gave the go-ahead for two term-loan financing agreements that amount to about $3.2 million for multi-family housing in Palmer and New Stuyahok.

Sherrie Simmonds, corporate communications officer for AHFC, said the multi-family housing project in Palmer is a pre-existing property that includes 36 apartments. AHFC is providing a loan, which it buys from a bank, to a private investor for about $2 million.

The loan and housing fall in line with the corporation’s purpose to maintain and improve affordable housing options.

“The rental housing market is an important part of our economy, and we want to make sure there is affordable rental housing available,” Simmonds said.

AHFC provides similar long-term loans through its Multi-Family Loan Purchase Program. For the housing in Palmer, AHFC is supplying a loan that covers 80 percent of the project’s total cost.

Jeff Briley, a property manager for Re/Max Property Management, said the housing consists of 36 apartments located in six units. The apartments include two bedrooms, new wood flooring and new vinyl siding. The building is located at 305 North Valley Way near downtown Palmer.

“It’s a quiet, clean and nice community,” Briley said.

The property manager said the housing was built in 2000 and updating the interiors and exteriors of the units will provide a modern and comfortable place to live. With average monthly rents of $750, the apartments are affordable, he said.

Although the new owner, George Ostermiller, was unavailable for comment by press time, Briley said Ostermiller lives in Hawaii, but decided to buy here after seeing a good investment opportunity in the Valley.

In addition to the Palmer housing, AHFC is has also issued $1.2 million in two term loans for the New Stuyahok Traditional Council, the corporation reports. The loans will be used to build 12 housing units for teachers in New Stuyahok — a Bush community located in Southwest Alaska.

Simmonds said AHFC began a teacher housing program five years ago after learning about a shortage of housing in Bush areas. With a lack of places to live in remote areas of Alaska, those who get sent to work in these communities, like teachers and nurses, often end up sleeping on floors at local schools or community centers, she said.

“It’s a grant program that we specifically set up to make more housing available in rural communities,” Simmonds said.

Along with the loans, AHFC is also providing state and federal grants to the Southwest Regional School District and New Stuyahok council to help cover additional costs associated with the project.

Both of the multi-family housing loans are 30-year finance commitments that have fixed monthly payments. For more information about Alaska Housing Finance Corporation, visit www.ahfc.state.ak.us, or call (907) 338-6100.