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Bill would clarify ADA authority to finance workforce multifamily housing, sponsors say
Summary
Representative Andy Story told the House Labor and Commerce Committee that House Bill 184 would make clear the Alaska Industrial Development and Export Authority may finance construction of workforce multifamily housing projects of five units or more.
Representative Andy Story introduced House Bill 184 to the House Labor and Commerce Committee, saying the bill would clarify that the Alaska Industrial Development and Export Authority may use its loan participation program to finance construction of workforce multifamily housing containing five units or more.
“New workforce housing facilities containing five units or more are some of the greatest community needs,” Representative Andy Story said, arguing the shortage of rental housing harms businesses and causes outmigration. The sponsor described the measure as a way to enable ADA to deploy finance tools other states use to stimulate construction.
Michelle Brown, executive director of Housing Alaska Public Private Partnership, testified in support and told the committee HB 184 would let ADA evaluate “a wide array of innovative financing tools” such as government-backed loans, longer-term lending and mezzanine financing to close the gap between construction costs and rents the market can bear. Brown said such tools could “help lower both the upfront and the long term cost of housing development.”
Stacy Barnes of the Alaska Housing Finance Corporation told members AHFC already offers long-term multifamily financing but does not generally do construction financing; she said AHFC has a portfolio of multifamily loans and would need to consult mortgage and finance staff about construction lending.
Mark Davis of ADA confirmed the authority has financed employer-linked housing projects, including work camps in Prudhoe Bay, and said the bill would provide statutory clarity to pursue revenue-bond financing and other revenue-bearing structures that ADA sells in the marketplace.
Committee members asked whether ADA’s involvement would detract from its core industrial-development mission; Davis said revenue-bond financing for larger projects would not materially affect ADA’s balance sheet because such bonds are sold externally. No formal committee vote on HB 184 was recorded in the hearing.
Supporters said the bill aims to leverage ADA capital to expand multifamily workforce housing across Alaska, particularly in communities where rising rents and low vacancy rates constrain employer hiring.
