Committee hears bill to expand AIDEA's authority to finance multifamily workforce housing

On May 8 in Juneau, the House Community and Regional Affairs Committee took testimony on House Bill 184, which would expand the statutory purpose of the Alaska Industrial Development and Export Authority to explicitly include financing and facilitating construction of workforce housing facilities containing five or more dwelling units.

Representative Andy Story, the bill sponsor, told the committee the intent is to address Alaska’s shortage of rental multifamily housing and to give AIDEA a clearer statutory role in financing such projects. "This bill seeks to expand ADA's purpose in statute to do just that," Story said during his opening remarks (transcript wording retained as presented to the committee).

Real‑world developers and AIDEA officials described how financing currently works and where gaps remain. Sean Debenham, a multifamily developer from Anchorage, said the authority’s financing terms — longer amortizations and lower rates — can make projects feasible. "Having the ability to have ADA financing for multifamily in Alaska would be very beneficial to us," Debenham said. He told the committee that construction financing is a particular obstacle: local banks typically provide construction loans, while secondary market lenders do not.

AIDEA counsel and staff explained the agency’s existing tools. Mark Davis, AIDEA counsel, told the committee AIDEA can invest in commercial real estate and can participate in loan programs that support multifamily workforce projects. "We do not do the type of apartments that will be done by Alaska housing," he said, but added the authority can and does participate in or make direct loans in some multifamily cases and can offer longer terms and different rates than commercial banks.

Committee members asked whether AIDEA can or will make construction loans and whether the agency would underwrite and assume additional risk. AIDEA staff said the authority has both loan participation and direct lending paths, may work in consortia with banks or investment partners, and generally relies on two primary sources of collateral in multifamily deals: the building itself and a sweep of rents. AIDEA officials said it generally does not finance owner‑occupied condominium projects because individual mortgages leave little overall collateral for the developer.

Members also debated removing a statutory definition of "workforce housing" that would have tied eligibility to income thresholds derived from HUD median family income data; sponsor Story proposed deleting the income definition to avoid programmatic complications and to encourage more multifamily development.

The committee set the bill aside for amendment, with an amendment deadline of noon Monday, May 12. AIDEA told the committee it would provide follow‑up on whether removing the term "workforce" from statutory language would change the authority’s ability or willingness to participate.