Sen. Dunbar renews push to let Alaska Industrial Development & Export Authority finance workforce housing

Senate Bill 14, sponsored by Sen. Forrest Dunbar, would add workforce housing financing to the statutory powers of the Alaska Industrial Development and Export Authority (AIDEA), allowing the authority to provide or facilitate loans for multifamily housing developments of five or more units.

The bill’s sponsor said the change would give developers another financing option to build housing that costs occupants less than 30% of household income for households earning up to 120% of area median income, as determined by HUD. “This bill is by no means a silver bullet. It's just one more tool, hopefully in the toolbox to allow people to access financing and build housing,” Dunbar said.

The bill’s sectional, delivered by staffer Halen Behnken, would add new subsections to statutes governing AIDEA’s purpose and powers and expand the statutory definition of “development project” to include workforce housing facilities with five or more dwelling units. Behnken read the proposed statutory language to the committee, saying workforce housing would be defined by the income and cost thresholds described above.

Local and academic witnesses told the committee the financing option could address persistent shortfalls in multifamily housing. Anna Brawley, an Anchorage Assembly member, said Anchorage has not produced multiunit housing without significant subsidy for at least a decade and described multifamily housing as “a starter home for young adults” and a key missing piece in the local housing market. Rochelle Johnson, research and technical assistance director at the University of Alaska Center for Economic Development, presented statewide data showing new housing construction has slowed and said AIDEA loans could provide “patient capital” that improves the margins on marginally feasible projects.

Senators questioned whether the bill would require AIDEA to act; Dunbar said it would not. “They're not required to,” he said, noting the bill clarifies AIDEA’s authority and encourages its use. Committee members also raised the possibility of competition with private lenders; Dunbar and witnesses said multifamily construction—particularly outside major urban centers—is often hard to finance in the private market.

Testimony indicated both AIDEA and the Alaska Housing Finance Corporation (AHFC) discussed the bill with the sponsor during the interim and do not oppose it; AHFC director of government relations Stacy Barnes said AHFC participates in multifamily development through tax credit administration, grants and loans and that cooperation between the agencies is common in construction and long‑term financing.

With no recorded vote, the Senate Labor and Commerce Committee set SB14 aside for further consideration.

The bill would change multiple statutory sections governing AIDEA’s purposes and powers and add a statutory definition of workforce housing tied to HUD area median income calculations, and it would apply to projects with five or more dwelling units.

If advanced, the bill would allow AIDEA to deploy financing tools that supporters say could be especially useful in smaller or off‑road communities that lack private financing options.