Kenai Peninsula Housing Initiative seeks roughly 5 acres from city to expand senior and affordable housing; council introduces ordinance for public hearing

Dana Gregorra and Brandi (executive director) of the Kenai Peninsula Housing Initiative (KPHI) told the Kenai City Council the nonprofit needs an additional roughly 5.09 acres from a city-owned tract to compete for a time-limited funding opportunity and expand senior and low-income housing in Kenai.

KPHI’s request and the ordinance: The administration placed an ordinance on the meeting laydown to conditionally donate city-owned land described in the packet as subdividable parcels from an approximately 69.5-acre tract (identified in the packet as Kenai Meadows, Tract 1A per plat 2023-48). Gregorra said the requested parcel with right-of-way would total about 5.09 acres and would be used to increase the development footprint on an existing roughly 10-acre assemblage KPHI already holds in that area. KPHI said the full 10-acre assemblage would support up to 54 senior housing units and 54 low-income multifamily units when fully developed.

Funding and timing: KPHI said the additional land would let the nonprofit apply for a Federal Home Loan Bank funding round the group has not used previously. Gregorra said the application period for that funding opportunity runs from April 1 to April 30 and that the timing is why the administration sought to add the ordinance as a laydown item for tonight’s meeting so it could be introduced and then scheduled for public hearing at the council’s April 16 meeting.

How many units and need: Gregorra said KPHI operates 31 rental properties across the peninsula with 155 occupied units and is currently developing four additional properties that will add 26 units. She said the Kenai wait list for KPHI properties contains 62 people. For the parcel they are ready to break ground on now (Lot 4), Gregorra said the project includes 12 senior units and 8 low-income units.

Rents, income certification and funding model: Council members asked how rents are set and how tenant eligibility is certified. Gregorra said rents on restricted units are set using HUD rent limits tied to income limits (30%, 50% or 60% of area median income depending on the specific funding), and that tenants must be income-certified; many tenants use the Alaska Housing Choice Voucher Program for rent assistance. Brandi, KPHI’s executive director, said residents are re–income-certified annually and that if a household’s income rises above program thresholds the household is charged the lesser of 30% of adjusted monthly income or market rent as required by funding rules.

Council action: Councilmember Raskin moved to introduce the ordinance and schedule the public hearing for April 16. The motion was seconded and, by unanimous consent (no objection), the ordinance was introduced and the public hearing scheduled for April 16, 2025. The packet referenced an ordinance number on the laydown; the ordinance number was read into the record inconsistently during the meeting (see audit note). The administration clarified that a formal motion to introduce and set a hearing date was required and was made at the meeting.

Why it matters: KPHI said donated land is a critical competitive advantage when applying to constrained affordable housing funding sources and that donated city land has enabled prior developments that provide restricted rent units for seniors and low-income households on the Kenai Peninsula.

Ending: KPHI representatives thanked the council and administration staff for prior land donations, discussed collaboration with planning and zoning staff, and said they will pursue the Federal Home Loan Bank funding opportunity if the land donation proceeds to public hearing and subsequent council action.