The Kenai City Council on Tuesday approved a cooperative agreement with a tribally designated housing entity that seeks to build senior housing and purchase existing apartments for low‑income housing.

City Attorney Bloom explained the structure: the federal funding the entity will use requires coordination with local taxing jurisdictions, typically a payment in lieu of taxes or an agreement limiting use to eligible populations. Bloom told the council the projects must be used "only for senior housing and only for low income housing" under the agreement and meet specific income thresholds or they would become taxable. He also said similar projects in the borough typically qualify for borough tax exemption.

The council asked whether the units would be reserved only for tribal members; Bloom said the senior housing is intended for tribal seniors but that he did not have full details about eligibility for the low‑income project. City Manager Eubank added that the property the entity plans to purchase is currently private multifamily and would not require zoning changes for conversion to low‑income housing.

Bloom noted the borough assembly had already authorized its mayor to sign an equivalent agreement. Councilors framed the action as consistent with prior council practice in supporting low‑income housing and noted the city has previously donated land for affordable housing projects.

The resolution was adopted by unanimous consent. Council members asked staff to continue discussions with the tribal entity and to return with any additional clarifications on eligibility and long‑term operations.