Legislature(2025 - 2026)BARNES 124
04/29/2025 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB133 | |
| HB47 | |
| HB184 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 184 | TELECONFERENCED | |
| += | HB 133 | TELECONFERENCED | |
| += | HB 47 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 184-AIDEA FINANCE WORKFORCE HOUSING DEVELOP.
8:29:21 AM
CO-CHAIR MEARS announced that the final order of business would
be HOUSE BILL NO. 184, "An Act relating to the Alaska Industrial
Development and Export Authority; and relating to workforce
housing development projects."
8:29:50 AM
REPRESENTATIVE ANDI STORY, Alaska State Legislature, as prime
sponsor, gave a recap of HB 184 from the following prepared
remarks [original punctuation provided]:
As we discussed in our first hearing of this bill on
Thursday April 24th, Alaska is facing a housing
crisis, and a shortage in building of certain kinds of
multi-family housing construction of 5 dwellings or
more. This is typically higher-density rental housing
units or condominiums for many residents who make up a
large part of our workforce. Businesses report having
difficulty hiring personnel and residents report lack
of housing as a stress and a factor in making a
decision to leave or stay. This lack of housing is
hindering the growth of our economy. It is a necessity
that more housing is built in Alaska.
This bill allows the Alaska Industrial Development and
Export Authority (AIDEA) to provide loans for housing
construction of 5 or more dwelling units that cost the
occupant less than 30 percent of their income, of
those making 120 percent of the area mean income as
determined by United States Department of House and
Urban Development (HUD). It was asked in the first
hearing how the numbers in section 5 defining
workforce housing was determined. The 30 percent is
derived from HUD's understanding of what constitutes
"affordable", in that rent should constitute no more
than 30 percent of a household's income. The point
that Rep. Ruffridge made about this not being
affordable for the average person is mostly accurate.
Stacy Barnes from Alaska Housing Finance Corporation,
in response to committee questions, sent a chart with
these corresponding rent caps to the Committee, which
you should have before you. If the committee wants to
amend those numbers to something more accessible to a
wider income group, I am open, and the sponsor of the
companion bill in the Senate is also agreeable. The
focus of this bill is workforce housing for
individuals and families of 5 or more dwelling units,
which is typically rental units or condos.
The housing problem in Alaska is primarily that new
builds of multi-family housing are just not happening.
I have a couple articles to hand out for the committee
about this problem. Affordability is also a problem.
AIDEA stated that they have already had discussions
about the need for funding of multi-unit housing
projects with some municipalities. The Authority is
well-situated to provide these loans through their
loan participation program. AIDEA says that they
already have the ability to finance workforce housing
but haven't done so in a long time. This bill
specifies loans for workforce housing in statute and
would contribute to AIDEA's goal of developing more
industry in Alaska by meeting industry's housing needs
for a healthy workforce. It would also incentivize the
construction of these much-needed developments.
I believe this is an investment of AIDEA state
resources that most Alaskans would strongly agree
with, and I urge your support of HB 184.
I have two invited testifiers today: Brian Holst,
Executive Director with n the Juneau Economic
Development Council; and Michele Brown, Program
Manager for Housing Alaskans.
I also have Brandon Brefczynski, Deputy Director for
Alaska Industrial Development and Export Authority,
and Stacy Barnes, Director of Governmental Relations
and Public Affairs for Alaska Housing Finance
Corporation, available online for questions.
I want to thank Co-chairs Himschoot and Mears for
allowing me to bring this bill before the committee
today and again ask committee members for your support
of House Bill 184.
8:35:21 AM
JAMES HOLST, Executive Director, Juneau Economic Development
Council (JEDC), said Alaska's persistent shortage of affordable
workforce housing is a major barrier to economic growth and
community stability. He spoke to why the bill is needed,
explaining that Alaska's housing crisis is well documented with
Juneau's rental vacancy rate at 4 percent, well below a healthy
market rate of 5-8 percent indicating that demand far outweighs
supply. Across the state, construction of new housing has not
kept up with demand, especially for multi-family rental units
that serve working families. High development costs often more
than double those in the Lower 48 meaning that many workforce
housing projects do not pencil out with additional financing
tools. This shortage contributes to the ongoing outmigration
and workforce challenges in Alaska. For 12 consecutive years,
more people have left the state than have moved in. He shared
statistics related to outmigration and nonresident workers, a
population that is at an all-time high, specifically in
construction and the oil and gas industries. He said the
tools in HB 184 would enable Alaska Industrial Development and
Export Authority (AIDEA) to bridge financing gaps, reduce
project risks, and make workforce housing projects more likely
to be built.
8:39:35 AM
REPRESENTATIVE RUFFRIDGE asked what affordable housing looks
like in terms of rental rates.
MR. HOLST said the definition of workforce housing in HB 184
defines affordable housing as 120 percent of median household
income, which is about $80,000-$90,000.
8:41:29 AM
REPRESENTATIVE RUFFRIDGE said 30 percent of area median income
(AMI) is a big number in many areas of Alaska. He asked Mr.
Holst what "affordable" means to him in terms of rental prices,
as well as the cost of homes.
MR. HOLST pointed out that 30 percent would be the maximum and
is only affordable if someone is earning 120 percent of median
income. He acknowledged that $3,000 is not affordable to most
working people in Juneau. He reiterated that there's not enough
housing, so demand continues to push up the rent. By bringing
on additional supply, the demand would increase, and rental
prices would decrease. There's also a high cost of development
because there's a large amount of risk, so enabling AIDEA would
"de-risk" the process and lower cost resulting in more units
that cost less and bring competition to the market.
CO-CHAIR MEARS asked whether gaps in certain brackets had been
identified in Juneau's market.
MR. HOLST said there are needs for housing at all income levels
in Juneau. He observed that there are more jobs in Juneau than
there are workers, and the primary reason nonresident mine
workers choose not to live in Alaska is the high cost of
housing. He concluded that the current price level is too high,
although its difficult to determine what price is needed.
CO-CHAIR MEARS asked whether there would be more demand for rent
at $2,000 rather than $3,000.
MR. HOLST responded yes, but service workers need housing in the
$1,200 to $1,500 range.
8:48:28 AM
REPRESENTATIVE RUFFRIDGE questioned the cost per square foot to
build in Juneau.
MR. HOLST offered to follow up with the requested information.
8:48:50 AM
REPRESENTATIVE HALL shared her understanding that affordable
housing is considered low income, whereas attainable housing is
the "missing middle." She asked whether there are different
brackets below 120 percent AMI.
MR. HOLST reiterated that there are needs across all income
levels in Juneau.
8:53:26 AM
REPRESENTATIVE HOLLAND asked whether offering another funding
source would actually solve the issue. He opined that the
funding source is not a current constraint.
MR. HOLST said bringing AIDEA in would reduce risk and make it
more affordable to build. He explained that part of the
solution is providing additional capital from an organization
that can share some of the risk. He shared an example of ways
that de-risking the project would help.
8:56:34 AM
REPRESENTATIVE HOLLAND observed that nonresident workers seem to
be highly paid. He questioned whether affordable housing would
align with the nonresident workers Alaska is trying to attract.
MR. HOLST agreed that 30 percent of 120 percent of AMI or
$3,000 in rent - is not "low cost" housing. He reiterated that
the cost of housing is the number one reason that nonresident
workers choose not to live in Alaska.
9:01:00 AM
REPRESENTATIVE PRAX asked whether AIDEA is the right agency as
opposed to Alaska Housing Finance Corporation (AHFC). He opined
that AIDEA is being spread thin.
MR. HOLST said AIDEA's strength is the tremendous amount of
flexibility the agency has to make project work. He expected
that AIDEA would help projects by co-investing and bringing an
array of tools to meet the need in the community.
9:04:01 AM
MICHELE BROWN, Program Director, Housing Alaskans, gave invited
testimony during the hearing on HB 184. She said the bill would
make clear that AIDEA has the authority to invest in workforce
housing development projects and open the door to exploring an
array of innovative financing tools that other states have
deployed. She further noted that this is consistent with
AIDEA's mission to finance for profit, nonprofit, and community
projects for meaningful economic development, and necessary to
support the workforce needed to breathe life into the other
major projects that AIDEA invests in. She spoke to the lack of
housing and the high cost of construction and acquiring capital.
She said other states have demonstrated that state level
financial tools stimulate the development of affordable housing.
She said the bill could allow AIDEA to evaluate and influence
finance tools like government backed loans with lower interest
rates, longer term loans, financing that allows developers to
fund projects in stages. AS these tools are developed, AIDEA
could engage in partnerships to further reduce risk and share
resources and enable the development of more affordable options.
9:07:52 AM
MS. BROWN, in response to previous questions, she defined
"affordable housing" as rent up to $1,600 for low-income
households that are below 60 percent AMI, and up to $2,400 for
middle income households that are between 80 and 120 percent
AMI. She pointed out that federal subsidies are offered to
lower income households and higher income households can
generally take care of themselves; however, middle-income folks
have no real tools to help drive down the cost of market and
nonsubsidized housing. She said a new funding source is not
enough, but empowering AIDEA would help leverage and coordinate
funding.
CO-CHAIR MEARS asked how utilities play into the cost of rent.
MS. BROWN clarified that in Housing Alaskans' studies, utilities
are in addition to the rental figures.
9:11:40 AM
CO-CHAIR HIMSCHOOT said there's been an ongoing conversation
about the aging population. She asked Ms. Brown to comment on
that part of the housing market and whether the bill supports
that gap between the empty nest and assisted living.
MS. BROWN said currently, there is a housing gridlock. In a
normal, healthy economy people start out in rentals or low-cost
ownership and move up as their income grows, which frees up
lower cost housing - eventually downsizing as they age. However
now, people cannot afford to give up their low interest rate by
selling because rates are so high. She said the bill would help
with movement along the entire housing continuum.
9:15:07 AM
REPRESENTATIVE PRAX asked what AIDEA could do that AHFC could
not.
MS. BROWN said AIDEA has resources that could be deployed. She
acknowledged that AHFC has the housing expertise and AIDEA has
the funding. She suggested that AIDEA could choose to join
forces with AHFC or a for-profit or nonprofit entity.
REPRESENTATIVE HOLLAND asked whether there is any data on the
need for rentals as opposed to condominiums or homes. In
addition, he asked how much of the AIDEA financing would be for
rentals versus ownership options.
MS. BROWN said there is a high rental population at over 40
percent. She said HB 184 targets rentals but there could be a
healthy appetite for ownership.
REPRESENTATIVE HOLLAND sought to clarify that the bill is
directed at rentals.
9:19:38 AM
REPRESENTATIVE STORY deferred to AIDEA.
9:20:42 AM
BRANDON BREFCZYNSKI, Deputy Director, Alaska Industrial
Development & Export Authority (AIDEA), said AIDEA would finance
rental developments because they can be modeled out based on
cash flow and occupancy, which ensures repayment on the
investment.
CO-CHAIR MEARS concluded that although the bill is not specific
to rentals, the economic model leads more to rentals versus
ownership.
MR. BREFCZYNSKI answered yes.
CO-CHAIR MEARS asked whether Ms. Barnes could address the
robustness of programs at AHFC for home loans.
9:25:55 AM
STACY BARNES, Director, Governmental Relations, Alaska Housing
Finance Corporation (AHFC), said AHFC's mission is to provide
Alaskans with access to quality and affordable housing. Through
that mission AHFC provides housing through the public housing
programs utilizing federal HUD funds and as the state's housing
finance agency, can provide home loans for Alaskans with 1-4
units based on credit worthiness and the ability to go to market
in partnership with banks and credit unions. In addition, AHFC
provides multi family financing for rental properties.
9:32:47 AM
REPRESENTATIVE HALL asked how many units are accounted for in
the 15 multi-family loans offered by AHFC in FY 24, and the 12
multi-family loans in FY 25.
MS. BARNES offered to follow up with the requested information.
9:33:36 AM
REPRESENTATIVE RUFFRIDGE asked for the average cost per square
foot of the 120 new housing units built by Housing Alaskans.
MS. BROWN explained that Housing Alaskan decided to invest its
personal dollars into stalled projects, some of which were at
risk of losing public dollars because they had not built fast
enough. This resulted in the acceleration of 122 units over two
grant cycles.
REPRESENTATIVE RUFFRIDGE restated the question and asked for the
average cost to rent and/or purchase one of the housing units.
MS. BROWN reported that in Anchorage it was $250 per square
foot, Bethel was $350 per square foot, compared to the Lower 48
at $130 per square foot.
REPRESENTATIVE RUFFRIDGE commented in agreement with
Representative Holland that more money would not necessarily fix
the problem. He concluded that at the end of the day, its
expensive to build, and asked what the vision is for AIDEA and
what kind of program it could offer to make housing affordable.
He reiterated his belief that the bill may not solve the
underlying problem, and urged the committee to consider
contributing factors like "What goes in to $250 per square
foot?"
CO-CHAIR MEARS agreed that there are some deeper questions that
need to be answered.
9:44:08 AM
REPRESENTATIVE STORY reiterated that this is a key issue for
Alaskans and acknowledged that a variety of factors need to be
tackled. She said the bill is not a "silver bullet," but it
would be another tool that allows AIDEA to get creative. She
said [the legislature] needs to consider how to incentivize
developers, and AIDEA is an organization that could show
leadership in this area.
REPRESENTATIVE PRAX asked whether both AIDEA and AHFC agree that
AIDEA is the correct entity to take this on.
MR. BREFCZYNSKI reiterated that AIDEA already has the ability to
finance multi-unit housing projects. He shared that currently,
AIDEA has no pending applications from developers. He added
that AIDEA is in discussion with several municipalities about
financing for multi-unit housing.
REPRESENTATIVE PRAX directed the question to AHFC and expressed
concern that AIDEA is being spread too thin.
9:49:25 AM
MS. BARNES said AHFC is happy to answer questions and provide
technical information on the bill and has worked with AIDEA on
projects in the past with AIDEA acting as the developer and AHFC
providing the long-term financing.
REPRESENTATIVE PRAX referenced several multi-family units in the
Fairbanks/North Pole area one financed by AHFC and the other
by AIDEA. He questioned the specifics of each project and
whether AIDEA's focus on developers is what distinguishes them
from AHFC.
MR. BREFCZYNSKI offered to follow up with specifics on the
military housing development and why it stalled.
REPRESENTATIVE STORY reiterated that AIDEA has not done housing
development since the 1980s. She surmised that a lack of
awareness about AIDEA's involvement in these programs may
contribute to the lack of applications. She observed that both
AIDEA and AHFC are supportive of each other's efforts.
REPRESENTATIVE HOLLAND suggested that it would be helpful to
hear from developers on this issue, as well as businesses that
offer housing solutions.
9:57:39 AM
CO-CHAIR MEARS opened public testimony on HB `184. After
ascertaining that no one wished to testify, she closed public
testimony and announced that the bill would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 47 Amendment 1.pdf |
HCRA 4/29/2025 8:00:00 AM |
HB 47 |
| HB 133 Amendment 1.pdf |
HCRA 4/29/2025 8:00:00 AM |
HB 133 |
| HB 184- AHFC Follow-Up on AIDEA Workforce Housing 4.25.2025.pdf |
HCRA 4/29/2025 8:00:00 AM HCRA 5/8/2025 8:00:00 AM HCRA 5/13/2025 8:00:00 AM |
HB 184 |
| HB 47 Work Draft CS - Version N 4.18.25.pdf |
HCRA 4/24/2025 8:00:00 AM HCRA 4/29/2025 8:00:00 AM |
HB 47 |
| HB 184 Version A 4.17.25.pdf |
HCRA 4/24/2025 8:00:00 AM HCRA 4/29/2025 8:00:00 AM HCRA 5/8/2025 8:00:00 AM HCRA 5/13/2025 8:00:00 AM |
HB 184 |
| HB 133 Work Draft CS - Version H 4.7.25.pdf |
HCRA 4/10/2025 8:00:00 AM HCRA 4/29/2025 8:00:00 AM |
HB 133 |
| An Overview of Alaska's Housing Shortage by AAHA - HB 184 Supporting Doc.pdf |
HCRA 4/29/2025 8:00:00 AM HCRA 5/8/2025 8:00:00 AM HCRA 5/13/2025 8:00:00 AM |
HB 184 |
| Housing Alaskans - 2023 Housing Data Takeaways -HB 184 Supporting Doc.pdf |
HCRA 4/29/2025 8:00:00 AM HCRA 5/8/2025 8:00:00 AM HCRA 5/13/2025 8:00:00 AM |
HB 184 |