Alaska’s Remote Communities Gain Housing Boost with New Saxman Development

Saxman, Alaska – A new 30-unit affordable housing development in Saxman, Alaska, is poised to address a severe housing shortage in the remote southeastern Alaskan community. The Saxman Townhomes project, spearheaded by WNC & Associates, is not merely a construction endeavor but a testament to the collaborative spirit needed to deliver vital housing solutions in challenging environments. The project exemplifies how strategic partnerships and innovative financing mechanisms, particularly Low-Income Housing Tax Credits (LIHTC), are becoming increasingly critical to address housing needs in isolated communities.

Alaska has long faced a housing crisis, exacerbated by geographic constraints, limited land availability, and rising construction costs. Communities like Saxman, with a population of approximately 300, are particularly vulnerable. The lack of affordable housing impacts economic development, workforce retention, and the overall quality of life for residents. According to data from the Alaska Housing Finance Corporation (AHFC), the Ketchikan Gateway Borough, which includes Saxman, experiences a significant shortfall in affordable housing units, with lengthy waiting lists for public assistance and a high percentage of residents paying a disproportionate amount of their income towards housing costs.

"The need for affordable housing in Saxman is immense," said a local community advocate familiar with the project. "For many families, finding safe, decent, and affordable housing is a daily struggle. This development will provide much-needed relief and stability."

The Saxman Townhomes project aims to address this critical need through a thoughtfully designed development featuring a mix of unit sizes to accommodate families and individuals. The project’s financing is a complex arrangement involving multiple stakeholders, highlighting the crucial role of public-private partnerships in overcoming financial hurdles in remote areas. WNC & Associates leveraged LIHTC, a federal program designed to incentivize developers to build affordable housing, combined with construction and permanent loans from AHFC and First National Bank Alaska. A grant from the Rasmuson Foundation further bolstered the project's financial viability.

The Power of LIHTC

The Low-Income Housing Tax Credit program has become a cornerstone of affordable housing development nationwide, and its impact is particularly profound in states like Alaska, where construction costs are high and traditional financing options are limited. The program allows investors to receive tax credits in exchange for investing in affordable housing projects, effectively reducing the cost of development and making it financially feasible for developers to build much-needed housing units.

“LIHTC is a game-changer,” explained a financial analyst specializing in affordable housing. “It attracts private investment into a sector that would otherwise struggle to attract capital. Without it, projects like Saxman Townhomes would be far less likely to come to fruition.”

While the LIHTC program is effective, navigating its complexities requires expertise and a deep understanding of federal regulations. WNC & Associates, a leading affordable housing developer with a national footprint, possesses the experience necessary to successfully utilize LIHTC and bring projects like Saxman Townhomes to fruition. The company’s track record of completing similar developments in challenging environments demonstrates its commitment to addressing the affordable housing crisis in underserved communities.

Addressing Alaska’s Housing Crisis – A Regional Approach
The Saxman Townhomes project is not an isolated solution but part of a broader effort to address the growing housing crisis in Alaska. The state government, along with various non-profit organizations and community groups, is working to develop innovative strategies to increase the supply of affordable housing and improve access to housing for all Alaskans.

“There’s a growing recognition that addressing the housing crisis requires a regional approach,” stated a policy analyst with the AHFC. “We need to tailor solutions to the specific needs of each community and work collaboratively with local stakeholders to ensure that projects are sustainable and meet the long-term needs of residents.”

Beyond increasing the supply of affordable housing, efforts are also underway to address the underlying factors contributing to the housing crisis, such as limited land availability, high construction costs, and a lack of skilled labor. The state government is exploring options to streamline the permitting process, reduce construction costs, and incentivize the development of affordable housing units.

Looking Ahead
The completion of the Saxman Townhomes project represents a significant milestone in the effort to address the affordable housing crisis in Alaska. However, much work remains to be done. The state faces a significant housing shortfall, and the demand for affordable housing is expected to continue to grow in the coming years.

The success of the Saxman Townhomes project underscores the importance of continued investment in affordable housing and the need for innovative financing mechanisms and public-private partnerships. By working together, the state government, non-profit organizations, and the private sector can ensure that all Alaskans have access to safe, decent, and affordable housing. As one local resident put it, "This project isn’t just about building homes; it’s about building a stronger community and a brighter future for Saxman."