Affordable Housing in Sitka could see a significant boost soon. The Alaska Housing Finance Corporation has put forward a proposal to provide $4.5 million to the city as part of the Last Frontier Housing Initiative. This initiative specifically targets Sitka and Ketchikan, as noted by City Administrator John Leach. He explained that these locations often fall through the cracks in such funding opportunities due to their unique size – not quite small enough or large enough to fit typical categories.

The funds, intended for affordable housing programs in Sitka, come with stipulations, including the construction of a specific number of rental units for low-income housing and a 15% matching contribution from the city. The federal funding must be utilized expediently, with a deadline set for the end of 2025.

To move forward, the city assembly would need to express their interest through a non-binding letter of intent. They would then likely issue a Request for Proposals to identify a suitable partner for the project. Leach expressed a preference for a partner experienced in managing federal funds.

Assembly member Thor Christianson remarked that while the funds won’t completely resolve Sitka’s housing issues, they represent a significant step forward. He suggested that partnering with another organization could amplify the project’s impact, potentially leading to a development worth more than the initial $4.5 million due to additional fundraising and leveraging capabilities.

During a public comment session, the assembly heard strong support for accepting the funds. Lillian Feldpausch, a member of the STA Tribal Council and chair of the Baranof Island Housing Authority board, described the funding as an incredible opportunity, especially given Sitka’s current housing crisis. The Baranof Island Housing Authority, according to its executive director Cliff Richter, is ready to begin construction on an eight-unit complex adjacent to its existing housing on Indian River Road and could be a strong collaborator with the city for further housing development.

Although the assembly did not make a formal decision, they agreed to gather more information on the funding and plan to submit a non-binding letter of intent to the Alaska Housing Finance Corporation.

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