The Teacher, Health Professional, and Public Safety Housing Grant Program (THHP)

Key Points Situation Eligibility Assessing Need Funding Sustainability Results Questions 2

Situation Issues  50% graduation rate from high school  Inexperienced educators  Students just don’t care anymore  Health workers cannot locate in communities, created hotline  Law enforcement are on their own Zero Vacancy or Poor Housing Conditions  1960s and 1970s  Deteriorating  Inadequate (kitchens, plumbing) 3

Situation Cost of New Construction  $450-$500/sq. ft. in most rural communities  $650-$700/sq. ft. in Aleutians and above Arctic Circle  SFH even more Cost of development exceeds appraisal  Annual median household income (rural) $60K  Cost of living (triple)  Rarely are there comps (or outdated) Banks, on average, will loan about 10% of TDC 4

Situation That’s where this program comes in, to fill the void with “Gap Funding” Total Development Cost - All other sources of funds = “Gap” 5

Eligibility Grant Program  Funds are Forgivable and in Loan form Eligible entities  Non-Profits, tax exempt, 501(c)3  State Entities  Local Government (incorporated through the state)  Tribal Government  School Districts  Health Corporations  Native Corporations  Regional Housing Authorities Activities  Acquisition, Rehabilitation, New Construction, or mix 6

Assessing Need Market Conditions  Vacancy Rate – dictates activity  Inadequate Housing Rate  Market Affordability  Personnel without Housing  Turnover Rate  Planned or Ongoing Expansion *Additional points are available through optional features 7

Funding The program is primarily funded with State funds  State of Alaska General Fund $s  Rasmuson Foundation (private non-profit)  THHP loans 8

Funding Matching funds  Cash  In-Kind (labor, materials)  Conventional Loans  Other grants Partnerships Mixed Use Developments 9

Sustainability Disaster Risk Mitigation and Resiliency 5 star BEES minimum (AK State)  Reduces carbon footprint  Reduces operating costs  Encouraging 5+ and 6* BEES Partnership with DPS for CPTED 10

Sustainability Local Labor Preference Job training program  Maintain qualified workforce  Reduce cost for maintenance and future developments  Money goes into local economies 11

Results 12

Results 101 developments over 11 years 418 units of housing Reached 74 communities Averaging 31% applicant matching funds Reduced teacher turnover by 17% Improved building designs and energy friendly technologies Rehabilitating vacant housing, tightening market 13

Q&A 14

Development Features Impact on Sustainability and the Community 15 To maximize the impact these developments have within a community, not only limited to housing professionals, but certain criteria have been established by AHFC which promotes responsible and sustainable housing developments. These elements include: -5 Star Energy Efficiency Rating/IECC with incentives for 5+ and 6 Star BEES Ratings -Energy Star Appliances -Renewable Energy Options -Mixed-Use Structures -Mixed-Professional Type Housing -Multi-Unit Preference -Fair Housing Accessibility (3+ units) and Section 504 (4+ units) Standards -Job Training Program -Local Hire Preference -Acquisition/Rehabilitation Preference -Crime Prevention through Environmental Design -Designs to mitigate natural disasters and to promote community resiliency

Impact Success Stories 16 “It seems just about everyone ‘Outside’ heard the horror stories of freezing pipes, cold rooms, mold, and mildew in Alaska’s teacher housing in rural communities. Now we boast of having some of the best teacher housing in Alaska. Thanks to the new units, housing is no longer the major recruitment impediment it once was.” - Jamie Stacks, Superintendent, Pribilof School District “Before 18 new housing units were built in Kotzebue, the district had a difficult time retaining teachers, more than half of whom have families with them.” - Dr. Norman Eck, Superintendent, Northwest Arctic Borough School District

Completed Projects From the Ground Up 17 CommunityTotal UnitsTotal Cost Teller4$1,129,861

Completed Projects From the Ground Up 18 CommunityTotal UnitsTotal Cost Tanana Rehab2$301,888

Completed Projects From the Ground Up 19 CommunityTotal UnitsTotal Cost Mountain Village8$2,665,666

Completed Projects From the Ground Up 20 CommunityTotal UnitsTotal Cost Noatak Rehab4$866,214

Completed Projects From the Ground Up 21 CommunityTotal UnitsTotal Cost St. Mary’s3$1,431,032

Completed Projects From the Ground Up 22 CommunityTotal UnitsTotal Cost Manokotak2$758,293