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$625,000 AHFC Loan to Valley Residential Services Aids Palmer Home Ownership


WEBWIRE

Qualifying residents of the Mat-Su Valley will have greater access to home ownership through a $625,000 Alaska Housing Finance Corporation (AHFC) loan to Valley Residential Services (VRS) approved by the AHFC board of directors.

VRS is a non-profit corporation providing low-income housing in the Mat-Su area. It was formed in response to a market survey showing that the Mat-Su Valley population had increased by 40% over the last decade, but the housing stock had only increased by 34.5%, with no low-income housing being proposed.

The mission of VRS is to build, acquire, own, and operate quality, affordable housing for persons with special needs. VRS defines persons with special needs as those persons living with mental or physical disabilities, persons with low or moderate income, or persons of advanced age.

VRS plans to develop an affordable housing subdivision known as Fairfield Park. When the project is completed, it will provide low-income, single-family housing to eleven qualified buyers. The proposed project is a mixture of single- and two-story homes with an average floor plan size ranging from 1,300 to 2,300 square feet and ranging in price from $150,000 to $230,000. The subdivision is close to downtown Palmer, with easy access to the major thoroughfares and area conveniences.

Loans to Sponsors (LTSP) is a program under which AHFC, subject to the availability of funds, makes zero percent loans to non-profit corporations, regional housing authorities, or government entities to make home ownership more accessible to low-income borrowers.

Through the AHFC loan, VRS will provide down-payment assistance to eligible clients through a subordinate loan (2nd or 3rd lien) of $25,000 to $35,000. Homebuyers must make a 1% down payment from their own funds.

The program ultimately will provide financing to lower-income individuals or persons who would not otherwise qualify for financing due to income limitations, down-payment requirements, loan-to-values, or other considerations. Recipient eligibility for the loans is based on 80% of the median income for the area, adjusted for family size and property location, as well as the lending criteria established by the Sponsorís guidelines.

AHFC is a self-supporting public corporation with offices in 16 communities statewide. It provides statewide financing for multi-family complexes, congregate facilities, and single-family homes, with special loans for first-time home buyers, low- and moderate-income borrowers, veterans, teachers, nurses, and those living in rural areas of the state. AHFC also provides energy and weatherization programs, low-income rental assistance in 17 communities, and special programs for the homeless and those seeking to become self-sufficient. AHFC contributes more than $100 million annually to Alaskaís State budget revenues through cash transfers, capital projects and debt service payments.



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