Performance Details

Department of Revenue - AHFC Operations

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Mission

The mission of the Alaska Housing Finance Corporation is to provide Alaskans access to safe, quality, affordable housing.

Core Services

• Provide programs and service that are responsive to the diverse housing needs statewide
• Increase and sustain homeownership
• Increase special-needs housing
• Manage finances to maximize Alaska Housing Finance Corporation"s (AHFC) profits

Mission Results	Core Services
A: Improve the degree to which statewide housing needs are met: Details > TARGET #1: Increase the number of loans purchased TARGET #2: Maintain a High Voucher Utilization rate TARGET #3: Maintain high performer percentages in AHFC owned and managed Housing	A1: Provide programs and service that are responsive to the diverse housing needs statewide Details > TARGET #1: Increase Multi-Family units A2: Increase and sustain homeownership Details > TARGET #1: Increase AHFCs market share A3: Increase special-needs housing Details > TARGET #1: Increase Senior Housing units
Mission Results	Core Services
B: Improve the Corporation"s strength and ability to increase housing programs and service: Details > TARGET #1: Increase energy efficiency savings through energy efficiency programs TARGET #2: Maintain the AHFC general obligation credit rating.	B1: Manage finances to maximize Alaska Housing Finance Corporation"s (AHFC) profits Details > TARGET #1: Maintain or increase Adjusted Change in Net Position

Performance Detail

Target #1: Increase the number of loans purchased Cumulative Loans Purchased Fiscal Year Cumulative FY 2024 58,326 +3.02% FY 2023 56,616 +2.60% FY 2022 55,179 +3.24% FY 2021 53,448 +3.88% FY 2020 51,452 +3.72% FY 2019 49,605 +3.95% FY 2018 47,720 +4.13% FY 2017 45,827 +3.13% FY 2016 44,435 +4.10% FY 2015 42,683 Analysis of results and challenges: The total number of single-family loans purchased increased by 19.7% from FY2023 to FY2024, while multi-family loans saw a 28.6% decrease. Buyers in single-family markets across the state continued to see low inventory for sale, competing and multiple offers, increased prices, and a higher interest rate environment. These factors, coupled with lack of new construction, kept homeownership a priority and the real estate market extremely tight. Combined loan purchases for single family & multi-family was $606,942,223 for AHFC in FY2024. Compared to the prior year, this represents a 22.48% increase in total dollar volume, or an increase of $111,407,493 from the prior year. AHFC continues to offer loans and loan options to Alaskan borrowers that are not available from the Government Sponsored Enterprises (GSEs) or other investors. These options include programs for homebuyers that are low income, first-time homebuyers, veteran homebuyers, homebuyers who desire energy efficient housing, homebuyers seeking homes with features unique to Alaska, and those that live in rural areas of the state. Target Last Modified: 11/04/2024

Target #2: Maintain a High Voucher Utilization rate Analysis of results and challenges: This assessment uses U.S. Department of Housing and Urban Development (HUD) criteria in measuring program management. HUDs assessment requires a 95% lease up rate. For the fiscal year 2024, lease up activity averaged 4,538 vouchers per month, which is over 100% of the 4,385 HUD allocated vouchers. Target Last Modified: 09/19/2024

Target #3: Maintain high performer percentages in AHFC owned and managed Housing Analysis of results and challenges: HUD uses performance measures to indicate the overall health of public housing. These measurements, when compared to specific HUD targets, provide an assessment of overall property management. Due to the age of the portfolio and number of move outs in FY2024 AHFC public housing department (PHD) had a PHAS score of 84%. Public housing is considered a high performer by HUD. Performance Measurement: HUD Targets / AHFC Performance Occupancy Rate: 95% / 94% Unit Turn Around Time: 21 days / 149 days Maintenance Work Orders: 25 days or less / 24 days Emergency Work Orders: 100% within 25 days / 100% within 25 days Data Reporting to HUD: 85% of all vouchers / 100% of all vouchers Target Last Modified: 11/02/2024

Target #1: Increase Multi-Family units Total Multi-Family Units Fiscal Year Total Units FY 2024 20,202 +1.21% FY 2023 19,960 +2.95% FY 2022 19,388 +3.63% FY 2021 18,708 +3.82% FY 2020 18,020 +2.03% FY 2019 17,662 +1.92% FY 2018 17,329 +3.17% FY 2017 16,796 +1.31% FY 2016 16,579 +1.02% FY 2015 16,412 Analysis of results and challenges: Affordable rental housing remains in demand and vacancy rates were down across the state. The production of multi-family housing activity is subject to interest rates, local economic conditions, and other volatile market factors. New construction across the state continues to face marginal feasibility due to high construction costs and the persistent gap between achievable rents and those required to support the high development costs. Target Last Modified: 11/04/2024

Target #1: Increase AHFCs market share Analysis of results and challenges: Market Share is a measure of the competitiveness of AHFC when compared to other financial investors that offer comparable products. The market share calculation is the percentage of new AHFC loans compared to the total number of new loans reported in the AHFC quarterly survey of Alaskan lenders, produced in collaboration with the Alaska Department of Labor. Overall market size and the AHFC Market share for the State Fiscal Year includes new loans for single-family, condominium, duplex, and triplex purchases. Refinances are not included in the calculation. In FY2024, the market share of AHFC increased by 12.7 percentage points to 46.7%. 12.9% of the AHFC single-family and condominium market share came from first-time homebuyers in FY2024. This is a 47-point decrease from 2023`s percent of first-time homebuyers. AHFC offers two programs and one loan option designed specifically for first-time homebuyers and a down payment assistance program for any borrower. Estimated total home purchases in the State of Alaska decreased by 12.2% from FY2023 to FY2024. This is the third year of decline in the lending market. Since last year, loan production by AHFC increased by 20.4%. A sharp increase in mortgage rates began in FY2023 reducing the overall size of the lending market. Private sector rate increases have made AHFC"s new purchase and refinance products more competitive. Target Last Modified: 09/19/2024

Target #1: Increase Senior Housing units Analysis of results and challenges: Senior housing remains a high priority for the Corporation. Over 156,000, or 21.0%, of Alaska`s population is 60 years or older. Over 7,500 are 85 or older. While funding for senior housing has remained stable in recent years, the Alaska senior population continues to grow. Over the past five years, the 60 and over population in Alaska has grown by over 17.5%. Leading that growth are seniors 60+ residing in the Matanuska-Susitna Borough with an increase of 26.7% in the Borough since 2018. Also notable on the statewide level are the 41,400 Alaskans between the ages of 55-60 that meet the Federal Fair Housing Act Exemption for housing for older persons age 55 and above. Renovating properties to allow for aging-in-place, through accessibility modification upgrades (loans or grants) may assist in relieving the overall demand for senior housing as demographics continue to grow. Encouraging Alaskans to complete home modifications, perhaps while they are still working and can more easily afford the repairs, will assist in assuring residents can remain in their homes and communities for as long as possible. Note: Unit data excludes AHFC mortgage data to assisted living properties as those developments report beds rather than units. Target Last Modified: 11/02/2024

Target #1: Increase energy efficiency savings through energy efficiency programs Analysis of results and challenges: The Weatherization program improves the energy efficiency, health, and safety of housing for low to moderate income Alaskans. The Home Energy Rebate program, currently inactive, provided energy rebates to Alaskan homeowners for improving their home`s energy-efficiency. Homes retrofitted under these two programs save occupants an average of 30 percent on energy costs. The 47,320 units, or 18.91% of eligible housing units retrofitted since 2008, have collectively saved an estimated annual 4.0MM BTUs (British Thermal Units). Target Last Modified: 11/02/2024

Target #2: Maintain the AHFC general obligation credit rating. Methodology: A- = 15 / AAA = 22 Analysis of results and challenges: As of June 2024, S&P Global Ratings reaffirmed the AA+ issuer rating of the Corporation, based on the following: 1. Very strong capital adequacy analysis, specifically evidenced by a five-year average S&P Global Ratings-calculated net equity-to-total assets ratio for audited years 2019 through 2023 of 30.9%, which is above-average compared with that of peers and well in excess of criteria benchmarks; 2. Very large balance sheet consisting of $4.30 billion in assets, approximately $3.27 billion of which are high-performing mortgage loans with a very low average nonperforming asset (NPA) rate of less than 3.0% across the past five years and reaching a historical low of 1.1% in 2023; 3. Net interest margin (NIM) of 2% in fiscal 2023, calculated as interest income from loans and investments over average earning assets, reflecting the corporation"s ability to generate strong profits on its loan and investment portfolios, well in excess of criteria benchmarks and when compared with those of peers; 4. Extremely strong financial position based on S&P Global Ratings-calculated equity, which excludes fair value reporting, of more than $1.6 billion as of fiscal 2023, indicating the corporation"s substantial resources available to sustain operations during difficult circumstances and to fund programs that further its mission of expanding housing affordability in the state; and 5. Extremely strong management and legislative mandate assessment based on the corporation"s track record of bipartisan and public support; experienced, proficient, and capable senior management and board; strong portfolio oversight and debt management; planning procedures and financial policies; and overall risk management. Target Last Modified: 11/02/2024

Target #1: Maintain or increase Adjusted Change in Net Position Analysis of results and challenges: Total net position for AHFC in FY2024 was $50,380.0. Adjusted Change in Net Position includes the operating income of the corporation adjusted for state transfers, state capital bond debt service, and capital project adjustments. Target Last Modified: 11/04/2024

Last refreshed: 05/22/2025 08:00 am