The mission of the Alaska Housing Finance Corporation is to provide Alaskans access to safe, quality, affordable housing.
- 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|
|Mission Results||Core Services|
|A: Result - Improve the degree to which statewide housing needs are met:|
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. HUD's assessment requires 95% lease up rate. For the fiscal year 2020, lease up activity averaged 4,820 vouchers per month, which is over 110% of the 4,397 HUD allocated vouchers. This gives AHFC a 100% score in this criterion.
Target #3: Maintain high performer percentages in AHFC owned and managed Housing
Analysis of results and challenges: HUD uses certain performance measures to indicate the overall health of a public housing authority. These measurements, when compared to specific HUD targets, provide an assessment of overall property management. For FY2020, AHFC's performance in these HUD identified areas was as follows:
Occupancy Rate: 97%
Unit Turn Around Time: 20 days
Maintenance Work Orders: 100% in less than 25 days
Emergency Work Orders: 100% within 24 hours
Annual Inspections: 100%
Data Reporting to HUD: 85% of all vouchers
Occupancy Rate: 95%
Unit Turn Around Time: 40 days
Maintenance Work Orders: 100% in than 25 days
Emergency Work Orders: 100% within 24 hours
Annual Inspections: See comment below
Data Reporting to HUD: 100% of all vouchers
Due to COVID-19 and pursuant to HUD PIH Notices 2020-05 and 2020-13, public housing authorities received blanket waivers with respect to HUD requirements governing routine maintenance work orders and annual inspections. The AHFC Public Housing Division adopted these waivers on March 24, 2020. Emergency work orders were not waived and were still completed within 24 hours per HUD requirements.
AHFC's turnaround time for public housing units this year was 40 days, which is above HUD's target of 20 days. The following factors affected the reported turnaround time and occupancy statistics:
- More unit refusals by applicants;
- Rent reform created more vacancies of units with long term residents which took much longer to turn;
- COVID-19 affected numbers for FY20 including our intake staffs ability to be in the office to work files, applicants not wanting to move from wherever they were, paper work delays due to closed office and transferring of secure documents, etc.
AHFC met HUD requirements for maintenance work orders, emergency work orders, and data reporting.
|A1: Core Service - Provide programs and service that are responsive to the diverse housing needs statewide|
Target #1: Increase Multi-Family units
Total Multi-Family Units by Fiscal Year
Analysis of results and challenges: Affordable rental housing remains in demand and can benefit markets by facilitating community growth and freeing households to spend more of their disposable income within the community. The production of multi-family housing activity is subject to interest rates, local economic conditions, and other volatile market factors. New construction, in several communities across the state, continues to face marginal feasibility due to the persistent gap between achievable rents and those required to support the high development costs. These factors, when coupled with the reductions in matching funding sources utilized by AHFC funded projects, continue to limit new housing production.
|A2: Core Service - Increase and sustain homeownership|
Target #1: Increase AHFC's 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 based on the percentage of new production AHFC loans compared to the total number of new production loans reported in the AHFC annual 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.
Percentage change is the difference from prior-year and current-year market share percentage. This provides a gain/loss measure from the previous year. In FY 2020, the market share of AHFC decreased by 3% to 26.7%. Over 52% of the AHFC single-family and condominium market share came from first-time homebuyers in FY2020. This aligns with a national trend that has seen first-time homebuyers outpace repeat borrowers. AHFC offers two programs and one loan option designed specifically for first-time homebuyers and a down payment assistance program for any borrower.
There was an overall 3.5 % increase in home purchases in FY 2020 over 2019. In the same period, loan production by AHFC has decreased by 7.0%. Historically low interest rates are pushing borrowers to private sector loans. AHFC's new purchase and refinance products are less competitive in the current lending environment.
|A3: Core Service - Increase special-needs housing|
Target #1: Increase Senior Housing units
Analysis of results and challenges: The Alaska Department of Labor and Workforce Development (2019) estimated that the senior population (65+) in Alaska could increase from 23% (low forecast scenario) to up to 58% by 2045 (high forecast scenario). This increase mirrors the national trend in senior population, expected to double by 2060 (U.S. Census Bureau).
The gap between need and availability continues to grow each year across Alaska. Senior housing remains a high priority for the Corporation. As with multifamily housing production, senior housing unit development is stymied by the gap between the rents achievable and the cost of building new units.
While senior housing funding has remained stable in recent years, the Alaska senior population continues to grow. This continued growth rate places further demands each year on funding from communities throughout the State.
(Note: Although AHFC provides mortgage financing for assisted living facilities, those developments report beds rather than units; consequently, the data above excludes AHFC mortgages to assisted living properties.)
|B: Result - Improve the Corporation's strength and ability to increase housing programs and service:|
Target #1: Increase energy efficiency savings through energy efficiency programs
Analysis of results and challenges: Since FY2008, the State Legislature has appropriated a total of $611.10 million for residential energy efficiency through the Weatherization Assistance and Home Energy Rebate Programs. The program targets energy efficiency improvements through retrofitting and new construction of homes. Homes retrofitted under these programs save on an estimated average 30% on energy costs per unit. Collectively, the 46,372 units, or 18.53% of eligible housing units, retrofitted since 2008, save an estimated annual 4,010,228 MMBTUs (one million British Thermal Units).
Target #2: Maintain the AHFC general obligation credit rating.
Analysis of results and challenges: AHFC raised its general obligation credit rating with Standard & Poor's (S&P) to AA+ as of January 5, 2011.
As one of the largest debt issuers in the State of Alaska, AHFC must maintain its strong general obligation credit rating and favorable reputation with investors. AHFC continues to achieve these goals.
As of March 27, 2020, S&P Global Ratings reaffirmed the AA+ issuer rating of the Corporation. The rating considered the following indicators:
1. A large and high-performing loan portfolio of approximately $3.3 billion in primarily single-family and multifamily mortgage loans, with extremely low delinquencies of approximately 1.2% of total loans;
2. Strong profitability as evidenced by at least five-consecutive period of increasing S&P Global Ratings-calculated net income;
3. Very strong equity position as evidenced by at least five-consecutive periods of S&P Global Ratings-calculated net position growth;
4. Very solid and high capital adequacy ratios including a five-year average S&P Global Ratings-calculated net equity to total assets of 28.7%, well in excess of the 15.0% benchmark for the rating category; and
5. Experienced, proactive, and involved senior management and board of directors.
|B1: Core Service - Manage finances to maximize Alaska Housing Finance Corporation's (AHFC) profits|
Target #1: Maintain or increase Adjusted Change In Net Position
Adjusted Change in Net Position
Analysis of results and challenges: 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. Figures for FY2003 and prior represent "operating income."
During FY2003, the corporation worked with the administration and the legislature to pass HB256, which continued the transfer plan and limited total transfers to the state to a percent of the adjusted net income of the corporation. The latest amendment to the transfer plan was through Senate Bill 270, which reads as follows:
SECTION 1. AS 18.56.089(d)(1) is amended to read: (1) adjusted change in net assets means the change in net assets from the base fiscal year, adjusted for capital expenditures incurred during the base fiscal year and temporary market value adjustments to assets and liabilities made during the base fiscal year:
SECTION 2. This Act takes effect June 20, 2010.
Current as of October 22, 2020