2024-04-22 Special Work SessionKodiak Island Borough
Assembly Special Work Session
Monday, April 22, 2024, 6:30 p.m.
Assembly Chambers
Work Sessions are informal meetings of the Assembly where Assembly members seek or
receive information from staff and/or entities. Although additional items not listed on the
work session agenda are discussed when introduced by the Mayor, Assembly, or staff, no
formal action is taken at work sessions and items that require formal Assembly action are
placed on regular Assembly meeting agenda. Citizen's comments at work sessions are
NOT considered part of the official record. Citizen's comments intended for the "official
record" should be made at a regular Assembly meeting. This work session is open to the
public and will be broadcast on the Borough's YouTube Channel.
Page
1. CITIZENS' COMMENTS 1-907-486-3231 or Toll Free 1-855-492-9202
(Limited To Three Minutes Per Speaker)
2. AGENDA ITEMS
a. Kodiak Island Housing Authority (KIHA) and Rural Cap 2-34
Presentation
Aaenda Item Reaort - Pdf
3. MANAGER'S COMMENTS
4. CLERK'S COMMENTS
5. MAYOR'S COMMENTS
6. ASSEMBLY MEMBERS' COMMENTS
Meeting packets are available online. Please subscribe to get meeting notifications when meeting
packets are published. For public comments, please call (907) 486-3231 or (855) 492-9202.
Page 1 of 34
AGENDA ITEM #2.a.
KODIAK ISLAND BOROUGH
STAFF REPORT
APRIL 22, 2024
ASSEMBLY SPECIAL WORK SESSION
SUBJECT: Kodiak Island Housing Authority (KIHA) and Rural Cap Presentation
ORIGINATOR: Nova M. Javier, MMC, Borough Clerk
RECOMMENDATION:
The Assembly received a presentation from Ms. Mindy Pruitt at the April 11, 2024, work
session. It was requested by the Assembly then to bring back Ms. Pruitt for a more extensive
discussion.
DISCUSSION:
ALTERNATIVES:
FISCAL IMPACT:
OTHER INFORMATION:
Kodiak Island Borough
Page 2 of 34
Kodiak Island Housing Authority (KIHA) and Rural Cap Presentation
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KIHA
>> Mutual Self -Help
Housing
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Kodiak Has a Housing Crisis
ACCESS TO HOUSING IS AN ECONOMIC ROADBLOCK
• Employers are struggling to fill positions due to lack of
accessible housing
RESIDENTS FEEL THE PINCH
■ 77% of residents surveyed rated home affordability as poor or
very poor
4K 'r ■ 70% of residents surveyed rated home availability as poor or
very poor
■ Land availability was identified as a top barrier to housing
development
HOUSING GAP
• 65-75 new homes for families with household incomes above
$100,000 are needed
■ 35 single-family homes were constructed between 2017-2021.
In 2021, one single-family home was built.
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KI HA
By the Numbers
!rMINIEW
Essential &
Professional
Workers
Housed
Utilities
Paid
Year
Established
City Taxes
Paid
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Number of Properties Families
Employees Owned Housed
Borough
Tax Paid
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The Homes
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BEDROOMS
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11100-1,500 SQF
HOMES
1-2 CAR
GARAGES
.25 ACRE
LOTS
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Mutual Self -Help
Housing
• USDA grant program established in 1965 to
help working families achieve home
ownership
• Program has built over 50,000 homes in the
US, and 1,000 in Alaska
• Statewide nonprofit RurAL CAP has been a
grant recipient since 2007
• They've constructed 93 homes, with 9 under
construction, and 39 planned in 4
communities over the next 2 years
• RurAL CAP would like to expand off the road
system and is interested in working in Kodiak
• The scarcity of land to develop in Kodiak has
become a barrier to bringing this program to
Kodiak
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Building
Community
PUBLIC SCHOOL POLICE
TEACHER OFFICER
Median Salary
$64,010 /year Median Salary
$81,119 / year
REGISTERED CARPENTER
NURSE
Median Salary Median Salary
$100,778 / yr $$S1,2S0 / yr
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What kinds of incomes
qualify for this program?
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• Owners contribute to construction labor reducing cost of home and serving as down payment
• Owners move in with significant equity
• USDA backed mortgages have loans with interest rates as low as 1%
• Home mortgages frequently cost less per month than rent
Benefits • the
Development
• Time owners spend building homes collectively build community investment and pride in
ownership '�►
• Developments populated by working families with livable housing costs, creating stability
•
• New homes extend tax base
• Increases availability of housing for Kodiak's essential labor force which could impact
community safety
• Creates developments that can't be appropriated by private investors, shrinking supply
and increasing home prices overall
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What is
Needed?
To participate, Kodiak needs land
• Suitable for a housing development
LANDOn
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• Optimally, donated
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Next Steps
FDA grants are due JUNE 2024
Next grant cycle isn't until 2028
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Rural Alaska Community Action Program, Inc.
Mutual Self -Help Housing Program
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What is Mutual Self -Help Housing?
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Healthy People Sustainable Communities Vibrant Cultures
Who is Eligible to Build?
• Qualify for 502 loan
• Put in 35 hours of labor
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Income Guidelines
1-4 family------ $134,150
5-8 family------ $177,100
$10,732 ea additional
Healthy People Sustainable Communities Vibrant Cultures
Credit Guidelines
Benefits of MSHH
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Healthy People Sustainable Communities Vibrant Cultures
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RurAL CAP
Rural Alaska Community Action Program, Inc.
'hank You
Mi'shell French, Director or mfrench@ruralcap.org
Rural Housing
Bob Marquez, senior bmarquez@ruralcap.org
Rural Housing & Planning
Manager
�- You
Healthy People I Sustainable Communities I Vibrant Cultures
AGENDA ITEM #2.a.
s;�cKoniag
3800 Centerpoint Drive
Suite 700
Anchorage, AK 99503
April 10, 2024
RE: KIHA Kodiak Mutual Self -Help Housing Project
To Whom It May Concern:
Koniag wishes to express its support for Kodiak Island Housing Authority's (KIHA) Mutual Self Help Housing
project in Kodiak.
Koniag is a regional Alaska Native Corporation established by Congress under the Alaska Native Claims
Settlement Act of 1971. Our region encompasses the Kodiak Island area in the Gulf of Alaska, and we have
approximately 4,500 Alaska Native Shareholders. Many of our Shareholders and Descendants reside in the
City of Kodiak and surrounding rural communities.
We recognize the pressing need for affordable workforce housing in our region and the harmful effects it is
having on our region's economy. Employers are struggling to fill positions due to a lack of housing for their
employees. The police force, fire department, and hospitals have all stated that the lack of workforce
housing is impacting their ability to provide basic services in Kodiak. Many of Koniag's Shareholders and
Descendants struggle to find adequate housing.
We commend KIHA's initiative to bring the Mutual Self -Help Housing Program to Kodiak. This program has
shown great promise in empowering communities to address their housing needs collaboratively.
Last year, Koniag sponsored a Community Service Project on Woody Island where we partnered with
Tang'niraq Native Village (TNV) to clean up their traditional homelands that had been vandalized for
decades. As part of the project, Koniag donated $10,000 to TNV, and brought over 70 volunteers from
across our family of companies, who spent the day picking up trash, installing trail markers, and improving
trails. All in, this group of volunteers removed 9,000 pounds of trash.
Koniag pledges our next Community Service Project to the KIHA Self -Help Housing Program which includes
a $10,000 donation for materials and supplies and 60-70 volunteers for a day of service. While we envision
a traditional "barn raising", Koniag will work closely with KIHA to ensure we are providing the right help, at
the right time.
fSincerely,
Shaun gna
President
koniag.com
P (907) 561-2668
F (907) 562-5258
Page 29 of 34
Kodiak Island Housing Authority (KIHA) and Rural Cap Presentation
AGENDA ITEM #2.a.
'., RurAL CAP
MUTUAL SELF-HELP HOUSING PROGRAM
4 -bedroom, 2 -bathroom, 2 car attached garage, 1562 sf home on a .25 -acre lot
ESTIMATE
Cost to Construct
$447,697
Participant will pay monthly
Appraised Value
$538,000
payment on this loan only
Family's Sweat Equity at
Completion
$90,303
Appraised value minus cost to
construct
FUNDING
1st Mortgage Loan USDA 502
$297,697
Participant will pay monthly
If family receives BIA HIP
$1,170
payment on this loan only
0% interest, deferred payments,
2nd Soft Second AHFC HDP
$40,000
up to $10,000 conditionally
If family does not receive HIP
$1,370
forgivable grant after 5 years
Grant from RCAC CMF
$35,000
Conditionally forgivable grant
after 5 years
BIA HIP CAT D
$75,000
Grant for Eligible Tribal Members
Only
MORTGAGE PAYMENT ESTIMATE
Family Size 1-4
$134,150
Per month including property
If family receives BIA HIP
$1,170
taxes and insurance
RD loan at $297,697
$177,100
• Current NAHASDA Tenants - 35
Per month including property
If family does not receive HIP
$1,370
taxes and insurance
RD loan at $373,697
Kodiak Income Limits
Family Size 1-4
$134,150
Potential Participants
Non -Homeowners
• KIHA AIAN Staff- 9
Family Size 5-8
$177,100
• Current NAHASDA Tenants - 35
• Rental Asst. Participants - 16
Page 30 of 34
Kodiak Island Housing Authority (KIHA) and Rural Cap Presentation
AGENDA ITEM #2.a.
RurAL CAP's Mutual Self -Help Housing Program
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What is RurAL CAP's Mutual Self-Hela Housina Proaram?
The Mutual Self -Help Housing Program is a path to affordable homeownership.
Approved participants of the program are provided with the opportunity to
earn "sweat equity" in lieu of a down payment on their new homes. Families
and individuals join a group of eight to twelve owner -builders who work
together to construct all of the homes under the guidance of RurAL CAP's Rural
Housing Division staff. Each family is required to commit 35 hours a week of
labor toward the construction of the homes. 17.5 of the 35 hour labor
commitment can be completed by volunteers, friends, and family who are
recruited by each family building a home through the program.
The approved house plan selections range from three to four bedrooms with two baths and one to two -car
attached garages. Approximate square footages are 1,100-1,500 sq feet. House plans available for selection are
provided by RurAL CAP. Changes may not be made to the house plans.
Funding for operating expenses needed to facilitate the Mutual Self -Help Housing Program comes in part from a
partnership with USDA Rural Development through their 523 Technical Assistance grant, as well as funding
obtained through HUD's HDP Program, which is facilitated by Alaska Housing Finance Corporation. Additionally,
each eligible family obtains a construction -permanent mortgage loan through USDA Rural Development's 502
direct mortgage loan program, which covers all costs associated with the construction of their home.
Who is eligible for the program?
Participants must meet certain requirements to be qualified for the Mutual Self -Help Housing Program:
1. Be eligible for a USDA Rural Development 502 Direct Loan
• Meet income limits
• Have dependable and continuing source of income sufficient to support the mortgage
payment and other debt.
• Have a satisfactory history of timely payment of debts.
2. Be able to consistently provide 35 hours of labor per week during the entire construction term. (17.5 of
these hours can be contributed each week by the family's volunteers.) and follow all rules of the
Construction Contract.
What is the process like for applying for the Mutual Self -Help Housing Program?
RurAL CAP staff will walk you through each of these steps. Qualifying for the Mutual Self -Help Housing Program
is a multi -step application process.
1. The first step is completion of a pre-screening application. This is not a full mortgage loan
application. You will submit the Pre -Screening Application, $35 application fee for each applicant, and
Credit Authorization to RurAL CAP. RurAL CAP's Homeownership Program Manager will review the
information contained in the completed pre-screening application, along with a tri -merge credit report
to determine if you will qualify for a 502 direct mortgage loan through USDA Rural Development.
RurAL CAP generally contacts the applicant within 48 hours of receipt of the pre-screening application
Page 31 of 34
Kodiak Island Housing Authority (KIHA) and Rural Cap Presentation
AGENDA ITEM #2.a.
with their findings.
a. If your income and credit appear to meet the USDA Rural Development 502 Direct program
guidelines, your next step will be to complete a full Uniform Residential Mortgage Loan Application.
b. If you do not meet the qualifications for the mortgage loan at this time, please don't get discouraged.
RurAL CAP staff will counsel and work with you one-on-one towards becoming income and credit
qualified for the mortgage loan needed to build a home through the Mutual Self -Help Housing
Program. This process can take as little as a few weeks or as long as 6-24 months depending upon
your situation.
2. Once the pre-screening process is complete and RurAL CAP staff indicate that you appear to qualify for
the 502 direct mortgage loan, the second step is to complete a Uniform Residential Application and
submit all requested supporting documents to back up the information contained in the application (i.e.
paystubs, tax returns, bank statements, etc.) RurAL CAP staff will assist you step-by-step in this
process and provide you with the application packet and checklist of items you will need to turn in.
3. Once your mortgage loan application is received along with all supporting documentation, RurAL CAP
will begin packaging and processing it. At this time, you will be required to provide $30.00 payable to
USDA Rural Development for the credit report USDA RD will pull for each applicant. It generally takes
between 4-6 weeks to obtain all required documentation and third party verifications needed to
package your loan application.
4. Once your file is fully packaged and all supporting documentation and third party verifications are
received, RurAL CAP will submit your mortgage loan application to USDA Rural Development for
underwriting. USDA Rural Development's determination (approval or denial) can take between 2-4
weeks depending upon their work -load. Please be prepared to provide additional information and/or
documentation if requested.
a. If your mortgage application is approved and you can make a commitment to work 35 hours
per week building the homes, you will be qualified to construct a home through the Mutual
Self -Help Housing Program.
b. If your mortgage application is denied, RurAL CAP staff will work with you one-on-one
to get you to the point where you qualify for the 502 direct mortgage needed to build
through the Mutual Self -Help Housing Program and will assist you in the application
process.
Page 32 of 34
Kodiak Island Housing Authority (KIHA) and Rural Cap Presentation
AGENDA ITEM #2.a.
RurAL CAP's Mutual Self-help Housing Program
Once your mortgage loan is approved and you have received your Certificate of Eligibility from USDA Rural
Development, you will choose your building site. RurAL CAP will have available lots you may select from. The next
step is to review the available plans and select a house design that meets your needs and budget. All eligible
participants will then join the homeowner's association group by agreeing to the covenants of the Mutual Self -
Help Housing Program and committing 35 hours a week per household to building their home and their
neighbors' homes.
But 1 don't know how to build a house... How can I build my own home?
RurAL CAP provides hands-on instruction and training during pre -construction meetings prior to the start of
construction as well as hands on training at the building site.
You will learn how to:
• Use power tools correctly and safely
• Utilize today's building techniques
• Maintain your home
What will homes in the new Self -Help Owner -Built Homes neighborhoods look like?
The neighborhoods will consist of eight to twelve attractive, energy-efficient, and affordable homes. The
homes will vary in square feet in size and will vary in design based upon the plan each family is approved to
construct. The pictures on this sheet are examples of what a home built in the Owner -Built neighborhood
might look like.
If I know of someone who is interested in RurAL CAP's Owner -Built Homes Program, or
if I would like more information about the programs offered through the Rural Housing
and Planning Division, who should I contact?
w
You may contact:
RurAL CAP Mutual Self -Help Housing Program
44539 Sterling Hwy, Suite 206 (located at the Blazy Mall)
Soldotna, AK 99669
907-260-3451 Office
907-260-3452 Fax
www.ruraicap.org
vlewis@ruralcap.org
RurAL CAP: Healthy People - Sustainable Communities - Vibrant Cultures
Page 33 of 34
Kodiak Island Housing Authority (KIHA) and Rural Cap Presentation
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for the RURAL CAP Mutual Self
Help Program ? r�
PUBLIC SCHOOL POLICE
Family TEACHER OFFICER
Median Salary Median Salary
Siz- $64,010 /year $81,119 / yea r
1-4 year
Kodiak
Income
Limits
Fami $17-71100 REGISTERED OPERATOR
- NURSE Median Salary
year Median Salary $75,587/yr
$100,778 / yr
Kodiak Island Housing Authority 4/12/2024