An Affordable Housing Corporation (AHC) is a business entity that’s formed by a state, county or local government to oversee the planning and building of low- and moderate-income housing. Many states and counties opt to create AHCs so that they have one central place within which to organize, execute and monitor affordable housing projects. AHCs qualify for certain grants and tax credits that are not available to other government departments or entities, providing additional funding for housing development.

By creating a separate entity, governments can focus more directly on affordable housing, creating a development plan specific to the region. Without an AHC, many governments take a broad approach that doesn’t adequately address related issues such as economic development or educational opportunities. AHCs, on the other hand, can analyze not only the availability of low- and moderate-income housing, but their location in relation to jobs, schools, and public transportation. The result, often, is a comprehensive plan that locates new housing units close to bus and subway routes, employment opportunities and educational facilities.

The State of Alaska is one of the most recent to create an Affordable Housing Corporation. Over the years, the Alaska Housing Finance Corporation has formed subsidiaries for the purpose of maximizing funding allocations and meeting the needs of Alaskan residents more effectively. However, none of those subsidiaries address affordable housing specifically or strategically.

The Alaska Corporation for Affordable Housing (CAH) was made possible via legislative language contained in Alaska House Bill 119. The bill also creates the framework within which the CAH can function – how it acquires, develops, manages and operates housing for low-income residents.

By creating a subsidiary, the Alaska Housing Finance Corporation can access additional bond financing and low-income housing tax credits (LIHTC) to fund more affordable units. CAH already has its eye on a re-development project that could serve as an example for its vision and effectiveness. Because CAH is so new, there aren’t many more details regarding areas or projects targeted for development. Officials expect to make some of those decisions in the days and weeks to come.