The state of Alaska and the municipality of Anchorage will share $200 million in new federal funds to help renters who have lost jobs or suffered economic hardship due to the ongoing COVID-19 pandemic.

The Alaska Housing Finance Corp., which operated a similar, but much smaller, federally funded program last summer, is expected to manage the new assistance program outside Anchorage, with more information expected this week and application details possibly later in February.

The housing finance agency is “working now to understand the requirements and develop a plan that supports renters and gets money to landlords as soon as we’re able. More information about our plan will be updated on our Alaska Housing Relief website (AlaskaHousingRelief.com) starting next month,” Soren Johansson, public relations manager at the agency, said Jan. 21.

Alaska was allotted $200 million under a $25 billion rental assistance appropriation in the coronavirus relief bill Congress approved in December. Almost $36 million of Alaska’s housing assistance allocation will go straight to Anchorage, according to a resolution on the Anchorage municipal assembly’s Tuesday meeting agenda. The federal aid bill carves out funds directly for municipalities of more than 200,000 residents.

The minimum in the law for smaller states is $200 million.

The housing aid is among multiple appropriations in the $900 billion spending package, which included stimulus checks of up to $600 per person, enhanced federal unemployment benefits, and additional funds for small businesses, schools, child care and vaccine distribution.

Under the federal rules for the housing assistance funds, eligible households may receive up to 12 months of aid, with an additional three months possible if the state or municipal agency “determines the extra months are needed to ensure housing stability” and if extra funds are available.

Payment of arrears “that could result in eviction of an eligible household is prioritized,” under the federal rules.

The funds may be used to bring renters current and then to help cover future rent, according to the rules.

Each state will have leeway to establish its own rules and application process, within the federal requirements.

A portion of the $25 billion in federal funds for housing assistance will go to Alaska Native and American Indian tribes and tribal housing authorities— $800 million nationwide. The U.S. Treasury Department had not posted an allocation of that $800 million as of Jan. 25.

The rules also allow some of the money to be spent on case management and other services intended to keep people in stable housing, but require that “not less than 90% of awarded funds must be used for direct financial assistance, including rent, rental arrears, utilities and home energy costs … and other expenses related to housing.”

Alaskans can expect to see widespread television, radio and internet advertising after the rules are settled, AHFC Executive Director Bryan Butcher told Alaska legislators on Jan. 18.

Almost 20% of Alaska renters were behind in their payments in December, according to the Center on Budget and Policy Priorities, a Washington, D.C.-based research organization.

Last summer, AHFC operated a small program with $10 million in federal CARES Act funds, providing up to $1,200 in one-time payments to assist Alaskans with their rent or mortgage payments. More than 8,000 households applied for the aid. This year’s federal program is limited to renters only.

In addition to the state-operated program last summer, several municipalities around Alaska used a portion of their federal CARES Act money this past fall to provide housing assistance to renters and homeowners in their communities.

The cities of Sitka, Soldotna, Kenai, Wasilla, Kachemak, Palmer and Homer, along with the Kenai Peninsula Borough, turned to AHFC to operate the local programs.

Federal rules for the 2021 assistance program require that at least one member of the household must be qualified to receive unemployment “or has experienced a reduction in household income, incurred significant costs, or experienced a financial hardship due to COVID-19.”

There will be a household income limit to the program, based on the area’s median income, and the rental assistance will not be available for households already receiving reduced rent through any other state or federal program.

In Haines, the annual household income limit appears to fall around $58,000.

Household income will be determined as either the income for 2020 or the household’s monthly income “at the time of application,” such as for applicants who worked in 2020 but then lost their jobs or income in 2021, according to the federal rules.

“In general, funds will be paid directly to landlords,” the rules said. “If a landlord does not wish to participate, funds may be paid directly to the eligible household.”

Author