Dusty Trails Apartments is finally being remodeled after a new owner purchased the property early last year.
Six years after improvements were first planned for the 27-year-old low-income apartment buildings, structural issues and at least one attempted sale of the building had stalled progress.
Colorado developer Scott Niblack assumed ownership in March 2020. The purchase enabled the use of federal low-income housing tax credits to incentivize the sale and remodel.
The Alaska Housing Finance Corporation administers the low-income housing tax credits in an effort to incentivize developers and investors to create and operate affordable housing. Developers receive federal income tax credits over a 10-year period in exchange for rehabilitating or constructing low-income housing. The U.S. Department of Agriculture Rural Development (USDARD) provides loans to developers who receive the tax credits.
The first 2015 deal failed after Seattle-based affordable housing developer GMD Development and USDARD failed to reach an agreement on how to mitigate moisture issues in the crawlspace of one of Dusty Trails’ buildings, said a GMD executive. The company planned to spend $3 million on the renovation project.
Building “E” has long been plagued by moisture and rot issues, according to local real estate broker Jim Studley who was familiar with a 2015 project that first aimed to rebuild the apartment complex.
Southeast Roadbuilders is responsible for demolishing building E and will do civil engineering work on the parking lot and drainage. Contractors will begin work on Monday, April 19. Building E will be completely demolished and rebuilt. The new apartment building will house six ADA compliant units.
The three other buildings will be completely renovated, said Dusty Trails manager Jason Ghan.
“They’ll be demoed down to the studs and there’s going to be new flooring, new cabinets, new appliances, new sheetrock,” Ghan said. “Those are going to be done one after the other.”
Many tenants will be housed at the Aspen Hotel and others will stay with friends and family. Ghan said contractors hope to have the project complete by September, estimating that it will take 30 to 45 days to renovate the three other buildings.
“It’s very ambitious. As long as the supply lines hold up and all that good stuff, it sounds like the contractor has everything lined up pretty well,” Ghan said.
Orion Construction out of Wasilla is leading the project.
Tenants were notified in February that the project was in the works and were given official notice in late March, Ghan said. Various community organizations and businesses have helped move tenants.
“We’ve had a couple partners like Haines Presbyterian and Haines Christian Center. IGA and Olerud’s have provided boxes,” Ghan said. “Those two churches have spearheaded efforts to help elderly and disabled residents pack. They’ve been pretty instrumental in helping us out.”
Dusty Trails is fully occupied and has a waitlist.