The Haines Borough Finance Committee decided Tuesday to create a working group to address the borough’s housing needs.
The borough faces a housing shortage, according to borough planner Dave Long, who gave a presentation for the committee on Tuesday. Committee members discussed various ways they could spur housing development: implementing a tax deferral for developers, seeking federal aid and identifying development incentives that work elsewhere.
Borough clerk Alekka Fullerton suggested creating a working group to collect input on how to solve housing problems in the borough. Assembly member Paul Rogers supported the idea, saying that the group could help the assembly define the issues that need to be addressed: “What do we mean by a housing shortage? What do we mean by ‘it’s difficult to develop’?”
“There’s a lot of indicators pointing to there being a housing shortage across the whole U.S.,” Long said. “Basically what’s happened is there’s been a lack of construction to keep up with demand… and we’re affected by that.”
Long said real estate prices have escalated “rapidly” in Haines over the last year after slowly creeping up for years.
Median rent in most Alaskan municipalities surveyed by the state rose in 2021, according to a September Alaska Economic Trends report. Juneau was an exception, and Haines wasn’t surveyed. The statewide vacancy rate dropped for the first time in four years, from 9.2% to 5.9%.
While the number of building permits for single-family residential homes in Haines has increased over the last decade, construction hasn’t kept up with demand, Long said. Moreover, looking only at single-family homes misses the bigger picture. Only two residential building permits since 2009 were for multi-unit developments, which provide more housing and tend to be more affordable.
Sara Chapell of Southeast Alaska Independent Living (SAIL) said the organization knows of at least two Haines residents who are sleeping outside because they can’t find housing even though they have income. She said dozens of people are in housing that they can’t sustainably afford. “Their choice is often to pay for food or pay for housing,” Chappell said.
The average social security disability payment is $600-$800 per month, and Chapell said there’s only one available housing unit in Haines—a studio apartment for $850 a month before utilities.
“When you’re thinking about affordable housing and what Haines needs, we ask that you also look at the most vulnerable citizens in Haines and what could really be amounting to something of a housing crisis for those folks,” Chapell said.
Sally Andersen of Haines Economic Development Corporation advised Finance Committee members to distinguish between affordable housing and housing in general. She said development incentives could play a role in addressing a housing shortage but would not necessarily help low- or middle-income families find homes.
Andersen also suggested looking at whether to limit Airbnbs, which she said can tie up housing otherwsise available for long-term renters.
Local developer Roger Schnabel said he has struggled to figure out a cost-effective way to develop a 70-lot Hill Top subdivision (near Cemetery Hill) that he has been planning for several years.
“I’ve come to a point of somewhat of a crossroads,” Schnabel said. “I find myself in a position where I don’t know how to turn or how to move.” He said high costs and difficulty figuring out how to meet market demands have been obstacles to developing the large subdivision. “I’ve got to figure out some mechanism to make it work,” he said, adding that he’s done his own engineering work to cut labor costs.
Long presented four possible solutions for the committee: examine local zoning to provide more space for multi-unit housing; examine the borough’s vacant land inventory and create development incentives; expand borough utilities; and develop a local workforce to build homes.
“I anticipate housing and rentals are going to be tighter next year,” Long said. “The road construction will still be happening. And we’re going to get our seasonal tourism workers back. On top of that, there has been a displaced resident factor (due to the December landslides and flooding)… These things have taken up a lot of the available rentals.”