Interior Alaska News

U.S. Senator Dan Sullivan, alongside Senate Finance Committee Chair Ron Wyden and U.S. Representatives Jimmy Panetta and Mike Carey, has introduced the Workforce Housing Tax Credit (WHTC) Act. The legislation aims to address the housing affordability gap for middle-income families who earn too much to qualify for low-income housing but not enough to afford homes near their workplaces.

The WHTC Act proposes the first-ever middle-income housing tax credit, estimated to finance around 344,000 affordable rental homes. It allows states flexibility in resource allocation by enabling housing finance agencies to transfer their middle-income allocation to their Low Income Housing Tax Credit (LIHTC) allocation at any time. Additionally, it permits combining both credits to make more low-income housing projects feasible.

Senator Sullivan highlighted the challenges faced by Alaskans regarding housing scarcity and emphasized the importance of federal initiatives like this act: “Solving this challenge is a top priority for me... On the federal level, my colleagues and I are introducing the Workforce Housing Tax Credit Act.”

Wyden noted that essential workers such as nurses and firefighters struggle with finding affordable housing close to where they work: “Establishing a middle-income tax credit will guarantee more housing,” he said.

Panetta addressed similar issues in his district: “Our bipartisan, bicameral Workforce Housing Tax Credit Act would address that gap by incentivizing investment in the development of middle-income housing.”

Carey also stressed the difficulties faced by many Americans who fall into this financial bracket: “Our legislation seeks to bridge the gap by creating a new housing tax credit for middle-class families.”

Alaska leaders have voiced support for the WHTC Act. Governor Mike Dunleavy acknowledged Alaska's unique challenges due to its climate and geography, stating that collaborative efforts across government levels could lead to innovative solutions. Bryan Butcher from the Alaska Housing Finance Corporation appreciated Sullivan’s bipartisan approach: “This bill will help working families in Alaska who don’t qualify for low income housing.”

The mayor of Anchorage, Dave Bronson, expressed gratitude towards Sullivan's legislative efforts amidst ongoing discussions about Anchorage’s housing crisis exacerbated by recent economic factors.

Chris Constant from the Anchorage Assembly described this bipartisan legislation as a key component in addressing local homelessness issues while Meg Zaletel from Anchorage Coalition emphasized its potential impact on Alaska's severe housing crisis.

Other state entities including Matsu Homebuilders Association and Kenai Peninsula Builders Association supported reducing regulatory barriers through this proposed amendment which aims at increasing homeownership opportunities amid rising costs.

Nationally recognized organizations such as National Association of Home Builders (NAHB), Housing Advisory Group along with NMHC and NAA endorsed this initiative highlighting its potential benefits towards alleviating national workforce-related residential shortages while expanding existing LIHTCs framework catering specifically toward moderate income households facing escalating accommodation expenses nationwide.