Borough Housing Projects

The Borough is taking actions to address the housing situation in Ketchikan. Staff is working on multiple projects to combat housing, including subdividing Borough lands.

High End View Lots
The Borough has certain parcels located near 17 and 18 mile North Tongass Highway that are suitable for subdivision into large waterside view lots, to be sold at market rate prices. The proceeds from the sale of lots can be used to repay the Housing Capital Fund for the upfront subdivision costs, and additional proceeds can be deposited to the Land Trust Fund.

Mile 17/18 Subdivision.

Low Density Market Rate Lots
The Borough has parcels in the North Tongass Service Area, between Lighthouse Grocery and Whipple Creek, suitable for subdivision into residential medium lots of approximately 15,000 - 20,000 sq ft., to be sold at market rate prices. The lack of municipal water and sewer precludes low income or workforce housing. The proceeds from the sale can be used to repay the Housing Capital Fund for the upfront subdivision costs which will include road access, and additional proceeds can be used to subdivide additional areas.

Planned Unit Development
The South Tongass Service Area has municipal water and sewer, offering opportunities for affordable or workforce housing. The Borough is exploring the area behind the Fawn Mountain Elementary School for this planned development. However, the Borough is not the best entity to actually build housing, but by forming partnerships with other organizations, the Borough can facilitate housing development. In order to achieve specific price points, some form of subsidy will be required. Subsidies may include donations of land, tax abatements, or other incentives. In a planned unit development, the Borough could subdivide a large parcel, and give portions to other entities such as local or regional housing authorities for housing development.

Staff will be seeking Assembly concurrence to continue work on subdividing specific parcels of Borough land. Next steps would be working with the Planning Commission, issuing RFPs for design and subdivision, etc. Depending on the parcels selected, other issues may need to be considered. The following list provides some examples, but is by no means all-inclusive:
- Service area impacts
- Future maintenance of existing and new roads
- Financing infrastructure improvements
- Method of sale for newly created lots

Saxman Last Frontier Housing Initiative Project

In late 2023, the Alaska Housing Finance Corporation (AHFC) made $4.5 million dollars of Emergency Rental Assistance (ERA) funding available to a local government organization in the community to develop affordable housing, with the following conditions:

• Identifying/securing land; 
• Assembling the development team (builder/architect);
• Recruiting a property manager; 
• Securing at least 15% in matching funds for the project; 
• Scope approval and vehicle to backstop cost overruns;
• Delivering a minimum of 8 affordable housing units; 
• ERA funding provided for this project must be expended by September 30, 2025. 

The City of Saxman has taken the lead role in this project and will be the recipient of the ERA funds from AHFC.  The Borough has entered into an Memorandum of Understanding (MOU) with Saxman to provided administrative and technical support throughout the project.  Both the City of Ketchikan and the Borough agreed that it was most appropriate for the project to occur in, and for Saxman to be the direct recipient of the ERA funding as they have previous experience managing rental housing as well as having readily available land to be developed. 

The ERA funding stipulates that only individuals or families making 50% or less of area median income (AMI) will be eligible to rent one of these units upon their completion.  Based on 2023 income limits, an individual making $37,000 or less, or a family of 4 making $52,850 or less would be eligible.

It is anticipated that the rental units created through this funding opportunity will be available to community members in early 2026.