Unalaska, AK – The City recently won a grant for $3.7 million from the Alaska Housing Finance Corporation to help build housing for teachers, health professionals, and public safety employees. The money will go toward a new 8-plex housing unit. Public Works director Nancy Peterson said they will remove six trailers to build the new units. After they are completed, the teacher 4-plex on Loop Road can be used for city employee housing, the teachers will move into the new housing, and the remaining units will be available for other employees.

Alaska Housing Finance Corporation planner James Wiedle said this is the first mixed- use unit they've ever funded.

"So it is unique in that regard, however it's not beyond the realm of what's possible under the program. Typically what you see in rural communities is a desire for affordable, decent housing for the general public as well. So the ability to blend those two, for teachers, health professionals, public safety, or general citizens is a win-win combination."

The grant does not pay for the entire building project. "The cost of building the project typically exceeds what a loan can support so the purpose of this program is, you know, we're requiring you to do your part, which is to take a loan or to put an equivalent amount of cash into the deal," he said. "And we'll provide you grant funds to make up the difference and then that way it makes the housing affordable to build out in these rural areas."

Since the program began in 2004, AHFC has helped fund 305 units of housing in 55 different places, which has helped keep teachers in rural communities around the state. This year's $9 million in project funding is split between eight different rural locations.