Construction financing facilities more affordable housing and office space in Alaska.

AuthorBarbour, Tracy
PositionFINANCIAL SERVICES

Last spring, Coronado Park Senior Village broke ground in Eagle River, promising to be the tallest building in town. The $16.6-million senior rental housing development will boast a four-story, fifty-six-unit structure convenient to retail, entertainment, and dining.

The development, being built by Cook Inlet Housing Authority, will feature one- and two-bedroom units--some of which will have garages. Perhaps most important, the facility will provide a place where Alaskans age fifty-five and older can live independently and affordably on a fixed income. About forty of the units will be designated as "affordable" and offered to low-income seniors, with the rest to be rented at market rates.

Residents of Coronado Park will also have the added bonus of being able to live in ultra energy-efficient housing. The building is designed to meet a 5 Star Plus energy rating and will have the largest alternative energy system in a residential building in Alaska, according to Cook Inlet Housing Authority. The project will be powered by a solar-thermal system that will provide more than half of the energy needed to heat hot water for domestic use.

Coronado Park Senior Village is being funded by a number of sources, including R4 Capital, Northrim Bank, Alaska Housing Finance Corporation, Rasmuson Foundation, and the US Department of Housing and Urban Development. Northrim Bank provided both the construction financing as well as the permanent financing. Favorable loan terms for the permanent financing were able to be provided as a result of Northrim Bank's membership with the Federal Home Loan Bank of Seattle through participation in their Community Investment Program. Northrim Bank's further contribution included investment in the project through the purchase of low income housing tax credits. "It's a project we are very proud of," says Northrim Bank Construction Loan Manager Tara Tetzlaff. "It meets the needs of the community in a number of ways."

The project is scheduled to be completed in July.

Hot Segments of the Market

Alaska's financial institutions provide funding for all types of construction projects, from industrial warehouses and office buildings to residential housing and subdivision development. Projects involving low income housing tax credits--which are an important element of Coronado Park Senior Village's funding--are becoming increasingly popular with investors. That's not surprising, given that investors can receive a significant tax...

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