The Juneau Assembly unanimously approved more than $3.1 million in loans last week toward two local housing projects.
The money comes from the city’s affordable housing fund. The first loan approved was for $900,000 and will go toward building 18 one-bedroom apartments on Cordova Street in West Juneau. The second loan is for $2.2 million and will help build 48 apartments at the Chilkat Vistas subdivision in Lemon Creek.
Mike Heumann, the developer for Chilkat Vistas, said without the city’s loan, he likely would have built condos rather than apartments.
“Apartments don’t pencil out, and that’s why no developers build them in this town. But, with this money, you guys make it possible. It’s the only way it’s going to happen,” he said.
Coogan Alaska, LLC, the developer of the West Juneau project, agreed that the apartments built would rent at or below $1,400 per month, adjusted for inflation annually for the term of the loan.
Heumann agreed to similar terms for 14 of the Chilkat Vista apartments. He also agreed that 31 units would be available to people who make 80% or less than the Juneau Area Median Income, at a monthly rent of about $1,700 or less for an efficiency unit.
As of 2023, people making $68,480 or less would be eligible to rent those apartments.
Neither developer can use the apartments as short-term rentals until their 10-year loans are repaid.
The Assembly recently received public backlash after a project that received a loan from the affordable housing fund announced its units would be condominiums sold at market rate.
Joshua Adams, a local landlord in Juneau, testified at the meeting last week and argued that the two projects needed more guardrails to ensure they remain affordable.
“We are not going to solve the housing crisis by more building of overpriced housing — it’s like building boutique hotels to alleviate homelessness,” he said. “Juneau residents don’t need more housing, they need housing to be more affordable.”
He said the projects the affordable housing fund supports are often geared toward seasonal workers rather than low-income residents who live in Juneau year-round.