Housing programs are administered through the Rural Development Alaska State Office, located in Palmer. Housing program services are also provided through field offices located in Bethel, Dillingham, Fairbanks, Kenai, Nome and Sitka.

The state office staff, along with nine field office employees, work directly with the public to provide loan and grant services. In Fiscal Year 2004, Rural Housing programs resulted in over $47 million in investment in rural Alaska through mortgage financing, guarantees and rental assistance. That was a 37 percent increase in home loan activity (measured by dollar volume). "Additionally, the number of new minority homeowners who took advantage of our home loan programs was 26 percent of our total volume," said State Director Bill Allen. Allen noted that 95 percent of all single family loans made or guaranteed by Rural Development in 2004 went to first-time homebuyers.

"New homeowners, former renters, achieved their dream of homeownership thanks to the Rural Development Mutual Self-Help Housing Program."

These homeownership loans assist income eligible residents attain affordable housing. RHS funds are combined with resources from a private lender or another funding agency. No down payment is required. This program offers interest rates that can be subsidized down to 1%. The Self-Help program allows applicants to participate in the construction of their homes to build sweat equity. Rural Housing Service helped seven families begin construction work on their own homes in conjunction with the Alaska Community Development Corporation. Contact John Pipp 761-7724 or Cathy Milazzo 761-7725 for more information.

GRH homeownership loans are available to applicants with the financial ability to make mortgage payments, but may not have the necessary down payment. Applicants apply for a housing loan through an approved lender, who submits the application to RHS for guarantee. Mortgages are 30-year fixed rate at market interest rates. Contact Karen LaMouria 761-7731 or Nancy Hayes 761-7742 for more information.

Rural homeowners, who need to remove immediate health or safety hazards, or bring their homes up to minimum property standards, may qualify for an RHS repair loan of up to $20,000 at 1% interest. Qualified homeowners aged 62 years or older may qualify for a grant of up to $7,500. Contact Cathy Milazzo 761-7725 or Colleen Peterson 761-7768 for more information.

RHS provides financing for the development of modest apartments targeted specifically for income eligible tenants in rural areas. Apartments are designed for families, individuals, elderly (aged 62 and older), and disabled tenants. The units are developed, owned, and operated by private or non-profit borrowers. Some projects receive Rental Assistance, a tenant subsidy that helps pay rent and utility costs. Applications are accepted pursuant to a Notice of Funding Availability (NOFA) published annually in the Federal Register in December or January. Contact Sheryl Gleason 761-7732 for more information.

Public and private non-profit organizations can apply for grant money to rehabilitate housing owned and occupied by income eligible applicants in their community. The grantees provide homeowners with financial assistance through loans or grants, for necessary repairs and rehabilitation. Applications are accepted pursuant to a Notice of Funding Availability (NOFA) published annually in the Federal Register in January or February. Contact Sheryl Gleason 761-7732 for more information.

RHS provides grants to eligible organizations to assist small groups of income eligible families and individuals build their own homes and earn sweat equity. Grantees provide technical and supervisory assistance to prospective applicants in developing suitable housing and become successful homeowners. Contact  Cathy Milazzo 761-7725 or Colleen Peterson 761-7768 for more information.