The Alaska Housing Finance Corp. is continuing its monthslong program of sending out rental and utility assistance payments — including almost $400,000 to Wrangell households as of last week — drawing on federal pandemic relief aid allocated to the states.
As of last Friday, Alaska continued among the leaders nationwide in distributing the aid to households hurt by a loss of income due to the pandemic. AHFC reported it had sent out almost $193 million in payments, about 80% of the $242 million in federal funds allocated to Alaska under renter assistance programs administered by the housing agency.
Several states have been slow to set up programs to distribute their share of the $47 billion appropriated by Congress for past-due and future rent and utility relief. According to Treasury Department statistics, Montana had sent out just 11% of its money and North Dakota a mere 4% of its allocation as of Sept. 30.
Nationwide, states had averaged about 25% as of Sept. 30.
Alaska ranked fourth in the nation in August for percentage of the money distributed to help renters.
The Alaska housing agency said the $193 million went to almost 24,000 households, representing 61,000 individuals — about one in every 12 Alaskans.
The Treasury Department will reallocate some of the unspent funds from states that have failed to use the rent-relief money, and AHFC “has requested additional funds to support Alaska renters experiencing hardship,” said Stacy Barnes, governmental and public affairs director at the agency. “We don’t know when Treasury will make the announcement or if there will be a series of announcements.”
Rental assistance continues in three-month increments for households experiencing financial hardship that still qualify for aid — until their eligibility ends, the state runs out of money, or the program ends.
Some of the state’s share of the federal relief can be used “toward housing stability services, which will allow us to address homelessness,” Barnes said. AHFC is still working on that effort.
The almost $400,000 in money sent to Wrangell renters has helped 73 households, AHFC said in its weekly update.
In addition to helping renters who lost their jobs, had their hours cut or otherwise have suffered financially due to the ongoing COVID-19 pandemic, Alaska has applied for federal approval to distribute its $50 million allocation under a program to assist homeowners.
The Treasury Department has approved mortgage relief programs in New York, Ohio and Maryland, Barnes said. “We are eager to get the program up and running. … It will probably take a month or two after Treasury’s approval before we can begin accepting complete applications and process payments.”
AHFC has been working to develop an application system and marketing plan to let Alaskans know about the mortgage aid program after federal officials sign off on the state’s proposal.
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