MEMORANDUM 07-18

TO: MAYOR HORNADAY AND HOMER CITY COUNCIL

FROM: COUNCILMAN DOUG STARK

DATE: COUNCIL MEETING OF 12 FEBRUARY 2007

SUBJECT: LOW-RENT HOUSING

The biggest problem Homer has is a high-cost economy, the main factors being a weak job market, expensive housing, and high costs of goods, including a high sales tax rate.

We should be working on these problems - a wealthy local government and a struggling population is not a recipe for municipal success. One piece of the puzzle is the need for housing for low-income citizens. Alaska Housing Finance Corporation has over 1600 apartments around the state for low-income tenants. It is

appropriate for the city to investigate what is available for Homer.

On a slightly different front, AHFC has no-money-down loan programs for housing for teachers and nurses.

RECOMMENDATION: Direct the City Manager to contact AHFC to pursue what is available for Homer for low-income tenant apartments.

fiscal note: $o