An artistic rendering of a 18-unit housing complex in Nome. Graphic courtesy of the City of Nome.

Funding for 18-Unit Housing Complex in Nome Included in Bill, Fate up to Congress

A new 18-unit housing complex for Nome Public Schools employees and public safety officers is inching closer to construction, as a bill with $4 million in new funding for the project passes through Congress.

Senator Lisa Murkowski announced the funding as part of the Senate’s FY25 Transportation, Housing, and Urban Development (THUD) bill in a press release issued on July 29, noting that the investments are yet to be finalized.

“Whether affordable housing, safer air travel, modern infrastructure, fisheries health, or public safety, I worked hard to address Alaska’s most pressing needs and priorities through these bills,” Murkowski said. “While the investments they contain aren’t final, yet, I will continue to push for their enactment so that communities across Alaska can realize the significant benefits they will provide.”

The housing complex, planned to be built on the site of the old ice rink, would feature both two and three-bedroom units. The location was selected for its proximity to essential services including Nome Elementary School, the hospital, and grocery stores.

Draft Floorplan

Nome City Manager Glenn Steckman said the project aims to provide affordable housing to attract and retain teachers and public safety officers while addressing a significant barrier for such professionals interested in moving to– and staying in–Nome.

“One of the problems that is impacting our school system in particular is they can't guarantee housing for teachers. The idea is to get them up here where they have nice surroundings, they have more modern amenities that they're used to having especially in the lower 48, and to help get them invested into our community.”

- Glenn Steckman, Nome City Manager

The Denali Commission contributed $500,000 through the Alaska Housing Finance Corporation for a design phase that was completed in 2022. According to Steckman, before COVID-19 the project was estimated to cost $7 million. Now, he says the project may cost nearly $14 million.

A revenue bond may be used to finance any remaining expenses needed to complete construction. Through this method of financing, rents collected from the apartments would pay off the bond over the course of 20 to 30 years.

The inclusion of public safety officers in the housing plan was a strategic decision to make the project more appealing for grants, in-turn reducing the tax burden on local taxpayers.

“That was the school district and the city partnering to make it more appealing to organizations to see the benefit of having a public safety component and a teacher component, and possibly open to more grant opportunities,” Steckman explained.

As the project awaits funding, the city is hopeful that the combined efforts of local and federal support will finally bring the housing complex to fruition.

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