Oil money could unlock housing

The Municipality of Anchorage is asking the Alaska Legislature for $30 million to help unlock stalled housing developments across the city, including the former Carrs-Safeway site on Gambell Street in Fairview, parcels in Midtown and the Powder Ridge subdivision in Eagle River. The Anchorage Assembly has already approved the funding request unanimously.

Powder Ridge alone could bring up to 1,000 new homes, but like many of the targeted sites, it has stalled because developers must pay upfront for sewer, water, road and lighting extensions. Those infrastructure costs get passed down to buyers and renters, a major driver of rising home prices in Anchorage.

City leaders are pursuing the money now because Alaska could see a surge in oil revenue tied to rising global oil prices connected to international conflict. They are calling the request a one time opportunity to fix what they describe as stranded land across the municipality by covering infrastructure costs that currently block construction.

The funding decision now rests with state lawmakers, who will determine how much, if any, of the $30 million request to approve.