An ordinance that will help qualifying buyers purchase borough land at a 25% discount was unanimously approved by the Kenai Peninsula Borough Assembly last month.
During a May 6 Lands Committee meeting, Mayor Peter Micciche said the ordinance grew out of concern over out-migration.
Micciche said recent numbers from the Kenai Peninsula Economic Development District show a sharp reduction in retaining young people on the Kenai Peninsula. He said some factors — including cost and availability of housing — have made it difficult for young people to remain on the peninsula or consider moving here.
During the May 20 borough assembly meeting, the ordinance was given a public hearing. Mako Haggerty of Homer wrote in support, writing that he believes the ordinance will “go a long way to give young families a foothold in our communities,” and urged the assembly to support its passing.
The Land Affordability Program will provide a 25% reduction on eligible properties, which must be residential, with utilities nearby, and not previously foreclosed on.
The 25% reduction will come off the gavel price at the time of sale. Participation in the program comes with an obligation to develop the property and participants must have a building foundation on the land within three years of purchasing. But, at closing, participants will have a 35% equity in the property, with a traditional 10% down payment out of their pocket, in addition to the 25% cost the borough will cover.
To qualify for the program, you must be a resident of both Alaska and the Kenai Peninsula, already or demonstrate the intention of imminent borough residency.
