Alaska Stat. § 18.56. § 18.56.440
Limitations on use of housing assistance loan program
Operative Text
The housing assistance loan program may not be used to (1) originate a direct loan or purchase or participate in the purchase of a small community housing mortgage loan that exceeds the limitations on mortgage loans purchased by the Federal National Mortgage Association as to principal amount or loan-to-value ratio; (2) originate a direct loan or purchase or participate in the purchase of a loan made for building materials for small community housing (A) that exceeds $45,000 or exceeds (i) 80 percent of the appraised value of the work completed on the small community housing for which the loan is made if the small community housing is pledged as collateral for the loan; or (ii) 90 percent of the value of other property that is pledged as security for the loan and that is satisfactory to the corporation as collateral; (B) unless the terms of the loan agreement require inspections and certifications, as required by regulations of the corporation, at the expense of the borrower; and (C) unless the period of time allowed for repayment of the loan is equal to or less than 15 years; (3) originate direct loans or purchase or participate in the purchase of a small community housing mortgage loan that is secured by real property the marketable title to which is shown under AS 18.56.480(b)(2) if the total amount of outstanding small community housing mortgage loans held by the corporation exceeds 10 times the amount of money in the restricted title loss reserve account established by AS 18.56.490; (4) originate a direct loan for small community housing or purchase or participate in the purchase of a small community housing mortgage loan, other than a loan for the repair, remodeling, rehabilitation, or expansion of an existing owner-occupied residence, if the borrower has an outstanding housing loan made under a state loan program, other than a loan for nonowner-occupied housing under AS 18.56.580 or under former AS 44.47.520, that bears interest at a rate that was less than the prevailing market interest rate for similar housing loans at the time the loan was made; (5) originate a direct mortgage loan or purchase or participate in the purchase of a mortgage loan for rental housing unless the borrower agrees not to discriminate against tenants or prospective tenants because of sex, marital status, changes in marital status, pregnancy, parenthood, race, religion, color, national origin, or status as a student; or (6) originate, purchase, or participate in a loan to a person who has a past due child support obligation established by court order or by the child support services agency under AS 25.27.160 — 25.27.220 at the time of application.
Alaska Statute AS 18.56.440 sets out a list of circumstances under which the state's housing assistance loan program is prohibited from originating, purchasing, or participating in certain loans. The restrictions cover caps on principal amounts and loan-to-value ratios tied to federal standards, a $45,000 ceiling and specific collateral-based limits for building-materials loans, portfolio concentration limits tied to a reserve account, rules against duplicate subsidized state loans, a non-discrimination requirement for rental housing loans, and a bar on lending to applicants with past-due child support obligations. Together, these limitations define the outer boundaries of what the program is legally permitted to finance.
Plain English — not legal advice.
Property owners and developers seeking financing through Alaska's housing assistance loan program should be aware that AS 18.56.440 imposes firm eligibility boundaries before any loan can be originated or purchased. For rental housing loans, a compliant borrower formally agrees not to discriminate against tenants or prospective tenants on the basis of characteristics such as sex, race, marital status, pregnancy, national origin, or student status. Operators also ensure they have no outstanding past-due child support obligations and do not hold a pre-existing subsidized state housing loan that would conflict with the program's restrictions on duplicate below-market financing.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
AS 18.56.440 includes a provision that directly affects renters: landlords who receive rental housing loans through the state housing assistance loan program are required to agree not to discriminate against tenants or prospective tenants on grounds including race, sex, marital status, pregnancy, parenthood, religion, color, national origin, or student status. Tenants who believe a landlord receiving such program financing has violated this non-discrimination commitment may have grounds to raise that violation through a complaint or legal proceeding. Tenant-rights organizations and Alaska legal aid resources can help individuals understand what options may be available under this provision.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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