Anchorage Assembly to vote on fire-damaged lot transfer to housing authority

A fire-damaged lot on Teshlar Drive is set to be sold to Cook Inlet Housing Authority for $10,500, below fair market value, so the nonprofit can demolish the existing structure and build a single-family home for a low-income family through its Tribal Homeownership Program. The Anchorage Assembly is scheduled to vote on the transfer July 7.

The ordinance authorizes the municipality to forgo fair-market proceeds in exchange for demolition, redevelopment, and an income-targeted home. The municipality expects to collect roughly $10,000 from the disposal and says returning the 8,250-square-foot, R-1-zoned parcel at 6721 Teshlar Drive to active use would place it back on the tax rolls. The parcel was determined to be excess to municipal need before being listed for sale.

The house on the parcel was severely damaged by fire in 2024. The previous owner, Lakeview Loan Servicing, missed a June 20, 2025, deadline to apply for a repair or demolition permit. After fines and civil penalties were recorded, Lakeview donated the property to the municipality rather than pay them. The municipality ran a competitive sealed-bid process with a $5,000 minimum that closed June 2 with no compliant offers. Cook Inlet Housing Authority submitted a bid by the due date proposing a single-family home instead of the required multi-unit plan. A subsequent well inspection found the site could support only three bedrooms, effectively ruling out multi-unit development. Given those well limitations, the municipality determined the $10,500 bid was in its best interest.

If the Assembly approves the ordinance, Cook Inlet Housing Authority must demolish the structure within 120 days of deed recordation and complete a single-family home within five years, evidenced by a Certificate of Occupancy. If either deadline is missed, the property reverts to the municipality and is placed back into general real estate inventory. The ordinance would take effect immediately upon passage.

The transfer fits a broader 2026 push to add housing across the city. The ordinance states that "Redevelopment of this parcel will support the Mayor's Housing Strategy '10,000 Homes in Ten Years' and remove a blighted property from the neighborhood," a rationale submitted by Mayor Suzanne M. LaFrance. The Assembly has also considered a missing middle housing overlay and first-time homebuyer tax incentives this year. Some Anchorage residents and housing advocates have raised transparency and fairness concerns about direct conveyances to nonprofits after failed competitive bids. This disposal illustrates that tension: the sealed-bid process produced no compliant offers, and the municipality subsequently accepted Cook Inlet Housing Authority's noncompliant bid after the well-capacity finding changed the feasible development scope.