Wasilla moves to reject a 59-unit affordable housing project

Wasilla is set to formally reject a 59-unit affordable housing project this week, capping a fight that pitted a housing shortage against a neighborhood's commercial character. The Planning Commission voted 3-2 in June to deny the permit, and meets Tuesday to make it official.

The developer, the Alaska Corporation for Affordable Housing, wanted to build on South McKinley Street, with every unit rented to households earning 80% or less of the area's median income. Its director argued the need is real: roughly 40% of Wasilla households spend more than 35% of their income on housing, and the site offered a rare chance to put affordable housing near the city center. City staff had recommended approval, and no state or municipal agency objected.

But the commission found the residential project incompatible with the site's commercial zoning, ruling it would harm neighborhood character and conflict with the city's plan to keep the area commercial. Opponents packed the June hearing — neighbors, business owners, and two city council members cited traffic (the project was estimated to add about 240 vehicle trips a day) and the commercial designation. One property owner said he'd bought nearby land expecting the area to stay commercial long-term.

The denial isn't necessarily the end: once it takes effect Tuesday, any party with standing has 15 days to appeal.