ANCHORAGE, ALASKA—The Cook Inlet Housing Authority has received a $2.3 million reservation of low-income housing tax credits (LIHTCs) to redevelop Loussac Manor, a 50-year-old public housing development.

The credits were awarded by the Alaska Housing Finance Corp. (AHFC). It’s the first time the agency is using credits and project-based housing choice vouchers to help convert public housing into private rental housing.

The 62-unit complex’s tenants were relocated last summer, and the demolition of the site is under way.

Loussac Manor faced substantial renovation costs that made redevelopment a more effective plan, according to AHFC officials.

Cook Inlet Housing’s proposal calls for replacing Loussac Manor with 120 rental units and a community building. The new community will use energy-efficient appliances and meet the highest rating under the state’s Building Energy Efficiency Standards.

About 37 percent of the project will be “workforce” housing, targeting families earning above 60 percent of the area median income (AMI). The rest will be reserved for households earning no more than 60 percent of the AMI.

Cook Inlet Housing’s proposal was the highest ranked among six applicants in the recent tax credit round. The developer has pledged up to $6 million of its owner resources and will be seeking loan financing from AHFC.

AHFC also provided the development with $3.3 million in AHFC corporate receipts.