January 10, 2018
The Honorable Bill Walker
Governor, State of Alaska
The Honorable Byron Mallott
Lieutenant Governor, State of Alaska
P.O. Box 110001
Juneau, Alaska 99811-0001
Dear Governor Walker and Lieutenant Governor Mallott:
Alaska Housing Finance Corporation (AHFC) is fulfilling its mission of providing residents across Alaska with access to safe, quality, and affordable housing.
We were founded in 1971 and weathered many storms, including the recession of the 1980s. More recent difficulties were caused by the global financial meltdown in 2007 and 2008, but the corporation has adapted well, arriving at a functionally sound business model. We are pleased to report on our progress in recent years.
FY17 was a strong year for AHFC, benefiting Alaskans and the state:
- Our dividend amounts to $29.4 million, close to the FY16 dividend of $30.5 million.
- We recorded positive operating income of $14.3 million, a slight increase from $14.2 million in FY16.
- The value of our mortgage portfolio increased 3.3 percent to $2.9 billion, with the bond portfolio increasing 2 percent to $2.1 billion.
- Active management of our bond program has resulted in Net Present Value (NPV) savings. In FY17, savings reached $6.7 million. The total savings between FY15 through FY17 amounts to $40.5 million.
- AHFC is among the strongest housing finance agencies with high performance ratings by the national rating agencies. Moody’s has rated AHFC Aa2 since 1997, Fitch has had AHFC at AA+ since 2000, and S&P has rated AHFC with AA+ since 2010.
Furthermore, AHFC’s programs were independently analyzed with a state contract through Boston Consulting Group. Their analysis found our prior work worthwhile and that the corporation is positioned for a solid future.
Our annual report contains a lot of good news and highlights performances from the corporation’s expertise all making Alaska stronger, safer and smarter.
Unfortunately we must report some sad news.
In FY17 Daniel R. Fauske, AHFC’s CEO/executive director for 18 years spanning 1995-2013, lost his battle with cancer. Dan instilled a can-do, never-say-no-attitude in the employees who worked for him across the state. Dan’s legacy lives and on behalf of our employees and our board of directors we express our gratitude to you and to the legislature for House Bill 143 that named our headquarters building in Anchorage at 4300 Boniface Parkway Daniel R. Fauske Building in honor of his service to AHFC and the state of Alaska.
Board of Directors
Brent LeValleyBoard Chair
Alan WilsonVice Chair, Alaska Renovators, Inc.
Carol GoreCook Inlet Housing Authority
Sheldon FisherCommissioner, Department of Revenue
Valerie DavidsonCommissioner, Department of Health & Social Services
Mike NavarreCommissioner, Department of Commerce, Community & Economic Development
Haven HarrisAleutian Pribilof Island Community Development Association
Bryan ButcherCEO/Executive Director, AHFC
Daniel R. Fauske
December 13, 1950 – April 5, 2017
AHFC’s headquarters is dedicated to the legacy of Daniel R. Fauske, who for 18 years, from March 1, 1995 to August 6, 2013, served as CEO/executive director of Alaska Housing Finance Corporation. Dan’s accomplishments reflect his feelings for Alaskans and Alaska. He cared deeply; no issue was too big and no person was too small. The unique combination of Dan’s work and big personality generated trust and earned respect from ordinary Alaskans, lawmakers and Wall Street’s financiers alike.
From the beginning of his career at AHFC, Dan protected the interests of the corporation, all who worked for him and the thousands of Alaskans who were supported in housing. Dan successfully shielded the agency from the subprime mortgage bubble that impacted the Lower 48, and he substantially improved the agency’s credit rating.
His financing prowess led to construction of homes for rural teachers, health professionals and public safety officers. He improved the lives of thousands of vulnerable Alaskans – children, seniors, those with disabilities, victims of domestic violence, and veterans. He helped transition many from homelessness to permanent housing. Many more Alaskans were positively impacted when substandard housing was improved by AHFC’s residential energy efficiency effort – the most successful ever executed in the country.
Based on the success he experienced at AHFC and in prior public service as chief financial officer and chief administrative officer for Alaska’s North Slope Borough, elected officials called upon Dan to advance projects important to the state. Notably, Dan prepared Alaska for a natural gas pipeline while serving as president of Alaska Gasline Development Corporation.
The dedication of 4300 Boniface Parkway is a fitting tribute to a man whose very presence inspired confidence, a can-do spirit and loyalty among those who worked for him, and in the process of building a better Alaska, Dan prioritized recognition for all who worked with and for him -- the hallmark of leadership.