Fairbanks Neighborhood Housing Services launched the Fairbanks Vacant/Blighted Home Improvement Program in July 2025. The program provides grants up to $50,000 to property owners who agree to create safe, affordable rental units. The flexible program offers several options to both create and rehabilitate units. Owners must match at least 20% of awarded funds and maintain the unit(s) as long-term affordable rentals for five years.

Program Overview

• FV/BHIP offers 5-year grants of up to $50,000 per unit for repairs needed to bring vacant rental units up to City of Fairbanks building codes or convert existing structures to rental units. The completed units must comply with the City of Fairbanks, building code and local ordinances, and all applicable Certificate of Occupancy requirements. Award amounts are based on the number of bedrooms:
  • Up to $40,000 for the rehabilitation of each 0-2 bedroom unit
  • Up to $50,000 for the rehabilitation of each 3+ bedroom unit or to convert existing structures to rental units
• For structural elements affecting multiple units, applicants can apply for $50,000 per property and must identify one unit in the building to carry the Rental Covenant.
• FV/BHIP funds are disbursed on a reimbursement basis at certain points during the project, so you will need to have the capital upfront to cover project expenses until you receive reimbursement.
• The Property Owner must sign a Housing Affordability Covenant outlining that the unit will be rented at or below HUD Fair Market Rents (FMR) for the Fairbanks North Star Borough (published annually), or at a rate allowed by a recognized housing assistance agency for the compliance period. Five-year grants also require placing tenants through a Coordinated Entry through Fairbanks Neighborhood Housing Services.
• The Property Owner must be current on their property taxes and mortgage payments to be eligible for the program.
• The Property Owner is required to contribute at least a 20% match of the grant or loan funds prior to first grant or loan disbursement. An “in-kind” match or deferred match timeline may be approved at the discretion of Fairbanks Neighborhood Housing Services.
• Pre-approval is available to aid with financing. Required State/ local permits must be obtained before final approval.
• Project scope may be reviewed and altered if the property is on or eligible for the State or National Historic Registry.
• The Property Owner will provide information on tenants and rents to show they are complying with program requirements. This will include contact information and lease copies annually, and the FV/BHIP Owner Compliance Certification.
• Applicants MUST be able to complete the project within 18 months of signing the Grant Agreement.
• Fire and safety inspections are required for approval and all fire, housing, and health code violations identified in occupied units and common areas must be corrected.
  Tenant Selection Parameters
• Property Owner must accept paper applications in areas with limited internet access
• Cannot charge upfront more than first month’s rent and a security deposit
• Must accept credit scores of 500 and above
• Property Owner must cover the expense of any credit or background checks

Fair Housing & Landlord-Tenant Mediation

Federal and State Fair Housing Laws prohibit discrimination in all aspects of housing, including home sales, rentals, housing policies, and financing. Discrimination is treating a person, or a particular group of people unfairly or differently than how other people are treated because they are a member of a protected class (race, family status, etc.).

Grants:

• Grants funds are considered taxable income.
• 5-Year Grants: Units receiving these funds must be rented at or below HUD Fair Market Rent for 5 years. These units have the additional requirement to work with Fairbanks Neighborhood Housing Services to identify a tenant.

Please complete this application and return with requested documentation to:

Fairbanks Neighborhood Housing Services

1427 Gillam Way

Fairbanks, AK  99701

Email: nwinters@fnhs.org | Phone: 907 451-7230

Section D. Project Deadline

I understand that if my rehabilitation project is not completed and occupied within 18 months of signing the grant or loan agreement I will forfeit the unspent portion of the grant or loan, and I will be responsible for any unpaid amounts owed to the contractors that I hire. Fairbanks Neighborhood Housing Services may seek recovery of funds for incomplete units, or any other violation of the program rules or the Housing Subsidy Covenant to the full extent allowable by law.

Section E. Authorization and Acknowledgement

Each of the undersigned attests to Fairbanks Neighborhood Housing Services and to Fairbanks Neighborhood Housing Services’ actual or potential agents, successors and assigns and agrees and acknowledges that the information provided in this packet is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this packet may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq. Fairbanks Neighborhood Housing Services and its agents, brokers, insurers, successors, and assigns may continuously rely on the information contained in the packet.  Each of the undersigned hereby acknowledges that Fairbanks Neighborhood Housing Services, its servicers, successors and assigns, may verify or reverify any information contained in this packet or obtain any information or data relating to the packet, for any legitimate business purpose through any source, including a financial institution, employer, creditor, or any other source listed in this form.  If the application is approved, the undersigned agrees to watch videos on Fair Housing Laws and Landlord-Tenant Mediation. Each of the undersigned also understands that this application is for eligibility purposes only and submitting this form does not constitute a commitment of funds