April 23, 2026, by the Seward Folly Staff

Seward’s City Council established the Developer Reimbursement Program (DRP) in 2019 with a clear purpose: to make residential development easier by reducing the upfront costs of extending essential utilities. In a town where tourism drives demand for housing but infrastructure costs often stall projects, the DRP was designed as a practical solution.

“Back in 2015 and 2016, we held work sessions and town halls to figure out how to address the housing crisis. At one point, Martha Fleming, who was on Planning and Zoning at the time, said it would be great if the City could set up a fund to help with utility installation. The Council even started calling it ‘Martha’s Fund’ as a joke,” recalled former City Council member Ristine Casagranda, who helped develop the program.

“We got all the builders at the time to ask why they weren’t developing their lots,” added Martha Fleming. “They said it wasn’t worth it because of the cost of utility installation. The cost of selling a lot after putting in utilities would have been way too high.”

The DRP was born from a challenge facing many seasonal destinations: a limited supply of year-round housing, squeezed further by the high price of bringing roads, water, sewer, and electricity to new subdivisions. By reimbursing up to 50 percent of these infrastructure costs, Seward hoped to make housing projects pencil out for builders who might otherwise walk away.

What began as a dozen lots in phase one expanded further with reimbursement support in phase two, bringing not just single-family home sites but also multi-unit buildings to market.

“It kind of got tested out, and we put it into the city code, made some revisions about it,” explained Jason Bickling, Assistant City Manager. “And then we had Phil Zimmerman apply and receive reimbursement for Phase 2.”

The program’s biggest impact, however, came with the Hilltop Subdivision — a sweeping project above Seward High School that added 82 lots, some through a partnership with USDA Rural Development, Alaska Housing Finance Corporation, and RurAL CAP. Income limits and sweat-equity requirements expanded access to affordable homes, with Hilltop proving “the perfect opportunity for the program” (Seward Folly RurAL CAP Article).

Since its inception, the DRP has helped create 124 new lots across projects like Gateway, Hilltop, and Harmon. Many now host multi-family buildings — fourplexes, triplexes, duplexes — that were once just empty land. City officials say that while affordability remains a challenge, simply increasing the number of available units is a crucial first step. More supply, they argue, means more choices and greater market competition, even in communities where prices remain high due to tourism pressures.

The program’s funding has been as creative as its design. Initial seed money came from a rebate from Chugach Electric, which the council decided to invest in the city’s long-term growth. Over time, the fund has drawn from sources like the American Rescue Plan Act (ARPA) and local water and sewer revenues. A recent windfall came when the Hilltop project finished $1 million under budget; those savings were rolled back into the DRP, fueling the next round of developments.

The DRP operates like a revolving fund: as developers are reimbursed for half their eligible costs, the city keeps the program alive by stretching every dollar.

“When you have more users, it’s better for everyone,” said Jason Bickling, Assistant City Manager, noting that new homes mean additional customers for municipal utilities and a broader property tax base.

The city’s electric, water, and sewer systems all benefit when maintenance costs are shared across more residents.

At a recent city council work session, six new applicants were approved, representing the most diverse slate of projects yet — from a gated community and a 17-unit condominium building to new single-family lots. Notably, the condominiums mark a first for the program, addressing a growing demand for varied housing types in Seward. For projects where the city pays costs up front, an assessment district is created as a safeguard, ensuring public funds are protected if a developer defaults.

For communities across Alaska and beyond, Seward’s experience offers a roadmap: targeted financial support for infrastructure can unlock new housing, even in places where seasonal pressures and high costs have long kept development at bay. As city officials consider how to keep the DRP funded, its growing track record — and the steady stream of new homes — suggests it’s an investment worth making.

For more details on the latest round of DRP applicants and their proposed projects, visit Seward Folly’s coverage.