Updated on April 28, 2025

A state lawmaker has proposed groundbreaking legislation that could make Alaska the first state to offer its Governor’s mansion as a short-term rental when not in official use.

“This bill would look at the governor’s mansion as an asset that we try to fund and try to be innovative in ways to try to make some of these things pay for their own expense,” said Rep. Will Stapp, R-Fairbanks, who introduced the legislation.

First of its kind

House Bill 139 would set a precedent for other states with the Governor’s mansions if enacted into law.

All but five states – Arizona, Idaho, Massachusetts, Vermont, and Rhode Island – have governors’ mansions. Alabama, Michigan, New Jersey, and North Carolina each have two state-owned Governor’s residences – one for summer residence and another for during session, said Bernard Aoto, Will’s chief of staff.

Under HB 139, the Governor’s mansion, built in 1912 in Juneau, could be rented for weddings, receptions, or even short-term stays, like those offered on Airbnb or Vrbo, during periods when the legislature is not in session, and the Governor is not in residence.

The Office of the Governor would be responsible for setting per-room rates, establishing house rules, and managing the calendar, Bernard said.

Several states allow the Governor’s mansion to be rented out for special events and receptions, but none allow the executive residence to be rented out “in STR style,” he said.

Unpredictable revenue

The bill’s fiscal note did not estimate how much revenue the Governor’s mansion would fetch as a short-term rental, an omission that troubled some lawmakers on the House Committee on State Affairs.

“The fiscal impact of this legislation cannot be determined because occupancy by the Governor cannot reliably be determined in advance, and the mansion must be available for the governor’s use on short notice, both during and outside of the legislative session,” stated the fiscal note provided by the Governor’s Office.

The note added that using the mansion as a short-term rental could increase staffing, insurance, and maintenance costs due to additional wear and tear on the building and its furnishings, but she provided no cost estimates.

Comparable historical property

However, Rep. Sarah Vance cited the nearby historical Jorgensen House as an example of what might be possible after calling the fiscal note “embarrassingly vague.” The bed and breakfast rents out each of its rooms for between $645 and $800 a night.

Nearby historical Jorgensen House

“If the Office of the Governor needed some assistance in how to determine a fiscal note, I think that [Jorgensen House] would be the first place to look,” Sarah said. “They also offer their place for events. So they could calculate a very conservative, moderate number of renting each room for…90 days, and each room could generate around $58,000.”

The 14,400-square-foot Governor’s mansion has six bedrooms, but it was unclear whether all of them would be available for short-term stays.

According to budget documents, salaries and upkeep at the mansion cost the state about $800,000 annually. That cost includes employing a full-time residence manager, a personal chef, and two housekeepers who could support potential guests during short-term stays.

The mansion’s availability for short-term stays would depend on who is in office. Will noted that there have been large variances in how often different governors have used the residence. The current Governor, Mike Dunleavy, spent 13 nights in Juneau during the first two months of 2025, KTOO Public Media reported.

Offsetting government expenses

The proposal comes at a time of fiscal tightening in Alaska. With oil prices falling to $65 per barrel and spring revenue projections down $180 million, Will said the state must find ways to monetize existing assets.

Still, the proposal has raised red flags.

Rep. Andi Story emphasized the mansion’s historical significance and urged caution. “The Governor’s house is very historic. It is something I want to see treated as a historic residence,” she said. “I’m very hesitant to move in this direction.”

Unanswered questions

Others questioned the logistics. Would the Governor’s belongings be secured? Would certain rooms be off-limits? Who would oversee compliance and manage security sweeps?

Will responded that those decisions would fall under a new administrative code that the Governor’s Office would develop.

“The objective is to be as least disruptive as possible,” he said.

Insurance and liability concerns also surfaced. “Would the insurance cover people coming in on a short-term basis?” Sarah asked. Will replied, “It depends on how they craft the regulations.”

For now, the bill continues to wind its way through the legislative process. The House State Affairs Committee moved the bill out of committee on April 22, 2025, to go to the whole legislative body for a vote. As of April 23, 2025, no vote had been scheduled.

Lawmakers are still waiting for a more detailed fiscal breakdown, and questions remain about whether turning the mansion into a short-term rental is practical or palatable.

“I think this [information] is the key to whether or not this legislation would have any forward motion at all is if we could find out what is really involved in this decision,” Sarah said.

GET UPDATES


Share This