This is where most of us stayed in Kuusamo during the nature photo festival. It was almost right across the street from Kuusamo Hall, making it very convenient and economical. It's near a supermarket and restaurants. It's like a hostel with communal showers, toilets, and kitchen. Breakfast was good too. Normally open during summer.
Web site: http://edu.kuusamo.fi/kansanopisto/