HB 467: "An Act relating to housing programs of the Alaska Housing Finance Corporation and of regional housing authorities, and permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing in the state's small communities."
00HOUSE BILL NO. 467 01 "An Act relating to housing programs of the Alaska Housing Finance Corporation 02 and of regional housing authorities, and permitting regional housing authorities to 03 make, originate, and service loans for the purchase and development of residential 04 housing in the state's small communities." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 18.55.997 is amended to read: 07 Sec. 18.55.997. RESIDENTIAL LOANS. (a) In addition to the powers 08 authorized to a regional housing authority under AS 18.55.996, a regional housing 09 authority may, in accordance with procedures and policies adopted and approved by 10 the Alaska Housing Finance Corporation, make, originate, and service loans for the 11 purchase or development of residential housing in small communities [RURAL 12 AREAS OF THE STATE, OTHER THAN IN AN AREA WHERE THE 13 CORPORATION HAS A LOAN OFFICE]. A loan shall be secured by collateral in 14 an amount acceptable to the corporation. The rate of interest on a loan authorized by
01 this subsection [SECTION] may not exceed the interest rate on a loan originated or 02 purchased under AS 18.56.400 - 18.56.600. 03 (b) In this section, 04 (1) "development" means the construction of a new residence or the 05 repair, remodeling, rehabilitation, or expansion of an existing home; 06 (2) "small community" ["RURAL"] has the meaning given [THE 07 TERM "SMALL COMMUNITY"] in AS 18.56.600. 08 * Sec. 2. AS 18.55.998(b) is amended to read: 09 (b) A grant may be made only for residential housing for which federal loan 10 or grant approval has been obtained from the United States Department of Housing and 11 Urban Development and that [WHICH] will be made available to the public on a 12 nondiscriminatory basis. A grant may not be used to retire or repay obligations or 13 debts of the grant recipient. Except as provided in (f) of this section, a [A] grant 14 (1) may only be for the difference between the maximum amount 15 available under federal law or regulation for construction of the residential housing for 16 which the grant is made and the actual costs of the construction; and 17 (2) [. A GRANT] may not exceed 20 percent of the United States 18 Department of Housing and Urban Development total development cost per unit in 19 effect at the time the grant is made. 20 * Sec. 3. AS 18.55.998 is amended by adding a new subsection to read: 21 (f) Notwithstanding the grant limitation set by (b) of this section, if the 22 corporation determines that the costs of installation of safe and sanitary on-site sewer 23 and water facilities to serve residential housing for which federal loan or grant 24 approval has been obtained when required by (b) of this section would cause the 25 difference between the maximum amount available under federal law or regulation for 26 construction of the residential housing for which the grant is made and the actual costs 27 of the construction to exceed the amount available from the grant under (b)(2) of this 28 section, the corporation may increase the amount of its supplemental housing 29 development grant above the limits set by (b)(2) of this section, but the total amount 30 of the corporation's grant may not exceed 30 percent of the United States Department 31 of Housing and Urban Development total development cost per unit in effect at the
01 time the grant is made. 02 * Sec. 4. AS 18.56.440 is amended to read: 03 Sec. 18.56.440. LIMITATIONS ON USE OF HOUSING ASSISTANCE 04 LOAN FUND. The corporation may not use the money in the housing assistance loan 05 fund to 06 (1) originate a direct loan or purchase or participate in the purchase of 07 a small community housing mortgage loan that exceeds the limitations on mortgage 08 loans purchased by the Federal National Mortgage Association as to principal amount 09 or loan-to-value ratio; 10 (2) originate a direct loan or purchase or participate in the purchase of 11 a loan made for building materials for small community housing 12 (A) that exceeds $45,000 or exceeds 13 (i) 80 percent of the appraised value of the work 14 completed on the small community housing for which the loan is made 15 if the small community housing is pledged as collateral for the loan; or 16 (ii) 90 percent of the value of other property that is 17 pledged as security for the loan and that is satisfactory to the 18 corporation as collateral; 19 (B) unless the terms of the loan agreement require inspections 20 and certifications, as required by regulations of the corporation, at the expense 21 of the borrower; and 22 (C) unless the period of time allowed for repayment of the loan 23 is equal to or less than 15 years; 24 (3) originate direct loans or purchase or participate in the purchase of 25 a small community housing mortgage loan that is secured by real property the 26 marketable title to which is shown under AS 18.56.480(b)(2) if the total amount of 27 outstanding small community housing mortgage loans held by the corporation exceeds 28 10 times the amount of money in the restricted title loss reserve account established 29 by AS 18.56.490; 30 (4) originate a direct loan for small community housing or purchase or 31 participate in the purchase of a small community housing mortgage loan, other than
01 a loan for the repair, remodeling, rehabilitation, or expansion of an existing 02 owner-occupied residence, if the borrower has an outstanding housing loan made under 03 a state loan program, other than a loan for [NONOWNER-OCCUPIED] housing under 04 AS 18.56.580 or for nonowner occupied housing under former AS 44.47.520, that 05 bears interest at a rate that was less than the prevailing market interest rate for similar 06 housing loans at the time the loan was made; 07 (5) originate a direct mortgage loan or purchase or participate in the 08 purchase of a mortgage loan for rental housing unless the borrower agrees not to 09 discriminate against tenants or prospective tenants because of sex, marital status, 10 changes in marital status, pregnancy, parenthood, race, religion, color, national origin, 11 or status as a student; 12 (6) originate, purchase, or participate in a loan to a person who has a 13 past due child support obligation established by court order or by the child support 14 enforcement division under AS 25.27.160 - 25.27.220 at the time of application. 15 * Sec. 5. AS 18.56.580(a) is amended to read: 16 (a) In addition to the powers authorized by AS 18.56.400, the corporation may 17 adopt regulations under AS 18.56.088 allowing the use of money in the housing 18 assistance loan fund to make loans for the purchase or development of rental 19 [NONOWNER OCCUPIED] housing in small communities. 20 * Sec. 6. AS 18.56.580(c) is amended to read: 21 (c) The principal amount of loans made for rental [NONOWNER 22 OCCUPIED] housing under this section may not exceed 20 percent of the total 23 principal amount of loans made for small community housing under AS 18.56.400 - 24 18.56.600. 25 * Sec. 7. AS 18.56.580(d) is amended to read: 26 (d) In this section, 27 (1) "development" means the construction of a new residence or the 28 repair, remodeling, rehabilitation, or expansion of an existing residence; 29 (2) "rental ["NONOWNER OCCUPIED] housing" means a 30 single-family residence that is not occupied by the owner or a multi-family residence 31 having up to 16 [EIGHT] dwelling units, one of which may be [AND THAT IS NOT]
01 occupied by the owner; the corporation may modify this definition if it determines that 02 there is a special need for rental [NONOWNER OCCUPIED] housing in small 03 communities and that a change in the definition is necessary to enable the corporation 04 to meet that need. 05 * Sec. 8. AS 18.56.600 is amended to read: 06 Sec. 18.56.600. DEFINITIONS. In AS 18.56.400 - 18.56.600, 07 (1) "housing" 08 (A) means owner-occupied housing having four or fewer 09 dwelling units [, SINGLE-FAMILY HOUSING AND OWNER-OCCUPIED 10 DUPLEXES] in which not more than 25 percent of the gross floor area is or 11 will be devoted to commercial use; 12 (B) does not include a multi-family residence that constitutes 13 housing for which a loan is made under the rental housing loan program 14 of AS 18.56.580 when one of the dwelling units in the multi-family 15 residence is occupied by the residence owner; 16 (2) "small community" means a community with a population of 5,500 17 or less that is not connected by road or rail to Anchorage or Fairbanks, or with a 18 population of 1,400 or less that is connected by road or rail to Anchorage or 19 Fairbanks; in this paragraph, "connected by road" does not include a connection by the 20 Alaska marine highway system.