CSHB 192(FIN) AM: "An Act relating to housing assistance provided by the Alaska Housing Finance Corporation and to its rural housing programs, to the corporation's supplemental housing development grants to regional housing authorities, and to housing programs of regional housing authorities; permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing; and amending the definitions of `rural' and `small community' as applied in various housing programs."
00CS FOR HOUSE BILL NO. 192(FIN) am 01 "An Act relating to housing assistance provided by the Alaska Housing Finance 02 Corporation and to its rural housing programs, to the corporation's supplemental 03 housing development grants to regional housing authorities, and to housing 04 programs of regional housing authorities; permitting regional housing authorities 05 to make, originate, and service loans for the purchase and development of 06 residential housing; and amending the definitions of `rural' and `small community' 07 as applied in various housing programs." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 18.55.997(a) is amended to read: 10 (a) In addition to the powers authorized to a regional housing authority under 11 AS 18.55.996, a regional housing authority may, in accordance with procedures and 12 policies adopted and approved by the Alaska Housing Finance Corporation, make, 13 originate, and service loans for the purchase or development of residential housing 14 [IN RURAL AREAS OF THE STATE, OTHER THAN IN AN AREA WHERE THE
01 CORPORATION HAS A LOAN OFFICE]. A loan shall be secured by collateral in 02 an amount acceptable to the corporation. The rate of interest on a loan authorized by 03 this subsection 04 (1) in a rural area of the state [SECTION] may not exceed the 05 interest rate on a loan originated or purchased under AS 18.56.400 - 18.56.600; and 06 (2) outside a rural area of the state may not exceed the rate 07 established by the corporation under the provisions of AS 18.56 that are 08 appropriate for the mortgage loan. 09 * Sec. 2. AS 18.55.998(a) is amended to read: 10 (a) There is created in the Alaska Housing Finance Corporation a supplemental 11 housing development grant fund. Using corporate earnings or other available funds, the 12 corporation shall make grants to regional housing authorities established under 13 AS 18.55.996 for 14 (1) the cost of [ON-SITE] sewer and water facilities, whether on-site 15 or off-site; 16 (2) road construction to project sites; 17 (3) [,] energy efficient design features in homes; [,] and 18 (4) extension of electrical distribution facilities to individual residences. 19 * Sec. 3. AS 18.55.998(c) is amended to read: 20 (c) A grant made by the corporation to a regional housing authority under 21 this section 22 (1) [GRANT MONEY] may be used by the regional housing 23 authority only for the purpose and the permissible use for which the grant was 24 made; 25 (2) may not [PURPOSES SPECIFIED IN (a) OF THIS SECTION. 26 NO PART OF THE GRANT MONEY MAY] be used for administrative or other costs 27 of a regional housing authority, whether the costs are directly associated with the 28 construction or general costs of the authority. 29 * Sec. 4. AS 18.55.998(d) is amended to read: 30 (d) The Alaska Housing Finance Corporation shall 31 (1) adopt regulations to carry out the purposes of this section; the [.
01 THE] provisions of AS 18.56.088(a) and (b) apply to regulations adopted under this 02 section; and 03 (2) establish a priority system for the allocation of money for grants 04 to pay for off-site sewer and water facility improvements authorized by 05 AS 18.55.998(a)(1). 06 * Sec. 5. AS 18.56.096 is amended by adding a new subsection to read: 07 (d) The prohibitions of (c) of this section do not apply to a loan made under 08 AS 18.56.420(a)(2)(C) to renovate or improve small community housing if the amount 09 of the loan does not exceed $20,000. 10 * Sec. 6. AS 18.56.300(d) is amended to read: 11 (d) This section does not apply 12 (1) to a nonconforming housing loan made or purchased by the 13 corporation; or 14 (2) to a loan made under AS 18.56.420(a)(2)(B) or (C) to renovate 15 or improve small community housing if the amount of the loan does not exceed 16 $20,000. 17 * Sec. 7. AS 18.56.420(a) is amended to read: 18 (a) There is created in the corporation, as a revolving loan fund, the housing 19 assistance loan fund consisting of money appropriated to it by the legislature and 20 deposited in it by the corporation, and repayments of principal and interest on loans 21 made or purchased from the assets of the fund. The corporation shall 22 (1) adopt regulations to administer the housing assistance loan fund 23 under AS 18.56.400 - 18.56.600; and 24 (2) subject to appropriation, provide money for a rural assistance loan 25 program to originate, purchase, [OR] participate in the purchase of, or refinance 26 (A) small community housing mortgage loans; 27 (B) loans made 28 (i) for building materials for small community housing; 29 or 30 (ii) to pay for the labor of third-party contractors for 31 the installation of building materials in small community housing
01 units; 02 (C) loans made for renovations or improvements to small 03 community housing; 04 (D) loans made for the construction of owner-occupied small 05 community housing other than loans to builders or contractors or loans that 06 compensate an owner for the owner's labor or services in constructing the 07 owner's own housing. 08 * Sec. 8. AS 18.56.440 is amended to read: 09 Sec. 18.56.440. LIMITATIONS ON USE OF HOUSING ASSISTANCE 10 LOAN FUND. The corporation may not use the money in the housing assistance loan 11 fund to 12 (1) originate a direct loan or purchase or participate in the purchase of 13 a small community housing mortgage loan that exceeds the limitations on mortgage 14 loans purchased by the Federal National Mortgage Association as to principal amount 15 or loan-to-value ratio; 16 (2) originate a direct loan or purchase or participate in the purchase of 17 a loan made for building materials for small community housing 18 (A) that exceeds $45,000 or exceeds 19 (i) 80 percent of the appraised value of the work 20 completed on the small community housing for which the loan is made 21 if the small community housing is pledged as collateral for the loan; or 22 (ii) 90 percent of the value of other property that is 23 pledged as security for the loan and that is satisfactory to the 24 corporation as collateral; 25 (B) unless the terms of the loan agreement require inspections 26 and certifications, as required by regulations of the corporation, at the expense 27 of the borrower; and 28 (C) unless the period of time allowed for repayment of the loan 29 is equal to or less than 15 years; 30 (3) originate direct loans or purchase or participate in the purchase of 31 a small community housing mortgage loan that is secured by real property the
01 marketable title to which is shown under AS 18.56.480(b)(2) if the total amount of 02 outstanding small community housing mortgage loans held by the corporation exceeds 03 10 times the amount of money in the restricted title loss reserve account established 04 by AS 18.56.490; 05 (4) originate a direct loan for small community housing or purchase or 06 participate in the purchase of a small community housing mortgage loan, other than 07 a loan for the repair, remodeling, rehabilitation, or expansion of an existing 08 owner-occupied residence, if the borrower has an outstanding housing loan made under 09 a state loan program, other than a loan for [NONOWNER-OCCUPIED] housing under 10 AS 18.56.580 or for nonowner occupied housing under former AS 44.47.520, that 11 bears interest at a rate that was less than the prevailing market interest rate for similar 12 housing loans at the time the loan was made; 13 (5) originate a direct mortgage loan or purchase or participate in the 14 purchase of a mortgage loan for rental housing unless the borrower agrees not to 15 discriminate against tenants or prospective tenants because of sex, marital status, 16 changes in marital status, pregnancy, parenthood, race, religion, color, national origin, 17 or status as a student; 18 (6) originate, purchase, or participate in a loan to a person who has a 19 past due child support obligation established by court order or by the child support 20 enforcement division under AS 25.27.160 - 25.27.220 at the time of application. 21 * Sec. 9. AS 18.56.460 is amended by adding a new subsection to read: 22 (c) For a loan originated or purchased in whole or in part from the housing 23 assistance loan fund under AS 18.56.420, the corporation may make an unsecured loan. 24 The authority of the corporation to make an unsecured loan under this subsection is 25 limited to a loan made 26 (1) under AS 18.56.420(a)(2)(B) or (C) to renovate or improve small 27 community housing that does not exceed $20,000; and 28 (2) for real property if the housing unit for which the unsecured loan 29 is sought 30 (A) is occupied by the borrower under an occupancy certificate 31 or similar instrument granting the borrower an exclusive right of possession of
01 a specific dwelling unit in a cooperative housing development, mutual aid 02 housing program, or similar program; or 03 (B) is located on land the title to which is held by the borrower 04 under a restricted deed issued by the Secretary of the Interior or the secretary's 05 designee, either as a Native restricted deed or as a restricted deed for property 06 in a trustee townsite. 07 * Sec. 10. AS 18.56.580(a) is amended to read: 08 (a) In addition to the powers authorized by AS 18.56.400, the corporation may 09 adopt regulations under AS 18.56.088 allowing the use of money in the housing 10 assistance loan fund to make loans for the purchase or development of rental 11 [NONOWNER OCCUPIED] housing in small communities. 12 * Sec. 11. AS 18.56.580(c) is amended to read: 13 (c) The principal amount of loans made for rental [NONOWNER 14 OCCUPIED] housing under this section may not exceed 20 percent of the total 15 principal amount of loans made for small community housing under AS 18.56.400 - 16 18.56.600. 17 * Sec. 12. AS 18.56.580(d) is amended to read: 18 (d) In this section, 19 (1) "development" means the construction of a new residence or the 20 repair, remodeling, rehabilitation, or expansion of an existing residence; 21 (2) "rental ["NONOWNER OCCUPIED] housing" means a 22 single-family residence that is not occupied by the owner or a multi-family residence 23 having up to 16 [EIGHT] dwelling units, one of which may be [AND THAT IS NOT] 24 occupied by the owner; the corporation may modify this definition if it determines that 25 there is a special need for rental [NONOWNER OCCUPIED] housing in small 26 communities and that a change in the definition is necessary to enable the corporation 27 to meet that need. 28 * Sec. 13. AS 18.56.600 is amended to read: 29 Sec. 18.56.600. DEFINITIONS. In AS 18.56.400 - 18.56.600, 30 (1) "housing" 31 (A) means owner-occupied housing having four or fewer
01 dwelling units [, SINGLE-FAMILY HOUSING AND OWNER-OCCUPIED 02 DUPLEXES] in which not more than 25 percent of the gross floor area is or 03 will be devoted to commercial use; 04 (B) does not include a multi-family residence that constitutes 05 housing for which a loan is made under the rental housing loan program 06 of AS 18.56.580 when one of the dwelling units in the multi-family 07 residence is occupied by the residence owner; 08 (2) "small community" means a community with a population of 6,500 09 [5,500] or less that is not connected by road or rail to Anchorage or Fairbanks, or with 10 a population of 1,600 [1,400] or less that is connected by road or rail to Anchorage or 11 Fairbanks; in this paragraph, "connected by road" does not include a connection by the 12 Alaska marine highway system.