CSHB 281(FIN): "An Act authorizing an agreement between the Alaska Housing Finance Corporation and the commissioner of revenue relating to transfer of assets of the corporation, and making certain pledges to obligees of the corporation regarding that agreement; relating to the authorization for and the issuance of bonds by the Alaska Housing Finance Corporation to pay for the costs of repair and rehabilitation of student housing facilities of the University of Alaska; and providing for an effective date."
00CS FOR HOUSE BILL NO. 281(FIN) 01 "An Act authorizing an agreement between the Alaska Housing Finance 02 Corporation and the commissioner of revenue relating to transfer of assets of the 03 corporation, and making certain pledges to obligees of the corporation regarding 04 that agreement; relating to the authorization for and the issuance of bonds by 05 the Alaska Housing Finance Corporation to pay for the costs of repair and 06 rehabilitation of student housing facilities of the University of Alaska; and 07 providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. PURPOSE. (a) The purpose of this Act is to provide for the orderly transfer 10 of certain assets of the Alaska Housing Finance Corporation to the general fund through a 11 transfer agreement between the corporation and the commissioner of revenue. The Alaska 12 Housing Finance Corporation has served an important public purpose by helping to remedy 13 the shortage of adequate housing throughout the state. The corporation has assisted in 14 providing Alaskans with rural housing and sewer and water systems, senior housing, special
01 needs housing, and low and moderate income housing through its various programs. The 02 corporation's resources must remain strong in order to continue progress in meeting these 03 housing needs, both directly and through borrowing in capital markets. In particular, capital 04 markets require assurances that payments by the corporation to the general fund are fixed at 05 a prudent and predictable level. 06 (b) It is the purpose of this Act 07 (1) to fix payments to the general fund at a prudent and predictable level for 08 the next five fiscal years through a formal transfer agreement; and 09 (2) to authorize the corporation to issue bonds to enable the University of 10 Alaska to repair and rehabilitate student housing facilities. 11 * Sec. 2. TRANSFER AGREEMENT AUTHORIZED. The Alaska Housing Finance 12 Corporation and the commissioner of revenue may enter into a transfer agreement that 13 provides for annual transfer of certain assets of the corporation to the state general fund from 14 July 1, 1995, to June 30, 2000. The commissioner of revenue shall immediately notify the 15 governor and the legislature when the agreement has been signed. The agreement must 16 provide 17 (1) for the transfer from the corporation to the state of each of the following 18 amounts in each of the following state fiscal years: 19 FY 1996 $70,000,000 20 FY 1997 50,000,000 21 FY 1998 50,000,000 22 FY 1999 50,000,000 23 FY 2000 50,000,000; 24 (2) that the amounts to be transferred under (1) of this section will be 25 (A) available for transfer from the net liquid assets of the general 26 account of the revolving fund of the corporation; and 27 (B) reduced as the board of directors of the corporation determines may 28 be necessary to maintain compliance with existing financing agreements and to meet 29 the following payment conditions of the corporation that, when made by the board of 30 directors of the corporation before each transfer, are positive determinations that 31 (i) the corporation is not in default as to payments of any
01 required amounts; 02 (ii) the transfer to the state of the payment is not expected to 03 impair the corporation's ability to meet financial requirements, including debt 04 service and program costs associated with debt, and will not cause the 05 corporation to be in default under the terms of financial agreements or disable 06 the corporation from meeting any financial covenant; 07 (iii) the amount of the transfer does not exceed the corporation's 08 net income as reflected in its audited financial statements for the immediately 09 preceding fiscal year; and 10 (iv) the corporation's fund equity subsequent to the transfer will 11 remain at a level that the board of directors of the corporation reasonably 12 believes adequate to prevent existing debt ratings from being reduced, 13 withdrawn, or suspended; and 14 (3) that the conditions described in (2)(B) of this section must be met by the 15 corporation before payments are made in any state fiscal year set out in (1) of this section. 16 * Sec. 3. PLEDGE OF THE STATE. If, before the date of adjournment of the First 17 Regular Session of the Nineteenth Alaska State Legislature, an agreement between the Alaska 18 Housing Finance Corporation and the commissioner of revenue in a form substantially as 19 described in sec. 2 of this Act is executed by those parties, the state pledges to obligees of the 20 corporation that during the term of the transfer agreement 21 (1) the state will not alter the power of the corporation to fulfill the terms of 22 any other agreement with an obligee of the corporation; or 23 (2) the state will not cause assets of the corporation to be transferred from the 24 corporation in excess of the amount set out in the transfer agreement. 25 * Sec. 4. BOND AUTHORIZATION. The Alaska Housing Finance Corporation may issue 26 bonds under AS 18.56 in an aggregate principal amount not to exceed $35,000,000 to provide 27 amounts to the University of Alaska to pay costs of a project to repair and rehabilitate student 28 housing facilities owned by the University of Alaska and to pay related costs, and to provide 29 amounts for the Alaska Housing Finance Corporation to pay costs of issuing the bonds. The 30 Alaska Housing Finance Corporation and the University of Alaska may enter into an 31 agreement with respect to the transfer and expenditure of the bond proceeds for these purposes
01 by the University of Alaska. The Alaska Housing Finance Corporation shall pay the principal 02 and interest on the bonds from Alaska Housing Finance Corporation funds and the bonds 03 shall be general obligations of the Alaska Housing Finance Corporation. 04 * Sec. 5. Section 3 of this Act takes effect only if the transfer agreement described in 05 sec. 2 of this Act is signed on or before the date of adjournment of the First Regular Session 06 of the Nineteenth Alaska State Legislature. The commissioner of revenue shall immediately 07 notify the governor, the legislature, and the revisor of statutes when the transfer agreement has 08 been signed. 09 * Sec. 6. If sec. 3 of this Act takes effect, it takes effect on the later of the date of 10 execution of the agreement described in sec. 2 of this Act, or the effective date of secs. 1, 2, 11 and 4 of this Act. 12 * Sec. 7. Sections 1, 2, and 4 of this Act take effect immediately under AS 01.10.070(c).