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CSSB 181(FIN): "An Act relating to the use of money from the housing assistance loan fund, to loans for teacher housing in small communities, and to the interest rate on loans originated or purchased by the Alaska Housing Finance Corporation for small community housing; and providing for an effective date."

00                       CS FOR SENATE BILL NO. 181(FIN)                                                                   
01 "An Act relating to the use of money from the housing assistance loan fund, to loans for                                
02 teacher housing in small communities, and to the interest rate on loans originated or                                   
03 purchased by the Alaska Housing Finance Corporation for small community housing;                                        
04 and providing for an effective date."                                                                                   
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  AS  18.56.470(a) is amended to read:                                                                 
07            (a)  The interest rate on a mortgage loan originated or purchased in whole or in                             
08       part under AS 18.56.420 for small community housing is one percent less than the                                  
09       interest rate, as determined under AS 18.56.098(f)(1) - (4), on a mortgage loan                                   
10       purchased under AS 18.56.098(a) from the proceeds of the most recent applicable                                   
11       issue of taxable bonds before the origination or purchase of the mortgage loan                                    
12       originated or purchased under AS 18.56.420.  However, under this subsection, the                              
13       interest rate on that portion of a loan for a single-family house or owner occupied                           
14       duplex that exceeds the statewide average cost of a single-family house or owner                              
01       occupied duplex, as determined by the Department of Labor and Workforce                                       
02       Development, is the same as the interest rate determined under                                                
03       AS 18.56.098(f)(1) - (4).                                                                                     
04    * Sec. 2.  AS 18.56.580 is amended to read:                                                                        
05            Sec. 18.56.580.  Loans for teacher [NONOWNER OCCUPIED] housing.                                          
06       (a)  In addition to the powers authorized by AS 18.56.400, the corporation shall                              
07       [MAY] adopt regulations under AS 18.56.088 allowing the use of money in the                                       
08       housing assistance loan fund to make loans for the purchase or development of                                     
09       teacher [NONOWNER OCCUPIED] housing in small communities.  The                                            
10       regulations must implement the requirements of (b) of this section and establish                              
11       other terms and conditions for teacher housing loans, including those relating to                             
12       borrower eligibility and the number of loans that may be made to a single                                     
13       borrower.  The corporation may require the borrower to pay costs associated                                   
14       with a loan.                                                                                                  
15            (b)  A loan may be made under this section only for teacher housing in                                   
16       which each unit that is not vacant is occupied by at least one individual who is                              
17       employed as a certificated teacher in a public elementary or secondary school in a                            
18       small community.  Notwithstanding AS 18.56.470(a), if, before the loan is entirely                            
19       repaid, the occupancy requirement of this subsection is not complied with, the                                
20       interest rate on the entire original loan amount becomes the same as the interest                             
21       rate determined under AS 18.56.098(f)(1) - (4) on a mortgage loan purchased                                   
22       under AS 18.56.098(a) from the proceeds of the most recent applicable issue of                                
23       taxable bonds before the loan under this section was made [THE RATE OF                                        
24       INTEREST ON A LOAN AUTHORIZED BY THIS SECTION MAY NOT EXCEED                                                      
25       10-1/2 PERCENT A YEAR].                                                                                           
26            (c)  The principal amount of loans made for teacher [NONOWNER                                            
27       OCCUPIED] housing under this section may not exceed 20 percent of the total                                       
28       principal amount of loans made for small community housing under AS 18.56.400 -                                   
29       18.56.600.                                                                                                        
30            (d)  In this section,                                                                                    
31                 (1)  "development" means the construction of a new residence or the                                     
01       acquisition, repair, remodeling, rehabilitation, or expansion of an existing residence;                       
02                 (2)  "teacher [NONOWNER OCCUPIED] housing" means [A                                                 
03       SINGLE-FAMILY RESIDENCE OR] a multi-family residence [HAVING UP TO                                                
04       EIGHT DWELLING UNITS AND] that may be nonowner occupied or [IS NOT]                                           
05       occupied by the owner [; THE CORPORATION MAY MODIFY THIS DEFINITION                                               
06       IF IT DETERMINES THAT THERE IS A SPECIAL NEED FOR NONOWNER                                                        
07       OCCUPIED HOUSING AND THAT A CHANGE IN THE DEFINITION IS                                                           
08       NECESSARY TO ENABLE THE CORPORATION TO MEET THAT NEED].                                                           
09    * Sec. 3.  This Act takes effect immediately under AS 01.10.070(c).