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).