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 -
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).