HCS CSSB 181(CRA): "An Act relating to and increasing the interest rate on that portion of a loan for a single family house or owner-occupied duplex in a small community that exceeds $300,000; relating to the Alaska Housing Finance Corporation's rural assistance loan program and to loans for teacher housing in small communities."
00 HOUSE CS FOR CS FOR SENATE BILL NO. 181(CRA) 01 "An Act relating to and increasing the interest rate on that portion of a loan for a single 02 family house or owner-occupied duplex in a small community that exceeds $300,000; 03 relating to the Alaska Housing Finance Corporation's rural assistance loan program 04 and to loans for teacher housing in small communities." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 18.56.420(a) is amended to read: 07 (a) There is created in the corporation, as a revolving loan fund, the housing 08 assistance loan fund consisting of money appropriated to it by the legislature and 09 deposited in it by the corporation, and repayments of principal and interest on loans 10 made or purchased from the assets of the fund. The corporation shall 11 (1) adopt regulations to administer the housing assistance loan fund 12 under AS 18.56.400 - 18.56.600; and 13 (2) subject to appropriation, provide money for a rural assistance loan 14 program to originate, purchase, [OR] participate in the purchase of, or refinance
01 (A) small community housing mortgage loans; 02 (B) loans made for building materials for small community 03 housing; 04 (C) loans made for renovations or improvements to small 05 community housing; 06 (D) loans made for the construction of owner-occupied small 07 community housing other than loans to builders or contractors or loans that 08 compensate an owner for the owner's labor or services in constructing the 09 owner's own housing. 10 * Sec. 2. 18.56.470(a) is amended to read: 11 (a) The interest rate on a mortgage loan originated or purchased in whole or in 12 part under AS 18.56.420 for small community housing or teacher housing under 13 AS 18.56.580 is one percent less than the interest rate, as determined under 14 AS 18.56.098(f)(1) - (4), on a mortgage loan purchased under AS 18.56.098(a) from 15 the proceeds of the most recent applicable issue of taxable bonds before the 16 origination or purchase of the mortgage loan originated or purchased under 17 AS 18.56.420. However, other than a loan for teacher housing under 18 AS 18.56.580, the interest rate on that portion of a loan for a single-family house 19 or owner-occupied duplex that exceeds $300,000 is the same as the interest rate 20 determined under AS 18.56.098(f)(1) - (14). 21 * Sec. 3. AS 18.56.580 is amended to read: 22 Sec. 18.56.580. Loans for teacher [NONOWNER OCCUPIED] housing. 23 (a) In addition to the powers authorized by AS 18.56.400, the corporation shall 24 [MAY] adopt regulations under AS 18.56.088 allowing the use of money in the 25 housing assistance loan fund to make loans for the purchase or development of 26 teacher [NONOWNER OCCUPIED] housing in small communities. The 27 regulations must implement the requirements of (b) of this section and establish 28 other terms and conditions for teacher housing loans, including those relating to 29 borrower eligibility and the number of loans that may be made to a single 30 borrower. The corporation may require the borrower to pay costs associated 31 with a loan.
01 (b) A loan may be made under this section only for teacher housing in 02 which each unit that is not vacant is occupied by at least one individual who is 03 employed as a certificated teacher or education professional in a public 04 elementary or secondary school in a small community. Notwithstanding 05 AS 18.56.470(a), if, before the loan is entirely repaid, the occupancy requirement 06 of this subsection is not complied with, the interest rate on the remaining balance 07 of the loan amount becomes the same as the interest rate determined under 08 AS 18.56.098(f)(1) - (4) on a mortgage loan purchased under AS 18.56.098(a) 09 from the proceeds of the most recent applicable issue of taxable bonds before the 10 loan under this section was made [THE RATE OF INTEREST ON A LOAN 11 AUTHORIZED BY THIS SECTION MAY NOT EXCEED 10-1/2 PERCENT A 12 YEAR]. 13 (c) The principal amount of loans made for teacher [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 (d) In this section, 18 (1) "development" means the construction of a new residence or the 19 acquisition, repair, remodeling, rehabilitation, or expansion of an existing residence; 20 (2) "teacher [NONOWNER OCCUPIED] housing" means [A 21 SINGLE-FAMILY RESIDENCE OR] a multi-family residence [HAVING UP TO 22 EIGHT DWELLING UNITS AND] that may be nonowner occupied or [IS NOT] 23 occupied by the owner [; THE CORPORATION MAY MODIFY THIS DEFINITION 24 IF IT DETERMINES THAT THERE IS A SPECIAL NEED FOR NONOWNER 25 OCCUPIED HOUSING AND THAT A CHANGE IN THE DEFINITION IS 26 NECESSARY TO ENABLE THE CORPORATION TO MEET THAT NEED].