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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].