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Enrolled SB 274: Relating to the housing assistance loan fund in the Alaska Housing Finance Corporation; creating the housing assistance loan program; repealing loans for teacher housing and providing for loans for multi-family housing; making conforming amendments; and providing for an effective date.

00 Enrolled SB 274                                                                                                         
01 Relating to the housing assistance loan fund in the Alaska Housing Finance Corporation;                                 
02 creating the housing assistance loan program; repealing loans for teacher housing and                                   
03 providing for loans for multi-family housing; making conforming amendments; and providing                               
04 for an effective date.                                                                                                  
05                           _______________                                                                               
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,]                                       
08       the housing assistance loan program [FUND CONSISTING OF MONEY                                                 
09       APPROPRIATED TO IT BY THE LEGISLATURE AND DEPOSITED IN IT BY                                                      
10       THE CORPORATION, AND REPAYMENTS OF PRINCIPAL AND INTEREST                                                         
11       ON LOANS MADE OR PURCHASED FROM THE ASSETS OF THE FUND].  The                                                     
12       corporation shall                                                                                                 
13                 [(1)  ADOPT REGULATIONS TO ADMINISTER THE HOUSING                                                       
14       ASSISTANCE LOAN FUND UNDER AS 18.56.400 - 18.56.600; AND                                                          
01                 (2)  SUBJECT TO APPROPRIATION,] provide money [FOR A                                                    
02       RURAL ASSISTANCE LOAN PROGRAM] to originate, purchase, participate in the                                         
03       purchase of, or refinance                                                                                         
04                 (1) [(A)]  small community housing mortgage loans;                                                  
05                 (2) [(B)]  loans made for building materials for small community                                    
06       housing;                                                                                                          
07                 (3) [(C)]  loans made for renovations or improvements to small                                      
08       community housing; and                                                                                        
09                 (4) [(D)]  loans made for the construction of owner-occupied small                                  
10       community housing other than loans to builders or contractors or loans that                                       
11       compensate an owner for the owner's labor or services in constructing the owner's own                             
12       housing.                                                                                                          
13    * Sec. 2.  AS 18.56.440 is amended to read:                                                                      
14            Sec. 18.56.440.  Limitations on use of housing assistance loan program                                   
15       [FUND].  The housing assistance loan program may not be used [CORPORATION                                   
16       MAY NOT USE THE MONEY IN THE HOUSING ASSISTANCE LOAN FUND]                                                        
17       to                                                                                                                
18                 (1)  originate a direct loan or purchase or participate in the purchase of                              
19       a small community housing mortgage loan that exceeds the limitations on mortgage                                  
20       loans purchased by the Federal National Mortgage Association as to principal amount                               
21       or loan-to-value ratio;                                                                                           
22                 (2)  originate a direct loan or purchase or participate in the purchase of                              
23       a loan made for building materials for small community housing                                                    
24                      (A)  that exceeds $45,000 or exceeds                                                               
25                           (i)  80 percent of the appraised value of the work                                            
26                 completed on the small community housing for which the loan is made                                     
27                 if the small community housing is pledged as collateral for the loan; or                                
28                           (ii)  90 percent of the value of other property that is                                       
29                 pledged as security for the loan and that is satisfactory to the                                        
30                 corporation as collateral;                                                                              
31                      (B)  unless the terms of the loan agreement require inspections                                    
01            and certifications, as required by regulations of the corporation, at the expense                            
02            of the borrower; and                                                                                         
03                      (C)  unless the period of time allowed for repayment of the loan                                   
04            is equal to or less than 15 years;                                                                           
05                 (3)  originate direct loans or purchase or participate in the purchase of a                             
06       small community housing mortgage loan that is secured by real property the                                        
07       marketable title to which is shown under AS 18.56.480(b)(2) if the total amount of                                
08       outstanding small community housing mortgage loans held by the corporation exceeds                                
09       10 times the amount of money in the restricted title loss reserve account established by                          
10       AS 18.56.490;                                                                                                     
11                 (4)  originate a direct loan for small community housing or purchase or                                 
12       participate in the purchase of a small community housing mortgage loan, other than a                              
13       loan for the repair, remodeling, rehabilitation, or expansion of an existing owner-                               
14       occupied residence, if the borrower has an outstanding housing loan made under a                                  
15       state loan program, other than a loan for nonowner-occupied housing under                                         
16       AS 18.56.580 or under former AS 44.47.520, that bears interest at a rate that was less                            
17       than the prevailing market interest rate for similar housing loans at the time the loan                           
18       was made;                                                                                                         
19                 (5)  originate a direct mortgage loan or purchase or participate in the                                 
20       purchase of a mortgage loan for rental housing unless the borrower agrees not to                                  
21       discriminate against tenants or prospective tenants because of sex, marital status,                               
22       changes in marital status, pregnancy, parenthood, race, religion, color, national origin,                         
23       or status as a student; or                                                                                    
24                 (6)  originate, purchase, or participate in a loan to a person who has a                                
25       past due child support obligation established by court order or by the child support                              
26       enforcement division under AS 25.27.160 - 25.27.220 at the time of application.                                   
27    * Sec. 3.  AS 18.56.470(a) is amended to read:                                                                     
28            (a)  The interest rate on a mortgage loan originated or purchased in whole or in                             
29       part under AS 18.56.420 for small community housing or multi-family [TEACHER]                                 
30       housing under AS 18.56.580 is one percent less than the interest rate, as determined                              
31       under AS 18.56.098(f)(1) - (4), on a mortgage loan purchased under AS 18.56.098(a)                                
01       from the proceeds of the most recent applicable issue of taxable bonds before the                                 
02       origination or purchase of the mortgage loan originated or purchased under                                        
03       AS 18.56.420.  However, [OTHER THAN A LOAN FOR TEACHER HOUSING                                                    
04       UNDER AS 18.56.580,] the interest rate on that portion of a loan [FOR A SINGLE-                                   
05       FAMILY HOUSE OR OWNER-OCCUPIED DUPLEX] that exceeds $250,000 is the                                               
06       same as the interest rate determined under AS 18.56.098(f)(1) - (4).                                              
07    * Sec. 4.  AS 18.56.490(b) is amended to read:                                                                     
08            (b)  The corporation may withdraw money from the restricted title loss reserve                               
09       account in an amount equal to the loss to the corporation on a small community                                    
10       housing mortgage loan originated or purchased in whole or in part by the corporation                              
11       if marketable title to the real property used to secure the loan was shown under                                  
12       AS 18.56.480(b)(2).  Money withdrawn from the restricted title loss reserve account                               
13       under this section shall be deposited in the Alaska housing finance revolving fund                            
14       (AS 18.56.082) [HOUSING ASSISTANCE LOAN FUND].                                                                
15    * Sec. 5.  AS 18.56.550(b) is amended to read:                                                                     
16            (b)  The personnel described in (a) of this section may make visits to small                             
17       communities [THE REGIONS ESTABLISHED UNDER AS 18.56.570(a)] to provide                                        
18       preconstruction and post-construction inspections of real property for which loans are                            
19       originated or purchased by the corporation in whole or in part under AS 18.56.420 and                             
20       to provide assistance to private financial institutions and their borrowers [IN THE                               
21       REGIONS].  Authority for final approval of loans may not be exercised by the                                      
22       personnel described in this section.                                                                              
23    * Sec. 6.  AS 18.56.560 is amended to read:                                                                        
24            Sec. 18.56.560.  Demonstration projects and information.  The corporation                                  
25       may enter into agreements with public and private agencies to provide demonstration                               
26       projects and information concerning housing construction in small communities                                 
27       [EACH OF THE REGIONS ESTABLISHED UNDER AS 18.56.570(a)].                                                          
28    * Sec. 7.  AS 18.56.580 is repealed and reenacted to read:                                                       
29            Sec. 18.56.580.  Loans for multi-family housing.  (a)  The corporation may                                 
30       use the housing assistance loan program created in AS 18.56.420 to make loans for the                             
31       purchase, participation in the purchase, origination, development, or refinancing of                              
01       multi-family housing in small communities.                                                                        
02            (b)  In this section,                                                                                        
03                 (1)  "development" means the construction of a new residence or the                                     
04       acquisition, repair, remodeling, rehabilitation, or expansion of an existing residence;                           
05                 (2)  "multi-family housing" means a multi-family residence containing                                   
06       two or more dwelling units that may be nonowner-occupied or owner-occupied.                                       
07    * Sec. 8.  AS 18.56.420(b) and 18.56.570 are repealed.                                                           
08    * Sec. 9.  This Act takes effect immediately under AS 01.10.070(c).