HB 35: "An Act creating a low-interest loan program for homeowners who improve or replace their home heating systems; and providing for an effective date."
00 HOUSE BILL NO. 35 01 "An Act creating a low-interest loan program for homeowners who improve or replace 02 their home heating systems; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 18.56 is amended by adding a new section to read: 05 Article 6A. Home Heating Improvement Loan Program. 06 Sec. 18.56.870. Home heating improvement loan program. (a) The 07 corporation shall establish a program under which the owner of a home that is eligible 08 under (b) and (c) of this section may apply for a loan to improve or replace a home 09 heating system. 10 (b) To qualify for a loan under the program established in (a) of this section, 11 the homeowner shall obtain an inspection performed by an energy rater approved 12 under regulations adopted by the corporation or by a registered mechanical contractor. 13 The energy rater or contractor shall, under regulations adopted by the corporation, 14 (1) perform an on-site inspection of the home;
01 (2) determine whether improving or replacing the primary heating 02 system of the home would increase the energy efficiency of the home; and 03 (3) provide the homeowner with an estimate of the cost savings and 04 change in energy efficiency of the home as a result of improving or replacing the 05 primary heating system of the home. 06 (c) Under this section, a home is eligible if the corporation determines it is a 07 substantially complete, owner-occupied, single-family dwelling or duplex used as a 08 permanent residence by the loan applicant and is located in the state. A home is not 09 eligible if 10 (1) the home is to be destroyed, abandoned, or converted to another 11 purpose within 12 months after an inspection performed under (b) of this section; 12 (2) the energy source fueling or powering the improved or replaced 13 heating system is not available; 14 (3) a loan for the home was previously received under this program; or 15 (4) more than 25 percent of the gross floor area of the home is devoted 16 to commercial use. 17 (d) A loan made under this program 18 (1) shall have an interest rate of one percent; 19 (2) shall be repaid over a term of 10 years; 20 (3) may not be subject to income limitations; 21 (4) may not exceed, for a home, the lesser of 22 (A) the cost, including materials and labor, of the 23 improvements to or replacement of the heating system that will be used as the 24 primary heating method for the home plus the cost of the inspection required 25 under (b) of this section; or 26 (B) $15,000. 27 (e) As a condition of the loan, a homeowner who receives a loan under this 28 section shall agree, in writing, to improve or replace the heating system in accordance 29 with applicable building and housing codes and obtain all required permits. 30 (f) The corporation shall use repayments of principal on a loan made under 31 this section for the purposes of providing loans under this section or paying the
01 administrative costs related to providing loans under this section. Interest paid on 02 loans made under this section shall be deposited in the general fund and may be 03 appropriated for the loan program under this section or for any other public purpose. 04 (g) In making loans under this section, the corporation is exempt from the 05 requirements of AS 46.11.050(b). 06 (h) In this section, "building and housing codes" includes a law, ordinance, or 07 governmental regulation concerning fitness for habitation or the construction, 08 maintenance, operation, occupancy, use, or appearance of a premises or dwelling unit. 09 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).