Legislature(2013 - 2014)BELTZ 105 (TSBldg)
04/09/2013 05:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB175 | |
| HB168 | |
| HB50 | |
| HB125 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 175 | TELECONFERENCED | |
| += | HB 168 | TELECONFERENCED | |
| += | SB 79 | TELECONFERENCED | |
| += | HB 50 | TELECONFERENCED | |
| + | HB 125 | TELECONFERENCED | |
HB 50-MULTI-UNIT HOUSING: COMMERCIAL USE
5:37:56 PM
CHAIR DUNLEAVY announced the consideration of HB 50. "An Act
authorizing the Alaska Housing Finance Corporation to allow
certain commercial uses in a multi-unit residential housing
development owned or financed by the corporation and limiting
the Alcoholic Beverage Control Board's issuance of certain
licenses to premises in the residential housing development." He
noted that CSHB 50(FIN) was before the committee.
5:38:29 PM
JOSHUA WALTON, Staff, Representative Mia Costello, sponsor of HB
50, introduced the bill on behalf of the sponsor. He explained
that HB 50 allows the Alaska Housing Finance Corporation (AHFC)
to authorize certain commercial enterprises in multi-unit
residential housing developments that it owns or leases. This is
in line with a national trend to develop more diverse and
vibrant neighborhoods. Giving AHFC this power will allow more
efficient use of land and help AHFC to contribute to the growth
of residences and housing properties and to increase commercial
leasing space. This will benefit families and small businesses,
in particular.
The bill specifically excludes certain types of businesses such
as adult entertainment; the sale of alcoholic beverages, unless
it occurs with a restaurant; substance abuse treatment programs;
and businesses that primarily sell tobacco and cigarette
products, although incidental sales of tobacco at a supermarket
would be allowed. He offered to answer questions and noted that
Ms. Shubert from AHFC was available to speak to the bill.
5:40:40 PM
STACY SHUBERT, Director, Governmental Relations and Public
Affairs, Alaska Housing Finance Corporation (AHFC), introduced
herself.
CHAIR DUNLEAVY summarized that the idea is to offset the cost of
housing by expanding AHFC's authority to rent or lease property
for combined uses.
MS. SHUBERT said that is correct.
CHAIR DUNLEAVY asked if the concept of an open flame in a
restaurant would present a problem if residential units were in
the same building.
MS. SHUBERT said the AHFC board wouldn't approve a loan if it
felt the tenants would be at risk.
SENATOR OLSON discussed finite resources and asked how this
would affect multi-unit housing.
MS. SHUBERT said that AHFC feels that financing projects of this
type are beneficial to developers, to financial institutions
that might offer loans and sell them to AHFC, and to AHFC's
portfolio. In particular, this will save money for developers
because revenues from the commercial space could help offset the
costs of the residential space.
SENATOR OLSON asked how this would affect the dividend that AHFC
pays the State of Alaska which goes into the general fund.
MS. SHUBERT explained that AHFC is finding it more difficult to
compete with interest rates in the home mortgage market and sees
this as an opportunity to help increase revenues in its
portfolio. Responding to skepticism from Senator Olson, she
pointed out that AHFC's mission is to provide more housing for
more Alaskans, and this helps achieve that goal. AHFC is proud
of its track record of paying almost $2 billion in dividends to
the state, and desires to continue.
SENATOR OLSON relayed that the members of the Finance Committee
appreciate AHFC and its leadership over a number of years.
5:44:32 PM
SENATOR MICCICHE asked the definition of "commercial" and
questioned whether the bill should also address municipal
zoning.
MS. SHUBERT said AHFC prefers to leave local zoning decisions up
to the communities. She reiterated that AHFC will look at each
project independently consistent with the local land use rules
and regulations.
SENATOR MICCICHE summarized that AHFC would use the local
definition of commercial or limited commercial.
MS. SHUBERT said yes.
5:45:50 PM
CHRISTOPHER SCHULTE, Executive Director, Anchorage Downtown
Partnership (ADP), reported that he also served on the project
management team for the 2007 Anchorage Downtown Comprehensive
Plan, and currently serves on the kitchen cabinet of Mayor Dan
Sullivan's Homeless Leadership Team. He described AHFC as a
vital partner in development of large-scale housing statewide.
It will allow AHFC to finance or permit commercial enterprises
in a multi-unit residential housing development in a beneficial
manner. This is a sound community planning principle that will
result in better uses of scarce land. Additionally, this
legislation will provide an opportunity for AHFC to generate
additional revenue and provide the corporation additional
resources to use in addressing Alaska's growing housing
shortage. Developers will find it easier to build affordable
housing projects throughout the state by using income from
commercial space to offset rent reductions in the housing units.
MR. SCHULTE said APD also supports the limits that prohibit
certain commercial uses and the flexibility to allow a business
enterprise such as a restaurant that is licensed by the
Alcoholic Beverage Control (ABC) Board. The bill empowers AHFC
to play a more active role in development projects that conform
to local planning policies and guidelines. He described how this
legislation would help multi-unit residential housing
development in Anchorage.
CHAIR DUNLEAVY noted that public testimony was open.
5:49:40 PM
SENATOR MICCICHE asked if there was precedence for a housing
authority lending or leasing for mixed use, and if this would
increase liability for AHFC.
MS. SHUBERT said she wasn't aware of any other housing authority
that offers this, but there is a nationwide trend to provide
this kind of mixed use development.
SENATOR MICCICHE asked if AHFC would need additional liability
protections with mixed use.
MS. SHUBERT said AHFC is comfortable with the language as
drafted and the review that the AHFC Board does with all loans
that come into the portfolio. She noted that the multi-family
loan portfolio has traditionally performed very well.
CHAIR DUNLEAVY observed that multiple use doesn't necessarily
increase insurance issues.
CHAIR DUNLEAVY stated that he would hold HB 50 in committee and
keep public testimony open.
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