04/16/1996 02:20 PM House FIN

  SENATE BILL 163                                                              
                                                                               
       "An Act approving  the University of Alaska's  plans to                 
       enter into long-term obligations  to borrow money  from                 
       the  Alaska   Housing  Finance   Corporation  for   the                 
       acquisition   of   student   housing  facilities;   and                 
       providing for an effective date."                                       
                                                                               
  WENDY   REDMAN,   VICE   PRESIDENT,  UNIVERSITY   RELATIONS,                 
  UNIVERSITY  OF  ALASKA, spoke  in support  of  SB 163.   She                 
  pointed out that last year the bill included both Juneau and                 
  Ketchikan  housing  projects  which  this  year   have  been                 
  removed.  The  Juneau housing project  was funded last  year                 
                                                                               
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  with a cash appropriation; the  Ketchikan housing project is                 
  currently going  forward  with private  financing through  a                 
  local  bank.    The  proposed  legislation  is only  for  an                 
  Anchorage student housing project.                                           
                                                                               
  The  University  has  worked  with  Alaska  Housing  Finance                 
  Corporation (AHFC) over  the interim  in order  to create  a                 
  financing plan  which will meet  both entities  needs.   The                 
  Governor has agreed  to include the  project as part of  the                 
  AHFC Capital Improvement Project (CIP) for FY98.                             
                                                                               
  Ms. Redman added that  it had not been the Board  of Regents                 
  intent  to  turn Anchorage  into  a residential  campus.   A                 
  residential campus  would have between  35% to 55%  of their                 
  students  housed.   The  Fairbanks  campus is  a residential                 
  campus.  Currently, in Anchorage, only  3% of those students                 
  are residential.  With the proposed legislation, that number                 
  would  increase to 7%.   The  long range  goals would  be to                 
  increase  the Anchorage campus to  15% students housed.  She                 
  urged the Committee's support of the legislation.                            
                                                                               
  Representative Brown asked  the source of the  interest rate                 
  subsidy.  Ms.  Redman  stated that  would  result  from AHFC                 
  reserves.                                                                    
                                                                               
  Representative Navarre  voiced support  of the  legislation.                 
  He  suggested  assessment   of  housing  needs   within  the                 
  outlining campuses.                                                          
                                                                               
  GEORGE SULLIVAN, MAYOR,  ANCHORAGE, spoke  in support of  SB
, pointing out that the Anchorage campus has an extensive                 
  waiting list for campus bed space.                                           
                                                                               
  DOUGLAS  BAILEY,  (TESTIFIED  VIA TELECONFERENCE),  STUDENT,                 
  UNIVERSITY OF ALASKA, ANCHORAGE, testified in support of the                 
  bill.  He stressed the need  for more housing for University                 
  students on the Anchorage campus.                                            
                                                                               
  CINDY  FEATHER,  (TESTIFIED  VIA TELECONFERENCE),  DIRECTOR,                 
  STUDENT HOUSING  PROGRAM, UNIVERSITY  OF ALASKA,  ANCHORAGE,                 
  offered to answer  any questions of the  Committee regarding                 
  the  proposed  project or  financial concerns  in connection                 
  with it.  She stressed that the program has a lot of support                 
  from the public and from the students.                                       
                                                                               
  Representative Navarre MOVED to report CS SB 163 (FIN)(title                 
  am) out of Committee with individual recommendations.  There                 
  being NO OBJECTION, it was so ordered.                                       
                                                                               
  CS SB 163 (FIN) (tile am) was reported out of Committee with                 
  a  "do  pass"  recommendation  and with  a  fiscal  note  by                 
  Statewide  Budget  Office  and  zero  fiscal  notes  by  the                 
                                                                               
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  Statewide Budget Office dated 3/27/96  and the Department of                 
  Revenue dated 2/14/96.