Legislature(1997 - 1998)
04/08/1998 08:05 AM House CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 471 - REGIONAL NATIVE HOUSING AUTHORITIES Number 0015 CHAIRMAN IVAN announced the committee would hear HB 471, "An Act relating to the boards of commissioners of regional Native housing authorities." He noted the bill was heard two weeks ago and concerns were expressed by some of the housing authorities. Time was provided for the state housing authorities to evaluate and make comments on the legislation. Chairman Ivan pointed out that he received three responses and one was from the Association of Alaska Housing Authorities. He said they offered language which is not included in the proposed committee substitute. The committee substitute incorporates the amendment adopted at the last hearing. Also, included in the proposed committee substitute were two other changes. Number 0143 REPRESENTATIVE FRED DYSON made a motion to adopt the proposed committee substitute dated 4/6/98, Version 0-LS1686/F. There being no objection, the committee substitute was adopted. REPRESENTATIVE IVAN pointed out one of the changes that had been incorporated into the committee substitute was on page 2, line 12. The change allowed a housing authority to appoint a committee for the purpose of delegating responsibility. He noted the suggestion was made by the Bristol Bay Housing Authority for an executive committee to hold monthly meetings rather than a full meeting of the Board of Directors. Most of them have this ability through their bylaws. The amendment clarified that authority. REPRESENTATIVE IVAN informed the committee that the second change was the deletion of the word "initial," found on page 2, line 9, before the words, "board of commissioners." The word "initial" was confusing and may have led to unintended consequences by the legislation. REPRESENTATIVE IVAN said an amendment to the committee substitute had been suggested by the Association of Alaska Housing Authorities. They suggested on page 2, line 9, that the housing authorities membership be raised from five to nine people. REPRESENTATIVE JERRY SANDERS made a motion to adopt the amendment. REPRESENTATIVE JOE RYAN asked for an explanation of what the regional housing authorities were and how they worked. Number 0510 BRUCE KOVARIK, Executive Director, Association of Alaska Housing Authorities, testified via teleconference from Anchorage. He explained that the regional housing authorities were established in the earlier 1970's as public corporations established by state law to take advantage of federal housing programs that were made available throughout Indian Country and around the United States, without established reservations and tribes. Mr. Kovarik said there was a great difference between Alaska and the Lower 48 in that Alaska chose and took advantage of the opportunities of federal housing programs by establishing the regional housing authorities. He stated that since that time, they've operated very similar in terms of the authorization and operation with the Alaska Housing Finance Corporation as a public corporation. They take advantage of federal and state programs, operate and maintain housing throughout Alaska. In Alaska, there are 14 regional housing authorities covering the entire state. They currently own, operate or maintain almost 7,000 units of housing statewide. Mr. Kovarik referred to a letter he wrote to the committee, dated April 7, 1998, and said, "We took advantage of the opportunity to -- supported the housing authorities to get out and consult with their boards of commissioners to consult with the regional nonprofits and associations. And so we've polled our members and 12 of 14 housing authorities responded. We gave you the results of that. Several -- five of the housing authorities felt that some kind of cap or limit would be beneficial in terms of the number of commissioners, since it was so open ended on the other side." MR. KOVARIK referred to the sponsor statement and said it stated very correctly that there are dramatic changes in federal laws regarding the development of Indian housing. These provide great opportunities, but they also provide some uncertainty and lack of structure. A concern of several of the housing authorities was that some kind of cap or limit, is the next step concerning this structure of the boards of commissioners, would be appropriate. Number 0185 REPRESENTATIVE SCOTT OGAN referred to the regional housing authorities and asked what a typical region would be. He also asked if they included urban areas as well. MR. KOVARIK referred to the Cook Inlet Housing Authority and said they do a majority of their work in Anchorage. He pointed out that over the last four years, he was the executive director of the Bering Straits Regional Housing Authority in Nome and it basically covered the Bering Straits region. He stated that the 14 regions tend to cover Alaska Native Claims Settlement Act (ANCSA) Corporation, the regional Native Corporation, areas in terms of service - much like the nonprofits do for delivering health services. The whole state is covered by the 14 regional housing authorities. He informed the committee that Anchorage, Juneau and Fairbanks all have very active housing authorities in their communities. REPRESENTATIVE OGAN questioned who would be eligible and also asked if the authorities provided low interest loans. He asked what the thrust is of the organizations. MR. KOVARIK said, "The thrust definitely is low income and low income Native populations although it (indisc.) on the federal housing program. However, moderate income families and actually high income families and non-Native families can be and are served by the housing authorities depending upon the housing need. Most of rural Alaska, the only development and the only significant development of new housing has come because of the regional housing authorities and these federal programs. So it's a very significant source in terms of new construction, community development for infrastructure. There are state funds that are used as well the supplemental housing grants through Alaska Housing Finance Corporation that helps develop communities and develop infrastructure, compliments water and sewer work. It's a broad-based program." MR. KOVARIK said the new federal law provided a lot more flexibility. For instance, many of the housing authorities are looking very strongly at private sector partnerships with the banks and mortgage companies, the secondary mortgage market like Fanny Mae and Alaska Housing Finance Corporation, in providing gap financing and helping to take advantage of the opportunities of the private sector to get people into home ownership. Number 1130 REPRESENTATIVE RYAN said he didn't have any problems with the legislation. He said he noticed in some information in the file that instead of treating them like Housing and Urban Development (HUD), they decided to issue block grants to the Native housing authorities. He asked if the grants came through the state or did they came directly from the federal government. MR. KOVARIK responded, "The block grants are directly to the tribes are designated on behalf of the tribes and they go -- the grant agreement for the block grant would be entered into with what they call, for lack of a better term, 'Tribally designated housing entity.' In Alaska, it looks like we're right in the middle of that process for FY 98 funding right now that will be completed by July 1. For Alaska, it looks like the regional housing authorities for the majority, maybe 75 plus percent of the recognized tribes in Alaska, will be their tribally designated housing entity. So they'll remain with an umbrella or a region-based entity. So they'll basically designate the regional housing authorities (indisc.) of federal funds and the housing authority will enter into the block grant agreement with the federal government to obtain the funds. There are some real significant advantages. There is about a 32 percent increase in federal funds and Senator Stevens has been very supportive and helpful with the appropriations - try to meet the great unmet need of housing. The block grants -- specifically the program is a block grant to tribes, nationally. In Alaska we're seeing about 75 or more percent of the tribes designating their regional housing authority as a recipient of that block grant." Number 1423 REPRESENTATIVE SANDERS again moved to adopt Amendment 1, on page 2, line 9, following "five" add "not more than nine". REPRESENTATIVE OGAN objected for the purpose of discussion. He questioned why there would be an increase in the amount of people. He asked what problem would be fixed. CHAIRMAN IVAN stated that as Mr. Kovarik explained there are 12 regional associations formed within the boundaries of ANCSA areas. For example, in the Lower Kuskokwim the associations consist of 56 communities. From those 56 communities, five commissioners are appointed limited by the state law. Those five commissioners cover over 50,000 square miles. Each commissioner averaged about 10 to 11 communities. There has been debate and discussion that there are not enough members to cover all of that area. So the Association of Village Councils Presidents recommended that the statute be amended to increase the options, hopefully, from five to nine members. That would open up more representation to some of the villages that weren't covered by the five directors. REPRESENTATIVE OGAN said there is a zero fiscal note. He referred to adding additional board members and asked if there wouldn't there be increased costs to the state for transportation. CHAIRMAN IVAN stated the cost is borne by the regional associations. REPRESENTATIVE OGAN removed his objection. CHAIRMAN IVAN asked if there was a further objection. There being none, the amendment was adopted. CHAIRMAN IVAN explained that some of the village corporations that are dissolved for not keeping the requirements. He said there is one village corporation that is trying to get reinstated. Section 1 would cover that opportunity for a village corporation to reinstate itself because it would allow the Newtok Corporation to be reinstated and proceed on with business. Section 1 would cover that. Number 1810 REPRESENTATIVE RYAN made a motion to move CSHB 471, with the accompanying zero fiscal note and with individual recommendations out of committee. There being no objection, CSHB 471(CRA) moved out of the House Community and Regional Affairs Committee.
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