Legislature(2011 - 2012)BARNES 124
02/01/2011 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB65 | |
| Presentation: Denali Commission | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 65 | TELECONFERENCED | |
HB 65-SENIOR CITIZEN HOUSING DEV. FUND GRANTS
8:05:05 AM
CHAIR MUNOZ announced that the first order of business would be
HOUSE BILL NO. 65, "An Act making regional Native housing
authorities eligible to receive grants through the Alaska
Housing Finance Corporation from the senior citizens housing
development fund."
8:05:26 AM
TIM CLARK, Staff, Representative Bryce Edgmon, Alaska State
Legislature, characterized HB 65 as simple legislation that
would benefit seniors throughout Alaska by including regional
housing authorities among the entities eligible for grants
through the Alaska Housing Finance Corporation's (AHFC) Senior
Citizens Housing Development Fund (SCHDF). Currently, the fund
is open to municipalities, 501(c)(3) and 501(c)(4) nonprofits.
He noted that the nonprofit status is based on a fairly strict
Internal Revenue Service (IRS) definition. He further noted
that some regional housing authorities have went to the
considerable effort to qualify as nonprofits under the IRS
definition. Mr. Clark then informed the committee that Alaska
has 14 regional housing authorities, which he characterized as
some of the most experienced and affordable housing developers
in the state. He told the committee that AHFC supports HB 65,
which has a zero fiscal note as the fund is already funded at
$4.5 million in the governor's proposed budget. The legislation
won't have any impact on costs, but will allow fund managers to
more effectively allocate the available funds.
8:10:12 AM
REPRESENTATIVE SADDLER inquired as to how much more money will
be available to the regional housing authorities with this
change.
MR. CLARK said that in terms of the projects funded, usually
funds from the SCHDF are just one piece of the collection of
funding from various sources. He pointed out that the committee
packet includes three examples of SCHDF projects, all of which
demonstrate a fairly diverse collection of funding sources. For
one project the total development cost was $5.1 million of which
SCHDF provided about 20 percent of the funds. For another
project the total costs were $2.3 million of which SCHDF
provided about 50 percent of the funds. In yet another project
the total development costs were $2.4 million of which SCHDF
provided about 16 percent of the funds.
8:12:06 AM
CHAIR MUNOZ inquired as to the balance of the fund.
MR. CLARK related his understanding that AHFC tries to exhaust
SCHDF's resources annually. In further response to Chair Munoz,
Mr. Clark said the fund has been in the $4.5 million range over
the last few years. Returning to the examples of projects he
spoke of earlier, Mr. Clark informed the committee that the
first example was a retirement community in Fairbanks with 20
units, which he characterized as one of the most ambitious
projects of the three he highlighted. The second project,
located in Houston, is six units with a cost of $2.3 million.
The third project he highlighted earlier is located in Togiak
and is also a six-unit project with a cost of $2.4 million.
8:14:30 AM
CHAIR MUNOZ related her understanding that the SCHDF is
traditionally viewed as gap financing.
MR. CLARK answered that's his understanding as well. According
to officials associated with housing authorities, their funding
for even a single project is diverse, including funds from the
U.S. Department of Housing and Urban Development, AHFC, the
Denali Commission, as well as the U.S. Department of Agriculture
and Rural Development.
8:15:33 AM
CHAIR MUNOZ asked if the fund has historically been able to meet
the requests submitted.
MR. CLARK related his understanding that at times grant
applicants have been turned away. However, the number of
applicants turned away in a given year versus those applicants
that are awarded a grant is not a great proportion. He related
his further understanding that AHFC has discussed this
legislation as allowing AHFC to be more effective in the
allocation of these funds. Therefore, it's possible, he
conjectured, that a larger number of worthy projects are being
funded, but at a slightly lower amount for each project.
8:16:56 AM
REPRESENTATIVE FOSTER asked if a particular regional housing
authority identified the need to fill a gap.
MR. CLARK opined that there's always a need for more senior
housing since seniors are the fastest growing segment of
Alaska's population. Furthermore, he recalled that the goal of
this legislation is among the priorities of the statewide
association of housing authorities. The legislation was
specifically brought to Representative Edgmon by the Aleutian
Housing Authority.
8:18:18 AM
REPRESENTATIVE FOSTER asked if the regional housing authorities
are providing feedback specifying that there are projects in the
coming years. He clarified that he's trying to obtain a sense
of the demand for this funding.
MR. CLARK conjectured that there won't be a dramatic increase in
pressure on the fund, but he noted that around the state senior
projects are being hoped for and planned.
8:19:20 AM
REPRESENTATIVE SADDLER inquired as to whom the 501(c)(3) and
501(c)(4) nonprofits are and how they feel about this proposed
increase in competition for the grant funds.
MR. CLARK related his understanding that AHFC didn't anticipate
any problems. He pointed out that the applicants in the past
have totaled two to nine.
8:20:53 AM
REPRESENTATIVE GARDNER asked if the sponsor anticipates that
with passage of HB 65 different groups will participate or will
those existing nonprofits have easier access.
MR. CLARK informed the committee that only a handful of the 14
housing corporations have managed to acquire 501(c)(3) or 501(c)
(4) nonprofit status. Therefore, HB 65 will save the other
housing authorities from having to acquire 501(c)(3) or
501(c)(4) nonprofit status, which he predicted will greatly
increase the number of qualifying housing authorities.
8:22:12 AM
REPRESENTATIVE SADDLER inquired as to what organizations will be
in line to apply for these funds.
MR. CLARK explained that the regional housing authorities in the
state are Native housing authorities, many of which are
administered through the area's Native associations. However,
he pointed out that the Native association's work as housing
authorities are open to anyone in need.
REPRESENTATIVE SADDLER asked if there are other entities that
will want to utilize this opening to SCHDF grants.
MR. CLARK opined that since the regional housing authorities are
so closely identified with the regional Native entities, this
legislation would take care of that desire.
8:23:38 AM
REPRESENTATIVE AUSTERMAN turned the committee's attention to the
zero fiscal note and asked if this proposal will eat into AHFC's
dividend that it pays to the state each year.
MR. CLARK related that AHFC doesn't believe there will be any
additional cost to the state. With or without HB 65, SCHDF has
been included in the governor's proposed budget in an
appropriation of $4.5 million.
8:25:07 AM
MARK ROMICK, Director, Planning Department, Alaska Housing
Finance Corporation, related that AHFC supports HB 65.
8:25:33 AM
REPRESENTATIVE CISSNA remarked that after visiting so many
communities and seeing senior housing, she is reminded of the
need for studies in order to discover what exactly is needed in
terms of senior housing. She asked if there have been such
housing studies.
MR. CLARK noted that the grant process for the SCHDF is quite
rigorous and includes the showing of a demonstrated need,
feasibility of the project, and sustainability of the project
once it's built.
REPRESENTATIVE CISSNA inquired as to the meaning of
sustainability.
8:29:13 AM
MR. ROMICK answered that for AHFC sustainability includes
operating expenses, particularly utilities. Therefore, AHFC
requires all property in which it's involved to meet the state's
thermal standards for energy efficiency. The AHFC encourages
meeting the highest level of energy efficiency palpable with the
existing energy efficient rating system. The corporation also
encourages exploration of alternative heating systems rather
than traditional oil systems. Mr. Romick said that energy
efficiency and reduction of operating expenses through the
heating system or use of long-term maintenance free materials
and using very energy efficient construction is an important
part of the program, as well as the use of energy efficient
appliances.
8:31:20 AM
REPRESENTATIVE CISSNA suggested that it would be great to more
closely review the rating speculations in terms of meeting the
needs that exist.
CHAIR MUNOZ said she would be happy to hear that topic at
another hearing.
8:32:23 AM
REPRESENTATIVE SADDLER directed the committee's attention to the
letter from the Bristol Bay Housing Authority (BBHA) which
references an attorney general's opinion stating that the
regional housing authorities weren't eligible to use these
grants. He requested that Mr. Clark speak about that.
MR. CLARK explained that the opinion refers to the 501(c)(3) and
501(c)(4) status demanded by the IRS. Because the regional
housing authorities are nonprofits and operate similar to a
501(c) nonprofit, there was confusion regarding whether those
entities were already eligible for the grant fund. Therefore,
the attorney general's opinion was to clarify that matter. When
it was definitively determined that the regional housing
authorities weren't eligible unless they became 501(c)(3) or
501(c)(4) status, this legislation was pursued.
8:33:58 AM
REPRESENTATIVE FOSTER pointed out that HB 65 has the support of
AHFC as well as many regional housing authorities. He then
expressed interest in the number of senior citizens HB 65 would
benefit. To that end, he used the first project as an example
and extrapolated numbers to determine that 80 seniors would
benefit.
8:35:17 AM
CHAIR MUNOZ announced that HB 65 would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 65 Aleutian Housing Authority Support.pdf |
HCRA 2/1/2011 8:00:00 AM |
HB 65 |
| HB 65 Interior Regional Housing Authority - Letter of Support.pdf |
HCRA 2/1/2011 8:00:00 AM |
HB 65 |
| HB 65 Kodiak Island Housing Authority - Letter of Support.pdf |
HCRA 2/1/2011 8:00:00 AM |
HB 65 |
| HB65 Economic Impact of Alaska Regional Housing Authorities.PDF |
HCRA 2/1/2011 8:00:00 AM |
HB 65 |
| HB 65 Bristol Bay Housing Authority - Letter of Support.pdf |
HCRA 2/1/2011 8:00:00 AM |
HB 65 |
| HB 65 Cook Inlet Housing Authority Support.pdf |
HCRA 2/1/2011 8:00:00 AM |
HB 65 |
| HB 65 SCHDF Summary.pdf |
HCRA 2/1/2011 8:00:00 AM |
HB 65 |
| HB 65 Expected Testimony.pdf |
HCRA 2/1/2011 8:00:00 AM |
HB 65 |
| HB 65 Sponsor Statement 1.27.11.pdf |
HCRA 2/1/2011 8:00:00 AM |
HB 65 |