03/14/1994 08:30 AM House FIN

  HB 466    An Act authorizing  the issuance  of bonds by  the                 
            Alaska Housing Finance Corporation  to pay for the                 
                                                                               
                                1                                              
                                                                               
                                                                               
            costs  of  repair  and  rehabilitation of  student                 
            housing facilities  of the  University of  Alaska;                 
            authorizing   the  issuance   of   bonds  by   the                 
            University  of  Alaska  to pay  for  the  costs of                 
            repair  and rehabilitation  of  facilities of  the                 
            University  of  Alaska;  amending  powers  of  the                 
            Alaska Housing Finance  Corporation; amending  the                 
            definition of  "public building"; relating  to the                 
            Alaska debt retirement fund; and providing  for an                 
            effective date.                                                    
                                                                               
            HB   466  was   placed   into  Subcommittee   with                 
            Representative MacLean as  Chair and with  members                 
            Representative Martin,  Representative Grussendorf                 
            and Representative Therriault.                                     
  HOUSE BILL 466                                                               
                                                                               
       "An Act authorizing the issuance of bonds by the Alaska                 
       Housing Finance  Corporation to  pay for  the costs  of                 
       repair and rehabilitation of student housing facilities                 
       of the University  of Alaska; authorizing  the issuance                 
       of bonds by  the University  of Alaska to  pay for  the                 
       costs of repair and rehabilitation of facilities of the                 
       University of  Alaska;  amending powers  of the  Alaska                 
       Housing Finance Corporation; amending the definition of                 
       "public   building";  relating   to  the   Alaska  debt                 
       retirement fund; and providing for an effective date."                  
                                                                               
  WENDY  REDMAN,  VICE  PRESIDENT  FOR  UNIVERSITY  RELATIONS,                 
  UNIVERSITY OF  ALASKA, FAIRBANKS, explained that after years                 
  of  inadequate funding, the  backlog of deferred maintenance                 
  projects now totals  more than $150 million dollars  for the                 
  University  of Alaska  system.   Over the  past  decade, the                 
  university  has  sought  nearly  $180  million  dollars  for                 
  maintenance projects, and  received less  than one third  of                 
  that amount.   The result  is that the  facilities on  every                 
  campus, particularly  the oldest  campuses in Fairbanks  and                 
  Ketchikan, are in a dangerous state of disrepair.                            
                                                                               
                                                                               
                                6                                              
                                                                               
                                                                               
  She  added  that the  Board  of  Regents  has  made  capital                 
  improvement  maintenance the highest  priority and  that the                 
  university  wants  the  problem resolved  this  year  either                 
  through   passage   of   bonding   legislation   or   direct                 
  appropriation.    Bonds  make sense  this  year  because the                 
  state's outstanding  debt  service  is  declining  and  bond                 
  interest  rates  are low.   It  is  necessary that  the bond                 
  holder have lease to the facility  during the time while the                 
  bond  is  being paid  off.    Certain type  of  projects are                 
  difficult to bond since there are no tangible assets.                        
                                                                               
  Co-Chair MacLean suggested  that a "sunset clause"  be added                 
  as the requests are project specific.  Ms. Redman understood                 
  that  when a bond  is issued, there  is a certain  amount of                 
  time to sell them at the completion of the project.                          
                                                                               
  Ms. Redman added that campus housing  is a high priority for                 
  the Anchorage and Juneau  campus.  The Board of  Regents has                 
  not taken a  position on the  housing concern.  She  pointed                 
  out that these funds are  disproportionate around the state.                 
  Representative Therriault noted that he will not support any                 
  new building around the state  until the maintenance concern                 
  is addressed.   He  asked if  there was  any other  proposed                 
  legislation which  addresses new  construction.   Ms. Redman                 
  replied  that  SB  229  requests  cash for  student  housing                 
  projects in Anchorage.  She added that the  Anchorage campus                 
  is  the  fastest growing  campus  in  the State  and  no new                 
  facilities have been built for years.                                        
                                                                               
  Co-Chair Larson placed HB 466 into a subcommittee chaired by                 
  Representative  MacLean  and  with   members  Representative                 
  Martin,   Representative   Grussendorf   and  Representative                 
  Therriault.                                                                  
                                                                               
  Representative  Martin   provided  the  Committee   with  an                 
  amendment for its consideration incorporating  it.  [Copy on                 
  file].                                                                       
                                                                               
  HB 466 was HELD in Committee for further consideration.