Legislature(2009 - 2010)
04/13/2010 09:46 AM House FIN
| Audio | Topic |
|---|---|
| Start | |
| HCR21 | |
| SB217 | |
| SB300 | |
| SB247 | |
| SB248 | |
| SB301 | |
| HB426 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 217
"An Act relating to the issuance of state-guaranteed
revenue bonds by the Alaska Housing Finance
Corporation to finance mortgages for qualifying
veterans; and providing for an effective date."
10:14:08 AM
BRYAN BUTCHER, DIRECTOR, GOVERNMENT AFFAIRS AND PUBLIC
RELATIONS, ALASKA HOUSING FINANCE CORPORATION, DEPARTMENT
OF REVENUE, stated that the house version of the bill (HB
291) was heard before the committee earlier this session.
He explained that SB 217 would request the voters approve
$600,000,000 in state guaranteed bonds in the 2010 general
election, to be issued by the Alaska Housing Finance
Corporation for the purchase of mortgage loans made to
qualifying veterans. He added that federal law requires
that general obligation bonds must be issued by the state
for this loan program. The veteran's loan program is the
highest performing loan program in the state. Alaska is one
of five states that qualify for the program.
Mr. Butcher furthered that the Senate added two provisions
to SB 217 that were not included in HB 291. The Senate
authorized the purchase of the building that the AHFC
currently inhabits at 4300 Boniface parkway in Anchorage.
The corporation would realize long-term savings to purchase
instead of leasing the building. In addition, the Senate
authorized the corporation to purchase or construct a
Public Housing Intake Center. The current center located on
International Boulevard in Anchorage is an aging, ill-
equipped building with insufficient parking. The building
is not located on a bus route which makes it a difficult
location for public housing clients. The cost to bring the
building up to code far exceeds the value of the building.
Mr. Butcher reported that AHFC currently has $3.5 million
in federal and corporate funds to pay for the building; no
additional funding is required from the state. The
corporation would relocate the center to the centrally
located neighborhood of Mountain View.
DAN FAUSKE, CEO/EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE), interjected that AHFC
had been fully authorized to proceed with the $3.5 million
funding for the project for several years. He believed that
it was the right project to expend the funds.
Co-Chair Hawker reported that the same project was proposed
last year. He asked for assurance that there was no
increase in costs that occurred over a year. Mr. Fauske
replied that no increase has occurred. He added that the
project represents an economic gain for the corporation.
10:17:16 AM
Representative Doogan inquired about the fiscal note, FN 3
(REV), analysis that estimates the 4300 Boniface Parkway
purchase in the amount of $14.5 million. Mr. Fauske
elaborated that AHFC presently owns land at 34th Ave. and
Denali St.; the previous home to the AHFC. The Tatitlek
Corporation owns the building at 4300 Boniface Parkway and
wants to acquire the land at 34th Ave. and Denali St.
Therefore, $5 million will represent a land exchange with
the Tatitlek Corporation and the remaining $9.5 million
will be from the sale of AHFC 25 year bonds to complete the
purchase and rehabilitate the building.
10:18:45 AM
Representative Joule referred to the sponsor statement
(copy on file) that explained that a veteran must apply for
the loan within 25 years of discharge from active duty to
qualify for the program. He wondered what impact that had
on the exclusion of veterans from the program. Mr. Butcher
explained that the program was established in the early
1980's by congress. The initial requirements were that
veterans had to have served prior to 1977 and discharged
from service for no longer than 30 years. As the years
passed the requirements reduced the number of veterans
eligible for the program and did not include Gulf War
veterans. AHFC lobbied to change the requirements over a 15
year period. The effort met with some resistance in
Congress but resulted in the removal of the service prior
to 1977 requirement and replaced that with the 25 year
provision. Congress also limited the corporation or state
to issue only $10 million in bonds which was subsequently
increased to $100 million. He noted that AHFC was still
working to get the 25 year qualification removed.
Co-Chair Stoltze closed public testimony.
10:23:14 AM
Representative Foster cited the definition of active duty
from the sponsor statement, that service in a military
academy may meet the qualifications to participate in the
program. He asked what the military academy requirements
were.
LAURIE HOLTE, OFFICE OF RESIDENTIAL LENDING, ALASKA HOUSING
FINANCE CORPORATION, DEPARTMENT OF REVENUE,(via
teleconference), explained that AHFC requests a copy of the
veterans DD214 release document as evidence for
qualification for the veterans mortgage program. The
document indicates whether the veteran has been honorably
discharged. She did not know if a cadet that leaves an
academy before they graduate receives a DD214.
10:25:50 AM
Vice-Chair Thomas MOVED to report CS SB 217(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
CS SB 217(FIN) was REPORTED out of Committee with a "do
pass" recommendation and with previously published fiscal
note: FN3 (REV)
10:26:41 AM RECESSED
10:29:57 AM RECONVENED
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