Legislature(2011 - 2012)HOUSE FINANCE 519

02/16/2011 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 28 TEMP LICENSES FOR PROFESSIONALS TELECONFERENCED
Moved CSHB 28(FIN) Out of Committee
+ HB 65 SENIOR CITIZEN HOUSING DEV. FUND GRANTS TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
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."                                                                                                         
                                                                                                                                
1:56:05 PM                                                                                                                    
                                                                                                                                
Representative Edgmon,  Sponsor, discussed that HB  65 would                                                                    
provide regional  housing authorities with easier  access to                                                                    
the  Senior Citizens  Housing  Development  Fund within  the                                                                    
Alaska Housing  Finance Corporation (AHFC). To  ensure their                                                                    
eligibility for  fund access, approximately  half of  the 14                                                                    
housing  authorities   throughout  the  state   had  created                                                                    
501(c)(3)  or 501(c)(4)  nonprofit organizations.  Under the                                                                    
legislation,  the  remaining  housing authorities  would  be                                                                    
listed  in Alaska  Statute Title  18 and  would have  easier                                                                    
access  to the  grant fund.  The fund  amount in  the FY  12                                                                    
budget was  $4 million to $5  million and in past  years the                                                                    
fund  contained $4  million to  $6 million.  The bill  would                                                                    
allow  housing authorities  to  partner  with other  funding                                                                    
agencies   including  the   Denali  Commission,   HUD  [U.S.                                                                    
Department of  Housing and Urban Development],  USDA [United                                                                    
States  Department of  Agriculture], AHFC,  regional housing                                                                    
authorities, and the Native  American Housing Assistance and                                                                    
Self  Determination  Act  (NAHASDA).  He  relayed  that  the                                                                    
housing  authorities  worked  well  with  seniors  and  were                                                                    
skilled  at placing  them in  housing  units throughout  the                                                                    
state.  He communicated  that  the bill  had  a zero  impact                                                                    
fiscal note  and was supported  by the Alaska  Commission on                                                                    
Aging, the  American Association  of Retired  Persons, AHFC,                                                                    
and the regional housing authorities.                                                                                           
                                                                                                                                
Representative Neuman  wondered how  familiar Representative                                                                    
Edgmon was with the Senior Access Program.                                                                                      
                                                                                                                                
Representative  Edgmon responded  that  he was  peripherally                                                                    
familiar  with  the program  and  deferred  the question  to                                                                    
AHFC.                                                                                                                           
                                                                                                                                
Co-Chair  Stoltze  interjected  that  they  would  hold  the                                                                    
question  until a  representative from  the corporation  was                                                                    
available via teleconference.                                                                                                   
                                                                                                                                
Representative   Gara   expressed   his  support   for   the                                                                    
legislation. He wondered whether  expanding the limited pool                                                                    
of  money to  a broader  spectrum of  recipients meant  that                                                                    
less  money  would  be available  for  those  who  currently                                                                    
relied on the funds.                                                                                                            
                                                                                                                                
Representative Edgmon responded that  the bill had unanimous                                                                    
support  and  was  providing a  partnership  rather  than  a                                                                    
competitor  to  existing  senior housing  builders.  Housing                                                                    
authorities  would  be  more  instrumental  players  in  low                                                                    
income senior  housing throughout  the state. By  the nature                                                                    
of  the  business housing  authorities  had  access to  some                                                                    
federal funds that other builders may not have.                                                                                 
                                                                                                                                
Co-Chair Stoltze  opened public testimony and  asked if AHFC                                                                    
supported the bill.                                                                                                             
                                                                                                                                
MARK ROMICK,  DIRECTOR OF PLANNING AND  PROGRAM DEVELOPMENT,                                                                    
ALASKA  HOUSING FINANCE  CORPORATION, DEPARTMENT  OF REVENUE                                                                    
(via teleconference), replied in the affirmative.                                                                               
                                                                                                                                
STACY  SCHUBERT,  DIRECTOR  OF  GOVERNMENTAL  RELATIONS  AND                                                                    
PUBLIC   AFFAIRS,   ALASKA  HOUSING   FINANCE   CORPORATION,                                                                    
DEPARTMENT OF REVENUE (via  teleconference), also stated the                                                                    
agency's support of the legislation.                                                                                            
                                                                                                                                
Representative  Neuman  asked  for  an  explanation  of  the                                                                    
Senior Access  Program. Mr.  Romick responded  that Planning                                                                    
and Program Development was the  administrator of the Senior                                                                    
Access Program.  He was happy  to answer  specific questions                                                                    
about the program.                                                                                                              
                                                                                                                                
Representative Neuman  wondered how  many people  applied to                                                                    
the  program and  how it  was funded.  Mr. Romick  explained                                                                    
that  the  Senior Access  Program  was  a component  of  the                                                                    
Senior  Housing Development  Fund.  A portion  of the  total                                                                    
fund was set  aside for the program on an  annual basis. The                                                                    
program was designed  to provide accessibility modifications                                                                    
for seniors  to help them  remain in their homes  for longer                                                                    
periods of  time. The funding  was made available  through a                                                                    
competitive  process that  was  operated  by three  grantees                                                                    
throughout the state. The program  served 100 to 150 seniors                                                                    
per year  depending on the required  home modifications. The                                                                    
modifications  varied  from  outdoor ramp  installations  to                                                                    
indoor chairlift installations.                                                                                                 
                                                                                                                                
2:05:08 PM                                                                                                                    
                                                                                                                                
Representative Neuman appreciated  the detailed response and                                                                    
agreed  that it  was  important to  help  seniors remain  in                                                                    
their homes.  He wondered whether the  Senior Access Program                                                                    
would  be  able  to  obtain  funding  directly  through  the                                                                    
regional native housing authorities.                                                                                            
                                                                                                                                
Mr. Romick replied that the  legislation would allow housing                                                                    
authorities  to  apply  to  AHFC   for  funds  to  implement                                                                    
regional  Senior Access  Programs. There  were currently  no                                                                    
housing  authorities involved  in  the program.  He did  not                                                                    
know  whether  the  lack  of  involvement  was  due  to  the                                                                    
501(c)(3)  requirement  or  to  the  availability  of  other                                                                    
funding resources for accessibility modifications.                                                                              
                                                                                                                                
Vice-chair  Fairclough  wondered  whether  HB  65  addressed                                                                    
Native  housing  authority   accessibility  for  the  entire                                                                    
Senior Citizen Housing Development Fund.                                                                                        
                                                                                                                                
Representative Edgmon  responded that although  the regional                                                                    
housing authorities  in statute were called  "Native housing                                                                    
authorities," their  benefits targeted  low-income residents                                                                    
and were not ethnic specific.                                                                                                   
                                                                                                                                
Vice-chair   Fairclough    clarified   that    the   Greater                                                                    
Opportunities for Affordable  Living, Senior Access Program,                                                                    
and  Pre-development Grants,  all qualified  for funds.  She                                                                    
referred to a memorandum  from Representative Edgmon, titled                                                                    
"Examples  of 501(c)3  Nonprofits that  have Received  SCHDF                                                                    
Grants" (copy on file) and listed the following examples:                                                                       
                                                                                                                                
   · Chugach Colony Estates - Grantee: Palmer Senior Center                                                                     
     Citizens' Center, Inc.                                                                                                     
   · Meadow Lakes - Grantee: Meadow Lakes Community Council                                                                     
   · Togiak Senior Housing - Grantee: Bristol Bay Housing                                                                       
     Development Corporation                                                                                                    
                                                                                                                                
Representative  Guttenberg  discussed  the  Aleutians,  Cook                                                                    
Inlet,  Kodiak,  Bristol  Bay,  and  the  Interior  Regional                                                                    
Housing  Authority.  He   questioned  whether  the  Interior                                                                    
region  encompassed the  Native  community  of Cantwell.  He                                                                    
wondered whether  the legislation would leave  any region of                                                                    
the state uncovered.                                                                                                            
                                                                                                                                
Representative Edgmon believed the  state was fully covered.                                                                    
Mr. Romick  responded that the  entire state was  covered by                                                                    
the regional housing authorities.                                                                                               
                                                                                                                                
Representative Doogan  referred to a table  titled "Examples                                                                    
of  Senior  Housing  Projects   Partly  Funded  with  Senior                                                                    
Citizens Housing  Development Fund (SCHDF) Grants"  (copy on                                                                    
file). He wondered about the  origin of the original housing                                                                    
development funds.                                                                                                              
                                                                                                                                
Representative Edgmon  believed that it would  depend on who                                                                    
the  project builder  had been.  If the  builder had  been a                                                                    
housing authority  the funds may  have been  federal NAHASDA                                                                    
funds laired  with funds from  the Denali  Commission, USDA,                                                                    
and  HUD. The  passage of  HB  65 would  include the  senior                                                                    
housing  grants from  AHFC in  the list  of fund  sources as                                                                    
well.                                                                                                                           
                                                                                                                                
Representative  Doogan ascertained  that the  amounts listed                                                                    
in the  "SCHDF $'s  Available" column (on  the left  side of                                                                    
the  table)  did  not  represent   limits  but  referred  to                                                                    
available funding  from various  sources during  each fiscal                                                                    
year.                                                                                                                           
                                                                                                                                
2:11:15 PM                                                                                                                    
                                                                                                                                
Mr. Romick asked for clarity on the question.                                                                                   
                                                                                                                                
Representative  Doogan wondered  how the  amounts listed  in                                                                    
the  "SCHDF  $'s  Available"  column  were  determined.  Mr.                                                                    
Romick asked for further clarification.                                                                                         
                                                                                                                                
Representative Doogan referenced the  table and wondered how                                                                    
the  $4.4 million  (listed in  the last  cell of  the column                                                                    
labeled "SCHDF $'s Available") was derived.                                                                                     
                                                                                                                                
Mr.  Romick  believed  that  in  the  past  the  funds  were                                                                    
primarily corporate.  A portion of the  current $4.4 million                                                                    
capital budget request was general fund.                                                                                        
                                                                                                                                
Representative Doogan  asked about the meaning  of corporate                                                                    
funds. Mr.  Romick clarified that  the corporate  funds were                                                                    
AHFC corporate dividends.                                                                                                       
                                                                                                                                
Representative  Edgmon  explained   that  builders  received                                                                    
funds  through  a  rigorous allocation  process.  When  AHFC                                                                    
awarded money  from the Senior Citizens  Housing Development                                                                    
Fund, it was required  to review operating expenses, utility                                                                    
bills,  and to  compare  proposals with  its thermal  energy                                                                    
standards.                                                                                                                      
                                                                                                                                
Representative Doogan expressed his  interest in the details                                                                    
and did not wish to convey  concern about the vetting of the                                                                    
bill.                                                                                                                           
                                                                                                                                
Representative Wilson asked whether  the entire $4.4 million                                                                    
was state general fund.                                                                                                         
                                                                                                                                
2:15:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:16:16 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Edgmon answered in the affirmative.                                                                              
                                                                                                                                
Representative  Costello asked  whether  future funding  was                                                                    
expected from the Denali Commission.                                                                                            
                                                                                                                                
Mr. Romick answered that AHFC  was not expecting any funding                                                                    
from the Denali  Commission in the upcoming  fiscal year due                                                                    
to the current state of its appropriations from Congress.                                                                       
                                                                                                                                
Vice-chair Fairclough asked for  clarity on the $4.4 million                                                                    
funding source.  She wondered whether  the money  would come                                                                    
from  general   fund,  corporate   receipts,  or   from  the                                                                    
Association of Alaska Housing Authorities.                                                                                      
                                                                                                                                
2:18:07 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:18:16 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Edgmon answered  that  the  money came  from                                                                    
general fund through the capital budget process.                                                                                
                                                                                                                                
Co-Chair Stoltze closed public testimony.                                                                                       
                                                                                                                                
JAMES   ARMSTRONG,  STAFF,   REPRESENTATIVE  BILL   STOLTZE,                                                                    
discussed  the replacement  of Fiscal  Note 1.  He explained                                                                    
that  the OMB  Component  Number had  been  miscoded on  the                                                                    
original fiscal note. The correct  AHFC component number was                                                                    
110 and it replaced 109.                                                                                                        
                                                                                                                                
Co-Chair  Stoltze asked  about sustainability  plans related                                                                    
to future  senior housing projects. There  had been problems                                                                    
in his  district that he did  not want to see  replicated in                                                                    
other areas of the state.                                                                                                       
                                                                                                                                
Representative Edgmon  responded that the  senior population                                                                    
was  the   fastest  growing  segment  in   Alaska  and  that                                                                    
sustainability would be an ongoing question.                                                                                    
                                                                                                                                
Co-Chair Stoltze noted that  sustainability was an important                                                                    
issue that faced his community.                                                                                                 
                                                                                                                                
Vice-chair  Fairclough   MOVED  to  report  HB   65  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
HB  65  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation and  with zero impact note  by the Department                                                                    
of Revenue.                                                                                                                     
                                                                                                                                

Document Name Date/Time Subjects
Changes to HB28 (CSHB 28 L&C).pdf HFIN 2/16/2011 1:30:00 PM
HB 28
CSHB 28 -SponsorStmt2.pdf HFIN 2/16/2011 1:30:00 PM
HB 28
CSHB 28 Supporting Documents - Article Military Spouses.pdf HFIN 2/16/2011 1:30:00 PM
HB 28
CSHB 28 Supporting Documents - Professions Covered by HB 28.pdf HFIN 2/16/2011 1:30:00 PM
HB 28
HB 65 Executive Summary--Economic Impact of Alaska Regional Housing Authorities.PDF HFIN 2/16/2011 1:30:00 PM
HB 65
HB 65 AHFC Fact Sheet.pdf HFIN 2/16/2011 1:30:00 PM
HB 65
HB 65 Sponsor Statement on Letterhead.pdf HFIN 2/16/2011 1:30:00 PM
HB 65
HB 65 SCHDF Overview.pdf HFIN 2/16/2011 1:30:00 PM
HB 65
HB 65 Memo to C&RA Committee--Examples of Already Qualifying Nonprofits.PDF HFIN 2/16/2011 1:30:00 PM
HB 65
HB 65 Letters of Support.PDF HFIN 2/16/2011 1:30:00 PM
HB 65
Ltr Support HB28 - Dental Society.pdf HFIN 2/16/2011 1:30:00 PM
HB 28
HB65-NEW FN DOR-AHFC-01-31-11.pdf HFIN 2/16/2011 1:30:00 PM
HB 65
HB 65 ACoA Support Letter.pdf HFIN 2/16/2011 1:30:00 PM
HB 65
HB28 CS WORKDRAFT 27-LSO192S 021511.pdf HFIN 2/16/2011 1:30:00 PM
HB 28
HB 65 AARP Support Letter.PDF HFIN 2/16/2011 1:30:00 PM
HB 65