Legislature(2013 - 2014)
03/14/2013 03:21 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| HB87 | |
| HB50 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 50
"An Act authorizing the Alaska Housing Finance
Corporation to allow certain commercial uses in a
multi-unit residential housing development owned or
financed by the corporation and limiting the Alcoholic
Beverage Control Board's issuance of certain licenses
to premises in the residential housing development."
4:21:42 PM
Representative Costello MOVED to ADOPT the proposed
committee substitute for HB 50, Work Draft, 28-LS0155/C,
Strasbaugh, 3/14/13 (FIN). Co-Chair Stoltze OBJECTED for
discussion.
DANIEL GEORGE, STAFF, CO-CHAIR STOLTZE, explained the
changes in the CS. He noted the change on the final page,
which removed the wording between lines 9 and 17, "the
corporation may not authorize the commercial use of space
in a multi-unit residential housing development owned or
financed by the corporation for the manufacture, sale,
transfer or storage of cigarettes or tobacco products"
replaced with "the corporation may not authorize the
commercial use of space in a multi-unit residential housing
development owned or financed by the corporation for a
business that primarily sells, transfers, or stores
cigarettes or tobacco related products.
There being NO FURTHER OBJECTION, it was so ordered,
Version C was ADOPTED.
4:23:15 PM
Representative Costello explained that the bill allowed the
Alaska Housing Finance Corporation (AHFC) to authorize the
combination of commercial use and multi-unit residential
housing developments owned or financed by the corporation.
She pointed out three sections of the bill. Under the
authorizations allowed to the corporations, "the addition
of the ability for AHFC to authorize certain commercial
uses in a multi-unit residential housing development owned
or financed by the corporation."
Representative Costello added that the final section of the
bill excluded certain types of businesses such as
charitable gaming, adult entertainment, the sale of
alcoholic beverages, unless the sale occurs with a
restaurant licensed under the alcohol beverage control
board as a restaurant. The first section of the bill was
new and allowed the ABC board to approve a request for a
new location if AHFC approved a business in one of the
multi-unit housing areas. She explained that the purpose of
the bill was to allow more flexibility for multi-unit
housing in Alaska. She mentioned other communities that
utilized commercial use space in buildings, which allowed
residents to benefit from the commercial properties and
allowed AHFC greater flexibility when pursuing more
affordable housing for Alaskans.
4:25:10 PM
STACY SHUBER, DIRECTOR, GOVERNMENT AFFAIRS AND PUBLIC
RELATIONS, explained that AHFC was involved in mortgages,
bonds, financing, public housing and energy programs. The
mortgage and investment aspect of the business supported
the diversity of work at AHFC. She explained that the bill
would help meet the need for more housing across
communities and helping the corporation to strengthen their
position financially.
Ms. Shuber explained that AHFC's family loan program
performed well and remained an important tool for
construction of new, safe, quality and affordable multi-
unit housing. She stated that AHFC supported the
legislation and urged the committee's support.
4:26:03 PM
Representative Wilson asked about the exclusions and
whether they were tied to federal grants.
Representative Costello replied that the exclusions were
not mandated by the relationship between the federal
government and AHFC. The exclusions were included in the
legislation to promote family-friendly living environments.
4:26:49 PM
Representative Wilson asked if other communities were using
the model. She wished to better understand the family-
friendly portion of the legislation.
Representative Costello replied that AHFC could best speak
to community models. She added that there was a trend
across the country to incorporate commercial and housing
opportunities. She was unsure about exact statistics
regarding these types of housing opportunities.
Representative Wilson stated that she supported the
commercial portion of the legislation, but wanted to remain
flexible with the language.
4:27:48 PM
Representative Kawasaki agreed that the proposed housing
trends were infectious in the Lower 48. He asked if similar
units were overseen in Alaska by AHFC.
Ms. Shuber referred to the Inlet Tower Hotel, which was
included in AHFC's portfolio. She noted that a property in
the Mountain View subdivision in Anchorage resulted from a
partnership between AHFC and Cook Inlet Housing and
included retail shops on the bottom of the building and
housing units on the top.
Representative Kawasaki asked if AHFC must fill a void in
the area because of the need for housing.
Ms. Shuber replied that AHFC saw the opportunity to address
housing issues in Kodiak, Anchorage, Nome and Barrow. She
highlighted that the commercial space made the housing
options more affordable across all income levels.
Co-Chair Stoltze asked if Mountain View would have similar
options without AHFC and Cook Inlet Housing.
Ms. Shuber replied that she did not know the answer to the
question.
4:30:01 PM
Representative Edgmon asked about the charitable gaming
element of the bill and the potential restrictions implied.
He pointed out that rural Alaskan communities utilized
gaming for fundraising purposes, and senior housing
facilities employed similar routines.
4:30:29 PM
Ms. Shuber replied that AHFC did not have a position on the
gaming and profitability aspect of HB 50. She supposed that
gaming might affect the profitability of a business in
certain circumstances, but AHFC did not speculate without a
proposed project to detail.
Representative Costello responded that the bill provided a
tremendous opportunity for businesses. The intent of the
exclusion was to provide for a family-friendly environment
in the facility.
Representative Edgmon did not know if the restriction might
provide an unintended impediment in rural Alaska.
4:31:57 PM
Co-Chair Stoltze asked if the restriction might prevent a
senior center from hosting a bingo event.
Ms. Shuber referred the question to an AHFC underwriter.
ERIC HAVELOCK, MULTI-FAMILY UNDERWRITING SUPERVISOR, AHFC
(via teleconference), commented that venues for charitable
gaming were sometimes located near the corporation's
housing projects but typically not within the facility. He
stated that a senior center would have bingo night and
pull-tab operations. He stated that AHFC did not have a
position on the gaming operations.
Co-Chair Stoltze understood the corporation's neutrality.
Mr. Havelock stated that he had witnessed gaming utilized
in other projects outside of the residential housing.
4:33:15 PM
Representative Munoz asked about developments that were tax
exempt under city or municipal code. She assumed that the
owner would be liable for the property tax due to the
commercial portion of the property. She wondered how the
division of property assessment was addressed by the
corporation.
Ms. Shuber requested Mr. Havelock's opinion.
Mr. Havelock stated that the local tax authority would
determine the taxing structure for the business and housing
unit. A municipality could offer a tax exemption for real
property taxes. The taxation of the commercial space would
be determined by each municipality.
4:34:31 PM
Co-Chair Stoltze understood that bingo and other events
constituted common fundraising opportunities. He suggested
a conceptual amendment to strike the charitable gaming
language from the bill.
Representative Gara offered a conceptual amendment:
Delete "charitable gaming under AS 05.15," page 6,
line 11.
There being NO OBJECTION, it was so ordered. The conceptual
amendment was adopted.
4:36:29 PM
Representative Costello highlighted one zero fiscal note
from Department of Revenue (DOR).
4:37:16 PM
Representative Costello MOVED to REPORT CSHB 50 (FIN) out
of committee with individual recommendations and the
accompanying fiscal note.
CSHB 50 (FIN) was REPORTED out of committee with a "do
pass" recommendation and with one previously published zero
fiscal note: FN1 (REV).
| Document Name | Date/Time | Subjects |
|---|