Legislature(2013 - 2014)

03/14/2013 03:21 PM FIN


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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).                                                                                                         
                                                                                                                                

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