Legislature(2005 - 2006)CAPITOL 106
03/02/2006 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB485 | |
| HB475 | |
| HJR25 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 344 | TELECONFERENCED | |
| + | HJR 25 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 485 | ||
| = | HB 475 | ||
HJR 25-SUPPORTING VETERANS HOME OWNERSHIP ACT 10:07:17 AM CHAIR SEATON announced that the last order of business was HOUSE JOINT RESOLUTION NO. 25, Urging the United States Congress to enact the American Veterans Homeownership Act of 2005. 10:08:12 AM HANNAH McCARTY, Staff to Representative Beth Kerttula, Alaska State Legislature, on behalf of Representative Kerttula, sponsor, paraphrased from the following written sponsor statement: Alaska is one of five states participating in the Veterans Homeownership Program, which makes low- interest home loans available to veterans who served before 1977 and apply within 30 years of leaving active military duty. Unless Congress takes action to extend the program, its effectiveness will dwindle as less and less veterans qualify. With about 70,500 veterans, Alaska has the largest per capita population of veterans in the United States. Approximately 11,700 Alaskan veterans have benefited from the program since 1983. During the first three years of the program, over 1,000 veterans per year qualified for the loan. Last fiscal year, the number was down to 57. The American Veterans Homeownership Act, repealing the pre-1977 service requirement, was inserted into the Tax Reconciliation Bill last year. The U.S. House of Representatives approved a version of the Tax Reconciliation Bill with the language, but the U.S. Senate's version doesn't have the language. HJR 25 urges Congress to approve the American Veterans Homeownership Act language in the U.S. House version of the Tax Reconciliation Bill. This program is a way for our nation to express its gratitude to those who have served in the armed forces and should be extended to benefit current and future veterans. 10:09:50 AM CHAIR SEATON directed attention to the title of the bill, which read: Urging the United States Congress to adopt the United States House of Representatives version of the Tax Relief Extension Reconciliation Act of 2005, including sec. 303. CHAIR SEATON said he doesn't know enough about the U.S. House version of the act to ask U.S. Congress to accept it. He asked, "Is the purpose of this to really have us urge adoption of Section 303 ...?" MS. MCCARTY said she thinks perhaps the title doesn't appropriately reflect the resolution language. In response to a question from Chair Seaton, she said the sponsor would not object to an amendment to change the title to reflect the language in the body of the bill. 10:11:52 AM BRYAN BUTCHER, Director, Governmental Relations and Public Affairs, Alaska Housing Finance Corporation (AHFC), related AHFC's support of HJR 25. He indicated that the five states that participate in the Veterans Home Ownership Program have been working to get the restriction removed that only allows the program's housing loans to those veterans who served before January 1, 1977. He likened the effort to "banging our heads into the wall." However, he said this year appears promising. 10:12:59 AM CHAIR SEATON inquired as to how the program works and requested an explanation of the fiscal note. MR. BUTCHER said he does not currently have a fiscal note, but offered his understanding that it is a zero fiscal note. In response to a follow-up question from Chair Seaton, he explained that there is a list in the committee packet showing the number of loans that AHFC has done. He said, "So, there is no actual cost to the corporation - it's a benefit to the corporation - because not only does it benefit veterans who can take advantage of the program, but it also benefits the corporation ..., because we get increasing mortgage loans." The chart illustrates the gradual reduction of loans to veterans, with each passing year since the year that veterans qualified. He said the point has arrived where the program is not much use at all to Alaska, Oregon, and Wisconsin; however, Texas and California still contain "a fair pool of veterans." CHAIR SEATON asked how the program differs from the Veterans Administration (VA) loan. MR. BUTCHER said the program allows the five participating states to sell tax-exempt bonds to fund mortgages, which translates into a break on the regular mortgage rate. He added that it requires federal action to be allowed to do that. 10:15:53 AM MR. BUTCHER, in response to a question from Representative Gatto, explained that only five states are eligible to sell tax- exempt bonds to fund the Veterans Homeownership Program. 10:16:23 AM JOHN WILKINS, Director of Services, Disabled American Veterans - Alaska, explained that his job is to ensure that veterans get what they deserve. He stated that [the Veterans Homeownership Program is a good one. He reported that veterans in his age group have benefited from the program. He said he purchased his first home in Alaska through the program, which is cheaper than the VA loan. He said the 1986 federal tax code hurts all veterans [who served] from the end of the Vietnam War to present. Since 1977, the U.S. has been involved in a number of conflicts and wars; the veterans from these wars are not included in the program and pay higher rates with a VA loan. Many of today's military have families to support and worry about them when deployed. He asked the committee to support HJR 25. 10:19:31 AM CHAIR SEATON closed public testimony. 10:19:46 AM CHAIR SEATON moved that the committee adopt Conceptual Amendment 1, as follows: Page 1, line 2: Delete ", including sec. 303" Page 1, line 1: Between "adopt" and "the" Insert "sec. 303 of" CHAIR SEATON asked if there was any objection to Conceptual Amendment 1. There being none, it was so ordered. 10:20:46 AM REPRESENTATIVE LYNN moved to report CSHJR 25(MLV), as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHJR 25(STA) was reported from the House State Affairs Standing Committee.
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