Legislature(1999 - 2000)

03/24/1999 01:34 PM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
             HB  93-RURAL ASSISTANCE HOUSING LOANS                                                                              
REPRESENTATIVE CARL MORGAN, sponsor of HB 93, explained the                                                                     
legislation makes two simple changes to the statute governing the                                                               
Rural Mortgage Program.  HB 93 will allow the program to refinance                                                              
home loans in the same manner any conventional mortgage allows,                                                                 
and it will allow the program to finance tri-plexes and four-                                                                   
plexes.  The current statute only allows financing of single family                                                             
homes and owner occupied duplexes. The changes will resolve the                                                                 
issue of fairness to rural home buyers, be a good business practice                                                             
for AHFC, and provide financing opportunities to assist the rural                                                               
housing market.                                                                                                                 
JOHN BITNEY, Legislative Liaison for AHFC, stated support for HB
93, and informed committee members Kay Murphy, AHFC Director of                                                                 
Mortgage Operations, was available to answer questions via                                                                      
SENATOR PHILLIPS asked if urban homeowners with AHFC loans can                                                                  
refinance.  MR. BITNEY said they can and clarified that the Rural                                                               
Mortgage Program is laid out in statute and does not provide for                                                                
refinancing, possibly because at the time the program was written                                                               
into statute, no one anticipated that housing loan rates would                                                                  
decrease as much as they have.                                                                                                  
SENATOR PHILLIPS asked if HB 93 puts rural residents on an equal                                                                
footing with urban homeowners in regard to refinancing.                                                                         
REPRESENTATIVE MORGAN said it will.                                                                                             
CHAIRMAN KELLY asked if the rural program still has a 1 percent                                                                 
differential.  MR. BITNEY said AS 18.56.470 provides that the                                                                   
interest rates on the rural program loans shall be 1 percent less                                                               
than the taxable rate, which is the rate used for conventional                                                                  
SENATOR PHILLIPS moved HB 93 to its next committee of referral.                                                                 
There being no objection, the motion carried.                                                                                   

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