Legislature(2013 - 2014)SENATE FINANCE 532
04/12/2013 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB129 | |
| HB50 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 129 | TELECONFERENCED | |
| + | HB 50 | TELECONFERENCED | |
| + | HB 23 | TELECONFERENCED | |
| + | HB 76 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 50(FIN)
"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."
9:50:49 AM
JOSH WALTON, STAFF, REPRESENTATIVE MIA COSTELLO, introduced
HB 50. He stated that the bill spoke to the national trend
towards multi-use, multi-unit residential housing. He
related that the bill would give the Alaska Housing Finance
Corporation (AHFC) the ability to participate in financing
and owning properties that had an authorized commercial use
space connected to the multi-use property. This would give
AHFC the ability to participate in the residential real
estate market and expanded opportunity for commercial real
estate. He relayed that because the mandate for AHFC was
residential housing, several sideboards had been
incorporated into the legislation in an attempt to keep the
focus on the residential market. He explained that
particular types of businesses would be excluded per the
sideboards: adult entertainment establishments, liquor
stores, bars, substance abuse treatment centers, and
businesses selling primarily cigarette and tobacco
products. He specified that not all establishments with
licenses to serve alcohol would be prohibited; restaurants,
for example, would be allowed.
9:54:44 AM
Co-Chair Meyer wondered if the legislation stemmed from
AHFC wanting to incorporate businesses into and already
planned housing development.
Mr. Walton referred questions about specific projects to
AHFC.
9:55:25 AM
Vice-Chair Fairclough asked if AHFC was attempting to
purchase Inlet Towers, which had a restaurant on the first
floor of the building, for affordable housing.
Mr. Walton understood that that was correct.
9:56:21 AM
STACEY SCHUBERT, DIRECTOR, GOVERNMENTAL RELATIONS AND
PUBLIC AFFAIRS, ALASKA HOUSING FINANCE CORPORATION,
DEPARTMENT OF REVENUE, commented that the bill was the most
important piece of legislation to the corporation this
session. She stated that as an independent state agency.
AHFC had worked with the private sector to lead the way in
quality construction, including energy efficiency and
providing home mortgage loans to qualified Alaskan's. She
relayed that the bill would allow AHFC to proceed with
commercial space and that there were existing in-state
interest in AHFC financing commercial/residential projects.
She responded to the question about Inlet Towers. She said
that AHFC had already financed the project. She explained
that there was a restaurant on the ground floor with market
rate apartments above. She shared that questions about
whether the property was operating within the terms of the
loan agreement had arisen and were being investigated. She
urged committee support for the legislation.
9:58:34 AM
Senator Dunleavy understood that under the legislation AHFC
could establish different project models in the future that
would be specific to the needs of building residents.
Ms. Schubert replied in the affirmative.
9:59:18 AM
Co-Chair Meyer queried whether the legislation was in
compliance with Title 21.
Ms. Schubert replied no, she added that AHFC worked very
closely with community on land use issues.
9:59:42 AM
Vice-Chair Fairclough inquired if the federal loan
guarantee had any stipulations concerning the proximity of
the sale of alcohol.
Ms. Schubert responded that the intent of the corporation
was to have developers request money directly from AHFC,
any concerns about the restriction of federal funds based
on the projects merits would be discussed.
10:01:33 AM
Senator Hoffman noted that the sponsor statement spoke to
addressing affordable housing and the statewide housing
shortage. He wondered what the interest rates under the
legislation were when compared to existing rates that could
be refinanced.
Ms. Schubert responded that the interest rates on multi-
family projects were established weekly by the corporation.
She stated that the taxable loan amount for over $1 million
the current week was 6.375 percent. She said that the
advantage to a developer who may want to refinance with
AHFC was that the projects no longer had to pencil out
independently.
10:03:38 AM
Co-Chair Meyer OPENED public testimony.
Co-Chair Meyer CLOSED public testimony.
10:04:14 AM
Senator Dunleavy noted that there were certain parts of the
state where land was expensive and that the legislation
could be useful in using a single building for multiple
uses, therefore reducing cost for all parties involved.
10:04:47 AM
Vice-Chair Fairclough MOVED to REPORT HB 50 out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 50(FIN) was REPORTED out of committee with a "do pass"
recommendation and with a previously published zero fiscal
note: FN1(REV).
10:05:18 AM