Legislature(2007 - 2008)BUTROVICH 205

01/28/2008 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 231 LOW-INCOME HOUSING; HOMELESSNESS TELECONFERENCED
Heard & Held
*+ SB 233 TEACHERS/HEALTH CARE PROFESS HOUSING LOAN TELECONFERENCED
Heard & Held
            SB 231-LOW-INCOME HOUSING; HOMELESSNESS                                                                         
                                                                                                                                
CHAIR DAVIS announced the consideration of SB 231.                                                                              
                                                                                                                                
1:35:13 PM                                                                                                                    
MARK ROMICK,  Director, Planning and Program  Development, Alaska                                                               
Housing Finance  Corporation (AHFC), Anchorage, AK,  said that in                                                               
2005,  Governor Murkowski  appointed  the  Governor's Council  on                                                               
Homelessness and  tasked it with  a number of  recommendations on                                                               
how to address the issue. The  Housing Trust was one of its major                                                               
recommendations and this bill is  a culmination of that effort by                                                               
the council and other advocacy groups.                                                                                          
                                                                                                                                
1:37:02 PM                                                                                                                    
DAN  FAUSKE,  CEO,  Alaska Housing  Finance  Corporation  (AHFC),                                                               
Anchorage  AK, said  the issue  is getting  worse with  high fuel                                                               
costs. He said he supports SB 231.                                                                                              
                                                                                                                                
1:37:55 PM                                                                                                                    
JEFF JESSE, CEO, Alaska Mental  Health Trust Authority, Anchorage                                                               
AK, said  he was  on the Homelessness  Council. Although  all our                                                               
low income housing dollars come  from the federal government, the                                                               
majority of  those funds are  used to  serve 70 percent  of those                                                               
with  area median  income and  above. But  when you  look at  the                                                               
numbers  of  people  in  desperate   need  of  housing  to  avoid                                                               
homelessness,  most of  those people  are at  50 percent  of area                                                               
median  income and  below. The  reason is  that every  low income                                                               
housing  project has  to pencil  and  if you're  a developer  and                                                               
you're  trying  to  put  one of  these  projects  together,  they                                                               
usually have  blended funding that gets  convoluted. Somewhere in                                                               
the  business plan  you have  to  show some  revenue source  from                                                               
actual  tenants. If  you target  higher income  population you'll                                                               
have better  luck demonstrating  on your  business plan  a better                                                               
likelihood that this project will pencil.                                                                                       
                                                                                                                                
In addition, he  said, people at 50 percent of  median income and                                                               
below  are  usually in  that  category  for a  reason:  substance                                                               
abuse, mental health issues, domestic  violence, all those things                                                               
that make it difficult  to get a job in order  to afford a decent                                                               
place to live. In order to  be successful in housing even if they                                                               
get  it, they  need  support services,  treatment and  employment                                                               
programs, et  cetera, to  be able  to stay  in their  houses. The                                                               
issues are  how to  help these projects  pencil for  lower income                                                               
people  and how  to  create a  system  that incorporates  support                                                               
services into  housing. They  looked around  the country  to find                                                               
successful  ways of  dealing with  these  issues. Many  evidence-                                                               
based studies  show that  first getting  people into  housing and                                                               
then providing support to be  very effective. Denver, Boston, Los                                                               
Angeles,  and New  York have  made significant  inroads on  their                                                               
homeless  problems by  looking at  this housing-first  model. The                                                               
idea is partner  up social service providers that  don't know how                                                               
to get  affordable housing to  pencil with the  housing providers                                                               
that don't know how to  provide support. They can accomplish this                                                               
by combining  capital funds  to buy  down the  cost, contributing                                                               
social service  funds that have  a 5 year commitment  and working                                                               
with AHFC  on project  basing section 8  rental vouchers  so they                                                               
can  be   included  in  the   business  plan.   This  legislation                                                               
implements that  model by creating  the Housing Trust  Fund. This                                                               
bill  is  essential even  to  hold  on  to the  housing  programs                                                               
already in place.                                                                                                               
                                                                                                                                
1:46:26 PM                                                                                                                    
STEPHANIE   WHEELER,   Office   of  Faith-Based   and   Community                                                               
Initiatives,  and Chair  of the  Statewide  Homelessness Ends  in                                                               
Alaska- Advisory  Team, Anchorage,  AK, said  Homeless Ends  is a                                                               
group  of local  policy makers  to  address this  issue. Its  two                                                               
goals are  increasing affordable housing through  the creation of                                                               
a  housing  trust fund  and  promoting  locally delivered  family                                                               
services. Families are the  fastest-growing homeless. Because the                                                               
shelters  are often  full,  families move  from  place to  place,                                                               
which affect  school attendance and learning  ability. She quoted                                                               
a study  stating that about  4,000 children went  homeless during                                                               
school year 2004-2005, sleeping  in shelters, campgrounds, tents,                                                               
and vehicles.  To illustrate this  impact, an  average elementary                                                               
school in  Anchorage contains about 435  children; 4,000 children                                                               
represent more  than 9 elementary  schools filled  with children.                                                               
Research also shows that these  children get sick twice as often,                                                               
have symptoms  of anxiety,  have more  learning problems  and are                                                               
twice as likely  to repeat a grade because  of frequent absences.                                                               
A housing  trust would  prevent families  from entering  into the                                                               
cycle of homelessness.                                                                                                          
                                                                                                                                
1:51:09 PM                                                                                                                    
BILL HOGAN, Deputy Commissioner,  Family and Community Integrated                                                               
Services,  Department of  Health and  Social Services,  Anchorage                                                               
AK,  said  the department  supports  this  bill. Housing  is  the                                                               
number one  issue for all  of these compromised groups  that have                                                               
been mentioned  by others  testifying. Stable  affordable housing                                                               
will reduce the  incidence of a multitude of  the social problems                                                               
mentioned.                                                                                                                      
                                                                                                                                
1:53:14 PM                                                                                                                    
MARIE DARLIN, Coordinator, AARP  Capitol City Task Force, Juneau,                                                               
AK, said  that 11 percent of  homeless Alaskans are over  the age                                                               
of 65.  She made note that  there is no consumer  member required                                                               
in the  composition of the council  in SB 231. She  recommended a                                                               
change of  wording in the  bill regarding  designated substitutes                                                               
for commissioners who  are unable to attend.  She also questioned                                                               
why membership is only for  two-year terms instead of three. AARP                                                               
supports the bill.                                                                                                              
                                                                                                                                
1:56:41 PM                                                                                                                    
SENATOR THOMAS clarified Ms. Darlin's concern and agreed.                                                                       
                                                                                                                                
1:57:03 PM                                                                                                                    
SENATOR  ELTON   also  expressed   concern  about   the  language                                                               
regarding substitute members and that  there would always be more                                                               
state employees than  public members. The bill only  allows for a                                                               
substitute for a  state member and he wanted to  take a couple of                                                               
state employees off of the council and add a consumer member.                                                                   
                                                                                                                                
MR. ROMICK said that one of  the four public members appointed by                                                               
the governor is  a consumer of affordable housing  (page 3, lines                                                               
15 and 16).                                                                                                                     
                                                                                                                                
CHAIR DAVIS asked if there ought  to be more than one consumer on                                                               
the board.                                                                                                                      
                                                                                                                                
SENATOR  ELTON  said according  to  the  bill, the  governor  can                                                               
choose someone  with other kinds  of expertise, but  that doesn't                                                               
ensure that it will be a consumer.                                                                                              
                                                                                                                                
CHAIR  DAVIS  said   that  will  be  addressed   in  a  committee                                                               
substitute.                                                                                                                     
                                                                                                                                
2:02:23 PM                                                                                                                    
MR. JESSE  said his  office is supportive  of consumer  input and                                                               
will work on the bill to reflect that.                                                                                          
                                                                                                                                
SENATOR ELTON said  that according to the bill, the  fund will be                                                               
capitalized  from four  different  entities. The  history of  the                                                               
Mental Health  Trust is that  it likes  to get things  going, but                                                               
doesn't continue  to participate. He  asked if the  Mental Health                                                               
Trust will continue  to contribute if state funding  has a bigger                                                               
role.                                                                                                                           
                                                                                                                                
2:05:08 PM                                                                                                                    
MR.  JESSE said  the trust  has invested  heavily in  housing and                                                               
continues to, but  it's unlikely that it could  sustain this over                                                               
time.  The  trust  has  an  annual  allocation,  and  is  not  an                                                               
endowment model.  AHFC has generated  earnings in excess  of what                                                               
it  costs  to run  its  programs,  so  it  makes sense  that  the                                                               
revenues from  housing would  be used to  deal with  the homeless                                                               
problem. The Rasmussen Foundation  and the trust both contributed                                                               
a million dollars each, but  it's unlikely that they can continue                                                               
to do so.                                                                                                                       
                                                                                                                                
SENATOR  THOMAS said  he'd like  to see  the Department  of Labor                                                               
involved in helping to get people back on their feet.                                                                           
                                                                                                                                
2:12:04 PM                                                                                                                    
CHAIR DAVIS said she  would draft a new CS and  bring the bill up                                                               
again next Monday.                                                                                                              
                                                                                                                                

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