Legislature(2007 - 2008)BUTROVICH 205
02/04/2008 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| SJR11 | |
| SB231 | |
| SB233 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SJR 11 | TELECONFERENCED | |
| += | SB 231 | TELECONFERENCED | |
| += | SB 233 | TELECONFERENCED | |
SB 231-LOW-INCOME HOUSING; HOMELESSNESS
1:55:34 PM
CHAIR DAVIS announced consideration of SB 231.
DON BURRELL, Staff, Senator Davis, Alaska State Capitol, Juneau,
AK, presented the changes for SB 231: per request of Senator
Elton, words were added to state that at least one member of the
Housing Trust Fund is a consumer of affordable housing. The two-
year term was changed to a three-year term; and on page 4, line
22, after "reducing homelessness", "improve employment and
vocational training opportunities for the homeless" was added.
BRYAN BUTCHER, Public Affairs Director, Alaska Housing Finance
Corporation (AHFC), Anchorage, AK, said AHFC was fine with the
changes.
1:58:18 PM
SENATOR DYSON moved to adopt the proposed committee substitute
(CS) to SB 231, labeled 25-GS2006, Cook, Version C, as the
working document of the committee. There being no objection,
the motion carried.
He asked how the agency could make loans at less than commercial
terms to people who would not normally qualify for a commercial
housing loan without exposing them to financial liabilities.
Mr. BUTCHER replied that the primary intent of the housing trust
is to aid the homeless in finding available housing, but not
providing mortgages, although the hope is that they would get to
that point in the future.
SENATOR DYSON asked Mr. Butcher to confirm that this bill is not
aimed at getting homeless people into ownership positions.
MR. BUTCHER replied that is correct.
SENATOR DYSON asked if the bill expands the capacity of public
housing.
2:02:08 PM
MR. BUTCHER replied that there are 3,000 to 4,000 people on the
waiting list for public housing. There's a shortage of units and
many are falling apart. This bill would make sure the available
units remain at the current level of availability as well as
expanding the current options.
JEFF JESSE, CEO, Alaska Mental Health Trust Authority,
Anchorage, AK, said his agency is designed to connect supportive
social services with housing. People are homeless for many
reasons, from substance abuse and domestic violence to mental
health issues. The Council on Homelessness has found that
without support services like case management, counseling, and
crisis intervention, even if they get into housing they are
unable to maintain it. The trust is just trying to keep them
stable in the community.
SENATOR DYSON asked if the bill has a fiscal note.
MR. BUTCHER said there is a zero fiscal note in terms of
administration. The program would be administered by AHFC. There
is also a $10 million request in the Governor's capitol budget
in four equal parts: $2.5 million from the AHFC dividend; $2.5
million from the state general fund; $2.5 million from mental
health receipts, and 2.5 million from other receipts such as the
Rasmuson Foundation and other private organizations.
SENATOR DYSON asked if the $10 million would be used for
building additional housing.
MR. JESSE replied that the housing trust would be flexible. A
project might have some capital money to buy down the overall
cost of the project so it would be able to accommodate people at
a lower income. It might also have a commitment of five to ten
years of social service funding. It's important that this amount
be committed up front so that if the housing trust is not funded
in the future, those social service projects can continue for
the next five or ten years. AHFC has agreed to develop project-
based vouchers to help with rental assistance. The housing trust
won't be a major funder of any particular project. It will take
existing resources and help focus them on the homeless as
opposed to what happens now with many of those resources going
to people with higher incomes.
SENATOR DYSON asked it that means that the $10 million will be
for facilitators that bring people and housing together rather
than building new housing.
MR. JESSE gave the example of a developer renovating 60 units in
Fairbanks. The developer had not been thinking of having any
units focused on the homeless. When he learned about the housing
trust and the ability to get some capital money and a social
service partner that would provide support services for homeless
people, he expressed interest in integrating them into mixed
income projects. Mr. Jesse said the trust doesn't want large
projects focused just on the homeless. It wants to integrate
them into mixed income projects. He thinks many different
strategies will come forward once there's a resource to access.
SENATOR COWDERY asked if there would be a sunset date.
2:07:19 PM
CHAIR DAVIS said there is not. She added that she didn't see the
need for one since it is a much needed service.
SENATOR THOMAS said that he was supportive of the bill but he
did not know what the provision on page 2, line 7, number 1
meant where it says: to participate in the development of
buildings or units that by their use address the purpose of the
fund, which is to create housing but that by their operation
appear non-residential in nature.
MR. JESSE replied by referring to an article about safe harbor
and a motel in Anchorage specifically focused on the homeless.
Normally that's not considered residential for purposes of AHFC.
AHFC cannot invest in a motel. And yet it's a critical strategy
to getting the homeless off the street, getting them stabilized
and then moving them into long-term housing. A motel doesn't
look residential, but it is an important strategy in dealing
with homelessness.
SENATOR THOMAS said he's concerned about hearing from his
constituents that their taxes are going to support reduced cost
housing for people with drug and alcohol problems while they
themselves are often required to be tested for drugs at their
place of employment.
2:11:12 PM
MR. JESSE said that's the point of bringing in support services.
The trust doesn't want to enable people to continue an addictive
lifestyle. He said that taxpayers actually pay those costs now,
for example, in emergency rooms and criminal justice systems.
Homelessness costs the state either way.
SENATOR THOMAS said he would like to see documentation of the
success of these kinds of programs and their overall costs.
CHAIR DAVIS said she would provide this information but reminds
the committee that everyone that's homeless does not fall into
these categories. There are families that are homeless with
young children.
2:15:12 PM
SENATOR THOMAS moved the CS for SB 231, labeled 25-GS2006, Cook,
Version C, from committee with individual recommendations and
accompanying fiscal note(s). There being no objection, CSSB
231(HES) passed from committee.
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