Legislature(1999 - 2000)

02/10/2000 08:07 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                                                                              
                       STANDING COMMITTEE                                                                                       
                        February 10, 2000                                                                                       
                            8:07 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative John Harris, Co-Chairman                                                                                         
Representative Carl Morgan, Co-Chairman                                                                                         
Representative Andrew Halcro                                                                                                    
Representative Lisa Murkowski                                                                                                   
Representative Fred Dyson                                                                                                       
Representative Reggie Joule                                                                                                     
Representative Albert Kookesh                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 340                                                                                                              
"An Act relating to designating the Ketchikan Indian Corporation                                                                
as a regional housing authority."                                                                                               
                                                                                                                                
     - MOVED CSHB 340(CRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 340                                                                                                                  
SHORT TITLE: KETCHIKAN INDIAN CORPORATION AS A RHA                                                                              
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/04/00      2098     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/04/00      2098     (H)  CRA                                                                                                 
 2/04/00      2098     (H)  REFERRED TO COMMUNITY & REGIONAL                                                                    
                            AFFAIR                                                                                              
 2/10/00               (H)  CRA AT  8:00 AM CAPITOL 124                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
PETER ECKLUND, Staff                                                                                                            
     to Representative Bill Williams                                                                                            
Alaska State Legislature                                                                                                        
Capitol Building, Room 502                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented HB 340.                                                                                          
                                                                                                                                
CHARLES WHITE, General Manager                                                                                                  
Ketchikan Indian Corporation                                                                                                    
429 Deermount                                                                                                                   
Ketchikan, Alaska 99901                                                                                                         
POSITION STATEMENT:  Answered questions relating to HB 340.                                                                     
                                                                                                                                
BOB WEINSTEIN, Mayor                                                                                                            
City of Ketchikan                                                                                                               
334 Front                                                                                                                       
Ketchikan, Alaska 99901                                                                                                         
POSITION STATEMENT:  Testified in favor of HB 340.                                                                              
                                                                                                                                
REPRESENTATIVE BILL WILLIAMS                                                                                                    
Alaska State Legislature                                                                                                        
Capitol Building, Room 502                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Testified as sponsor of HB 340.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-8, SIDE A                                                                                                               
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIRMAN  HARRIS  called  the   House  Community  and  Regional                                                              
Affairs    Standing  Committee  meeting  to  order  at  8:07  a.m.                                                              
Members present at the call to order  were Representatives Harris,                                                              
Morgan, Halcro, Murkowski, Dyson, Joule and Kookesh.                                                                            
                                                                                                                                
HB 340-KETCHIKAN INDIAN CORPORATION AS A RHA                                                                                  
                                                                                                                                
CO-CHAIRMAN  HARRIS  announced that  the  only order  of  business                                                              
before  the  committee  would  be  HOUSE BILL  NO.  340,  "An  Act                                                              
relating  to designating  the Ketchikan  Indian  Corporation as  a                                                              
regional housing authority."                                                                                                    
                                                                                                                                
Number 0113                                                                                                                     
                                                                                                                                
PETER  ECKLUND,  Staff  to Representative  Bill  Williams,  Alaska                                                              
State Legislature, read the sponsor statement as follows:                                                                       
                                                                                                                                
     House  Bill 340  was introduced  at the  request of  the                                                                   
     Ketchikan Indian  Corporation.  KIC, the  governing body                                                                   
     for the  Natives of  the Ketchikan  area, was formed  in                                                                   
     1940 and currently has over 4,00 enrolled members.                                                                         
                                                                                                                                
      KIC has contracted with the Department of Housing and                                                                     
       Urban Development under the Native American Housing                                                                      
     Assistance  and  Self-Determination   Act  (NAHASDA)  to                                                                   
     provide  housing for  low-income Indians/Alaska  Natives                                                                   
     in the Ketchikan area.                                                                                                     
                                                                                                                                
     NAHASDA  requires that the  low-income housing  provided                                                                   
     by tribes  be tax  exempt.   Adding KIC  to the list  of                                                                   
     regional  housing authorities  will allow  KIC to  enter                                                                   
     into  HUD   [U.S.  Department   of  Housing  and   Urban                                                                   
     Development]  required agreements  with the  appropriate                                                                   
     local government.                                                                                                          
                                                                                                                                
     Passage  of HB 340  will also  allow the expenditure  of                                                                   
     federal NAHASDA money in the  Ketchikan area and provide                                                                   
     sorely  needed  low-income housing  to  area  residents.                                                                   
     Mr. Chairman, thank you for  hearing this legislation on                                                                   
     such   short   notice.       I   urge   your   favorable                                                                   
     consideration.                                                                                                             
                                                                                                                                
MR.  ECKLUND requested  the  addition  of an  immediate  effective                                                              
date, as that was overlooked during the drafting of HB 340.                                                                     
                                                                                                                                
Number 0256                                                                                                                     
                                                                                                                                
[There was a motion to adopt version  LS1399\D as a working draft,                                                              
but  it  was  the  original  bill   and  already  was  before  the                                                              
committee.]                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI  noted that the legislation  specifically                                                              
excludes Saxman.   She asked:   With regard to housing,  is Saxman                                                              
covered elsewhere?                                                                                                              
                                                                                                                                
MR. ECKLUND  informed  the committee  that Saxman  is its own  IRA                                                              
(Indian Reorganization  Act) council  and receives its  own funds.                                                              
Since Saxman  is its own  local government,  it does not  have any                                                              
difficulties  in coming to  an agreement  with a local  government                                                              
in order to be tax-exempt.                                                                                                      
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked   if  the  Tlingit-Haida  Central                                                              
Council or  the Alaska Native  Brotherhood currently  provides any                                                              
housing in Ketchikan.                                                                                                           
                                                                                                                                
MR.  ECKLUND  deferred  to  KIC   representatives.    However,  he                                                              
understood that  not much of the  federal housing funds  that have                                                              
come  to  the  Tlingit-Haida  Central  Council have  gone  to  the                                                              
Ketchikan area.                                                                                                                 
                                                                                                                                
REPRESENTATIVE KOOKESH asked if passage  of HB 340 would adversely                                                              
affect Tlingit-Haida  or  other entities  in Southeast Alaska,  in                                                              
terms of the money that the entity would be eligible for.                                                                       
                                                                                                                                
MR. ECKLUND explained  that the NAHASDA legislation  was passed in                                                              
1996  and was  first funded  in 1998.    The agreements  regarding                                                              
funding levels  and such  were made with  passage of  that federal                                                              
legislation.  He again deferred to KIC representatives.                                                                         
                                                                                                                                
Number 0525                                                                                                                     
                                                                                                                                
CHARLES  WHITE,  General Manager,  Ketchikan  Indian  Corporation,                                                              
stated that there would be no negative  impact on Tlingit-Haida or                                                              
any of the other "regionals."  He  explained that this funding has                                                              
been set aside  for block grants and thus each  individual housing                                                              
entity has been granted funds at this time.                                                                                     
                                                                                                                                
MR. WHITE stated, in response to  Representative Dyson, that there                                                              
is  no  real  low-income  housing for  the  Native  population  in                                                              
Ketchikan or for the community itself.   The temporary shelters in                                                              
Ketchikan have  an approximately 45-49 percent  Native population.                                                              
Therefore, HB  340 would  help alleviate that,  since a  couple of                                                              
units  could be  set aside  for emergency  need such  as a  family                                                              
being burned out.  He emphasized  that the true goal of this would                                                              
be  to  house  low-income  people and  attempt  to  elevate  their                                                              
status.    He noted  that  other  programs  such as  job  training                                                              
activities work in  conjunction with this housing  program to work                                                              
towards house buy-down programs.                                                                                                
                                                                                                                                
Number 0706                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DYSON  said he  assumes with  Ketchikan's  logging                                                              
industry  problems that  there has  not been a  large increase  in                                                              
Ketchikan's population.                                                                                                         
                                                                                                                                
MR. WHITE acknowledged  that Ketchikan's population  has decreased                                                              
somewhat.   However, Ketchikan's  population  has only dropped  by                                                              
about 1,000 people since Ketchikan's  largest employer left almost                                                              
three  years ago.    The population  seems  to  be fairly  stable,                                                              
although   it  is   not   growing.     In   further  response   to                                                              
Representative Dyson,  Mr. White said that the  residential rental                                                              
market  seems to  remain stable.   He  noted that  there are  many                                                              
houses on  the market in Ketchikan,  which will be  beneficial for                                                              
KIC in that it will be able to purchase  units that are already on                                                              
the  market.   In  response  to Representative  Dyson,  Mr.  White                                                              
related his belief that the rental market is up.                                                                                
                                                                                                                                
REPRESENTATIVE DYSON inquired whether  KIC would be building a new                                                              
structure under this program.                                                                                                   
                                                                                                                                
MR. WHITE replied  not at this time.   He explained that  KIC will                                                              
be looking  to purchase  ten units or  five duplexes for  the low-                                                              
income housing.   The strategic plan would be  to eventually build                                                              
some housing units.  Mr. White agreed  with Representative Dyson's                                                              
assumption that KIC  would not build new units if  there are units                                                              
available on the  market.  He mentioned that there  is some stigma                                                              
associated  with  grouping  low-income housing.    Therefore,  KIC                                                              
will, at this time, purchase units  in different areas in order to                                                              
reduce  that  stigma.    He  further  agreed  with  Representative                                                              
Dyson's assessment  that KIC, if successful in  this project, will                                                              
provide housing for those that do not have a place to live.                                                                     
                                                                                                                                
REPRESENTATIVE  DYSON  asked if  there  are  ten families  in  the                                                              
Ketchikan area that do not have a place to live.                                                                                
                                                                                                                                
MR. WHITE replied yes.  He explained  that there are many families                                                              
that live in groups - three families in one housing unit.                                                                       
                                                                                                                                
REPRESENTATIVE DYSON  asked if this proposal is  a better strategy                                                              
than  subsidizing their  income so  that  those individuals  could                                                              
move into housing already on the market.                                                                                        
                                                                                                                                
MR.  WHITE said  KIC  believes so.    With regard  to  Ketchikan's                                                              
economic outlook,  he felt optimistic because the  veneer plant is                                                              
coming.    He  believed  that KIC  could  work  with  the  various                                                              
employers and  help people  elevate their  position and  buy their                                                              
own housing with the house buy-down program.                                                                                    
                                                                                                                                
Number 0995                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DYSON  related his  understanding  that the  units                                                              
will not be available  to anyone who is not an  enrolled member of                                                              
KIC.                                                                                                                            
                                                                                                                                
MR. WHITE  said Representative  Dyson's understanding  is correct.                                                              
He felt  that this is  a vital part  of Ketchikan because  dollars                                                              
will influx into  the community.  This housing would  take some of                                                              
the pressure off other state housing operations.                                                                                
                                                                                                                                
REPRESENTATIVE  HALCRO  asked if,  once  KIC receives  tax  exempt                                                              
status, there are requirements that  KIC would have to follow with                                                              
regard to qualifying someone for low-income housing.                                                                            
                                                                                                                                
MR. WHITE  replied yes.   As  with other  housing block  grants, a                                                              
lengthy proposal  is required.  He  noted that KIC goes  through a                                                              
single audit every year, and KIC  has received a clean audit every                                                              
year since its inception.                                                                                                       
                                                                                                                                
REPRESENTATIVE HALCRO  asked if KIC  has had any  discussions with                                                              
the  local  government in  Ketchikan.    Is the  local  government                                                              
concerned with any adverse impact on the property tax base?                                                                     
                                                                                                                                
MR. WHITAKER  acknowledged that there  was some concern  [with the                                                              
possibility  of adverse  impact on  the  property tax  base].   He                                                              
noted that  there had  been discussions with  the borough  and the                                                              
city governments  in Ketchikan.   That will  be worked out  in the                                                              
memorandum  of agreement (MOA).   He  informed the committee  that                                                              
KIC will make a  payment in lieu of taxes, which  will be included                                                              
in the MOA.                                                                                                                     
                                                                                                                                
Number 1163                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOOKESH inquired as to the intent of the HB 340.                                                                 
                                                                                                                                
MR. WHITE specified  that the intent of HB 340 is  to place KIC on                                                              
the   list  so   that  it   can   negotiate  the   MOA  with   the                                                              
municipalities.    As  the  statute  currently  reads,  the  local                                                              
governments  have   difficulty  in  understanding   what  KIC  is.                                                              
Therefore,  this legislation will  clarify that  KIC is  a housing                                                              
entity and  thus allow  KIC to  negotiate the  MOA with  the local                                                              
government   through   statute.       In   further   response   to                                                              
Representative  Kookesh, Mr.  White did  not know  of any  housing                                                              
authority that  was opposed  to HB  340.  He  noted that  he deals                                                              
with other  housing entities  and other  tribes.  Furthermore,  he                                                              
could not imagine any opposition  to HB 340 because the funding is                                                              
already developed.                                                                                                              
                                                                                                                                
REPRESENTATIVE MURKOWSKI returned  to the issue that this proposal                                                              
would  provide housing  to only  KIC  members.   From the  statute                                                              
provided  in the  bill  packet,  Representative  Murkowski read  a                                                              
portion  of the  May 6,  1981, opinion  of  the attorney  general.                                                              
That portion read as follows:                                                                                                   
                                                                                                                                
     While  various specified Native  associations are  given                                                                   
     authority  to  establish  regional  housing  authorities                                                                   
     under this  section, and may  receive donations  of land                                                                   
     from municipalities, the programs  administered by those                                                                   
     associations must be racially neutral.                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI  interpreted that portion  of the opinion                                                              
to  mean that  the corporation  could  not exclude  a person,  who                                                              
qualified as low-income,  even if he/she were not  a member of the                                                              
corporation.                                                                                                                    
                                                                                                                                
MR. WHITE  informed the committee  that all of the  Native housing                                                              
authorities have the  same clients and serve the  same population.                                                              
He explained that all the HUD dollars  for the NAHASDA program are                                                              
restricted to  Alaska Natives or  American Indians.  There  is not                                                              
anything different in this statute,  and therefore he assumed that                                                              
this issue has been reviewed.  He  pointed out, "The obligation of                                                              
the  federal  government or  the  United  States  in trust  is  to                                                              
provide education,  housing and health  for the Native  population                                                              
and  the American  Indians and  thus couldn't  be looked  at as  a                                                              
discriminatory factor."                                                                                                         
                                                                                                                                
REPRESENTATIVE MURKOWSKI commented  that she remained perplexed by                                                              
the aforementioned opinion of the attorney general.                                                                             
                                                                                                                                
Number 1436                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON asked if the  property that KIC acquires will                                                              
be deed restricted.                                                                                                             
                                                                                                                                
MR. WHITE replied no.                                                                                                           
                                                                                                                                
REPRESENTATIVE  DYSON surmised then  that if  KIC decided  to sell                                                              
that property in the future, it could  sell the property at market                                                              
value.                                                                                                                          
                                                                                                                                
MR. WHITE agreed with Representative Dyson's assessment.                                                                        
                                                                                                                                
REPRESENTATIVE  DYSON asked  if there  is a  mechanism within  the                                                              
federal law  or KIC's MOA, that  would allow the  local government                                                              
to recapture  the taxes that were  not paid during the  period the                                                              
property was not taxed.                                                                                                         
                                                                                                                                
MR.  WHITE  explained  that  the program  requires  that  all  HUD                                                              
dollars, including the interest achieved  from investing those HUD                                                              
dollars, return  back to the housing  program.  He  mentioned that                                                              
this  is a  nonprofit organization.    Therefore, if  a unit  were                                                              
sold, all  the dollars  would be reinvested  into another  part of                                                              
the housing  program.  The only  exception is with interest  up to                                                              
$24,000,  which can  be reinvested  in another  area.  In  further                                                              
response  to Representative  Dyson, Mr.  White specified  that the                                                              
dollars would return to the local  housing program not the federal                                                              
housing program.   He reiterated that the money put  back into the                                                              
housing program could be used for anything to do with housing.                                                                  
                                                                                                                                
Number 1580                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON  said he suspected  that this is all  in good                                                              
faith and  that [KIC] wants  to serve  its members.   However, the                                                              
organization  could build  up this tax-exempt  property,  sell the                                                              
property and do other things with the money from the sale.                                                                      
                                                                                                                                
MR.  WHITE emphasized  that  all  of the  programs  are  run as  a                                                              
nonprofit and  all of the  dollars are  returned in order  to help                                                              
people  with job  training and  assist them  in emergency  general                                                              
assistance.   He pointed  out that  their [KIC's] social  services                                                              
department works  in conjunction  with the people  in need  in all                                                              
these programs.                                                                                                                 
                                                                                                                                
CO-CHAIRMAN  HARRIS commented  that as  long as  this program  has                                                              
been  in existence,  had something  such  as Representative  Dyson                                                              
described occurred, something would have been done to end that.                                                                 
                                                                                                                                
CO-CHAIRMAN MORGAN returned to Representative  Murkowski's concern                                                              
regarding  the  attorney  general's  opinion.    He  informed  the                                                              
committee that he belonged to the  Village of Aniak and he used to                                                              
belong  to  Aniak's  housing  authority.     Through  the  NAHASDA                                                              
program,  Aniak  decided   to  organize  its  own   NAHASDA.    He                                                              
emphasized   his   understanding   that   there   is  to   be   no                                                              
discrimination.   However,  each housing  authority can write  its                                                              
own bylaws to allow only members of a particular group.                                                                         
                                                                                                                                
REPRESENTATIVE  KOOKESH  asked if  anyone  had challenged  on  the                                                              
basis of that racially neutral language.                                                                                        
                                                                                                                                
MR. WHITE said that he had not heard of such a suit.                                                                            
                                                                                                                                
Number 1787                                                                                                                     
                                                                                                                                
BOB   WEINSTEIN,  Mayor,   City   of  Ketchikan,   testified   via                                                              
teleconference  from  Ketchikan.   Mayor  Weinstein  testified  in                                                              
favor   of HB 340.   Ketchikan is  in need of low-income  housing.                                                              
He mentioned  that the city has  a good working  relationship with                                                              
KIC and has  been in discussions  with KIC regarding the  need for                                                              
low-income  housing.    As  a result  of  those  discussions,  the                                                              
Ketchikan  City Council  unanimously approved  the following:   an                                                              
ordinance  allowing  for  tax exemptions  for  low-income  housing                                                              
projects, as  approved by the council  on a case-by-case  basis; a                                                              
five  year  agreement  for  a tax  exemption  for  KIC's  proposed                                                              
project.   After the  council adopted  the ordinance, the  council                                                              
was advised by the   office of the State Assessor  that KIC is not                                                              
identified  in the  statute before  the  committee for  amendment.                                                              
Therefore, the council could not  technically offer that exemption                                                              
to KIC.  Mayor Weinstein said that  the city strongly supports the                                                              
inclusion  of  KIC in  this  statute.    "The city  has  certainly                                                              
weighed, what  we believe is  a minimum loss  of taxes for  a five                                                              
year period,  as balanced  against a great  need to add  some low-                                                              
income housing in our community."                                                                                               
                                                                                                                                
CO-CHAIRMAN  HARRIS asked  if Mayor  Weinstein  was familiar  with                                                              
Representative  Murkowski's question  regarding  the authority  to                                                              
not discriminate.                                                                                                               
                                                                                                                                
MAYOR  WEINSTEIN replied,  "Not relative  to  the federal  program                                                              
which funds  this program."  In  the city's discussions  with KIC,                                                              
it was  clear that those  who would  benefit from this  low-income                                                              
housing  would  be  eligible  members   of  KIC  or  other  Native                                                              
Americans.                                                                                                                      
                                                                                                                                
CO-CHAIRMAN  HARRIS asked  if the  City Council  had any  problems                                                              
with the payment in lieu of taxes.                                                                                              
                                                                                                                                
MAYOR  WEINSTEIN reiterated  that  an agreement  had been  reached                                                              
with KIC and  the City Council did support both  the agreement and                                                              
the aforementioned ordinance.                                                                                                   
                                                                                                                                
Number 1986                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DYSON commented,  "These things  are troubling  to                                                              
me."  He informed  the committee that he does  not like government                                                              
programs.   Furthermore,  he  expressed  his inherent  dislike  of                                                              
anything that  is done on a racial  basis.  He hoped  that, had he                                                              
been around many  years ago, he would have been  far more outraged                                                              
at  the   pervasive  racism  versus   the  relatively   minor  and                                                              
inconsequential  things such as this.   Representative  Dyson said                                                              
there is  no reason KIC  should not be  recognized along  with all                                                              
the others listed.                                                                                                              
                                                                                                                                
REPRESENTATIVE  KOOKESH commented  that the  original purpose  and                                                              
intent of  the legislation that KIC  wants to be  recognized under                                                              
was the  acute shortage of housing  and related facilities  in the                                                              
villages of  the state.   Furthermore, adequate housing  could not                                                              
be provided  by the private sector.   Although he  recognized that                                                              
racially funded programs such as  this may not sit well with some,                                                              
there is  a purpose  for these  programs.   If the private  sector                                                              
could  provide low-income  housing,  "we" would  not  be here  nor                                                              
would this  particular legislation.   Representative  Kookesh said                                                              
he would  appreciate the support  of committee members to  move HB
340 forward.                                                                                                                    
                                                                                                                                
CO-CHAIRMAN HARRIS closed the public testimony.                                                                                 
                                                                                                                                
Number 2172                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI   moved  that  the  committee   adopt  a                                                              
conceptual  amendment allowing  for an  immediate effective  date.                                                              
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
REPRESENTATIVE DYSON  moved to report  HB 340, as amended,  out of                                                              
committee  with individual  recommendations  and the  accompanying                                                              
zero fiscal  note.   There being no  objection, CSHB  340(CRA) was                                                              
reported out of the House Community  and Regional Affairs Standing                                                              
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE BILL  WILLIAMS, Alaska State Legislature,  spoke as                                                              
the sponsor  of HB 340.  He  thanked the committee for  working on                                                              
HB  340.   He  offered  to look  into  Representative  Murkowski's                                                              
question regarding the attorney general's  opinion, which spoke to                                                              
these organizations' being racially neutral.                                                                                    
                                                                                                                                
MR.  WHITE  also   thanked  the  committee  for   its  expeditious                                                              
consideration  of HB  340.   [CSHB  340(CRA) was  reported out  of                                                              
committee.]                                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
There being  no further business  before the committee,  the House                                                              
Community  and Regional  Affairs  Standing  Committee meeting  was                                                              
adjourned at 8:41 a.m.                                                                                                          

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