Legislature(1997 - 1998)
04/08/1998 08:05 AM House CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
April 8, 1998
8:05 a.m.
MEMBERS PRESENT
Representative Ivan Ivan, Chairman
Representative Fred Dyson
Representative Scott Ogan
Representative Joe Ryan
Representative Jerry Sanders
Representative Albert Kookesh
Representative Reggie Joule
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 471
"An Act relating to the boards of commissioners of regional Native
housing authorities."
- MOVED CSHB 471(CRA) OUT OF COMMITTEE
(* First public hearing)
PREVIOUS ACTION
BILL: HB 471
SHORT TITLE: REGIONAL NATIVE HOUSING AUTHORITIES
SPONSOR(S): COMMUNITY AND REGIONAL AFFAIRS
Jrn-Date Jrn-Page Action
03/19/98 2664 (H) READ THE FIRST TIME - REFERRAL(S)
03/19/98 2664 (H) CRA
03/25/98 (H) CRA AT 8:00 AM CAPITOL 124
03/25/98 (H) MINUTE(CRA)
04/08/98 (H) CRA AT 8:00 AM CAPITOL 124
WITNESS REGISTER
BRUCE KOVARIK, Executive Director
Association of Alaska Housing Authorities
4300 Boniface Parkway
Anchorage, Alaska 99504
Telephone: (907) 338-3970
POSITION STATEMENT: Provided information regarding CSHB 471(CRA).
ACTION NARRATIVE
TAPE 98-22, SIDE A
Number 0001
CHAIRMAN IVAN IVAN called the House Community and Regional Affairs
Standing Committee meeting to order at 8:05 a.m. Members present
at the call to order were Representatives Ivan, Dyson, Ogan, Ryan,
Sanders, Kookesh and Joule.
HB 471 - REGIONAL NATIVE HOUSING AUTHORITIES
Number 0015
CHAIRMAN IVAN announced the committee would hear HB 471, "An Act
relating to the boards of commissioners of regional Native housing
authorities." He noted the bill was heard two weeks ago and
concerns were expressed by some of the housing authorities. Time
was provided for the state housing authorities to evaluate and make
comments on the legislation. Chairman Ivan pointed out that he
received three responses and one was from the Association of Alaska
Housing Authorities. He said they offered language which is not
included in the proposed committee substitute. The committee
substitute incorporates the amendment adopted at the last hearing.
Also, included in the proposed committee substitute were two other
changes.
Number 0143
REPRESENTATIVE FRED DYSON made a motion to adopt the proposed
committee substitute dated 4/6/98, Version 0-LS1686/F. There being
no objection, the committee substitute was adopted.
REPRESENTATIVE IVAN pointed out one of the changes that had been
incorporated into the committee substitute was on page 2, line 12.
The change allowed a housing authority to appoint a committee for
the purpose of delegating responsibility. He noted the suggestion
was made by the Bristol Bay Housing Authority for an executive
committee to hold monthly meetings rather than a full meeting of
the Board of Directors. Most of them have this ability through
their bylaws. The amendment clarified that authority.
REPRESENTATIVE IVAN informed the committee that the second change
was the deletion of the word "initial," found on page 2, line 9,
before the words, "board of commissioners." The word "initial" was
confusing and may have led to unintended consequences by the
legislation.
REPRESENTATIVE IVAN said an amendment to the committee substitute
had been suggested by the Association of Alaska Housing
Authorities. They suggested on page 2, line 9, that the housing
authorities membership be raised from five to nine people.
REPRESENTATIVE JERRY SANDERS made a motion to adopt the amendment.
REPRESENTATIVE JOE RYAN asked for an explanation of what the
regional housing authorities were and how they worked.
Number 0510
BRUCE KOVARIK, Executive Director, Association of Alaska Housing
Authorities, testified via teleconference from Anchorage. He
explained that the regional housing authorities were established in
the earlier 1970's as public corporations established by state law
to take advantage of federal housing programs that were made
available throughout Indian Country and around the United States,
without established reservations and tribes. Mr. Kovarik said
there was a great difference between Alaska and the Lower 48 in
that Alaska chose and took advantage of the opportunities of
federal housing programs by establishing the regional housing
authorities. He stated that since that time, they've operated very
similar in terms of the authorization and operation with the Alaska
Housing Finance Corporation as a public corporation. They take
advantage of federal and state programs, operate and maintain
housing throughout Alaska. In Alaska, there are 14 regional
housing authorities covering the entire state. They currently own,
operate or maintain almost 7,000 units of housing statewide. Mr.
Kovarik referred to a letter he wrote to the committee, dated April
7, 1998, and said, "We took advantage of the opportunity to --
supported the housing authorities to get out and consult with their
boards of commissioners to consult with the regional nonprofits and
associations. And so we've polled our members and 12 of 14 housing
authorities responded. We gave you the results of that. Several
-- five of the housing authorities felt that some kind of cap or
limit would be beneficial in terms of the number of commissioners,
since it was so open ended on the other side."
MR. KOVARIK referred to the sponsor statement and said it stated
very correctly that there are dramatic changes in federal laws
regarding the development of Indian housing. These provide great
opportunities, but they also provide some uncertainty and lack of
structure. A concern of several of the housing authorities was
that some kind of cap or limit, is the next step concerning this
structure of the boards of commissioners, would be appropriate.
Number 0185
REPRESENTATIVE SCOTT OGAN referred to the regional housing
authorities and asked what a typical region would be. He also
asked if they included urban areas as well.
MR. KOVARIK referred to the Cook Inlet Housing Authority and said
they do a majority of their work in Anchorage. He pointed out that
over the last four years, he was the executive director of the
Bering Straits Regional Housing Authority in Nome and it basically
covered the Bering Straits region. He stated that the 14 regions
tend to cover Alaska Native Claims Settlement Act (ANCSA)
Corporation, the regional Native Corporation, areas in terms of
service - much like the nonprofits do for delivering health
services. The whole state is covered by the 14 regional housing
authorities. He informed the committee that Anchorage, Juneau and
Fairbanks all have very active housing authorities in their
communities.
REPRESENTATIVE OGAN questioned who would be eligible and also asked
if the authorities provided low interest loans. He asked what the
thrust is of the organizations.
MR. KOVARIK said, "The thrust definitely is low income and low
income Native populations although it (indisc.) on the federal
housing program. However, moderate income families and actually
high income families and non-Native families can be and are served
by the housing authorities depending upon the housing need. Most
of rural Alaska, the only development and the only significant
development of new housing has come because of the regional housing
authorities and these federal programs. So it's a very significant
source in terms of new construction, community development for
infrastructure. There are state funds that are used as well the
supplemental housing grants through Alaska Housing Finance
Corporation that helps develop communities and develop
infrastructure, compliments water and sewer work. It's a broad-based program."
MR. KOVARIK said the new federal law provided a lot more
flexibility. For instance, many of the housing authorities are
looking very strongly at private sector partnerships with the banks
and mortgage companies, the secondary mortgage market like Fanny
Mae and Alaska Housing Finance Corporation, in providing gap
financing and helping to take advantage of the opportunities of the
private sector to get people into home ownership.
Number 1130
REPRESENTATIVE RYAN said he didn't have any problems with the
legislation. He said he noticed in some information in the file
that instead of treating them like Housing and Urban Development
(HUD), they decided to issue block grants to the Native housing
authorities. He asked if the grants came through the state or did
they came directly from the federal government.
MR. KOVARIK responded, "The block grants are directly to the tribes
are designated on behalf of the tribes and they go -- the grant
agreement for the block grant would be entered into with what they
call, for lack of a better term, 'Tribally designated housing
entity.' In Alaska, it looks like we're right in the middle of
that process for FY 98 funding right now that will be completed by
July 1. For Alaska, it looks like the regional housing authorities
for the majority, maybe 75 plus percent of the recognized tribes in
Alaska, will be their tribally designated housing entity. So
they'll remain with an umbrella or a region-based entity. So
they'll basically designate the regional housing authorities
(indisc.) of federal funds and the housing authority will enter
into the block grant agreement with the federal government to
obtain the funds. There are some real significant advantages.
There is about a 32 percent increase in federal funds and Senator
Stevens has been very supportive and helpful with the
appropriations - try to meet the great unmet need of housing. The
block grants -- specifically the program is a block grant to
tribes, nationally. In Alaska we're seeing about 75 or more
percent of the tribes designating their regional housing authority
as a recipient of that block grant."
Number 1423
REPRESENTATIVE SANDERS again moved to adopt Amendment 1, on page 2,
line 9, following "five" add "not more than nine".
REPRESENTATIVE OGAN objected for the purpose of discussion. He
questioned why there would be an increase in the amount of people.
He asked what problem would be fixed.
CHAIRMAN IVAN stated that as Mr. Kovarik explained there are 12
regional associations formed within the boundaries of ANCSA areas.
For example, in the Lower Kuskokwim the associations consist of 56
communities. From those 56 communities, five commissioners are
appointed limited by the state law. Those five commissioners cover
over 50,000 square miles. Each commissioner averaged about 10 to
11 communities. There has been debate and discussion that there
are not enough members to cover all of that area. So the
Association of Village Councils Presidents recommended that the
statute be amended to increase the options, hopefully, from five to
nine members. That would open up more representation to some of
the villages that weren't covered by the five directors.
REPRESENTATIVE OGAN said there is a zero fiscal note. He referred
to adding additional board members and asked if there wouldn't
there be increased costs to the state for transportation.
CHAIRMAN IVAN stated the cost is borne by the regional
associations.
REPRESENTATIVE OGAN removed his objection.
CHAIRMAN IVAN asked if there was a further objection. There being
none, the amendment was adopted.
CHAIRMAN IVAN explained that some of the village corporations that
are dissolved for not keeping the requirements. He said there is
one village corporation that is trying to get reinstated. Section
1 would cover that opportunity for a village corporation to
reinstate itself because it would allow the Newtok Corporation to
be reinstated and proceed on with business. Section 1 would cover
that.
Number 1810
REPRESENTATIVE RYAN made a motion to move CSHB 471, with the
accompanying zero fiscal note and with individual recommendations
out of committee. There being no objection, CSHB 471(CRA) moved
out of the House Community and Regional Affairs Committee.
There was further discussion regarding the agenda for the following
week.
ADJOURNMENT
CHAIRMAN IVAN adjourned the House Community and Regional Affairs
Committee meeting at 8:34 a.m.
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