Legislature(1993 - 1994)
04/28/1994 09:05 AM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE COMMUNITY & REGIONAL AFFAIRS
April 28, 1994
9:05 a.m.
MEMBERS PRESENT
Senator Randy Phillips, Chairman
Senator Robin Taylor, Vice Chairman
Senator Loren Leman
Senator Al Adams
Senator Fred Zharoff
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
HOUSE BILL NO. 467
"An Act relating to housing programs of the Alaska Housing Finance
Corporation and of regional housing authorities, and permitting
regional housing authorities to make, originate, and service loans
for the purchase and development of residential housing in the
state's small communities."
HOUSE BILL NO. 427
"An Act relating to compensation for members of the Local Boundary
Commission."
PREVIOUS SENATE COMMITTEE ACTION
HB 467 - No previous action to record.
HB 427 - No previous action to record.
WITNESS REGISTER
David Harding, Staff to Representative Eileen MacLean
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on HB 467
Wilber Joe, Executive Director
Copper River Regional Housing Authority
Copper Center, AK 99573
POSITION STATEMENT: Testified in support of HB 467
Bruce Kovarik, Executive Director
Bering Straits Regional Housing Authority
Box 995
Nome, AK 99762
POSITION STATEMENT: Testified in support of HB 467
Jackie Johnson, President
Alaska Association of Housing Authorities
5446 Jenkins Drive
Juneau, AK 99801
POSITION STATEMENT: Testified in support of HB 467
Dan Bockhorst, Staff to Local Boundary Commission
Department of Community & Regional Affairs
333 W. 4th Ave., Suite 220
Anchorage, AK 99501-2341
POSITION STATEMENT: Testified in support of HB 427
ACTION NARRATIVE
TAPE 94-34, SIDE A
Number 001
The Senate Community & Regional Affairs Committee was called to
order by Chairman Randy Phillips at 9:05 a.m. He introduced HB 467 7
(AHFC HOUSING LOANS) as the first order of business.
DAVID HARDING, staff to Representative Eileen MacLean, explained
the legislation makes changes to the Rural Loan Program of the
Alaska Housing Finance Corporation. The bill has three goals that
will contribute to greater investment in rural housing.
The first goal is to allow all the regional housing authorities to
sell and service AHFC loans. Most of these regional authorities
are already handling AHFC loans, but six of them are prohibited
simply because they are located in communities where there is an
AHFC office. The regional authorities already work with the
smaller communities, primarily on HUD projects; they know the rural
areas; and they have the lending expertise. AHFC would like to see
these regional authorities have the same lending powers as their
counterparts in other parts of the state.
The second goal of the bill is to encourage more private investment
in multi-unit housing by doubling the size of complexes that are
eligible for loans under AHFC and by allowing owners to live in one
of these units to allow closer monitoring and better maintenance of
the complex.
The third goal is to increase the limit of AHFC's participation in
water and sewer hookups to eligible housing projects. This funding
is dependent on federal support, and any increase in AHFC's
participation will not reduce the federal contribution.
Mr. Harding said the changes made in HB 467 will lead to more
housing construction in remote areas, greater availability in
rental units and better servicing of AHFC loans.
Number 030
WILBER JOE, Executive Director of the Copper River Basin Regional
Housing Authority and testifying from Glennallen, stated support
for HB 467. He said the law needs to be amended, particularly for
the outlining areas in Nome, Bethel, Dillingham and Kotzebue where
water and sewer seems to be a problem. It will make more services
allowable for areas in Alaska with higher sewer and water costs by
increasing AHFC's ability to match HUD housing projects
contributions from 20 percent to 30 percent, which will help rural
Alaska meet the higher costs of water and sewer. Further, housing
authorities usually have a better understanding of local conditions
and problems in remote areas.
Number 070
SENATOR ADAMS asked if the Copper River Housing Authority has a
problem with titles to land that hampers obtaining loans. WILBER
JOE answered that the land that is put up for the housing in their
area is sponsored by the regional corporation, so the land is put
up by the people as an investment in the housing project.
Number 090
BRUCE KOVARIK, Executive Director of the Bering Straits Regional
Housing Authority and testifying from Nome, voiced their support
for HB 467. He said the attractiveness of the bill is that it
allows them, as a tool, to participate in the rural loan program
throughout the region. Although the Bering Straits Regional
Housing Authority is not currently doing that, it is an option for
the future in terms of assisting families in achieving the goal of
home ownership. Also, the matching funds with the supplemental
housing program will help them to accommodate the additional costs
of sewer and water as new housing projects are being built.
Number 140
JACKIE JOHNSON, President of the Alaska Association of Housing
Authorities, and Executive Director of Tlingit Haida Regional
Housing Authority, stated support for HB 467.
Ms. Johnson said one of the things that concerned the association
at the time of the merger of Alaska Housing Finance Corporation and
the Rural Loan Program was the equitable balance between the loans
that AHFC was servicing with the primary critical need of the rural
communities where they felt the greatest need of housing was. They
believe this is a good step in the direction that AHFC has taken in
trying to find better service to rural communities in addressing
their housing needs. She noted that currently, HUD is still the
primary funder of housing, and she stressed the need for local
residents to be able to access these types of programs.
Ms. Johnson also spoke to the importance of the increase in the
percentage of supplemental funds for the much needed water and
sewer in the rural areas.
Number 220
There being no further testimony on HB 467, SENATOR RANDY PHILLIPS
asked for the pleasure of the committee.
SENATOR ADAMS moved that HB 467 be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
Number 225
SENATOR RANDY PHILLIPS brought HB 427 (COMPENSATION; LOCAL BOUNDARY RY
COMMISSION) before the committee as the final order of business.
DAN BOCKHORST, staff to the Local Boundary Commission, voiced
support for HB 427. He pointed out the broad scope of duties
performed by the LBC makes it distinctive from the many other
boards and commissions in the state that are not compensated.
Number 248
SENATOR TAYLOR moved that HB 427 be passed out of committee with
individual recommendations. SENATOR PHILLIPS stated his objection.
The roll was taken with the following result: Senators Taylor,
Adams and Zharoff voted "Yea" and Senator Phillips voted "Nay."
The Chairman stated the motion carried.
SENATOR RANDY PHILLIPS noted that SB 375 (GENERAL GRANT LAND
ENTITLEMENTS) was waived out of the Community & Regional Affairs
Committee the previous day, and it was scheduled, along with other
pieces of legislation relating to lands, for a hearing on the
following Saturday in the Senate Resources Committee.
There being no further business to come before the committee, the
meeting was adjourned at 9:25 a.m.
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