Legislature(1995 - 1996)
04/22/1996 02:32 PM 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 COMMITTEE
April 22, 1996
2:32 p.m.
MEMBERS PRESENT
Senator John Torgerson, Chairman
Senator Randy Phillips, Vice Chairman
Senator Tim Kelly
MEMBERS ABSENT
Senator Fred Zharoff
Senator Lyman Hoffman
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 322(FIN)
"An Act authorizing grants for temporary housing assistance during
emergencies and disasters."
CS FOR HOUSE BILL NO. 192(FIN) am
"An Act relating to housing assistance provided by the Alaska
Housing Finance Corporation and to its rural housing programs, to
the corporation's supplemental housing development grants to
regional housing authorities, and to housing programs of regional
housing authorities; permitting regional housing authorities to
make, originate, and service loans for the purchase and development
of residential housing; and amending the definitions of `rural' and
`small community' as applied in various housing programs."
SENATE BILL NO. 322
"An Act relating to distribution of national forest income to
boroughs; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
HB 322 - See Community & Regional Affairs minutes dated 4/3/96,
4/10/96.
HB 192 - See State Affairs minutes dated 4/11/96.
SB 322 - No previous action to record.
WITNESS REGISTER
Carol Carroll, Director
Administrative & Support Services Division
Department of Military & Veterans Affairs
P.O. Box 110900
Juneau, AK 99811-0900
POSITION STATEMENT: Offered information on HB 322
Bryce Edgmon, Staff to Representative Richard Foster
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on HB 192
Kay Murphy, Mortgage Operations Director
Alaska Housing Finance Corporation
P.O. Box 101020
Anchorage, AK 99510-1020
POSITION STATEMENT: Responded to questions on HB 192
Bruce Kovarik, Executive Director
Bering Straits Regional Housing Authority
P.O. Box 995
Nome, AK 99762
POSITION STATEMENT: Testified in support of HB 192
John Bitney
Alaska Housing Finance Corporation
P.O. Box 101020
Anchorage, AK 99510-1020
POSITION STATEMENT: Testified in support of HB 192
Senator Robin Taylor
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of SB 322
Julie Penn
Alaska Environmenal Lobby
P.O. Box 22474
Juneau, AK 99802
POSITION STATEMENT: Opposes SB 322
ACTION NARRATIVE
TAPE 96-22, SIDE A
Number 001
CSHB 322(FIN) GRANTS FOR HOUSING FOR DISASTER VICTIMS
CHAIRMAN TORGERSON called the Senate Community & Regional Affairs
Committee meeting to order at 2:32 p.m., and brought CSHB 322(FIN)
before the committee as the first order of business. He noted that
at the previous hearing on the legislation, concern was expressed
by the committee about this possibly being a new program and that
it would set an unlimited amount of money that could go forward for
disaster relief funds.
CAROL CARROLL, Director, Administrative & Support Services
Division, Department of Military & Veterans Affairs, explained the
state already has programs that provide temporary housing, and the
only difference that the bill would make is that instead of the
department signing the leases and providing for rent for disaster
victims, they would give the victims the money and they would then
go and find their own rental units. The department would stop
being a landlord or rental agent.
SENATOR TORGERSON asked how the department proposed handling some
of the concerns that the committee had about the possibility of
potential fraud if the grants were to be made directly to the
individuals. MS. CARROLL said the department would do an
assessment of what the rental rates are in a community at the pre-
disaster rate and then come up with an amount they will provide
toward their monthly lodging. If individuals choose to stay in a
higher rental unit, they would have to provide the difference over
the average rental rate, which is the way the program is run at the
present time.
SENATOR KELLY asked if disaster victims have to contact the
department in advance and the department then tells them the game
rules before they can go out and commit the department to paying
for their temporary housing. MS. CARROLL replied the individuals
have to come in and do an interview and establish their eligibility
before any assistance is provided. She also acknowledged it is
exactly the way the federal government runs their program, and when
there is a federal declaration, then the federal government runs
the temporary housing program.
Number 100
There being no further questions from the committee, SENATOR
TORGERSON asked for the will of the committee.
SENATOR RANDY PHILLIPS moved CSHB 322(FIN) be passed out of
committee with individual recommendations. Hearing no objection,
it was so ordered.
CSHB 192(FIN) am AHFC HOUSING LOANS
SENATOR TORGERSON brought CSHB 192(FIN) am before the committee as
the next order of business.
BRYCE EDGMON, staff to Representative Richard Foster who is prime
sponsor of HB 192, said the legislation essentially brings statutes
for rural areas into compliance with urban areas. He noted the
bill is supported by the regional housing authorities, as well as
the Alaska Housing Finance Corporation.
The primary change made by the legislation will enable regional
housing authorities to process loans and refinance applications
within their jurisdictions instead of having to go through a loan
examiner in Anchorage. The legislation also reduces the age of
qualification for senior citizens from 60 to 55 for senior housing
programs. Language was also added to ensure that regional housing
authorities are restricted to making loans only in their areas of
jurisdictions and that any AHFC loan programs must adhere to non-
discrimination statutes.
Mr. Edgmon also presented a section-by-section analysis of the bill
and responded to committee members' questions.
Number 270
SENATOR TORGERSON asked if a provision in the legislation puts the
AHFC in the water and sewer business. KAY MURPHY, Mortgage
Operations Director, Alaska Housing Finance Corporation, testifying
via teleconference from Anchorage, answered that it does not. She
explained the funds that Alaska Housing would be using to
supplement Federal HUD funds would be used to pay for off-site
water and sewer improvements, but AHFC would not take ownership of
those utilities.
Number 285
SENATOR KELLY commented that if a regional housing is doing one of
these water and sewer projects, they can hook up to these
individuals' homes and call that part of the project, but in
developed areas, generally most homes have to assume that cost
themselves. He observed AHFC is doing something for free that in
most urban developments the homeowner pays for.
Number 315
BRUCE KOVARIK, Executive Director, Bering Straits Regional Housing
Authority and also representing the Association of Alaska Housing
Authorities, testifying via teleconference from Nome, voiced their
support for HB 192. The legislation will allow regional housing
authorities to originate and service AHFC loans in rural areas; it
adds the outside water and sewer capability; it will allow more
activity for the supplemental housing grants; and it will provide
clarification and improvement of AHFC loan programs which affect
rural communities.
Addressing Senator Kelly's concern with water and sewer projects,
Mr. Kovarik said more and more regional housing authorities find
themselves acting as private developers and being treated exactly
as private developers by both the Public Health Service and the
state of Alaska. The bill doesn't add any more money to the
program, but it gives them the flexibility for making those
connections and making those off-site ties that are not currently
available with supplemental housing grants. Additionally, the
authorities are limited by HUD with a total development cost for
their projects.
Number 342
SENATOR KELLY asked what AHFC's delinquency rate has been in the
rural unincorporated areas. KAY MURPHY responded their regular
rural loan program has averaged under 4 percent. The rural program
has had delinquencies in the past, but the portfolio looks good now
as do the urban loans. She said AHFC doesn't see them being any
higher risk than they do with the urban loans if they are properly
underwritten. SENATOR KELLY said he just wanted to get that point
on the record because we continue to hear how the unorganized areas
of the state can't afford to pay property taxes, to fund education,
etc., and yet AHFC says they are having no problem paying their
mortgages.
Number 377
SENATOR TORGERSON noted Section 17 changes the age of seniors from
60 years of age to 55 years of age to qualify for these programs,
and he asked why the age limit was being lowered. KAY MURPHY
clarified that AHFC was not the party to institute that change, but
they do not anticipate that the decrease in the age limit will add
a lot of activity to their loan program or for the requests for
grant funds. She also clarified to Senator Torgerson that the
declaration of age applies to AHFC's senior housing loan program
and its grant programs and doesn't distinguish between urban or
rural.
Number 418
JOHN BITNEY, representing Alaska Housing Finance Corporation,
stated their support for HB 192.
Number 422
SENATOR TORGERSON stated it was his intent to hold HB 192 in
committee until its next meeting so that the committee could take
a closer look at sections of the bill.
SB 322 DISTRIBUTION OF NATIONAL FOREST INCOME
SENATOR TORGERSON introduced SB 322 as the next order of business,
and invited Senator Taylor to present an overview on the
legislation.
SENATOR ROBIN TAYLOR, prime sponsor of SB 322, said timber receipts
have vacillated significantly over the last several years, but they
do provide a significant portion of the funding base for many of
the school districts within his district. However, when the law
was amended approximately three years ago, it was amended in such
a way that it provides a distribution of forest receipts based on
a formula of average daily membership within the schools, the
population factor and the number of acres within a borough. The
largest number of acres and highest population is Juneau, Alaska,
where there has not been a timber harvest for a lengthy period of
time. He said it seems that funds are being distributed based on
a formula that drives the majority of those into an area that has
no harvesting of timber and has no roads to maintain because there
are not roads being built as the result of havesting of timber.
Senator Taylor said SB 322 will revise the formula so as to find a
triggering mechanism which indicates that if a community is being
impacted by timber harvesting, that community should receive those
impact funds. He acknowledged that the bill as it is currently
structured is a bit cumbersome and doesn't work as well as he would
have hoped. He advised that he would look to the committee for its
advice and assistance in redrafting the bill so as to accomplish
its overall purpose.
Senator Taylor believes it is an issue that needs to be revisited
because he doesn't think the funds are currently being equitably
distributed.
Number 492
SENATOR TORGERSON said he agrees with what Senator Taylor is trying
to do with the legislation, but he wasn't sure if it would be legal
according to the federal regulations on how those forest receipts
are divided up. He wondered if there was a way to tie the
allowable cut acreage into where the funds are distributed.
SENATOR TAYLOR said he has thought about that too, but he hasn't
come up with a good alternative. He said it may be that we will
have to look at some radius from where the timber is harvested that
would then impact and allow all of the communities within that
radius to share within that fund.
Number 532
JULIE PENN, representing the Alaska Environmental Lobby, said the
Federal Code, 16 U.S.C. 500, designating U.S. Forest Service 25
percent receipts, clearly prohibits Alaska from allocating those
receipts based on logging activity or any other criteria except for
the proportional share of national forest land in each borough.
She pointed out Juneau would lose money on this while other
boroughs in Southeast would gain, and she said it sounds divisive
to her as a person who lives in Southeast. She also the noted the
bill's sponsor statement singles out the boroughs that oppose
logging, and because of that she thinks that the bill is punitive
in its intent. As a member of the Alaska Environmental lobby, she
respectfully suggested that the committee pursue the legislation no
further.
Number 550
There being no further testimony on SB 322, SENATOR TORGERSON asked
for the pleasure of the committee.
SENATOR KELLY moved SB 322 be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
There being no further business to come before the committee, the
meeting was adjourned at 3:15 p.m.
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