02/05/1998 11:25 AM Senate RLS

                SENATE RULES COMMITTEE                                         
                   February 5, 1998                                            
                      11:25 a.m.                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Senator Tim Kelly, Chair                                                       
Senator Loren Leman, Vice Chair                                                
Senator Robin Taylor                                                           
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Senator John Torgerson                                                         
Senator Jim Duncan                                                             
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
SENATE BILL NO. 223                                                            
"An Act lowering the age requirement from 60 years to 55 years for             
purposes of senior housing programs; and repealing a provision                 
relating to the interest rate on senior housing loans made by the              
Alaska Housing Finance Corporation."                                           
                                                                               
PREVIOUS SENATE COMMITTEE ACTION                                               
                                                                               
SB 223 - See State Affairs minutes dated 1/27/98.                              
         Rules minutes dated 1/30/98.                                          
                                                                               
WITNESS REGISTER                                                               
                                                                               
John Bitney                                                                    
Alaska Housing Finance Corporation                                             
P.O. Box 101020                                                                
Anchorage, AK 99510-1020                                                       
  POSITION STATEMENT:  Offered information on CSSB 223(RLS)                    
                                                                               
ACTION NARRATIVE                                                               
TAPE 98-1 , SIDE A                                                             
                                                                               
                     SB 223 - SENIOR HOUSING                                   
                                                                               
CHAIRMAN KELLY called the Senate Rules Committee meeting to order              
at 11:25 a.m., and noted the presence of Senators Leman, Taylor and            
Kelly.                                                                         
                                                                               
CHAIRMAN KELLY brought SB 223 before the committee and directed                
attention to a proposed Rules committee substitute, which was                  
requested by Alaska Housing Finance Corporation (AHFC).                        
                                                                               
SENATOR TAYLOR moved adoption of CSSB 223(RLS).  Hearing no                    
objection, it was so ordered.                                                  
                                                                               
JOHN BITNEY, representing Alaska Housing Finance Corporation,                  
expressed appreciation for the Rules Committee consideration of the            
proposed committee substitute which will resolve a problem with                
their program.  The committee substitute adds in new sections 2 and            
3.                                                                             
                                                                               
Mr. Bitney explained the purpose of the legislation is to make some            
technical changes to their senior revolving loan fund that the                 
corporation uses to make loans for senior housing programs.  The               
program was originally set up under the Department of Community and            
Regional Affairs,  However, when the program was put under AHFC,               
the statutes were merged and there were some technical problems                
within that program because of the way the statutes were merged,               
and this resulted in AHFC not really being able to use it and offer            
competitive rates.                                                             
                                                                               
Mr. Bitney said since the merger AHFC has been making senior loans             
through their Special Needs Multi-Family Program, but they think it            
is much simpler to use the senior program for senior projects.  The            
amendment to SB 223 will make it one fund so that the process will             
be much simpler and clearer to both the bond holder and the person             
getting the loan.                                                              
                                                                               
CHAIRMAN KELLY noted Kay Murphy of AHFC was listening to the                   
meeting via teleconference from Anchorage, however, she had nothing            
to add to Mr. Bitney's testimony.  He then asked for a calendaring             
motion on SB 223.                                                              
                                                                               
SENATOR LEMAN moved and asked unanimous consent CSSB 223(RLS) be               
approved for calendaring at the discretion of the Chair.  Hearing              
no objection, it was so ordered.                                               
                                                                               
There being no further business to come before the committee, the              
meeting adjourned at 11:28 a.m.