SENATE BILL 163 "An Act approving the University of Alaska's plans to enter into long-term obligations to borrow money from the Alaska Housing Finance Corporation for the acquisition of student housing facilities; and providing for an effective date." WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS, UNIVERSITY OF ALASKA, spoke in support of SB 163. She pointed out that last year the bill included both Juneau and Ketchikan housing projects which this year have been removed. The Juneau housing project was funded last year 8 with a cash appropriation; the Ketchikan housing project is currently going forward with private financing through a local bank. The proposed legislation is only for an Anchorage student housing project. The University has worked with Alaska Housing Finance Corporation (AHFC) over the interim in order to create a financing plan which will meet both entities needs. The Governor has agreed to include the project as part of the AHFC Capital Improvement Project (CIP) for FY98. Ms. Redman added that it had not been the Board of Regents intent to turn Anchorage into a residential campus. A residential campus would have between 35% to 55% of their students housed. The Fairbanks campus is a residential campus. Currently, in Anchorage, only 3% of those students are residential. With the proposed legislation, that number would increase to 7%. The long range goals would be to increase the Anchorage campus to 15% students housed. She urged the Committee's support of the legislation. Representative Brown asked the source of the interest rate subsidy. Ms. Redman stated that would result from AHFC reserves. Representative Navarre voiced support of the legislation. He suggested assessment of housing needs within the outlining campuses. GEORGE SULLIVAN, MAYOR, ANCHORAGE, spoke in support of SB 163, pointing out that the Anchorage campus has an extensive waiting list for campus bed space. DOUGLAS BAILEY, (TESTIFIED VIA TELECONFERENCE), STUDENT, UNIVERSITY OF ALASKA, ANCHORAGE, testified in support of the bill. He stressed the need for more housing for University students on the Anchorage campus. CINDY FEATHER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, STUDENT HOUSING PROGRAM, UNIVERSITY OF ALASKA, ANCHORAGE, offered to answer any questions of the Committee regarding the proposed project or financial concerns in connection with it. She stressed that the program has a lot of support from the public and from the students. Representative Navarre MOVED to report CS SB 163 (FIN)(title am) out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. CS SB 163 (FIN) (tile am) was reported out of Committee with a "do pass" recommendation and with a fiscal note by Statewide Budget Office and zero fiscal notes by the 9 Statewide Budget Office dated 3/27/96 and the Department of Revenue dated 2/14/96.