00 SENATE BILL NO. 264 01 "An Act relating to the housing assistance loan program; repealing the home ownership 02 assistance fund; repealing the operating loss reserve account; repealing the restricted 03 title loss reserve account; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 18.56.440 is amended to read: 06 Sec. 18.56.440. Limitations on use of housing assistance loan program. The 07 housing assistance loan program may not be used to 08 (1) originate a direct loan or purchase or participate in the purchase of 09 a small community housing mortgage loan that exceeds the limitations on mortgage 10 loans purchased by the Federal National Mortgage Association as to principal amount 11 or loan-to-value ratio; 12 (2) originate a direct loan or purchase or participate in the purchase of 13 a loan made for building materials for small community housing 14 (A) that exceeds $45,000 or exceeds 01 (i) 80 percent of the appraised value of the work 02 completed on the small community housing for which the loan is made 03 if the small community housing is pledged as collateral for the loan; or 04 (ii) 90 percent of the value of other property that is 05 pledged as security for the loan and that is satisfactory to the 06 corporation as collateral; 07 (B) unless the terms of the loan agreement require inspections 08 and certifications, as required by regulations of the corporation, at the expense 09 of the borrower; and 10 (C) unless the period of time allowed for repayment of the loan 11 is equal to or less than 15 years; 12 (3) originate direct loans or purchase or participate in the purchase of a 13 small community housing mortgage loan that is secured by real property the 14 marketable title to which is shown under AS 18.56.480(b)(2) [IF THE TOTAL 15 AMOUNT OF OUTSTANDING SMALL COMMUNITY HOUSING MORTGAGE 16 LOANS HELD BY THE CORPORATION EXCEEDS 10 TIMES THE AMOUNT 17 OF MONEY IN THE RESTRICTED TITLE LOSS RESERVE ACCOUNT 18 ESTABLISHED BY AS 18.56.490]; 19 (4) originate a direct loan for small community housing or purchase or 20 participate in the purchase of a small community housing mortgage loan, other than a 21 loan for the repair, remodeling, rehabilitation, or expansion of an existing owner- 22 occupied residence, if the borrower has an outstanding housing loan made under a 23 state loan program, other than a loan for nonowner-occupied housing under 24 AS 18.56.580 or under former AS 44.47.520, that bears interest at a rate that was less 25 than the prevailing market interest rate for similar housing loans at the time the loan 26 was made; 27 (5) originate a direct mortgage loan or purchase or participate in the 28 purchase of a mortgage loan for rental housing unless the borrower agrees not to 29 discriminate against tenants or prospective tenants because of sex, marital status, 30 changes in marital status, pregnancy, parenthood, race, religion, color, national origin, 31 or status as a student; or 01 (6) originate, purchase, or participate in a loan to a person who has a 02 past due child support obligation established by court order or by the child support 03 services agency under AS 25.27.160 - 25.27.220 at the time of application. 04  * Sec. 2. AS 18.56.430, 18.56.450, and 18.56.490 are repealed. 05  * Sec. 3. This Act takes effect July 1, 2026.