HB 7: "An Act amending powers of the Alaska Housing Finance Corporation with respect to mortgage loans for residential housing to require that new residential housing incorporate sprinkler systems for fire suppression."
00HOUSE BILL NO. 7 01 "An Act amending powers of the Alaska Housing Finance Corporation with 02 respect to mortgage loans for residential housing to require that new 03 residential housing incorporate sprinkler systems for fire suppression." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 18.56.090(a) is amended to read: 06 (a) In addition to other powers granted in this chapter, the corporation may, 07 for the purpose of providing housing for persons of lower and moderate income or 08 persons located in remote, underdeveloped, or blighted areas of the state and for its 09 other corporate purposes, 10 (1) make or participate in the making of mortgage loans to sponsors, 11 developers, builders, and purchasers of residential housing, if the corporation 12 determines that 13 (A) mortgage loans are not otherwise available, wholly or in 14 part, from private lenders upon reasonably equivalent terms and conditions;
01 and 02 (B) the residential housing for which the mortgage loans are 03 made complies with 04 (i) applicable provisions of AS 18.56.096(c) and the 05 applicable thermal and lighting energy standards of AS 46.11.040; 06 and 07 (ii) applicable provisions of AS 18.56.096(d); 08 (2) purchase or participate in the purchase of mortgage loans made 09 to sponsors, developers, builders, owners, and purchasers of residential housing, if 10 the corporation 11 (A) has given approval before the initial making of the loan 12 and has determined that mortgage loans were, at the time the approval was 13 given, not otherwise available, wholly or in part, from private lenders upon 14 reasonably equivalent terms and conditions, or 15 (B) has determined that 16 (i) the purchase or participation will result in 17 additional residential housing, taking into account without limitation 18 such factors as reinvestment of the proceeds of the sale in additional 19 mortgage loans, increased availability of mortgage loans insured by 20 the federal government, its agencies or departments, the reduction, if 21 any, of interest payments to be made with respect to mortgage loans, 22 or such other factors as will tend to increase or improve the supply 23 of residential housing within the state; and 24 (ii) the residential housing covered by the mortgage 25 loan complies with applicable provisions of AS 18.56.096(c) and the 26 applicable thermal and lighting energy standards of AS 46.11.040, 27 and complies with applicable provisions of AS 18.56.096(d); 28 (3) make partial rental payments and mortgage interest payments 29 under a contract with any housing owner if the payments will be applied to 30 decrease rental or mortgage interest charges of persons of lower and moderate 31 income or owners or purchasers of residential housing in remote, underdeveloped,
01 or blighted areas of the state; 02 (4) make loans from the housing development fund; 03 (5) collect and pay reasonable fees and charges in connection with 04 making, purchasing, and servicing its mortgages, loans, notes, bonds, certificates, 05 commitments, and other evidences of indebtedness; 06 (6) acquire real property, or any interest in real property, in its own 07 name, by purchase, transfer, or foreclosure, when the acquisition is necessary or 08 appropriate to protect any loan in which the corporation has an interest; sell, 09 transfer, and convey the property to a buyer; and, if the sale, transfer, or 10 conveyance cannot be effected with reasonable promptness or at a reasonable price, 11 rent or lease the property to a tenant pending the sale, transfer, or conveyance; 12 (7) sell, at public or private sale, to any purchaser, including the 13 Federal National Mortgage Association, all or any part of a mortgage or other 14 instrument or document securing a construction, land development, mortgage, or 15 temporary loan of any type permitted by this chapter; 16 (8) purchase, in order to meet the requirements of the sale of its 17 mortgages to the Federal National Mortgage Association, stock of the Federal 18 National Mortgage Association; 19 (9) procure insurance against any loss in connection with its 20 operation; 21 (10) consent to the modification of the rate of interest, time of 22 payment of any installment of principal or interest, or any other terms, of the 23 mortgage loan, mortgage loan commitment, construction loan, temporary loan, 24 contract, or agreement of any kind to which the corporation is a party; 25 (11) borrow money as provided in this chapter to carry out and 26 effectuate its corporate purposes; and issue its obligations as evidence of borrowing; 27 (12) include in any borrowing the amounts necessary to pay 28 financing charges, interest on the obligations for a period not exceeding one year 29 after the date on which the corporation estimates funds will otherwise be available 30 to pay the interest, consultant, advisory, and legal fees, and other expenses that are 31 necessary or incident to this borrowing;
01 (13) under AS 18.56.088, adopt and publish regulations respecting 02 its lending programs and other regulations that are necessary to effectuate its 03 purposes; 04 (14) provide technical and advisory services to sponsors, builders, 05 and developers of residential housing and to residents of it; 06 (15) promote research and development in scientific methods of 07 constructing low-cost and energy-efficient residential housing of high durability; 08 (16) make and execute agreements, contracts, and other instruments 09 necessary or convenient in the exercise of the powers and functions of the 10 corporation under this chapter, including contracts with any person, firm, 11 corporation, governmental agency, or other entity; 12 (17) receive, administer, and comply with the conditions and 13 requirements respecting any appropriation or gift, grant, or donation of property or 14 money; 15 (18) sue and be sued in its own name; 16 (19) adopt an official seal; 17 (20) adopt bylaws for the regulation of its affairs and the conduct of 18 its business and adopt regulations and policies in connection with the performance 19 of its functions and duties; 20 (21) employ fiscal consultants, engineers, attorneys, real estate 21 counselors, appraisers, and other consultants and employees that may be required in 22 the judgment of the corporation, and fix and pay their compensation from funds 23 available to the corporation; 24 (22) do all acts and things necessary, convenient, or desirable to 25 carry out the powers expressly granted or necessarily implied in this chapter; 26 (23) invest or reinvest, subject to its contracts with noteholders and 27 bondholders, any money or funds held by the corporation in any obligations or 28 other securities or investments in which banks or trust companies in the state may 29 legally invest funds held in reserves or sinking funds or any funds not required for 30 immediate disbursement, and in certificates of deposit or time deposits secured by 31 obligations of, or guaranteed by, the state or the United States;
01 (24) purchase a mortgage loan made to refinance an existing 02 mortgage loan, without regard to whether the corporation holds the existing 03 mortgage loan, as long as the interest rate and fees charged to the borrower are 04 sufficient to fully reimburse the corporation for all costs incurred by the corporation 05 in purchasing the mortgage loan and as long as the borrower will be in compliance 06 with AS 18.56.096(a)(6) after purchase of the mortgage loan by the corporation; 07 (25) participate in the making of mortgage loans to borrowers for 08 congregate housing under AS 18.56.100(b)(1) as the purchaser of those loans; loans 09 made for congregate housing under this paragraph must reflect application of 10 prudent underwriting standards and lending practices that include, but are not 11 limited to, appropriate loan-to-value ratios and the ability of a borrower to repay the 12 loan. 13 * Sec. 2. AS 18.56.096 is amended by adding a new subsection to read: 14 (d) The corporation may not make, participate in the making of, purchase, 15 or participate in the purchase of a loan for a residential building if construction of 16 the building begins after the effective date of this Act, unless the building 17 incorporates or contains, for purposes of fire suppression, an automatic sprinkler 18 system containing water or other wet chemical agents. The corporation 19 (1) may adopt regulations to implement this subsection; and 20 (2) shall, by regulation, establish procedures by which the person 21 responsible for the construction of the building may demonstrate that the building 22 complies with the requirements of this subsection, including 23 (A) self-certification; 24 (B) submission of the certificate of a registered architect, 25 registered engineer, or building inspector; 26 (C) submission of the certificate of occupancy issued by the 27 municipality in which the building is located; 28 (D) another method approved by the corporation.