HB 192: "An Act relating to housing programs of the Alaska Housing Finance Corporation, the corporation's supplemental housing development grants to regional housing authorities, and to housing programs of regional housing authorities, and permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing."
00HOUSE BILL NO. 192 01 "An Act relating to housing programs of the Alaska Housing Finance Corporation, 02 the corporation's supplemental housing development grants to regional housing 03 authorities, and to housing programs of regional housing authorities, and 04 permitting regional housing authorities to make, originate, and service loans for 05 the purchase and development of residential housing." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 18.55.997(a) is amended to read: 08 (a) In addition to the powers authorized to a regional housing authority under 09 AS 18.55.996, a regional housing authority may, in accordance with procedures and 10 policies adopted and approved by the Alaska Housing Finance Corporation, make, 11 originate, and service loans for the purchase or development of residential housing 12 [IN RURAL AREAS OF THE STATE, OTHER THAN IN AN AREA WHERE THE 13 CORPORATION HAS A LOAN OFFICE]. A loan shall be secured by collateral in 14 an amount acceptable to the corporation. The rate of interest on a loan authorized by
01 this subsection [SECTION] may not exceed the interest rate on a loan originated or 02 purchased under AS 18.56.400 - 18.56.600. 03 * Sec. 2. AS 18.55.998(a) is amended to read: 04 (a) There is created in the Alaska Housing Finance Corporation a supplemental 05 housing development grant fund. Using corporate earnings or other available funds, the 06 corporation shall make grants to regional housing authorities established under 07 AS 18.55.996 for 08 (1) the cost of [ON-SITE] sewer and water facilities, whether on-site 09 or off-site; 10 (2) road construction to project sites; 11 (3) [,] energy efficient design features in homes; [,] and 12 (4) extension of electrical distribution facilities to individual residences. 13 * Sec. 3. AS 18.55.998(b) is amended to read: 14 (b) A grant made under this section 15 (1) may be made only for residential housing for which federal loan or 16 grant approval has been obtained from the United States Department of Housing and 17 Urban Development and that [WHICH] will be made available to the public on a 18 nondiscriminatory basis; 19 (2) [. A GRANT] may not be used to retire or repay obligations or 20 debts of the grant recipient; 21 (3) [. A GRANT] may only be for the difference between the maximum 22 amount available under federal law or regulation for construction of the residential 23 housing for which the grant is made and the actual costs of the construction; and 24 (4) [. A GRANT] may not exceed 30 [20] percent of the United States 25 Department of Housing and Urban Development total development cost per unit in 26 effect at the time the grant is made. 27 * Sec. 4. AS 18.55.998(c) is amended to read: 28 (c) A grant made by the corporation to a regional housing authority under 29 this section 30 (1) [GRANT MONEY] may be used by the regional housing 31 authority only for the purpose and the permissible use for which the grant was
01 made; 02 (2) may not [PURPOSES SPECIFIED IN (a) OF THIS SECTION. 03 NO PART OF THE GRANT MONEY MAY] be used for administrative or other costs 04 of a regional housing authority, whether the costs are directly associated with the 05 construction or general costs of the authority. 06 * Sec. 5. AS 18.55.998(d) is amended to read: 07 (d) The Alaska Housing Finance Corporation shall 08 (1) adopt regulations to carry out the purposes of this section; the [. 09 THE] provisions of AS 18.56.088(a) and (b) apply to regulations adopted under this 10 section; and 11 (2) establish a priority system for the allocation of money for grants 12 to pay for off-site sewer and water facility improvements authorized by 13 AS 18.55.998(a)(1). 14 * Sec. 6. AS 18.56.440 is amended to read: 15 Sec. 18.56.440. LIMITATIONS ON USE OF HOUSING ASSISTANCE 16 LOAN FUND. The corporation may not use the money in the housing assistance loan 17 fund to 18 (1) originate a direct loan or purchase or participate in the purchase of 19 a small community housing mortgage loan that exceeds the limitations on mortgage 20 loans purchased by the Federal National Mortgage Association as to principal amount 21 or loan-to-value ratio; 22 (2) originate a direct loan or purchase or participate in the purchase of 23 a loan made for building materials for small community housing 24 (A) that exceeds $45,000 or exceeds 25 (i) 80 percent of the appraised value of the work 26 completed on the small community housing for which the loan is made 27 if the small community housing is pledged as collateral for the loan; or 28 (ii) 90 percent of the value of other property that is 29 pledged as security for the loan and that is satisfactory to the 30 corporation as collateral; 31 (B) unless the terms of the loan agreement require inspections
01 and certifications, as required by regulations of the corporation, at the expense 02 of the borrower; and 03 (C) unless the period of time allowed for repayment of the loan 04 is equal to or less than 15 years; 05 (3) originate direct loans or purchase or participate in the purchase of 06 a small community housing mortgage loan that is secured by real property the 07 marketable title to which is shown under AS 18.56.480(b)(2) if the total amount of 08 outstanding small community housing mortgage loans held by the corporation exceeds 09 10 times the amount of money in the restricted title loss reserve account established 10 by AS 18.56.490; 11 (4) originate a direct loan for small community housing or purchase or 12 participate in the purchase of a small community housing mortgage loan, other than 13 a loan for the repair, remodeling, rehabilitation, or expansion of an existing 14 owner-occupied residence, if the borrower has an outstanding housing loan made under 15 a state loan program, other than a loan for [NONOWNER-OCCUPIED] housing under 16 AS 18.56.580 or for nonowner occupied housing under former AS 44.47.520, that 17 bears interest at a rate that was less than the prevailing market interest rate for similar 18 housing loans at the time the loan was made; 19 (5) originate a direct mortgage loan or purchase or participate in the 20 purchase of a mortgage loan for rental housing unless the borrower agrees not to 21 discriminate against tenants or prospective tenants because of sex, marital status, 22 changes in marital status, pregnancy, parenthood, race, religion, color, national origin, 23 or status as a student; 24 (6) originate, purchase, or participate in a loan to a person who has a 25 past due child support obligation established by court order or by the child support 26 enforcement division under AS 25.27.160 - 25.27.220 at the time of application. 27 * Sec. 7. AS 18.56.580(a) is amended to read: 28 (a) In addition to the powers authorized by AS 18.56.400, the corporation may 29 adopt regulations under AS 18.56.088 allowing the use of money in the housing 30 assistance loan fund to make loans for the purchase or development of rental 31 [NONOWNER OCCUPIED] housing in small communities.
01 * Sec. 8. AS 18.56.580(c) is amended to read: 02 (c) The principal amount of loans made for rental [NONOWNER 03 OCCUPIED] housing under this section may not exceed 20 percent of the total 04 principal amount of loans made for small community housing under AS 18.56.400 - 05 18.56.600. 06 * Sec. 9. AS 18.56.580(d) is amended to read: 07 (d) In this section, 08 (1) "development" means the construction of a new residence or the 09 repair, remodeling, rehabilitation, or expansion of an existing residence; 10 (2) "rental ["NONOWNER OCCUPIED] housing" means a 11 single-family residence that is not occupied by the owner or a multi-family residence 12 having up to 16 [EIGHT] dwelling units, one of which may be [AND THAT IS NOT] 13 occupied by the owner; the corporation may modify this definition if it determines that 14 there is a special need for rental [NONOWNER OCCUPIED] housing in small 15 communities and that a change in the definition is necessary to enable the corporation 16 to meet that need. 17 * Sec. 10. AS 18.56.600 is amended to read: 18 Sec. 18.56.600. DEFINITIONS. In AS 18.56.400 - 18.56.600, 19 (1) "housing" 20 (A) means owner-occupied housing having four or fewer 21 dwelling units [, SINGLE-FAMILY HOUSING AND OWNER-OCCUPIED 22 DUPLEXES] in which not more than 25 percent of the gross floor area is or 23 will be devoted to commercial use; 24 (B) does not include a multi-family residence that constitutes 25 housing for which a loan is made under the rental housing loan program 26 of AS 18.56.580 when one of the dwelling units in the multi-family 27 residence is occupied by the residence owner; 28 (2) "small community" means a community with a population of 5,500 29 or less that is not connected by road or rail to Anchorage or Fairbanks, or with a 30 population of 1,400 or less that is connected by road or rail to Anchorage or 31 Fairbanks; in this paragraph, "connected by road" does not include a connection by the
01 Alaska marine highway system. 02 * Sec. 11. AS 18.55.997(b)(2) is repealed.