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HCR 18: Endorsing a proposal by which the Alaska Housing Finance Corporation, under provisions of law by which the corporation may exercise its powers to complete moderate income and rental housing, will make interest-subsidized loans for the construction of student housing facilities at certain campuses of the University of Alaska, and relating to an agreement between the parties respecting the initiation of student housing on certain campuses of the University of Alaska.

00HOUSE CONCURRENT RESOLUTION NO. 18 01 Endorsing a proposal by which the Alaska Housing Finance Corporation, under 02 provisions of law by which the corporation may exercise its powers to complete 03 moderate income and rental housing, will make interest-subsidized loans for the 04 construction of student housing facilities at certain campuses of the University of 05 Alaska, and relating to an agreement between the parties respecting the initiation 06 of student housing on certain campuses of the University of Alaska. 07 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 WHEREAS on-campus housing creates a strong sense of campus community on 09 campuses throughout the state, creates greater opportunity for Alaskans to take advantage of 10 higher education opportunities, allows young Alaskans to experience college and independence 11 while staying within the state in proximity to their families, is proving to be one of the top 12 five factors increasing retention and graduation rates of college students, and provides greater 13 access to faculty, staff, and a wide variety of campus activities for resident students; and 14 WHEREAS students living in on-campus residence halls achieve better grades,

01 graduate faster, and report higher levels of satisfaction with their college experiences; and 02 WHEREAS the University of Alaska Anchorage currently houses only seven percent 03 of the full-time student population while the national average for student housing on campus 04 is between 35 and 50 percent; and 05 WHEREAS each spring semester 300 students and each fall semester 700 students 06 requesting housing and paying application fees at the University of Alaska Anchorage are 07 turned away due to lack of available residential space; and 08 WHEREAS the University of Alaska Anchorage master housing plan projected growth 09 to 1,436 beds by fiscal year 1995 and current capacity is at a maximum of available space at 10 388 beds; and 11 WHEREAS student housing at the University of Alaska Anchorage has been self-supporting through student fees 12 and has not required general fund operating dollars; and 13 WHEREAS the on-campus University of Alaska Southeast Juneau student housing has 14 been 100 percent occupied for the last four years; and 15 WHEREAS the last three fall semesters University of Alaska Southeast Juneau student 16 housing has had a waiting list of at least 125 students on opening day; and 17 WHEREAS the local Juneau rental market has a current vacancy rate of less than one 18 percent; and 19 WHEREAS a substantial number of students choose not to attend the University of 20 Alaska Southeast because of the lack of available housing; and 21 WHEREAS Ketchikan is the only campus of the University of Alaska Southeast 22 without student housing; and 23 WHEREAS a continuing need for housing at the Ketchikan campus has been 24 documented in 1986 and 1990 campus studies; and 25 WHEREAS placement of students enrolled at the Ketchikan campus in local homes 26 is unreliable due to a severe community housing shortage; and 27 WHEREAS Ketchikan campus leaders have identified the need for a total of 36 beds 28 in a combination dormitory/apartment configuration of modular units; and 29 WHEREAS the private sector on its own cannot afford to provide housing for students 30 at a reasonable cost; and 31 WHEREAS the Alaska Housing Finance Corporation has responsibility for meeting

01 housing needs of low and moderate income Alaskans; and 02 WHEREAS most students have low or moderate income; and 03 WHEREAS Alaska Housing Finance Corporation may, under AS 18.55.370, make 04 loans "for moderate-cost or rental housing facilities and projects to public agencies" with the 05 expectation that the loan will provide "reasonable rental to tenants and a reasonable return on 06 investment"; and 07 WHEREAS, in furtherance of its authority to provide moderate income and rental 08 housing, the Alaska Housing Finance Corporation may "invoke a power given to it under any 09 statute, including . . . .those related to the issuance of bonds and obligations with respect to 10 a project undertaken or a loan made or to be made"; and 11 WHEREAS the University of Alaska, a body corporate and a public agency, has 12 authority to "borrow money, issue debt, and enter into long-term obligations" for the 13 acquisition of facilities, and its obligations "may secure. . . . .debt issued by another party"; 14 and 15 WHEREAS the University of Alaska has the ability to repay the principal of the 16 money borrowed from the Alaska Housing Finance Corporation, but cannot raise housing rates 17 sufficiently to pay market interest rates; and 18 WHEREAS the Alaska Housing Finance Corporation's financing of University of 19 Alaska student housing will not deplete the corporation's capital assets or affect its bond 20 rating; 21 BE IT RESOLVED that the Nineteenth Alaska State Legislature encourages the 22 Alaska Housing Finance Corporation to lend to the University of Alaska money of the 23 corporation at an interest rate of three percent for a period of 25 years for the construction and 24 acquisition of 25 (1) student housing projects at the Anchorage campus in the amount of 26 $31,300,000; 27 (2) a student residence hall at the University of Alaska Southeast Juneau 28 campus in the amount of $4,200,000; and 29 (3) a student housing project at the Ketchikan campus in the amount of 30 $1,000,000; and be it 31 FURTHER RESOLVED that the specific terms of the loans are to be approved by

01 the Alaska Housing Finance Corporation's Board of Directors and the University of Alaska's 02 Board of Regents.