SB 53: "An Act relating to housing assistance provided by the Alaska Housing Finance Corporation and to its rural housing programs, to the corporation's supplemental housing development grants to regional housing authorities, and to housing programs of regional housing authorities; permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing; amending definitions relating to various housing programs; and providing for an effective date."
00SENATE BILL NO. 53 01 "An Act relating to housing assistance provided by the Alaska Housing Finance 02 Corporation and to its rural housing programs, to the corporation's supplemental 03 housing development grants to regional housing authorities, and to housing 04 programs of regional housing authorities; permitting regional housing authorities 05 to make, originate, and service loans for the purchase and development of 06 residential housing; amending definitions relating to various housing programs; 07 and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 18.55.997 is amended to read: 10 Sec. 18.55.997. Residential loans. (a) A [IN ADDITION TO THE POWERS 11 AUTHORIZED TO A REGIONAL HOUSING AUTHORITY UNDER AS 18.55.996, 12 A] regional housing authority, in addition to the powers authorized to it under 13 AS 18.55.996, 14 (1) may, in accordance with procedures and policies adopted and
01 approved by the Alaska Housing Finance Corporation, 02 (A) in a small community, make, originate, and service loans 03 for the purchase or development of residential housing; and 04 (B) in an area of the state not in a small community, make, 05 originate, and service loans for the purchase or development of residential 06 housing; however, a loan under this subparagraph may be made only from 07 the proceeds of a loan made by the Alaska Housing Finance Corporation 08 to the regional housing authority under regulations adopted by the 09 corporation to meet the housing needs of borrowers who cannot obtain 10 financing through the corporation's programs that are available to address 11 the housing needs of borrowers; 12 (2) shall secure loans made under (1) of this subsection [IN RURAL 13 AREAS OF THE STATE, OTHER THAN IN AN AREA WHERE THE 14 CORPORATION HAS A LOAN OFFICE. A LOAN SHALL BE SECURED] by 15 collateral in an amount acceptable to the corporation; the [. THE] rate of interest on 16 a loan authorized by this subsection [SECTION] may not exceed the interest rate 17 established by the Alaska Housing Finance Corporation for the corporation's 18 corresponding loan program [ON A LOAN ORIGINATED OR PURCHASED 19 UNDER AS 18.56.400 - 18.56.600]. 20 (b) In this section, 21 (1) "development" means the construction of a new residence or the 22 repair, remodeling, rehabilitation, or expansion of an existing home; 23 (2) ["RURAL" HAS THE MEANING GIVEN THE TERM] "small 24 community" has the meaning given in AS 18.56.600. 25 * Sec. 2. AS 18.55.998(a) is amended to read: 26 (a) There is created in the Alaska Housing Finance Corporation a supplemental 27 housing development grant fund. Using corporate earnings or other available funds, 28 the corporation shall make grants to regional housing authorities established under 29 AS 18.55.996 for the cost of 30 (1) [ON-SITE] sewer and water facilities, whether on-site or off-site; 31 (2) road construction to project sites;
01 (3) [,] energy efficient design features in homes; [,] and 02 (4) extension of electrical distribution facilities to individual residences. 03 * Sec. 3. AS 18.55.998(c) is amended to read: 04 (c) A grant made by the corporation to a regional housing authority under 05 this section 06 (1) [GRANT MONEY] may be used by the regional housing 07 authority only for the purpose and the permissible use for which the grant was 08 made; 09 (2) may not [PURPOSES SPECIFIED IN (a) OF THIS SECTION. 10 NO PART OF THE GRANT MONEY MAY] be used for administrative or other costs 11 of a regional housing authority, whether the costs are directly associated with the 12 construction or general costs of the authority. 13 * Sec. 4. AS 18.55.998(d) is amended to read: 14 (d) The Alaska Housing Finance Corporation shall 15 (1) adopt regulations to carry out the purposes of this section; the [. 16 THE] provisions of AS 18.56.088(a) and (b) apply to regulations adopted under this 17 section; and 18 (2) establish a priority system for the allocation of money for grants 19 to pay for off-site sewer and water facility improvements authorized by 20 AS 18.55.998(a)(1). 21 * Sec. 5. AS 18.56.096 is amended by adding a new subsection to read: 22 (d) The prohibitions of (c) of this section do not apply to a loan made under 23 AS 18.56.420(a)(2)(C) to renovate or improve small community housing if the amount 24 of the loan does not exceed $20,000. 25 * Sec. 6. AS 18.56.300(d) is amended to read: 26 (d) This section does not apply to a 27 (1) nonconforming housing loan made or purchased by the corporation; 28 or 29 (2) loan made under AS 18.56.420(a)(2)(B) or (C) to renovate or 30 improve small community housing if the amount of the loan does not exceed 31 $20,000.
01 * Sec. 7. AS 18.56.420(a) is amended to read: 02 (a) There is created in the corporation, as a revolving loan fund, the housing 03 assistance loan fund consisting of money appropriated to it by the legislature and 04 deposited in it by the corporation, and repayments of principal and interest on loans 05 made or purchased from the assets of the fund. The corporation shall 06 (1) adopt regulations to administer the housing assistance loan fund 07 under AS 18.56.400 - 18.56.600; and 08 (2) subject to appropriation, provide money for a rural assistance loan 09 program to originate, purchase, [OR] participate in the purchase of, or refinance 10 (A) small community housing mortgage loans; 11 (B) loans made 12 (i) for building materials for small community housing; 13 or 14 (ii) to pay for the labor of third-party contractors for 15 the installation of building materials in small community housing 16 units; 17 (C) loans made for renovations or improvements to small 18 community housing; 19 (D) loans made for the construction of owner-occupied small 20 community housing other than loans to builders or contractors or loans that 21 compensate an owner for the owner's labor or services in constructing the 22 owner's own housing. 23 * Sec. 8. AS 18.56.440 is amended to read: 24 Sec. 18.56.440. Limitations on use of housing assistance loan fund. The 25 corporation may not use the money in the housing assistance loan fund to 26 (1) originate a direct loan or purchase or participate in the purchase of 27 a small community housing mortgage loan that exceeds the limitations on mortgage 28 loans purchased by the Federal National Mortgage Association as to principal amount 29 or loan-to-value ratio; 30 (2) originate a direct loan or purchase or participate in the purchase of 31 a loan made for building materials for small community housing
01 (A) that exceeds $45,000 or exceeds 02 (i) 80 percent of the appraised value of the work 03 completed on the small community housing for which the loan is made 04 if the small community housing is pledged as collateral for the loan; or 05 (ii) 90 percent of the value of other property that is 06 pledged as security for the loan and that is satisfactory to the 07 corporation as collateral; 08 (B) unless the terms of the loan agreement require inspections 09 and certifications, as required by regulations of the corporation, at the expense 10 of the borrower; and 11 (C) unless the period of time allowed for repayment of the loan 12 is equal to or less than 15 years; 13 (3) originate direct loans or purchase or participate in the purchase of 14 a small community housing mortgage loan that is secured by real property the 15 marketable title to which is shown under AS 18.56.480(b)(2) if the total amount of 16 outstanding small community housing mortgage loans held by the corporation exceeds 17 10 times the amount of money in the restricted title loss reserve account established 18 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 21 a loan for the repair, remodeling, rehabilitation, or expansion of an existing 22 owner-occupied residence, if the borrower has an outstanding housing loan made under 23 a state loan program, other than a loan for rental [NONOWNER-OCCUPIED] housing 24 under AS 18.56.580 or for nonowner occupied housing under former AS 44.47.520, 25 that bears interest at a rate that was less than the prevailing market interest rate for 26 similar housing loans at the time the loan 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;
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 enforcement division under AS 25.27.160 - 25.27.220 at the time of application. 04 * Sec. 9. AS 18.56.460 is amended by adding a new subsection to read: 05 (c) For a loan originated or purchased in whole or in part from the housing 06 assistance loan fund under AS 18.56.420, the corporation may make an unsecured loan. 07 The authority of the corporation to make an unsecured loan under this subsection is 08 limited to a loan made 09 (1) under AS 18.56.420(a)(2)(B) or (C) to renovate or improve small 10 community housing that does not exceed $20,000; and 11 (2) for real property if the housing unit for which the unsecured loan 12 is sought 13 (A) is occupied by the borrower under an exclusive right of 14 possession of a specific dwelling unit in the mutual help housing program, 15 turnkey housing program, or a similar program; or 16 (B) is located on land the title to which is held by the borrower 17 under a restricted deed issued by the Secretary of the Interior or the secretary's 18 designee, either as a Native restricted deed or as a restricted deed for property 19 in a trustee townsite. 20 * Sec. 10. AS 18.56.580(a) is amended to read: 21 (a) In addition to the powers authorized by AS 18.56.400, the corporation may 22 adopt regulations under AS 18.56.088 allowing the use of money in the housing 23 assistance loan fund to make loans for the purchase or development of rental 24 [NONOWNER OCCUPIED] housing in small communities. 25 * Sec. 11. AS 18.56.580(c) is amended to read: 26 (c) The principal amount of loans made for rental [NONOWNER 27 OCCUPIED] housing under this section may not exceed 20 percent of the total 28 principal amount of loans made for small community housing under AS 18.56.400 - 29 18.56.600. 30 * Sec. 12. AS 18.56.580(d) is amended to read: 31 (d) In this section,
01 (1) "development" means the construction of a new residence or the 02 repair, remodeling, rehabilitation, or expansion of an existing residence; 03 (2) "rental ["NONOWNER OCCUPIED] housing" means a 04 single-family residence that is not occupied by the owner or a multi-family residence 05 having up to 16 [EIGHT] dwelling units, one of which may be [AND THAT IS NOT] 06 occupied by the owner; the corporation may modify this definition if it determines that 07 there is a special need for rental [NONOWNER OCCUPIED] housing in small 08 communities and that a change in the definition is necessary to enable the corporation 09 to meet that need. 10 * Sec. 13. AS 18.56.600 is amended to read: 11 Sec. 18.56.600. Definitions. In AS 18.56.400 - 18.56.600, 12 (1) "housing" 13 (A) means owner-occupied housing having four or fewer 14 dwelling units [, SINGLE-FAMILY HOUSING AND OWNER-OCCUPIED 15 DUPLEXES] in which not more than 25 percent of the gross floor area is or 16 will be devoted to commercial use; 17 (B) does not include an owner-occupied multi-family 18 residence that constitutes rental housing for which a loan is made under 19 AS 18.56.580; 20 (2) "small community" means a community with a population of 6,500 21 [5,500] or less that is not connected by road or rail to Anchorage or Fairbanks, or with 22 a population of 1,600 [1,400] or less that is connected by road or rail to Anchorage or 23 Fairbanks; in this paragraph, "connected by road" does not include a connection by the 24 Alaska marine highway system. 25 * Sec. 14. TRANSITION: REGULATIONS. The Alaska Housing Finance Corporation 26 may proceed to adopt regulations to implement the changes made by this Act. The regulations 27 take effect under AS 18.56.088, but not before the effective date of secs. 1 - 13 of this Act. 28 * Sec. 15. Section 14 of this Act takes effect immediately under AS 01.10.070(c).