SB 113: "An Act making activities of the Alaska Housing Finance Corporation subject to the Executive Budget Act, relating to appropriations to the Alaska Housing Finance Corporation; relating to bonds and bond anticipation notes issued by the Alaska Housing Finance Corporation; and providing for an effective date."
00SENATE BILL NO. 113 01 "An Act making activities of the Alaska Housing Finance Corporation subject to 02 the Executive Budget Act, relating to appropriations to the Alaska Housing 03 Finance Corporation; relating to bonds and bond anticipation notes issued by the 04 Alaska Housing Finance Corporation; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 18.55.140 is amended to read: 07 Sec. 18.55.140. Issuance of bonds, notes, and refunding bonds. The 08 corporation may issue bonds and notes from time to time [IN ITS DISCRETION] for 09 a purpose authorized by this chapter and may issue refunding bonds for the purpose 10 of paying or retiring bonds previously issued under this chapter. However, the 11 corporation may only issue bonds, refunding bonds, and bond anticipation notes 12 after the issuance has been approved by law. 13 * Sec. 2. AS 18.55.240 is amended to read: 14 Sec. 18.55.240. Power of corporation to obtain federal aid and cooperation.
01 The corporation may borrow, accept contributions, grants, or other financial assistance 02 from the federal government in aid of any housing or public building project and for 03 this purpose may comply with conditions and enter into the mortgages, trust 04 indentures, leases, or agreements that are necessary, convenient, or desirable in order 05 to obtain financial aid or cooperation from the federal government in the undertaking, 06 construction, maintenance, or operation of a housing or public building project 07 authorized by AS 18.55.100 - 18.55.290. Every expenditure of federal funds by the 08 corporation is subject to appropriation. 09 * Sec. 3. AS 18.55.370 is amended to read: 10 Sec. 18.55.370. Use of money. Money appropriated [OR MADE 11 AVAILABLE] under AS 18.55.300 - 18.55.470 may be used by the corporation to 12 make 13 (1) character loans, not exceeding $500 for each dwelling, to residents 14 or cooperatives for the improvement, conversion, or construction of dwellings in 15 remote areas for occupancy by the residents or members of the cooperatives; 16 (2) loans for moderate-cost or rental housing facilities and projects to 17 public agencies, or private nonprofit or limited dividend corporations, or private 18 corporations or cooperatives organized under AS 10.15.005 - 10.15.600 that are 19 regulated or restricted by the corporation until the termination of all loan obligations 20 to it as to rents or sales, charges, capital structure, rate of return, and methods of 21 operation to the extent and in the manner that provides reasonable rentals to tenants 22 and a reasonable return on the investment; loans to cooperatives may be made for up 23 to 95 percent of the appraised value of the housing facility. 24 * Sec. 4. AS 18.55.520 is amended to read: 25 Sec. 18.55.520. Powers of the corporation. In addition to all powers 26 previously vested in or granted to the corporation by any other law, the corporation has 27 all the powers necessary or convenient to carry out and effectuate the purposes and 28 provisions of AS 18.55.480 - 18.55.960, including the following powers: 29 (1) to prepare or have prepared and to recommend redevelopment plans 30 to the governing body of any municipality within its area of operation and to undertake 31 and carry out redevelopment projects within its area of operation;
01 (2) to arrange or contract for the furnishing or repair, by any person or 02 agency, public or private, of services, privileges, works, streets, roads, public utilities , 03 or other facilities for or in connection with a redevelopment project; and 04 notwithstanding anything to the contrary contained in AS 18.55.480 - 18.55.960 or any 05 other provision of law, to agree to the conditions that it considers reasonable and 06 appropriate that are attached to federal financial assistance and imposed under 07 [PURSUANT TO] federal law relating to the determination of prevailing salaries or 08 wages or compliance with labor standards, in the undertaking or carrying out of a 09 redevelopment project, and to include a contract let in connection with a 10 redevelopment project, provisions to fulfill any of these conditions it considers 11 reasonable and appropriate; 12 (3) within its area of operation, 13 (A) to purchase, lease, obtain options upon, acquire by gift, 14 grant, bequest, devise, eminent domain, or otherwise, any real or personal 15 property or any interest in it, together with any improvements on it necessary 16 or incidental to a redevelopment project; 17 (B) to hold, improve, clear, or prepare for redevelopment the 18 property it obtains under (A) of this paragraph; 19 (C) to sell, lease, exchange, transfer, assign, subdivide, retain 20 for its own use, mortgage, pledge, hypothecate, or otherwise encumber or 21 dispose of any real or personal property or any interest in it; 22 (D) to enter into contracts with redevelopers of property 23 containing covenants, restrictions, and conditions regarding the use of the 24 property for residential, commercial, industrial, recreational purposes or for 25 public purposes in accordance with the redevelopment plan and other 26 covenants, restrictions, and conditions that the corporation considers necessary 27 to prevent a recurrence of slum or blighted areas or to effectuate the purposes 28 of AS 18.55.480 - 18.55.960; 29 (E) to make any covenant, restriction, or condition of the 30 foregoing contracts a covenant running with the land, and to provide 31 appropriate remedies for a breach of the covenant, restriction, or condition,
01 including the right in the corporation to terminate the contract and the interest 02 in the property created under the contract; 03 (F) to borrow money and issue bonds that have been approved 04 by law for issuance and provide security for loans or bonds; 05 (G) to insure or provide for the insurance of real or personal 06 property or operations of the corporation against risk or hazard, including the 07 power to pay premiums on this insurance; 08 (H) to enter into any contracts necessary to effectuate the 09 purposes of AS 18.55.480 - 18.55.960; however, statutory provisions with 10 respect to the acquisition, clearance, or disposition of property by another 11 public body do not restrict the corporation or the other public body in these 12 functions, unless the legislature has specifically so provided; 13 (4) to invest money held in reserves or sinking funds or any money not 14 required for immediate disbursement, in property or securities in which savings banks 15 may legally invest money subject to their control, and to redeem its bonds at the 16 redemption price established in the bonds or to purchase its bonds at less than 17 redemption price; and all bonds redeemed or purchased shall be cancelled; 18 (5) to borrow money and to apply for and accept advances, loans, 19 grants, contributions, and any other form of financial assistance from the federal 20 government, the state, municipality, or other public body or from any sources, public 21 or private, for the purposes of AS 18.55.480 - 18.55.960, to give the security required 22 and to enter into and carry out contracts in connection with the transaction; 23 notwithstanding the provisions of any other law, the corporation may include in a 24 contract for financial assistance with the federal government for a redevelopment 25 project those conditions imposed under [PURSUANT TO] federal law that the 26 corporation considers reasonable and appropriate and which are not inconsistent with 27 the purposes of AS 18.55.480 - 18.55.960; 28 (6) to act through a member or another person designated by the 29 corporation to conduct examinations and investigations and to hear testimony and take 30 proof under oath at public or private hearings on any matter material for its 31 information; to administer oaths, and to issue commissions for the examination of
01 witnesses who are outside the state or unable to attend before the corporation, or 02 excused from attendance; to make available to appropriate agencies or public officials, 03 including those charged with the duty of abating or requiring the correction of 04 nuisances or like conditions or of demolishing unsafe or unsanitary structures or 05 eliminating slums or conditions of blight within its area of operation, its findings and 06 recommendations with regard to any building or property where conditions exist that 07 are dangerous to the public health, safety, morals, and welfare; 08 (7) within its area of operation, to make or have made all surveys, 09 appraisals, studies, and plans necessary to carry out the purposes of AS 18.55.480 - 10 18.55.960 and to contract or cooperate with persons or agencies, public or private, in 11 the making and carrying out of the surveys, appraisals, studies, and plans; 12 (8) to prepare plans and provide reasonable assistance for the relocation 13 of families displaced from a redevelopment project area to the extent essential for 14 acquiring possession of and clearing the area or parts of the area to permit the carrying 15 out of the redevelopment project; 16 (9) to make expenditures that are necessary to carry out the purposes 17 of AS 18.55.480 - 18.55.960, and , subject to appropriation, to make expenditures 18 from money obtained from the federal government and the state [, WITHOUT 19 REGARD TO ANY OTHER LAWS PERTAINING TO THE MAKING AND 20 APPROVAL OF APPROPRIATIONS AND EXPENDITURES]; 21 (10) to exercise all or any part or combination of powers granted by 22 this section; 23 (11) with the approval of the local governing body, 24 (A) before approval of an urban renewal or redevelopment plan, 25 or approval of any modifications of the plan to acquire real property in an 26 urban renewal or redevelopment area, to demolish and remove any structures 27 on the property [,] and pay all costs related to the acquisition, demolition, or 28 removal, including any administrative or relocation expenses; and 29 (B) to assume the responsibility to bear any loss that may arise 30 as the result of the exercise of its powers under this paragraph in the event that 31 the real property is not made part of the urban renewal or redevelopment
01 project; 02 (12) to prepare or have prepared and to recommend neighborhood 03 development plans to the governing body of any municipality within its area of 04 operation and to undertake and carry out neighborhood development projects within 05 its area of operation. 06 * Sec. 5. AS 18.55.570(a) is amended to read: 07 (a) The corporation may 08 (1) issue bonds that have been approved for issuance by law and 09 notes [FROM TIME TO TIME] for any of the purposes of AS 18.55.480 - 18.55.960, 10 including the payment of principal and interest upon advances for surveys and plans 11 for redevelopment projects; 12 (2) issue refunding bonds that have been approved for issuance by 13 law for the purpose of the payment or retirement or in exchange for bonds previously 14 issued by it; 15 (3) issue the types of bonds and notes it determines, including bonds 16 and notes on which the principal and interest are payable 17 (A) exclusively from the income, proceeds, and revenues of the 18 redevelopment project financed with the proceeds of the bonds or notes; or 19 (B) exclusively from the income, proceeds, and revenue of any 20 of its redevelopment projects whether or not they are financed in whole or in 21 part with the proceeds of the bonds or notes; and 22 (4) further secure the bonds or notes authorized by (1) - (3) of this 23 subsection by a pledge of all or any part of a loan, grant, or contribution from the 24 federal government or from another source, or by a mortgage of a redevelopment 25 project of the corporation. 26 * Sec. 6. AS 18.55.700(a) is amended to read: 27 (a) The corporation has all the powers necessary or convenient to undertake 28 and carry out urban renewal plans and urban renewal projects, including the power to 29 acquire and dispose of property, to issue bonds that have been approved for issuance 30 by law and other obligations, to borrow and accept grants from the federal government 31 or other source and, subject to appropriation, make expenditures from federal
01 funds , and to exercise the other powers granted to it by AS 18.55.480 - 18.55.960 with 02 respect to redevelopment projects. 03 * Sec. 7. 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, 06 in accordance with an appropriation for the purpose, the corporation shall make 07 grants to regional housing authorities established under AS 18.55.996 for the cost of 08 on-site sewer and water facilities, road construction to project sites, energy efficient 09 design features in homes, and extension of electrical distribution facilities to individual 10 residences. 11 * Sec. 8. AS 18.56.082 is amended to read: 12 Sec. 18.56.082. Alaska housing finance revolving fund. The Alaska housing 13 finance revolving fund is established in the corporation. The [REVOLVING] fund 14 consists of appropriations made to it. Income of the fund and [THE REVOLVING 15 FUND BY THE LEGISLATURE,] money or other assets received [TRANSFERRED 16 TO THE REVOLVING FUND] by the corporation, including [AND] unrestricted 17 repayments of principal on loans made or purchased by the corporation , shall be 18 separately accounted for and may be appropriated to the fund . Amounts deposited 19 in the [REVOLVING] fund shall be expended for the purposes of the corporation, set 20 out in this chapter. 21 * Sec. 9. AS 18.56.084 is amended to read: 22 Sec. 18.56.084. International borrowing. For the purpose of obtaining access 23 to international capital markets to borrow money for the special mortgage loan 24 purchase program under AS 18.56.098, as an addition to the powers of the corporation 25 under AS 18.56.090, the corporation may (1) establish , or cause to be established, 26 subsidiary corporations incorporated in the state or in another state, or under the laws 27 of a foreign jurisdiction; (2) invest in corporations established under this section; (3) 28 issue bonds that have been approved for issuance by law and borrow money for 29 investments in corporations established under this section; (4) borrow from 30 corporations established under this section; (5) guarantee the obligations of 31 corporations established under this section; or (6) enter into agreements with
01 corporations established under this section or with other persons. In exercising a power 02 under this section, the corporation may not subject its assets to risk of loss through 03 foreign currency exchange. A guarantee under this section constitutes a bond of the 04 corporation as defined in AS 18.56.390. 05 * Sec. 10. AS 18.56.089(a) is amended to read: 06 (a) The provisions of AS 37.07 (Executive Budget Act) 07 [(1)] apply to 08 [(A)] the operating budget of the corporation and to all 09 activities of the corporation under AS 18.55 and this chapter [; 10 (B) AMOUNTS PAYABLE FROM CORPORATE EARNINGS 11 OR ASSETS OF THE CORPORATION FOR GRANTS OR GRANT 12 PROGRAMS AUTHORIZED BY THIS CHAPTER; 13 (C) INTEREST RATE SUBSIDIES AND BUILDING 14 SUBSIDIES AS DETERMINED BY THE CORPORATION; 15 (D) THE AMOUNT AND SOURCE OR SOURCES OF THE 16 TOTAL ANNUAL APPROPRIATION FOR THE CORPORATION'S LOAN 17 PROGRAMS FOR WHICH A SUBSIDY IS NOT PROVIDED, BUT THE 18 PROVISIONS OF AS 37.07 ARE NOT OTHERWISE APPLICABLE TO 19 THAT APPROPRIATION; 20 (E) THE AMOUNT AND SOURCE OR SOURCES OF THE 21 TOTAL ANNUAL APPROPRIATION FOR THE CORPORATION'S MULTI- 22 FAMILY HOUSING LOANS AND THE CORPORATION'S HOUSING PROGRAMS AND 23 HOUSING PROJECTS IF A SUBSIDY IS PROVIDED FROM THE CORPORATION'S 24 ARBITRAGE EARNINGS FOR THE LOANS, PROGRAMS, OR PROJECTS, BUT THE 25 PROVISIONS OF AS 37.07 ARE NOT OTHERWISE APPLICABLE TO THAT 26 APPROPRIATION; AND 27 (F) EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED 28 IN (2) OF THIS SUBSECTION, THE ACTIVITIES OF THE CORPORATION 29 UNDER AS 18.55 AND THE ACTIVITIES OF THE CORPORATION 30 UNDER THIS CHAPTER; 31 (2) DO NOT APPLY TO ACTIVITIES OF THE CORPORATION
01 UNDER AS 18.55 AND THIS CHAPTER THAT 02 (A) RELATE TO THE CORPORATION'S BORROWING OF 03 MONEY AS PROVIDED IN THIS CHAPTER TO MAKE OR PURCHASE 04 MORTGAGE LOANS, INCLUDING THE ISSUING OF ITS OBLIGATIONS 05 OR EVIDENCE OF THAT BORROWING AND THE REPAYMENT OF THE 06 DEBT OBLIGATION; 07 (B) RELATE TO THE CORPORATION'S ABILITY TO 08 REFINANCE EXISTING MORTGAGE LOANS IN ORDER TO ACHIEVE 09 A LOWER INTEREST RATE; OR 10 (C) ARE DIRECTLY ATTRIBUTABLE TO THE SERVICING 11 OF MORTGAGE LOANS, INCLUDING REAL ESTATE ACQUIRED BY 12 THE CORPORATION AS A RESULT OF FORECLOSURE]. 13 * Sec. 11. AS 18.56.110(a) is amended to read: 14 (a) The corporation, by resolution, may issue bonds and bond anticipation 15 notes after the issuance has been approved by law in order to provide funds to carry 16 out and effectuate its purposes. 17 * Sec. 12. AS 18.56.430(a) is amended to read: 18 (a) There is created in the corporation the home ownership assistance fund 19 consisting of money appropriated to it by the legislature and deposited in it by the 20 corporation. Subject to appropriation, money [MONEY] in the fund shall be used 21 solely to assist persons of lower and moderate income to purchase or construct single- 22 family homes financed under AS 18.56.400 - 18.56.600 by providing a subsidy to those 23 persons. 24 * Sec. 13. AS 18.56.710(a) is amended to read: 25 (a) The senior housing revolving fund is established. The revolving fund 26 consists of appropriations made to it by the legislature, the proceeds of bonds sold 27 under AS 18.56.790, repayments of principal and interest on loans made or purchased 28 from assets of the fund, and money or other assets transferred to the revolving fund 29 by the corporation. Subject to appropriation, the [THE] corporation may 30 (1) pledge amounts deposited in the revolving fund for bonds issued 31 under AS 18.56.790;
01 (2) use amounts deposited in the fund for making, purchasing, or 02 participating in 03 (A) senior housing mortgage loans; 04 (B) loans made for building materials for senior housing; 05 (C) loans made for renovation or improvement of or for senior 06 housing, including loans for renovation or improvement of congregate or 07 individual residences; and 08 (D) loans made for the construction of senior housing. 09 * Sec. 14. AS 18.56.790(a) is amended to read: 10 (a) Under the procedures of this chapter, the corporation may issue bonds in 11 a total amount not exceeding $30,000,000 to fund senior housing loans made under 12 AS 18.56.700 - 18.56.799. Each separate bond issue under this subsection is 13 subject to approval by law. 14 * Sec. 15. This Act takes effect July 1, 1999.