Enrolled HB 273: Relating to commercial fishing loans; relating to subsidiary corporations of the Alaska Housing Finance Corporation; relating to the power of the Alaska Housing Finance Corporation to make or purchase mortgage loans; and providing for an effective date.
00Enrolled HB 273 01 Relating to commercial fishing loans; relating to subsidiary corporations of the Alaska 02 Housing Finance Corporation; relating to the power of the Alaska Housing Finance 03 Corporation to make or purchase mortgage loans; and providing for an effective date. 04 _______________ 05 * Section 1. AS 16.10.310(a) is amended to read: 06 (a) The department may 07 (1) make loans 08 (A) to individual commercial fishermen who have been state 09 residents for a continuous period of two years immediately preceding the date 10 of application for a loan under AS 16.10.300 - 16.10.370, who have had an 11 annual crewmember or commercial fishing license under AS 16.05.480 or a 12 permit under AS 16.43 for the year immediately preceding the date of 13 application and any other two of the past five years, and who actively
01 participated in the fishery during those periods 02 (i) for the purchase of entry permits; 03 (ii) to upgrade existing vessels and gear for the purpose 04 of improving the quality of Alaska seafood products; or 05 (iii) for propulsion engine or generator engine 06 replacements on existing vessels for the purpose of improving fuel 07 efficiency; 08 (B) to an individual for the repair, restoration, or upgrading of 09 existing vessels and gear, for the purchase of entry permits and gear, and for 10 the construction and purchase of vessels, if the individual has been a state 11 resident for a continuous period of two years immediately preceding the date 12 of application for a loan under AS 16.10.300 - 16.10.370, is not eligible for 13 financing from a state financial institution as defined in AS 06.01.050, a 14 federally chartered financial institution, or the Commercial Fishing and 15 Agricultural Bank, and 16 (i) because of lack of training or lack of employment 17 opportunities in the area of residence, does not have occupational 18 opportunities available other than commercial fishing; or 19 (ii) is economically dependent on commercial fishing 20 for a livelihood and for whom commercial fishing has been a traditional 21 way of life in Alaska; 22 (C) for the purchase of quota shares for fisheries in or off the 23 state by individual commercial fishermen who 24 (i) have been state residents for a continuous period of 25 two years immediately preceding the date of application for a loan 26 under AS 16.10.300 - 16.10.370; 27 (ii) for any two of the past five years, possessed an 28 annual crewmember or commercial fishing license under AS 16.05.480 29 or a permit under AS 16.43 and actively participated in a fishery for 30 which the license or permit was issued; 31 (iii) qualify as transferees for quota shares under
01 applicable law; and 02 (iv) are not eligible for financing from other recognized 03 commercial lending institutions to purchase quota shares; 04 (D) to an individual commercial fisherman to satisfy past due 05 federal tax obligations, if the fisherman has been a state resident for a 06 continuous period of two years immediately preceding the date of application 07 for the loan, has filed past and current federal tax returns with the federal 08 government, has executed an agreement with the federal government for 09 repayment of past due federal tax obligations, and either 10 (i) because of lack of training or lack of employment 11 opportunities in the area of residence, does not have occupational 12 opportunities available other than commercial fishing; or 13 (ii) is economically dependent on commercial fishing 14 for a livelihood and for whom commercial fishing has been a traditional 15 way of life in Alaska; 16 (E) for the purchase of fishing quota shares by a community 17 quota entity eligible under federal statute or regulation to purchase the fishing 18 quota shares if the community quota entity is not eligible or qualified for 19 financing from other recognized commercial lending institutions to purchase 20 the fishing quota shares; 21 (F) to an individual for the upgrade of existing tender vessels 22 and gear to improve the quality of Alaska seafood products, if the individual 23 has been a state resident for a continuous period of two years immediately 24 preceding the date of application for a loan under AS 16.10.300 - 16.10.370; 25 (2) designate agents and delegate its powers to them as necessary; 26 (3) adopt regulations necessary to carry out the provisions of 27 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 28 services provided; 29 (4) establish amortization plans for repayment of loans, which may 30 include extensions for poor fishing seasons or for adverse market conditions for 31 Alaska products;
01 (5) enter into agreements with private lending institutions, other state 02 agencies, or agencies of the federal government to carry out the purposes of 03 AS 16.10.300 - 16.10.370; 04 (6) enter into agreements with other agencies or organizations to create 05 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 06 the state; 07 (7) allow an assumption of a loan if 08 (A) the applicant has been a state resident for a continuous 09 period of two years immediately preceding the date of the request for an 10 assumption; and 11 (B) approval of the assumption would be consistent with the 12 purposes of AS 16.10.300; an applicant for a loan assumption may not be 13 disqualified because the applicant does not meet the loan eligibility 14 requirements of (1) of this subsection; 15 (8) prequalify loan applicants for a limited entry permit loan or a quota 16 shares loan and charge a fee not to exceed $200 for prequalification; 17 (9) charge and collect the fees established under this subsection; 18 (10) refinance a debt obligation incurred by a borrower or borrowers 19 under this section if the borrower or borrowers otherwise qualify for a loan under 20 AS 16.10.300 - 16.10.370; 21 (11) refinance debt obligations, not to exceed $400,000 [$200,000], 22 incurred by a borrower or borrowers for the purchase of a commercial fishing vessel 23 or gear if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 24 16.10.370; the department may collect a refinancing loan origination charge as 25 provided by regulation. 26 * Sec. 2. AS 16.10.310(a), as amended by sec. 1 of this Act, is amended to read: 27 (a) The department may 28 (1) make loans 29 (A) to individual commercial fishermen who have been state 30 residents for a continuous period of two years immediately preceding the date 31 of application for a loan under AS 16.10.300 - 16.10.370, who have had an
01 annual crewmember or commercial fishing license under AS 16.05.480 or a 02 permit under AS 16.43 for the year immediately preceding the date of 03 application and any other two of the past five years, and who actively 04 participated in the fishery during those periods 05 (i) for the purchase of entry permits; 06 (ii) to upgrade existing vessels and gear for the purpose 07 of improving the quality of Alaska seafood products; or 08 (iii) for propulsion engine or generator engine 09 replacements on existing vessels for the purpose of improving fuel 10 efficiency; 11 (B) to an individual for the repair, restoration, or upgrading of 12 existing vessels and gear, for the purchase of entry permits and gear, and for 13 the construction and purchase of vessels, if the individual has been a state 14 resident for a continuous period of two years immediately preceding the date 15 of application for a loan under AS 16.10.300 - 16.10.370, is not eligible for 16 financing from a state financial institution as defined in AS 06.01.050, a 17 federally chartered financial institution, or the Commercial Fishing and 18 Agricultural Bank, and 19 (i) because of lack of training or lack of employment 20 opportunities in the area of residence, does not have occupational 21 opportunities available other than commercial fishing; or 22 (ii) is economically dependent on commercial fishing 23 for a livelihood and for whom commercial fishing has been a traditional 24 way of life in Alaska; 25 (C) for the purchase of quota shares for fisheries in or off the 26 state by individual commercial fishermen who 27 (i) have been state residents for a continuous period of 28 two years immediately preceding the date of application for a loan 29 under AS 16.10.300 - 16.10.370; 30 (ii) for any two of the past five years, possessed an 31 annual crewmember or commercial fishing license under AS 16.05.480
01 or a permit under AS 16.43 and actively participated in a fishery for 02 which the license or permit was issued; 03 (iii) qualify as transferees for quota shares under 04 applicable law; and 05 (iv) are not eligible for financing from other recognized 06 commercial lending institutions to purchase quota shares; 07 (D) to an individual commercial fisherman to satisfy past due 08 federal tax obligations, if the fisherman has been a state resident for a 09 continuous period of two years immediately preceding the date of application 10 for the loan, has filed past and current federal tax returns with the federal 11 government, has executed an agreement with the federal government for 12 repayment of past due federal tax obligations, and either 13 (i) because of lack of training or lack of employment 14 opportunities in the area of residence, does not have occupational 15 opportunities available other than commercial fishing; or 16 (ii) is economically dependent on commercial fishing 17 for a livelihood and for whom commercial fishing has been a traditional 18 way of life in Alaska; 19 (E) for the purchase of fishing quota shares by a community 20 quota entity eligible under federal statute or regulation to purchase the fishing 21 quota shares if the community quota entity is not eligible or qualified for 22 financing from other recognized commercial lending institutions to purchase 23 the fishing quota shares; 24 (F) to an individual for the upgrade of existing tender vessels 25 and gear to improve the quality of Alaska seafood products, if the individual 26 has been a state resident for a continuous period of two years immediately 27 preceding the date of application for a loan under AS 16.10.300 - 16.10.370; 28 (2) designate agents and delegate its powers to them as necessary; 29 (3) adopt regulations necessary to carry out the provisions of 30 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 31 services provided;
01 (4) establish amortization plans for repayment of loans, which may 02 include extensions for poor fishing seasons or for adverse market conditions for 03 Alaska products; 04 (5) enter into agreements with private lending institutions, other state 05 agencies, or agencies of the federal government to carry out the purposes of 06 AS 16.10.300 - 16.10.370; 07 (6) enter into agreements with other agencies or organizations to create 08 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 09 the state; 10 (7) allow an assumption of a loan if 11 (A) the applicant has been a state resident for a continuous 12 period of two years immediately preceding the date of the request for an 13 assumption; and 14 (B) approval of the assumption would be consistent with the 15 purposes of AS 16.10.300; an applicant for a loan assumption may not be 16 disqualified because the applicant does not meet the loan eligibility 17 requirements of (1) of this subsection; 18 (8) prequalify loan applicants for a limited entry permit loan or a quota 19 shares loan and charge a fee not to exceed $200 for prequalification; 20 (9) charge and collect the fees established under this subsection; 21 (10) refinance a debt obligation incurred by a borrower or borrowers 22 under this section if the borrower or borrowers otherwise qualify for a loan under 23 AS 16.10.300 - 16.10.370; 24 (11) refinance debt obligations, not to exceed $200,000 [$400,000], 25 incurred by a borrower or borrowers for the purchase of a commercial fishing vessel 26 or gear if the borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 27 16.10.370; the department may collect a refinancing loan origination charge as 28 provided by regulation. 29 * Sec. 3. AS 16.10.320(a) is amended to read: 30 (a) Except as permitted in (h) and (l) of this section, a loan under 31 AS 16.10.300 - 16.10.370
01 (1) may not exceed a term of 15 years, except for extensions under 02 AS 16.10.310(a)(4); 03 (2) may not bear interest 04 (A) exceeding the prime rate, as defined by AS 44.88.599, plus 05 two percentage points; or 06 (B) at a rate of more than 5.25 [10 1/2] percent a year; [OR 07 (C) AT A RATE THAT IS LESS THAN THE COST OF 08 FUNDS TO THE STATE;] 09 (3) must be secured by a first priority lien and appropriate security 10 agreement; 11 (4) may not exceed 80 percent of the appraised value of the collateral 12 used to secure the loan; and 13 (5) may not be made to a person who has a past due child support 14 obligation established by court order or by the child support services agency under 15 AS 25.27.160 - 25.27.220 at the time of application. 16 * Sec. 4. AS 16.10.320(a), as amended by sec. 3 of this Act, is amended to read: 17 (a) Except as permitted in (h) and (l) of this section, a loan under 18 AS 16.10.300 - 16.10.370 19 (1) may not exceed a term of 15 years, except for extensions under 20 AS 16.10.310(a)(4); 21 (2) may not bear interest 22 (A) exceeding the prime rate, as defined by AS 44.88.599, plus 23 two percentage points; [OR] 24 (B) at a rate of more than 10 1/2 [5.25] percent a year; or 25 (C) at a rate that is less than the cost of funds to the state; 26 (3) must be secured by a first priority lien and appropriate security 27 agreement; 28 (4) may not exceed 80 percent of the appraised value of the collateral 29 used to secure the loan; and 30 (5) may not be made to a person who has a past due child support 31 obligation established by court order or by the child support services agency under
01 AS 25.27.160 - 25.27.220 at the time of application. 02 * Sec. 5. AS 16.10.320(d) is amended to read: 03 (d) The total of balances outstanding on loans made to a borrower under 04 AS 16.10.310(a)(1)(A) may not exceed $400,000. The total of balances outstanding on 05 loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $400,000 06 [$200,000]. The total of balances outstanding on loans made to a borrower under 07 AS 16.10.310(a)(1)(C) may not exceed $400,000. The total of balances outstanding on 08 loans made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax 09 obligations may not exceed $35,000. The total of balances outstanding on loans made 10 under AS 16.10.310(a)(1)(E) may not exceed $2,000,000 for each community eligible 11 under federal statute or regulation to establish or participate in the establishment of a 12 community quota entity. The total of balances outstanding on loans made to a 13 borrower under AS 16.10.310(a)(1)(F) may not exceed $400,000. Excluding loans 14 made under AS 16.10.310(a)(1)(E), the total of balances outstanding on all loans, 15 including debt refinancing under AS 16.10.310(a), made to a borrower under 16 AS 16.10.300 - 16.10.370 may not exceed $400,000. 17 * Sec. 6. AS 16.10.320(d), as amended by sec. 5 of this Act, is amended to read: 18 (d) The total of balances outstanding on loans made to a borrower under 19 AS 16.10.310(a)(1)(A) may not exceed $400,000. The total of balances outstanding on 20 loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $200,000 21 [$400,000]. The total of balances outstanding on loans made to a borrower under 22 AS 16.10.310(a)(1)(C) may not exceed $400,000. The total of balances outstanding on 23 loans made to a borrower under AS 16.10.310(a)(1)(D) to satisfy past due federal tax 24 obligations may not exceed $35,000. The total of balances outstanding on loans made 25 under AS 16.10.310(a)(1)(E) may not exceed $2,000,000 for each community eligible 26 under federal statute or regulation to establish or participate in the establishment of a 27 community quota entity. The total of balances outstanding on loans made to a 28 borrower under AS 16.10.310(a)(1)(F) may not exceed $400,000. Excluding loans 29 made under AS 16.10.310(a)(1)(E), the total of balances outstanding on all loans, 30 including debt refinancing under AS 16.10.310(a), made to a borrower under 31 AS 16.10.300 - 16.10.370 may not exceed $400,000.
01 * Sec. 7. AS 18.56.010 is amended by adding a new subsection to read: 02 (h) The legislature finds that permitting the Alaska Housing Finance 03 Corporation to create a subsidiary to assist in the financing of sustainable energy 04 development serves a public purpose benefitting the people of the state. The Alaska 05 Housing Finance Corporation is empowered to act on behalf of the state and its people 06 in serving this public purpose for the benefit of the general public. 07 * Sec. 8. AS 18.56.086(a) is amended to read: 08 (a) The corporation may create subsidiary corporations for the purpose of 09 financing or facilitating the financing of school construction, facilities for the 10 University of Alaska, facilities for ports and harbors, the acquisition, development, 11 management, or operation of [AFFORDABLE] housing, prepayment of all or a 12 portion of a governmental employer's share of unfunded accrued actuarial liability of 13 retirement systems, sustainable energy development, or other capital projects. A 14 subsidiary corporation created under this section may be incorporated under 15 AS 10.20.146 - 10.20.166. The corporation may transfer assets of the corporation to a 16 subsidiary created under this section. A subsidiary created under this section may 17 borrow money and issue bonds as evidence of that borrowing, and has all the powers 18 of the corporation that the corporation grants to it. However, a subsidiary created for 19 the purpose of financing or facilitating the financing of prepayment of a governmental 20 employer's share of unfunded accrued actuarial liability of retirement systems may 21 borrow money and issue bonds only after submitting a proposal to the Legislative 22 Budget and Audit Committee under (b) of this section, if the state bond rating is the 23 equivalent of AA- or better, and subject to AS 37.15.903. Unless otherwise provided 24 by the corporation, the debts, liabilities, and obligations of a subsidiary corporation 25 created under this section are not the debts, liabilities, or obligations of the 26 corporation. 27 * Sec. 9. AS 18.56.086 is amended by adding a new subsection to read: 28 (c) In managing a subsidiary created for the purpose of financing or 29 facilitating the financing of sustainable energy development, the corporation shall 30 consider the state energy policy described in AS 44.99.115 and shall prioritize 31 sustainable energy development that supports energy efficiency and renewable energy
01 for residential buildings, commercial buildings, and community facilities. 02 * Sec. 10. AS 18.56.090(e) is amended to read: 03 (e) In furtherance of its corporate purpose, the corporation may, in cooperation 04 with the Alaska Energy Authority, provide technical assistance to 05 (1) municipalities that is related to residential and commercial 06 building energy codes and energy efficiency standards; and 07 (2) support or establish public, quasi-public, or nonprofit entities 08 that provide financial assistance for sustainable energy development projects in 09 the state or delivering energy to the state, including community and low-income 10 lenders and capital providers. 11 * Sec. 11. AS 18.56.096(a) is amended to read: 12 (a) The corporation may not make, participate in the making of, purchase, or 13 participate in the purchase of 14 (1) a first mortgage loan under this chapter for a duplex, triplex, or 15 four-plex that exceeds the limitations on first mortgage loans for similar housing 16 purchased by the Federal National Mortgage Association as to principal amount and 17 loan-to-value ratio; 18 (2) a second mortgage loan for a duplex, triplex, or four-plex the 19 amount of which, when combined with the principal balance of a first mortgage loan 20 on the property, exceeds the limitation on the amount set out in (1) of this subsection 21 or that has a loan-to-value ratio, when considered with the principal balance of the first 22 mortgage loan, that exceeds 90 percent; 23 (3) a mortgage loan to finance the purchase of new housing or for the 24 improvement or rehabilitation of existing housing, unless the construction, 25 improvement, or rehabilitation work has been performed by a contractor who is 26 registered to work as a contractor under AS 08.18; this paragraph does not apply if the 27 construction, improvement, or rehabilitation work 28 (A) has been totally or substantially performed by the 29 borrower; 30 (B) has been performed by a borrower who acts as the 31 contractor for the construction, improvement, or rehabilitation work; or
01 (C) has been performed in an area designated by the 02 corporation as exempt from the requirements of this paragraph because of the 03 unavailability of registered contractors in that area; 04 (4) a first mortgage loan for a single-family residence that exceeds the 05 limitations on first mortgage loans for similar housing purchased by the Federal 06 National Mortgage Association as to principal amount by more than 10 percent [, OR 07 HAS A LOAN-TO-VALUE RATIO THAT EXCEEDS 95 PERCENT,] or a second 08 mortgage loan for a single-family residence, the amount of which, when combined 09 with the principal balance of a first mortgage loan on the property, [EXCEEDS THE 10 LIMITATIONS ON LOANS FOR SIMILAR HOUSING PURCHASED BY THE 11 FEDERAL NATIONAL MORTGAGE ASSOCIATION AS TO PRINCIPAL 12 AMOUNT BY MORE THAN 10 PERCENT, OR] has a loan-to-value ratio [, WHEN 13 CONSIDERED WITH THE PRINCIPAL BALANCE OF THE FIRST MORTGAGE 14 LOAN,] that exceeds 90 percent; 15 (5) a first or second mortgage loan for rental housing unless the 16 borrower agrees not to discriminate against tenants or prospective tenants because of 17 sex, marital status, changes in marital status, pregnancy, parenthood, race, religion, 18 color, national origin, or status as a student; 19 (6) a first mortgage loan if the borrower has an outstanding first 20 mortgage housing loan under this chapter or an outstanding first mortgage loan for 21 owner-occupied housing under former provisions of AS 44.47; or 22 (7) a loan to a person who has a past due child support obligation 23 established by court order or by the child support services agency under AS 25.27.160 24 - 25.27.220 at the time of application. 25 * Sec. 12. AS 18.56.900 is amended by adding a new paragraph to read: 26 (3) "sustainable energy development" means 27 (A) renewable energy generation from sources that are 28 continually replenished by nature, such as the sun, wind, water, or biological 29 processes; 30 (B) building energy efficiency, including switching to 31 renewable fuels and electrification;
01 (C) electrical infrastructure incorporating 02 (i) energy storage to support clean energy distribution, 03 including remote and non-remote microgrids and smart grid 04 applications; or 05 (ii) sustainable technologies, including distributed 06 generation, advanced battery, and combined heat and power; 07 (D) clean transportation, including 08 (i) electric vehicles powered by batteries, hydrogen 09 vehicles, plug-in hybrid electric vehicles, and other zero-emissions 10 vehicles for consumers, businesses, government, and public transit; and 11 (ii) electric vehicle charging and fueling infrastructure; 12 or 13 (E) any greenhouse gas emissions reduction, energy efficiency, 14 or zero-emission technology approved by the corporation. 15 * Sec. 13. Sections 2, 4, and 6 of this Act take effect July 1, 2027. 16 * Sec. 14. Except as provided in sec. 13 of this Act, this Act takes effect immediately under 17 AS 01.10.070(c).