04/09/2019 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

         HB 32-AK ENERGY EFFICIENCY LOANS:  ELIGIBILITY                                                                     
                                                                                                                                
8:26:28 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN announced  that the next order  of business would                                                               
be HOUSE  BILL NO. 32, "An  Act making certain entities  that are                                                               
exempt  from federal  taxation under  26  U.S.C. 501(c)(3),  (4),                                                               
(6),  (12), or  (19)  (Internal Revenue  Code), regional  housing                                                               
authorities, and federally recognized  tribes eligible for a loan                                                               
from the  Alaska energy efficiency revolving  loan fund; relating                                                               
to loans from  the Alaska energy efficiency  revolving loan fund;                                                               
and  relating  to  the  annual report  published  by  the  Alaska                                                               
Housing Finance Corporation."                                                                                                   
                                                                                                                                
8:27:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HANNAN  noted  that  the  committee  had  heard  HB  32                                                               
previously  and no  amendments had  been submitted.   She  said a                                                               
question  had been  asked about  the mechanism  used to  bond the                                                               
project with Galena, Alaska.                                                                                                    
                                                                                                                                
8:28:35 AM                                                                                                                    
                                                                                                                                
STACY  BARNES,   Director,  Governmental  Relations   and  Public                                                               
Affairs, Alaska  Housing Finance Corporation (AHFC),  stated that                                                               
the  Galena  project  "came forward  with  assets  that  included                                                               
grants" from  DCCED.  She  said the AHFC finance  team considered                                                               
the  project  and moved  forward  with  "bonding outside  of  the                                                               
Alaska  Energy Efficiency  Revolving Loan."   She  explained that                                                               
was because  of the  size of  the project and  because "it  was a                                                               
standalone project."   Thus  the project  was financed  and moved                                                               
forward.                                                                                                                        
                                                                                                                                
CO-CHAIR  HANNAN   asked,  "So,  AHFC  still   remains  with  the                                                               
authority  to do  a full  $250 million  bond for  applicants that                                                               
could come forward if this program were expanded and needed?"                                                                   
                                                                                                                                
MS.  BARNES  answered that  is  correct:    AHFC would  have  the                                                               
authority to  pursue "the $250  million in authority"  should the                                                               
program  be  expanded  to  include  the  nonprofit  organizations                                                               
listed under HB  32.  She noted, however,  that historically AHFC                                                               
has  not gone  forward  with bonds  of that  size,  so "it  would                                                               
likely be smaller projects."                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND  moved to  report HB 32  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection, HB  32 was  reported out of  the House                                                               
Community and Regional Affairs Standing Committee.