03/08/2011 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

         HB  65-SENIOR CITIZEN HOUSING DEV. FUND GRANTS                                                                     
                                                                                                                              
3:36:18 PM                                                                                                                    
CHAIR OLSON announced the consideration of HB 65.                                                                               
                                                                                                                                
3:36:25 PM                                                                                                                    
REPRESENTATIVE BRYCE  EDGMON, sponsor  of HB  65, said  this bill                                                               
adds  the housing  authorities into  Title 18  [AS 18.55.996]  to                                                               
directly participate  in the Senior Citizens  Housing Development                                                               
Fund   (SCHDF)  grants   through  the   Alaska  Housing   Finance                                                               
Corporation (AHFC). This  grant has, in the  past, been available                                                               
to municipalities  and not-for-profit corporations. HB  65 speeds                                                               
up the ability  for AHFC to work with the  housing authorities to                                                               
build senior housing  units. He noted that the SCHDF  grant is in                                                               
the budget for $4.5  million. HB 65 passed the House  38 to 0 and                                                               
there was  no opposition to the  bill in the House  Community and                                                               
Regional  Affairs   Standing  Committee  or  the   House  Finance                                                               
Standing  Committee. The  bill  is also  supported  by AHFC,  the                                                               
housing  authorities, the  Alaska  Commission on  Aging, and  the                                                               
Association  of American  Retired Persons.  He added  that HB  65                                                               
comes with a zero fiscal note.                                                                                                  
                                                                                                                                
CHAIR OLSON  asked what the  housing authorities have  been doing                                                               
in the mean time in order to address the senior housing issue.                                                                  
                                                                                                                                
REPRESENTATIVE   EDGMON  answered   that   of   the  14   housing                                                               
authorities, seven have gone through  the process of forming not-                                                               
for-profit  corporations in  order  to participate  in this  loan                                                               
program. HB 65 allows these  additional seven housing authorities                                                               
to be  directly eligible for  the program.  He said, in  the mean                                                               
time, the  housing authorities have been  building senior housing                                                               
units using  a range of  funds, including the  Denali Commission,                                                               
the United States Department of  Agriculture, the Native American                                                               
Housing Assistance and the  Self-Determination Act (NAHASDA), and                                                               
others.  This bill  provides a  more direct  conduit between  the                                                               
housing authorities and the housing grant through AHFC.                                                                         
                                                                                                                                
CHAIR OLSON  asked what percentage  of the funding for  the grant                                                               
are state moneys and what percentage are federal moneys.                                                                        
                                                                                                                                
3:40:21 PM                                                                                                                    
ELAINE MELLO,  Recipient Project Manager, Alaska  Housing Finance                                                               
Corporation  (AHFC), replied  that this  depends on  the project.                                                               
She  explained  that  the  amount varies  depending  on  how  the                                                               
particular sponsor decides to structure the funding.                                                                            
                                                                                                                                
CHAIR OLSON  asked what  type of  inhibition caused  HB 65  to be                                                               
drawn up and put before the legislature.                                                                                        
                                                                                                                                
MS.  MELO replied  that AHFC  is  trying to  make it  as easy  as                                                               
possible  for  the regional  housing  authorities  to access  the                                                               
SCHDF. She explained  that in the past  these housing authorities                                                               
have been able  to do this through developing  either a 501(c)(3)                                                               
or 501(c)(4). This  can be a fairly long and  arduous process and                                                               
is an extra step to take in order to access this money.                                                                         
                                                                                                                                
3:42:58 PM                                                                                                                    
CHAIR OLSON announced he would hold HB 65 in committee.