Legislature(2025 - 2026)BARNES 124
05/18/2025 09:00 AM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB184 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 184 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 184-AIDEA FINANCE WORKFORCE HOUSING DEVELOP.
10:20:41 AM
CO-CHAIR HALL announced that the only order of business would be
HOUSE BILL NO. 184, "An Act relating to the Alaska Industrial
Development and Export Authority; and relating to workforce
housing development projects." [Before the committee was CSHB
184(CRA).]
10:21:02 AM
REPRESENTATIVE ANDI STORY, Alaska State Legislature, as prime
sponsor gave closing remarks on HB 184. She stated that there
is a housing crisis in Alaska, and offered her belief that
providing clarity for the Alaska Industrial Development and
Export Authority (AIDEA) with regards to financing loans for the
construction of housing of a quantity of five units or more
would make more housing available in the state.
10:22:00 AM
REPRESENTATIVE SADDLER stated that the Alaska Housing Finance
Corporation (AHFC) has conducted a lot of good work on housing.
He offered his hope that, as the bill progresses, AHFC and AIDEA
would work collaboratively.
10:22:38 AM
REPRESENTATIVE COULOMBE asked if there was a concern about
competition between banks and AIDEA.
REPRESENTATIVE STORY responded that banks have stayed neutral on
the proposed legislation but deferred to Mr. Davis.
10:23:23 AM
MARK DAVIS, Special Counsel, Alaska Industrial Development and
Export Authority, replied that AIDEA does not have a policy to
compete with banks. He further responded to Representative
Saddler's question, stating that workforce development through
AIDEA would often involve the use of bonds.
REPRESENTATIVE COULOMBE offered her understanding that AIDEA's
interest rates were lower than commercial bank loans.
MR. DAVIS responded that loan participation rate is set by the
Federal Home Loan Bank which could, at times, be less than the
bank rate. He stated that the loan rate is often not as
important as the terminal loan. He explained the difference
between a loan participation loan and a conventional loan is
typically the loan term. He stated that a bank will typically
not approve a loan beyond 10 years, while AIDEA can approve
loans up to 25 years.
REPRESENTATIVE COULOMBE noted that during prior hearings, it was
stated that AIDEA could already do what CSHB 184(CRA) was
proposing.
MR. DAVIS responded that AIDEA has financed in Prudhoe Bay
previously and has entertained workforce development
applications previously. He said those have not come to
fruition.
10:27:49 AM
CO-CHAIR FIELDS stated his assumption that under CSHB 184(CRA),
AIDEA could invest in workforce housing that is not for a
specific company. He mentioned that Mike Robbins, with the
Anchorage Community Development Authority (ACDA), talked about
potential collaboration with downtown development projects.
MR. DAVIS confirmed that there are discussions taking place.
10:28:24 AM
REPRESENTATIVE SADDLER asked who owns the building after
completion of projects and who is responsible for maintenance
costs.
MR. DAVIS said AIDEA would work with private developers. He
offered further details. In response to a follow-up question,
he said AIDEA does not address teacher housing; it focuses on
the workforce in the private sector.
10:31:12 AM
REPRESENTATIVE COULOMBE asked whether AIDEA's involvement helps
to reduce the cost of housing.
MR. DAVIS answered that it might. He said that is why he
mentioned the use of tax-exempt bonds, a tool that AIDEA can
use. If a project is in the public interest, certain types of
bonds have tax incentive financing that lowers the cost of
construction.
10:32:15 AM
CO-CHAIR FIELDS moved to report CSHB 184(CRA) out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, CSHB 184(CRA) was reported out
of the House Labor and Commerce Standing Committee.
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