05/08/1998 01:35 PM Senate CRA

          CSHB 230(FIN) - AHFC HOUSING FUNDS & PROGRAMS                        
                                                                               
CHAIRMAN MACKIE brought CSHB 230(FIN) before the committee as the              
first order of business.                                                       
                                                                               
TOM WRIGHT, staff to Representative Ivan Ivan who is the prime                 
sponsor of HB 230, said the bill is very simple; it changes the                
population caps in Alaska Housing Finance Corporation's (AHFC)                 
rural home loan program.  For those communities that are connected             
by road or rail to Anchorage or Fairbanks it changes the cap from              
1,400 to 1,600, and it changes the cap for those communities not               
connected by road or rail to Anchorage or Fairbanks from 5,500 to              
6,500.  He said Haines has exceeded the 1,400 cap and Bethel is                
rapidly approaching the 5,500 cap.                                             
                                                                               
Number 025                                                                     
                                                                               
SENATOR DONLEY asked what the difference was between the rural home            
program and the AHFC's regular home loan program.  TOM WRIGHT                  
replied that the rural loan program relates to the rural areas                 
where there is not necessarily title to land or conveyance of land;            
peculiarities out in the rural areas that are not found in the                 
urban areas.  He also thinks the interest is one percent less than             
the normal home loan program.  However, he pointed out that there              
is no veterans' home loan program or first-time home buyers program            
in the rural home loan program as found in the urban loan program.             
                                                                               
SENATOR DONLEY expressed his concern that this program gives a                 
special subsidy just because people live in a small community                  
versus living in a big community.                                              
                                                                               
Number 083                                                                     
                                                                               
CHAIRMAN MACKIE commented that the bill is only making a minor                 
change to the program which is changing the caps.                              
                                                                               
Number 087                                                                     
                                                                               
SENATOR WILKEN moved that CSHB 230(FIN) be passed out of committee             
with individual recommendations.  Hearing no objection, it was so              
ordered.