03/13/2008 01:30 PM House FINANCE

HOUSE BILL NO. 324                                                                                                            
                                                                                                                                
     An Act relating to the Alaska housing trust fund and to                                                                    
     the Alaska Council on the Homeless; and providing for                                                                      
     an effective date.                                                                                                         
                                                                                                                                
DAN FAUSKE,  CEO/EXECUTIVE DIRECTOR,  ALASKA HOUSING  FINANCE                                                                   
CORPORATION, DEPARTMENT  OF REVENUE AND CHAIRMAN,  GOVERNOR'S                                                                   
COUNCIL ON THE  HOMELESS, explained that HB  324 would create                                                                   
a  housing  trust  fund within  the  Alaska  Housing  Finance                                                                   
Corporation to address homelessness  in Alaska and codify the                                                                   
role  of the  Governor's  Council  on  the Homeless.  He  has                                                                   
learned a great deal regarding  the issue of homelessness and                                                                   
the costs  associated. Society  is paying  a heavy  price for                                                                   
homelessness; incarceration is more expensive than housing.                                                                     
                                                                                                                                
3:19:44 PM                                                                                                                    
                                                                                                                                
JEFF JESSE,  EXECUTIVE DIRECTOR,  ALASKA MENTAL HEALTH  TRUST                                                                   
AUTHORITY, reviewed a few points regarding homelessness:                                                                        
                                                                                                                                
    · 45% of the homeless in Alaska are families with                                                                           
      children.                                                                                                                 
    · The average age is nine years.                                                                                            
    · The price paid for homelessness includes poor                                                                             
      performance in school, emergency room visits, and                                                                         
      criminal justice system involvement.                                                                                      
                                                                                                                                
Mr. Jesse emphasized  that the most important  feature of the                                                                   
housing trust is the linking of  support services to housing.                                                                   
Over 30 states  have developed housing trusts  with excellent                                                                   
results.                                                                                                                        
                                                                                                                                
3:22:47 PM                                                                                                                    
                                                                                                                                
BRYAN  BUTCHER,  PUBLIC  AFFAIRS   DIRECTOR,  ALASKA  HOUSING                                                                   
FINANCE CORPORATION pointed out a change in a fiscal note.                                                                      
                                                                                                                                
Co-Chair Meyer asked if the appropriations  were for one year                                                                   
or five years.  Mr. Butcher said one year,  for projects with                                                                   
a  five-year cycle.  Mr.  Jesse  restated the  importance  of                                                                   
combining  support services  with housing.  Out of the  first                                                                   
year's  appropriation of  ten  million dollars,  some of  the                                                                   
resources  would  be  obligated  for  five to  ten  years  of                                                                   
support  service  funding.  Otherwise,   non-profit  partners                                                                   
would not participate in developing the services.                                                                               
                                                                                                                                
3:25:33 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  wanted  clarification  regarding  the                                                                   
one-time $10 million appropriation.  He thought the testimony                                                                   
earlier in  the session indicated  a sequence of  $10 million                                                                   
appropriations  for  ten years.  Mr.  Jesse  agreed that  the                                                                   
intent  was  for the  appropriation  to  be annual.  The  $10                                                                   
million on the  table is for the first year,  but the process                                                                   
is on-going.  He thought $15 million  per year for  ten years                                                                   
would better address the current homeless problem.                                                                              
                                                                                                                                
Mr. Fauske added that he is convinced  there is a problem. He                                                                   
thought the problem  would grow worse as the  cost of heating                                                                   
oil rose. He agreed with Mr. Jesse  that the problem will not                                                                   
be solved with  a one-time $10 million appropriation,  but it                                                                   
would start the trust.                                                                                                          
                                                                                                                                
3:29:45 PM                                                                                                                    
                                                                                                                                
Representative  Gara asked  for more  information. Mr.  Jesse                                                                   
said the  trust was not being  set up on an  endowment model.                                                                   
Mr. Fauske said  there was currently a $10  million line item                                                                   
in the  capital budget. Mr.  Butcher clarified that  the item                                                                   
is in  the mental  health bill  which is  within the  capital                                                                   
budget.  Mr. Jesse  said  there  were roughly  3500  homeless                                                                   
people  statewide  on  any  given   night  and  outlined  the                                                                   
strategic plan.                                                                                                                 
                                                                                                                                
3:34:45 PM                                                                                                                    
                                                                                                                                
Mr. Fauske  said there  has been  $2 million  in the  capital                                                                   
budget for homelessness  for many years. He  pointed out that                                                                   
most people  coming out of jail  don't have a place  to stay.                                                                   
He would like better coordination to address the issues.                                                                        
                                                                                                                                
Representative Crawford asked  for more information on how to                                                                   
identify  homeless people  and give  them a  hand. Mr.  Jesse                                                                   
described the  process of setting  up housing units  and then                                                                   
providing  case  management  to  help  people  solve  a  wide                                                                   
variety of  problems that  contribute to their  homelessness.                                                                   
He gave  examples  of skills that  people need  to learn.  He                                                                   
described  how  the  Gates  Foundation  approached  assisting                                                                   
homeless families.                                                                                                              
                                                                                                                                
3:41:11 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
HB  324  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.