05/01/2025 09:00 AM Senate FINANCE

SENATE BILL NO. 14                                                                                                            
                                                                                                                                
     "An Act  relating to the Alaska  Industrial Development                                                                    
     and  Export   Authority;  and  relating   to  workforce                                                                    
     housing development projects."                                                                                             
                                                                                                                                
9:16:41 AM                                                                                                                    
                                                                                                                                
SENATOR    FORREST   DUNBAR,    SPONSOR,   introduced    the                                                                    
legislation.                                                                                                                    
                                                                                                                                
9:19:34 AM                                                                                                                    
                                                                                                                                
Senator  Kiehl  wondered how  the  bill  would guide  Alaska                                                                    
Industrial  Development   and  Export   Authority's  (AIDEA)                                                                    
participation.                                                                                                                  
                                                                                                                                
Senator Dunbar  replied that there would  be private sectors                                                                    
involved,  but  there would  be  flexibility  to decide  the                                                                    
various means of financing.                                                                                                     
                                                                                                                                
Senator   Kiehl   stated   that  he   would   have   further                                                                    
conversations with the sponsor about the financing.                                                                             
                                                                                                                                
9:21:48 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman asked whether  the bill would inadvertently                                                                    
put the state  in a mortgage business with  the inclusion of                                                                    
AIDEA in the bill.                                                                                                              
                                                                                                                                
Senator Dunbar replied that it  was difficult to get private                                                                    
sector  financing for  multi-family housing  construction in                                                                    
the state.                                                                                                                      
                                                                                                                                
9:25:04 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman stressed that  the issue was about suitable                                                                    
lenders. He felt  that the state might  undercut the private                                                                    
marketplace.  He  felt  that there  was  already  a  housing                                                                    
mechanism in  the state through  the Alaska  Housing Finance                                                                    
Corporation (AHFC).                                                                                                             
                                                                                                                                
Senator  Dunbar   replied  that  the  idea   was  originally                                                                    
proposed by  a private sector  developer, in which  could be                                                                    
provided by AIDEA.                                                                                                              
                                                                                                                                
Co-Chair  Stedman  felt  that  AHFC  had  various  means  of                                                                    
financing.                                                                                                                      
                                                                                                                                
9:30:34 AM                                                                                                                    
                                                                                                                                
MICHELE  BROWN, PROGRAM  DIRECTOR,  HOUSING ALASKANS  PUBLIC                                                                    
PRIVATE PARTNERSHIP,  ANCHORAGE (via  teleconference), spoke                                                                    
in support of the bill.                                                                                                         
                                                                                                                                
9:34:39 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:35:03 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:35:58 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman OPENED public testimony.                                                                                       
                                                                                                                                
9:36:19 AM                                                                                                                    
                                                                                                                                
NITHYA  THIRU,  HOUSING  ORGANIZER, ALASKA  PUBLIC  INTEREST                                                                    
RESEARCH  GROUP, ANCHORAGE  (via  teleconference), spoke  in                                                                    
support of the bill.                                                                                                            
                                                                                                                                
9:38:27 AM                                                                                                                    
                                                                                                                                
JASON   NORRIS,   SELF,  ANCHORAGE   (via   teleconference),                                                                    
testified in support of the legislation.                                                                                        
                                                                                                                                
Co-Chair Stedman wanted to hear from AIDEA.                                                                                     
                                                                                                                                
Co-Chair Hoffman CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair   Stedman  wanted   to  know   about  the   housing                                                                    
development in  commercial areas, and  AIDEA's participation                                                                    
in those projects.                                                                                                              
                                                                                                                                
9:41:56 AM                                                                                                                    
                                                                                                                                
MARK DAVIS,  SPECIAL COUNSEL, ALASKA  INDUSTRIAL DEVELOPMENT                                                                    
AND  EXPORT   AUTHORITY,  ANCHORAGE   (via  teleconference),                                                                    
replied  that AIDEA  had the  ability to  work on  workforce                                                                    
housing  with  various  programs,  and  currently  used  the                                                                    
programs for  housing on shipyards.  He stressed  that AIDEA                                                                    
did  not  make  many  direct  loans, so  it  was  usually  a                                                                    
collaborative process with other funding sources.                                                                               
                                                                                                                                
9:43:47 AM                                                                                                                    
                                                                                                                                
BRANDON  BREFCZYNSKI,  DEPUTY  DIRECTOR,  ALASKA  INDUSTRIAL                                                                    
DEVELOPMENT   AND    EXPORT   AUTHORITY,    ANCHORAGE   (via                                                                    
teleconference),  echoed  Mr.  Davis's comments.  He  stated                                                                    
that  the loan  participation  programs was  one of  AIDEA's                                                                    
most successful programs.                                                                                                       
                                                                                                                                
9:45:32 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  stressed that  he was  aware of  a housing                                                                    
need in  his district, and cautioned  AIDEA about converting                                                                    
a  fabrication  facility  into housing.  He  encouraged  the                                                                    
examination of offsite housing.                                                                                                 
                                                                                                                                
Senator Kiehl reviewed the fiscal note.                                                                                         
                                                                                                                                
SB 14 was HEARD and HELD in committee for further                                                                               
consideration.