02/05/1998 11:25 AM Senate RLS

                                                                               
                     SB 223 - SENIOR HOUSING                                   
                                                                               
CHAIRMAN KELLY called the Senate Rules Committee meeting to order              
at 11:25 a.m., and noted the presence of Senators Leman, Taylor and            
Kelly.                                                                         
                                                                               
CHAIRMAN KELLY brought SB 223 before the committee and directed                
attention to a proposed Rules committee substitute, which was                  
requested by Alaska Housing Finance Corporation (AHFC).                        
                                                                               
SENATOR TAYLOR moved adoption of CSSB 223(RLS).  Hearing no                    
objection, it was so ordered.                                                  
                                                                               
JOHN BITNEY, representing Alaska Housing Finance Corporation,                  
expressed appreciation for the Rules Committee consideration of the            
proposed committee substitute which will resolve a problem with                
their program.  The committee substitute adds in new sections 2 and            
3.                                                                             
                                                                               
Mr. Bitney explained the purpose of the legislation is to make some            
technical changes to their senior revolving loan fund that the                 
corporation uses to make loans for senior housing programs.  The               
program was originally set up under the Department of Community and            
Regional Affairs,  However, when the program was put under AHFC,               
the statutes were merged and there were some technical problems                
within that program because of the way the statutes were merged,               
and this resulted in AHFC not really being able to use it and offer            
competitive rates.                                                             
                                                                               
Mr. Bitney said since the merger AHFC has been making senior loans             
through their Special Needs Multi-Family Program, but they think it            
is much simpler to use the senior program for senior projects.  The            
amendment to SB 223 will make it one fund so that the process will             
be much simpler and clearer to both the bond holder and the person             
getting the loan.                                                              
                                                                               
CHAIRMAN KELLY noted Kay Murphy of AHFC was listening to the                   
meeting via teleconference from Anchorage, however, she had nothing            
to add to Mr. Bitney's testimony.  He then asked for a calendaring             
motion on SB 223.                                                              
                                                                               
SENATOR LEMAN moved and asked unanimous consent CSSB 223(RLS) be               
approved for calendaring at the discretion of the Chair.  Hearing              
no objection, it was so ordered.