Legislature(2007 - 2008)SENATE FINANCE 532
02/19/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB101 | |
| SB158 | |
| SB231 | |
| SB233 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 101 | TELECONFERENCED | |
| + | SB 158 | TELECONFERENCED | |
| + | SB 231 | TELECONFERENCED | |
| + | SB 233 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 233
"An Act relating to the teachers' and nurses' housing
loan program in the Alaska Housing Finance Corporation;
and providing for an effective date."
Co-Chair Stedman reported that the bill is sponsored by the
Governor and is before the committee for the first time. SB
233 repeals the sunset provision of the teachers' and
nurses' housing loan program and expands the program to
include all health care professionals.
10:18:50 AM
BRYAN BUTCHER, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE, explained how the
program was initially established when SB 25 was passed five
years ago. It was discovered that one of the problems with
being able to recruit and retain teachers and registered
nurses was finding housing. The idea behind this
legislation was to allow 100 percent financing with no down
payment so that entry level teachers and nurses could become
homeowners. The largest obstacle to homeownership is the
availability of cash for a down payment.
Mr. Butcher explained that since 2003 there have been 373
teachers and nurses who have taken advantage of this
program, with only one foreclosure. The program has been
very successful.
The bill eliminates the sunset date and expands the bill
beyond registered nurses to other health care workers. It
will have no additional cost to AHFC.
10:21:41 AM
Co-Chair Stedman asked for more information on the expansion
of health care professionals. Mr. Butcher reported that it
was difficult to list all occupations without leaving out
some, so language from another program was used: "Any person
who is licensed or board certified by the state of Alaska in
a health profession, holds a state certification in a health
occupation, or is an administrator of a hospital or clinic,
or employed as an aide, attendant, assistant, counselor, or
technician in a health field." Anyone in the program would
have to go through the mortgage criteria process.
10:23:19 AM
DAN FAUSKE, CEO/EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE, added that the bill is
for people who don't have money; those who do have money
don't go for AHFC loans. The program is geared for those
coming out of college and just getting started on their
careers. Alaska is ahead of the trend in attracting these
professions to the state. The risks to AHFC are minimal,
and the benefits are great. The legislation is
accomplishing what it was intended to do. Mr. Fauske wished
to see it continue.
10:25:40 AM
Senator Olson noted the impressive record of only one
foreclosure out of all the loans. He asked about including
Public Safety personnel, in particular, Village Public
Safety Officers. Mr. Butcher said they are already included
in the rural program. He said the issue with adding more
professions to the bill involves rating agencies on Wall
Street believing that to be risky. They were opposed at
first to the additional risk of adding health care
professionals. Adding other occupations may be possible in
the future.
Mr. Fauske thought the other program addressed the public
safety personnel well.
Senator Huggins asked why Anchorage was not on the
"Cumulative Purchases for Teacher/Nurse Option by Location"
list. Mr. Butcher said it was, and the correct document was
located. Senator Huggins thought there was a rapid turnover
rate in teaching and wondered if a new teacher could assume
the loan of a leaving teacher. Mr. Butcher said it could be
sold to someone who also qualified for the loan. Senator
Huggins looked at Wasilla where 19 people had taken
advantage of the loan. He wondered how many had left since
taking the loan. Mr. Butcher replied that it is difficult
to track that information. Senator Huggins compared it to a
"403 B of housing".
10:30:57 AM
Co-Chair Stedman asked if the residence has to be a primary
residence. Mr. Butcher said yes. It can not be used for an
investment property.
PAUL KAPANSKI, DIRECTOR, MORTGAGE OPERATIONS, ALASKA HOUSING
FINANCE CORPORATION, DEPARTMENT OF REVENUE, explained how it
would work if someone moved from the state after four years
and continued to make the mortgage payment. He explained
that it would be difficult to track that information. A
different insurance binder could be one way of knowing an
individual has moved. He was not certain of the process
beyond that.
SB 158 was heard and HELD in Committee for further
consideration.
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