Legislature(2023 - 2024)BARNES 124
05/01/2024 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s):|| Regulatory Commission of Alaska|| Occupational Safety and Health Review Board|| Alaska State Board of Public Accountancy|| State Board of Registration for Architects, Engineers, and Land Surveyors|| Board of Barbers and Hairdressers|| Alaska Labor Relations Agency|| Board of Certified Real Estate Appraisers|| Workers' Compensation Appeals Commission|| Alaska Workers' Compensation Board|| Board of Pharmacy | |
| HB360 | |
| SB239 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 360 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | SB 239 | TELECONFERENCED | |
| *+ | HJR 27 | TELECONFERENCED | |
SB 239-AIDEA WORKFORCE HOUSING DEVELOPMENT
5:44:47 PM
CHAIR SUMNER announced that the final order of business would be
SENATE BILL NO. 239, "An Act relating to the Alaska Industrial
Development and Export Authority; and relating to workforce
housing development projects."
5:45:09 PM
JAMES HOLZENBERG, Staff, Senator Forrest Dunbar, Alaska State
Legislature, on behalf of Senator Dunbar, prime sponsor, read
the sponsor statement for SB 239 [included in committee packet],
which read as follows [original punctuation provided]:
Alaska is experiencing a housing crisis. Our state's
housing stock is overcrowded, dilapidated, and energy
inefficient. There has been an ongoing, unprecedented
exodus of working-age people that has severely limited
our economy's recovery after the COVID-19 pandemic.
Alaska needs to use every tool at its disposal to help
grow our workforce and give our most talented and
experienced people a reason to stay in-state to work
and raise a family. The Alaska Industrial Development
and Export Authority happens to be well-positioned to
use their loan program to fund the construction of
workforce housing to help alleviate the housing
crisis.
SB 239 adds a new objective to AIDEA's mission
statement, allowing the corporation to use their loan
program for the construction of new workforce housing
facilities containing five or more dwelling units. The
legislation adds a definition of "workforce housing"
based on the Department of Housing and Urban
Development's working definition, which calculates
affordability based on the average median income of an
area.
SB 239 is a concrete step we can take to address our
housing shortage. With Alaska facing workforce
development challenges and recruitment and retention
issues across every sector, we can no longer afford
inaction on this issue. I urge your support for SB 239
so we can begin developing new housing options to
incentivize people to stay and work in Alaska, in line
with AIDEA's mission.
5:47:51 PM
REPRESENTATIVE FIELDS offered his understanding that the Alaska
Industrial Development and Export Authority (AIDEA) is allowed
to make housing. Asked what the difference is.
5:48:26 PM
MARK DAVIS, Special Counsel, Alaska Industrial Development and
Export Authority, Department of Commerce, Community & Economic
Development (DCCED), answered that AIDEA can give commercial
real estate, which should encompass apartments; however, there
is no express statement to that effect in statute. The proposed
bill would be useful to AIDEA because it would provide "direct
legal authorization for this type of activity."
5:49:09 PM
REPRESENTATIVE PRAX asked someone to elaborate why AIDEA, which
is involved in industry, is involved, when the Alaska Housing
Finance Corporation (AHFC) addresses housing.
MR. DAVIS explained that while AHFC focuses on low-income
housing and Section 8 HUD housing and what AIDEA does is
industrial, AIDEA also does commercial real estate. In response
to a follow-up question, he said AIDEA does not compete against
banks; institutions must bring in the loan while AIDEA makes up
the rest of the loan.
5:52:18 PM
REPRESENTATIVE FIELDS highlighted the struggle to find housing
at Greens Creek. He relayed the definition of workforce housing
in Section 5 and expressed concern that it would significantly
constrain workforce housing. He asked whether Alaska Industrial
Development and Export Authority or the bill sponsor would be
open to changing the definition to include anything beyond low-
income housing.
5:54:01 PM
BRANDON BREFCZYNSKI, Deputy Director, Alaska Industrial
Development and Export Authority, said more flexibility would
expand AIDEA's ability to take advantage of this authority.
5:54:45 PM
REPRESENTATIVE PRAX shared his understanding that AHFC already
has a loan program for residential housing.
MR. DAVIS confirmed that AHFC offers mortgages for first time
home buyers; however, the bill is focused on workforce
development housing where workers have too high of an income to
qualify for federal programs, but not enough income to afford
housing. These housing projects are designed to fill the gap,
he said.
REPRESENTATIVE PRAX asked whether a federal program is available
for workforce development housing specifically.
MR. DAVIS said he is unaware of a federal program that would
cover this, but several states have programs that use these
federal guidelines as qualifications to work with their economic
development authority, like AIDEA, to work on private sector
solutions for this type of housing.
5:57:39 PM
CHAIR SUMNER announced that SB 239 would be held over.