Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/11/2024 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SCR3 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SCR 3 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SCR 3-HOUSING SHORTAGE;PUBLIC-PRIV. PARTNERSHIP
3:33:16 PM
CHAIR KAWASAKI announced the consideration of SENATE CONCURRENT
RESOLUTION NO. 3 Recognizing the shortage of affordable housing
available in the state; supporting public- private partnerships
that maximize the impact of public funding; and urging the state
to support Housing Alaskans.
3:34:00 PM
ARIELLE WIGGIN, Staff, Senator Forrest Dunbar, Alaska State
Legislature, Juneau, Alaska, presented the sponsor statement for
SCR 3 on behalf of the sponsor:
[Original punctuation provided.]
SENATE CONCURRENT RESOLUTION 3
Senate Concurrent Resolution 3 addresses the lack of
affordable housing in Alaska, one of the most urgent
needs facing our state.
This resolution calls for the Alaska State Legislature
to officially recognize the affordable housing crisis
and advocates for the support of public-private
partnerships such as Housing Alaskans. These
partnerships aim to leverage state, federal, and
municipal resources with individual donations to
increase the supply of affordable housing across the
state.
Alaska faces a critical shortage of affordable
housing, affecting the economic stability of low and
middle-income families, leading to overcrowding, and
putting additional stress on finances. Lack of housing
negatively impacts our state's ability to attract and
retain a skilled workforce, which in turn, affects the
state's ability to retain young families and plan for
the future. We urgently need to increase the housing
supply and ensure the preservation of the existing
housing stock, much of which is over 40 years old.
I urge your support for Senate Concurrent Resolution
3.
3:34:56 PM
CHAIR KAWASAKI announced invited testimony for SCR 3. He
introduced Michele Brown, Program Manager for Housing Alaskans
Public Private Partnership (HAPPP), highlighting her extensive
background in public service and contributions to housing and
homelessness initiatives in Alaska.
[Key points from the introduction below.]
• Previous Positions:
o President and CEO of the United Way of Anchorage for
17 years.
o Senior Fellow for Housing and Homelessness at the
Rasmussen Foundation.
o Commissioner, Alaska Department of Environmental
Conservation (19962002).
o Manager of U.S. Government environmental aid
assistance in Russia through USAID.
o Assistant Attorney General at Alaska's Department of
Law.
o Law Clerk at the Alaska and California Supreme Courts.
• Accomplishments:
o Led efforts at Rasmussen Foundation to build public-
private partnerships that added hundreds of housing
units and established Alaska's first complex care
shelter for people experiencing homelessness.
o Recipient of numerous awards, including the U.S.
Department of Housing and Urban Development National
Award, Alaska Woman of Achievement, UA Meritorious
Service Award, Shining Lights Award, and induction
into the Anchorage Athena Society.
• Education:
o Bachelor's degree in philosophy from the University of
California, Berkeley.
o Juris Doctor (JD) from the University of California,
Davis.
3:35:50 PM
SENATOR WIELECHOWSKI joined the meeting.
3:36:33 PM
MICHELE BROWN, Program Manager, Housing Alaskans Public Private
Partnership (HAPPP), Anchorage, Alaska, provided an in-depth
overview of Alaska's housing challenges and the work of the
Housing Alaskans Public-Private Partnership to address them. She
highlighted the pervasive housing shortage and its far-reaching
economic impacts, noting that rising costs have outpaced wage
growth, making housing unaffordable for many workers in critical
sectors like healthcare, education, and food services. This
shortage is a key reason businesses struggle to grow, further
inhibiting economic development. Housing production has declined
significantly since its peak in the 1980s, and the lack of new
construction, coupled with aging housing stock, has led to
overcrowding and one of the nation's highest rates of
homelessness. Alaska requires at least 27,500 new or
rehabilitated housing units over the next decade to address
these issues. To tackle these challenges, Housing Alaskans
employs creative financing tools inspired by national best
practices. She explained the adoption of a housing trust model,
which combines public and private funds to accelerate housing
development. The organization has taken a unique approach by
focusing on "shovel-ready" projects that are nearly fully funded
but require final-stage financing. Using $750,000 of an initial
$1 million fund, Housing Alaskans supported projects in six
communities, enabling the construction of 84 new housing units
that otherwise would not have been completed. The model aims to
accelerate housing development by leveraging both public and
private funds.
3:39:48 PM
MS. BROWN noted that while the state has lacked a statewide
Housing Trust, Housing Alaskans seeks to fill this gap by
pulling together resources from various sources to help fund
housing projects more effectively. Current housing development
often happens on a project-by-project basis, with each project
needing to secure loan or grant dollars, which can be a decades-
long process, especially when building a capital stack. With
initial funding of approximately $1 million, Housing Alaskans
decided to take a different approach than traditional funding
providers. Rather than setting requirements and waiting for
applications, the organization sought out shovel-ready projects
those that already had 95 percent of their capital stack secured
but lacked the final top-off funding to move forward. In a
three-week grant cycle, the organization reviewed many such
projects, which had already secured funding from five to 20
sources, including public funds that had been sitting unused for
several years. The organization provided small top-off grants of
$100,000 to $150,000 in the six communities to help close the
gap and enable these projects to proceed. This funding resulted
in the creation of 84 new housing units. She highlighted that
while these units could not have been built without the full
capital stack, the small grant from Housing Alaskans helped to
overcome the final barrier. This approach, she said, accelerates
housing development by unlocking funds that are already
available in the community but not being fully utilized.
3:42:48 PM
MS. BROWN described the second line of work Alaska Housing does
in assisting communities with developing comprehensive,
community-driven housing action plans. Rather than having
communities apply for grants or programs on an ad-hoc basis, the
organization collaborates with them to design tailored plans
addressing their specific housing and infrastructure needs to
ensure affordability. She highlighted ongoing work with Kodiak
and Sitka and expressed hope to expand this approach to
additional communities. Although Alaska Housing has newly
entered the market, it aims to complement and leverage existing
housing programs, which often operate in a fragmented manner, to
create a more coordinated and impactful response to housing
challenges. The organization's flexible and responsive funding
model allows it to adapt quickly to emerging needs and invited
input from the committee to enhance its efforts. She welcomed
input from the committee and expressed her appreciation for
their interest in addressing Alaska's housing crisis.
3:44:11 PM
CHAIR KAWASAKI inquired about the estimate of 27,500 housing
units needed in Alaska over the next decade. He expressed
skepticism, noting recent discussions about out-migration of
Alaskans and inquired whether this need accounts for population
growth within the state, migration from other areas, or a
combination of factors. He sought clarification on how these
trends influence the housing demand projections.
3:44:46 PM
MS. BROWN clarified that the estimate of 27,500 housing units
needed over the next decade includes both new construction and
rehabilitated units, each accounting for roughly half of the
total. She acknowledged the current out-migration trend but
explained that Alaska's changing demographics, particularly the
increase in single-person households, have sustained the demand
for housing units despite population shifts. She noted that
individuals leaving the state are often higher-income earners
who can afford to relocate, leaving behind housing that is not
affordable for the majority of Alaska's workforce. She offered
to provide further information on these projections to address
any additional questions.
3:45:43 PM
CHAIR KAWASAKI inquired about the geographic focus of housing
investments, referencing new housing developments in areas like
Nikolai and Sitka. He asked whether most of these investments
are directed toward growth cities or regions experiencing
population increases. Additionally, he sought clarification on
how these efforts address housing needs in more isolated or off-
road communities with limited job opportunities and economic
security.
3:46:14 PM
MS. BROWN explained that the organization focuses on housing
needs statewide and has made efforts to support smaller
communities. She highlighted that the six grants issued included
projects in Soldotna, Nikolai, Nome, Sitka, Wasilla, and one
additional community. While Wasilla is somewhat larger, the
grants primarily targeted smaller or more rural areas. She
emphasized that housing challenges are pervasive across the
state, and the organization is eager to fund projects wherever
there is demonstrated need.
3:47:04 PM
CHAIR KAWASAKI closed invited testimony on SCR 3.
3:48:07 PM
At ease
3:48:16 PM
CHAIR KAWASAKI reconvened the meeting and opened public
testimony on SCR 3.
3:48:47 PM
TIMOTHY BEERS, representing self, Anchorage, Alaska, testified
in support of SCR 3. He shared that he traveled to Juneau to
advocate for a homeless bill of rights, emphasizing the severe
housing crisis in Anchorage, Alaska, and across the country,
particularly in the aftermath of the pandemic. Many individuals
who were unable to pay rent during the pandemic have since been
evicted, contributing to a growing homeless population. He
highlighted misconceptions about homelessness, pointing out that
not all homeless individuals struggle with addiction or other
stigmatized issues, citing the example of Lahaina residents who
became homeless after last year's devastating fire. He proposed
revisiting the idea of a state lottery as a potential way to
generate funds to address homelessness in Alaska. Drawing on his
experience as a municipal court clerk in California during the
1980s, he described how the California Lottery was implemented
to support the education system despite initial opposition from
the governor. He suggested that a similar approach in Alaska
could help fund shelters and housing for low-income residents.
He acknowledged that Alaska currently has a lottery and
mentioned potential conflicts with joining national lotteries
like Powerball or Mega Millions but urged consideration of the
idea to help alleviate the crisis.
3:51:57 PM
CHAIR KAWASAKI closed public testimony on SCR 3.
3:52:16 PM
SENATOR MERRICK noted for the record that Housing Alaskans has
received a $6 million appropriation in the Alaska capital
budget.
[CHAIR KAWASAKI held SCR 3 in committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| Senate Concurrent Resolution 3.pdf |
SSTA 4/11/2024 3:30:00 PM |
SCR 3 |
| SCR 3 Sponsor Statement.pdf |
SSTA 4/11/2024 3:30:00 PM |
SCR 3 |
| SCR3-LEG-SESS-04-11-24.pdf |
SSTA 4/11/2024 3:30:00 PM |
SCR 3 |
| 2024 HAPPP One-Pager.pdf |
SSTA 4/11/2024 3:30:00 PM |
SCR 3 |
| HAPPP Board of Directors List.pdf |
SSTA 4/11/2024 3:30:00 PM |
SCR 3 |