05/13/2024 10:00 AM House FINANCE

SENATE BILL NO. 205 am                                                                                                        
                                                                                                                                
     "An   Act  authorizing   the   Alaska  Housing   Finance                                                                   
     Corporation  to acquire or  purchase a building  that it                                                                   
     occupies   for   an   amount  that   does   not   exceed                                                                   
     $8,000,000; and providing for an effective date."                                                                          
                                                                                                                                
10:18:46 AM                                                                                                                   
                                                                                                                                
SENATOR  JAMES  KAUFMAN,  SPONSOR,   reviewed  the  bill.  He                                                                   
explained  that   the  Alaska  Housing   Finance  Corporation                                                                   
(AHFC)  owned  and operated  more  than  1,600 units  of  low                                                                   
income public  housing in  communities throughout  the State.                                                                   
For many years,  Anchorage maintenance personnel  have relied                                                                   
on  shipping containers  at key  housing  properties to  meet                                                                   
storage  needs for  operations.  In the  last several  years,                                                                   
these   containers  have   become   attractive  targets   for                                                                   
vandalism, break-ins,  and theft of equipment  and materials.                                                                   
The  corporation   had  identified  a  maintenance   facility                                                                   
warehouse  to purchase in  East Anchorage  to meets  its need                                                                   
into  the  future.  The building  was  discovered  through  a                                                                   
competitive  RFP process  and  the purchase  and  maintenance                                                                   
costs  would be  paid  for via  federal  funds. The  purchase                                                                   
price was  not to  exceed $8 million.  Ownership would  allow                                                                   
AHFC  to better  provide warehouse  space  for equipment  and                                                                   
materials  storage, effectively  stage materials,  and deploy                                                                   
employees  and equipment  to  service  properties around  the                                                                   
state.  Pursuant to  statutory  requirement, the  legislative                                                                   
branch  must   authorize  any  property  purchase   by  AHFC.                                                                   
However,  the  AHFC  retained   the  ability  to  reject  the                                                                   
purchase if the negations became unfavorable.                                                                                   
                                                                                                                                
EMMA TORKELSON,  STAFF, SENATOR  JAMES KAUFMAN,  reviewed the                                                                   
sectional analysis (copy on file).                                                                                              
                                                                                                                                
     Section  1.   Authorizes  the  Alaska   Housing  Finance                                                                   
     Corporation  to  purchase  the building  at  700  Bragaw                                                                   
     Street  in  Anchorage,  Alaska  for  an  amount  not  to                                                                   
     exceed $8 million.                                                                                                         
                                                                                                                                
     Section 2. Sets an immediate effective date.                                                                               
                                                                                                                                
STACY  BARNES,  DIRECTOR,  GOVERNMENT  RELATIONS  AND  PUBLIC                                                                   
AFFAIRS,  ALASKA  HOUSING FINANCE  CORPORATION,  thanked  the                                                                   
committee.  She relayed  that  there was  a  large volume  of                                                                   
information  regarding  the  building  in  Anchorage  in  the                                                                   
members'  bill  packets.  She emphasized  that  the  building                                                                   
would enhance  AHFC's ability  to maintain its  housing stock                                                                   
across  the state  and  would "be  a  terrific benefit."  The                                                                   
corporation would  purchase the facility using  federal funds                                                                   
that  were  already  obtained   and  was  authorized  by  the                                                                   
federal government  for the use  of purchasing  the building.                                                                   
She  reviewed the  new Department  of  Revenue fiscal  impact                                                                   
note dated May  9, 2024. She explained that  AHFC requested a                                                                   
federally funded  operating increment of $200  thousand in FY                                                                   
2025.  The increment  covers the  ongoing operating  expenses                                                                   
of the facility  and includes utilities,  property insurance,                                                                   
and other  maintenance costs.  In addition, AHFC  requested a                                                                   
one-time $8  million federal  capital  appropriation for  the                                                                 
purpose of purchasing a multipurpose/maintenance facility.                                                                      
                                                                                                                                
Co-Chair Foster OPENED public testimony.                                                                                        
                                                                                                                                
Co-Chair Foster CLOSED public testimony.                                                                                        
                                                                                                                                
10:24:45 AM                                                                                                                   
                                                                                                                                
Representative Galvin  thanked AHFC. She understood  that the                                                                   
$8  million  could  only  be used  for  the  facility  versus                                                                   
building  more housing.  She believed  that the facility  was                                                                   
important  for the  maintenance  of AHFC's  existing  housing                                                                   
stock.                                                                                                                          
                                                                                                                                
Representative Coulombe  asked where the  maintenance funding                                                                   
would  come from.  Ms.  Barnes replied  that  it was  federal                                                                   
funding.                                                                                                                        
                                                                                                                                
Co-Chair Edgmon  MOVED to REPORT  SB 205 am out  of committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note.                                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
SB 205 am  was REPORTED out  of committee with ten  "do pass"                                                                   
recommendations  and with  one  new fiscal  impact note  from                                                                   
the Department of Revenue.                                                                                                      
                                                                                                                                
Co-Chair Foster thanked the sponsor.