Legislature(2023 - 2024)BARNES 124
01/31/2024 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB159 | |
| HB100 | |
| HB254 | |
| HB273 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 89 | TELECONFERENCED | |
| *+ | HB 254 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HB 159 | TELECONFERENCED | |
| += | HB 100 | TELECONFERENCED | |
| + | SB 37 | TELECONFERENCED | |
| *+ | HB 273 | TELECONFERENCED | |
HB 273-AHFC MAKE/PURCHASE MORTGAGE LOANS
4:57:24 PM
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 273 "An Act relating to the power of the Alaska
Housing Finance Corporation to make or purchase mortgage loans."
4:57:45 PM
ADAM CRUM, Commissioner, Office of the Commissioner, Department
of Revenue, on behalf of the House Rules Standing Committee,
sponsored by request of the governor, explained that the idea
behind the bill is to allow the board of the Alaska Housing
Finance Corporation (AHFC) the capacity to lower the loan-to-
value ratio from 95 percent to 97 percent on a first mortgage in
order to provide access to housing in Alaska. He said the hope
is that families will see the program and be encouraged to come
to Alaska.
4:58:32 PM
STACY BARNES, Director, Alaska Housing Finance Corporation,
Department of Revenue, explained that AHFC is legally separate
from the state of Alaska, and is able to provide a dividend to
the state; this year's was $48 million. She said the mission of
the corporation is to provide access to quality and affordable
housing to Alaskans, and there are three tenets to that mission:
providing access to housing, improvement of housing, and
facilitating the building of more affordable housing. She
listed the programs AHFC offers to help with buying a home. She
pointed to the handout, "Impact of Proposed Loan-to-Value (LTV)
Legislation HB 273," which she said speaks to what has
happened with single family home prices over the last six years.
She pointed out that, in 2019, the median price for a single-
family home was $374,000, and in 2023, the price jumped to
$481,000; therefore, access has become more difficult for
homebuyers as the down payment increases. A home buyer would
need $24,000 in down payment assistance, in addition to other
closing costs. She said that, if HB 273 were to become law, the
AHFC board would be able to determine a LTV that is appropriate
for a risk profile and offer it to homebuyers. She explained
that the bill proposes a 97 percent LTV. She listed home prices
in several communities in the state and said they all follow the
same trend from 2019 to 2023: increased home prices. She
explained that, when an Alaskan chooses a home loan with AHFC,
they choose to have their loan serviced in-state. She said the
bill has just one section, which would clear up the current 95
percent LTV cap and allow the board to determine the right LTV
percentage. She detailed that, following being signed into law,
the board would address the regulation for final approval,
meaning that the effective date would likely be the start of the
next calendar year. She noted that AHFC has 15,000 loans in its
portfolio, with a 30-day delinquency rate of less than 3.5
percent; the foreclosure rate is lower at .15 percent.
5:04:55 PM
REPRESENTATIVE SADDLER asked if there is estimation on how HB
273 would affect delinquency and foreclosure rates.
MS. BARNES answered that the AHFC board feels that the 97
percent LTV is a responsible move forward, and through the
regulation process, the board will address questions about the
risk profile of individuals who are seeking the loan. She
explained that, in order to offset risk, the board may consider
increasing the credit score that a buyer might need or examining
the buyer's debt-to-income ratios.
REPRESENTATIVE SADDLER asked what the effect on housing would
be.
MS. BARNES responded that the loan gives Alaskans the
opportunity to choose Alaska housing.
5:06:48 PM
CHAIR SUMNER announced that HB 273 was held over.