Legislature(1993 - 1994)

04/22/1993 09:10 AM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  The Senate Community & Regional Affairs Committee was called                 
  to order by Chairman Randy Phillips at 9:10 a.m.  Due to the                 
  lack of a quorum, he stated only testimony would be taken on                 
  the legislation before the committee.  He then introduced HB
  180 am (AHFC  HOUSING INSPECTION REQUIREMENTS) as  the first                 
  order of business.                                                           
                                                                               
  Number 025                                                                   
                                                                               
  DAVID  HARDING, staff to Representative Eileen MacLean, said                 
  the legislation is a response to an  unintended problem that                 
  happened when the Department  Community & Regional  Affairs'                 
  rural  housing  loan  program  was  merged into  the  Alaska                 
  Housing Finance Corporation last year.   When that happened,                 
  that  loan  program  became  subject  to  housing inspection                 
  requirements  that  were never  intended  to apply  to those                 
  rural loans.                                                                 
                                                                               
  The inspection requirements  include at  least four or  more                 
  site visits by  a certified inspector.   In the more  remote                 
  areas of the state that can be a real problem because of the                 
  lack  of  inspectors,   and  there  never  will   be  enough                 
  inspectors because there is not  enough building going on in                 
  those areas.                                                                 
                                                                               
  HB 180  am proposes  to add  some flexibility  to allow  the                 
  inspection program to stay in place  for those loans, but to                 
  allow some flexibility in the requirements by broadening the                 
  pool of people who are eligible  to do the inspections.  The                 
  legislation also authorizes AHFC  to accept building methods                 
  or materials that may  not meet state building codes  if the                 
  corporation is satisfied  that the  code variation does  not                 
  sacrifice health or safety.                                                  
                                                                               
  Number 070                                                                   
                                                                               
  SENATOR SUZANNE LITTLE said she has had duties as a building                 
  official in Soldotna, and they  struggled very hard and  are                 
  very much  in favor  of having  International Conference  of                 
  Building  Officials  (ICBO)  certification  for  inspectors,                 
  especially involving AHFC funds.                                             
                                                                               
  Senator Little stated her concern that  the bill is a little                 
  broad, and she  suggested that narrowing it down  to benefit                 
                                                                               
                                                                               
  those communities  that really  have problems  would be  the                 
  best way to handle it.                                                       
                                                                               
  Senator  Little  asked if  the  problem was  mostly  in bush                 
  communities.  DAVID HARDING responded that it is and that is                 
  what they are trying to deal with in the legislation.  There                 
  is a definition  of "rural"  in the  bill which  essentially                 
  gets it  off the  road  system.   The added  expense is  for                 
  flying people  in to  do an  inspection which  is above  and                 
  beyond the cost of the inspection.                                           
                                                                               
  Senator Little also  expressed concern  with a provision  in                 
  the hill which allows an inspection by video tape.                           
                                                                               
  Number 165                                                                   
                                                                               
  SENATOR RANDY PHILLIPS   asked Mr.  Harding to look over  an                 
  amendment in the members' packets  which addresses a concern                 
  expressed  by  the  Kenai  Peninsula  Builders'  Association                 
  relating to eliminating ICBO inspectors.                                     
                                                                               
  Number 175                                                                   
                                                                               
  PETE CRANDALL,  National Bank of  Alaska, stated NBA   finds                 
  the rural housing  program to be  one of the most  effective                 
  housing tools  is has, and  that having some  flexibility is                 
  critical for them in increasing housing in rural areas.                      
                                                                               
  Mr. Crandall related  that wherever there is  a potential to                 
  use  inspectors or the  qualified people, they  are going to                 
  use them, but it is not feasible to fly four people out to a                 
  very rural village at a tremendous  cost where one house may                 
  be under construction.                                                       
                                                                               
  SENATOR  RANDY PHILLIPS closed the public  hearing on HB 180                 
  am                                                                           

Document Name Date/Time Subjects