Legislature(1999 - 2000)
03/24/1999 01:34 PM Senate CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 93-RURAL ASSISTANCE HOUSING LOANS
REPRESENTATIVE CARL MORGAN, sponsor of HB 93, explained the
legislation makes two simple changes to the statute governing the
Rural Mortgage Program. HB 93 will allow the program to refinance
home loans in the same manner any conventional mortgage allows,
and it will allow the program to finance tri-plexes and four-
plexes. The current statute only allows financing of single family
homes and owner occupied duplexes. The changes will resolve the
issue of fairness to rural home buyers, be a good business practice
for AHFC, and provide financing opportunities to assist the rural
housing market.
JOHN BITNEY, Legislative Liaison for AHFC, stated support for HB
93, and informed committee members Kay Murphy, AHFC Director of
Mortgage Operations, was available to answer questions via
teleconference.
SENATOR PHILLIPS asked if urban homeowners with AHFC loans can
refinance. MR. BITNEY said they can and clarified that the Rural
Mortgage Program is laid out in statute and does not provide for
refinancing, possibly because at the time the program was written
into statute, no one anticipated that housing loan rates would
decrease as much as they have.
SENATOR PHILLIPS asked if HB 93 puts rural residents on an equal
footing with urban homeowners in regard to refinancing.
REPRESENTATIVE MORGAN said it will.
CHAIRMAN KELLY asked if the rural program still has a 1 percent
differential. MR. BITNEY said AS 18.56.470 provides that the
interest rates on the rural program loans shall be 1 percent less
than the taxable rate, which is the rate used for conventional
mortgages.
SENATOR PHILLIPS moved HB 93 to its next committee of referral.
There being no objection, the motion carried.
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