03/29/2010 09:00 AM Senate FINANCE

SENATE BILL NO. 217                                                                                                           
                                                                                                                                
     "An Act relating to the issuance of state-guaranteed                                                                       
     revenue   bonds   by   the   Alaska   Housing   Finance                                                                    
     Corporation to finance mortgages for qualifying                                                                            
     veterans; and providing for an effective date."                                                                            
                                                                                                                                
9:05:48 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  stated that it  was the second  hearing on                                                                    
the bill.                                                                                                                       
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT  CSSB 217 (FIN), labeled 26-                                                                    
GS2879\R, as the working document.                                                                                              
                                                                                                                                
Co-Chair Stedman  OBJECTED. He explained that  there was new                                                                    
language on page  3, Section 5, which  authorizes the Alaska                                                                    
Housing Finance Corporation (AHFC)  to purchase the building                                                                    
where they  currently reside at 4300  Boniface in Anchorage.                                                                    
It also  allows AHFC to  purchase a site for  the relocation                                                                    
of their Anchorage in-take office.                                                                                              
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
9:07:26 AM                                                                                                                    
                                                                                                                                
BRYAN  BUTCHER,  DIRECTOR,  GOVERNMENT  AFFAIRS  AND  PUBLIC                                                                    
RELATIONS,  ALASKA HOUSING  FINANCE CORPORATION,  DEPARTMENT                                                                    
OF REVENUE,  explained that by  state law, AHFC  is required                                                                    
to  make  a  statutory  change  any  time  it  purchases  or                                                                    
constructs a building. The cost  of the building will be for                                                                    
no  more than  $14.5 million,  of which  $5 million  will be                                                                    
from  a land  exchange  with the  Tatitlek Corporation.  The                                                                    
savings  due   to  purchasing  the  building,   rather  than                                                                    
continuing to  lease, should be approximately  $15.2 million                                                                    
in net present value.                                                                                                           
                                                                                                                                
Mr.  Butcher  shared  information  about  the  location  and                                                                    
problematic   condition  of   the   public  housing   intake                                                                    
building. Repairing  the building would exceed  the value of                                                                    
the  building. There  are federal  funds  and AHFC  receipts                                                                    
that can  be used to  relocate the building ideally  in East                                                                    
Anchorage  on  a  bus  route.  No  additional  appropriation                                                                    
request will be needed.                                                                                                         
                                                                                                                                
9:09:25 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  noted one fiscal note  from the Department                                                                    
of Revenue  showing $150,000 in  AHFC receipts for FY  11 to                                                                    
inform the voters about the  bonds, and a negative amount of                                                                    
$1,235,600 in the  contractual line beginning in FY  12 as a                                                                    
result  of  not  making  any more  lease  payments.  In  the                                                                    
miscellaneous  line the  amount  of $1,275,600  is for  debt                                                                    
service on 25-year bonds to purchase the building.                                                                              
                                                                                                                                
Senator  Olson  asked what  the  tax-assessed  value of  the                                                                    
property was. Mr. Butcher explained  that the tax payment on                                                                    
the   current   building   for   the   previous   year   was                                                                    
approximately $175,000 and the  value was for $12.2 million.                                                                    
The Tatitlek  Corporation plans to  build on the  site after                                                                    
the  land exchange  and should  show a  net increase  in tax                                                                    
value to Anchorage.                                                                                                             
                                                                                                                                
Senator  Olson inquired  if Anchorage  is opposed  to taking                                                                    
the property  off the  tax rolls.  Mr. Butcher  replied that                                                                    
the  municipality has  not stated  opposition  to this  land                                                                    
trade.                                                                                                                          
                                                                                                                                
Senator  Olson  asked where  the  intake  site currently  is                                                                    
located. Mr.  Butcher said it  was on  International Airport                                                                    
Road between  Arctic Boulevard and  C Street. It has  been a                                                                    
difficult place for people to get to.                                                                                           
                                                                                                                                
9:12:12 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman MOVED  to  report CSSB  217  (FIN) out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  217 (FIN)  was REPORTED  out of  Committee with  a "do                                                                    
pass"  recommendation and  with  a new  fiscal  note by  the                                                                    
Department of Revenue.                                                                                                          
                                                                                                                                
9:12:24 AM