Legislature(2023 - 2024)SENATE FINANCE 532
02/27/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB105 | |
| SB125 | |
| SB205 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 105 | TELECONFERENCED | |
| *+ | SB 205 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 125 | TELECONFERENCED | |
SENATE BILL NO. 205
"An Act authorizing the Alaska Housing Finance
Corporation to acquire or purchase a building that it
occupies for an amount that does not exceed
$9,000,000; and providing for an effective date."
10:13:18 AM
EMMA TORKELSON, STAFF, SENATOR JAMES KAUFMAN offered a
Sponsor Statement:
Alaska Housing Finance Corporation owns and operates
more than 1,600 units of public housing in 13
communities throughout the State. Anchorage serves as
the maintenance hub for all facilities and a staging
ground for both craftspeople and supplies heading to
other communities to perform repairs or training for
local employees.
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. Similar issues and factors
such as supply chain issues and suppliers unwilling to
store materials for long periods of time have led to
other housing authorities and private property
management firms have begun to transition to ownership
of warehouse space to respond to the changing business
dynamics.
AHFC is in a position to purchase the building and
property at 700 Bragaw Street, which they have been
renting since September 2023. The location has class C
office space, a warehouse and fenced storage yard and
parking. Ownership will allow AHFC to build a housing
rental office on the property and better provide
warehouse space for equipment and materials storage.
Maintenance staff will benefit from the building's
adequate staging space and staff from around the state
will be able to meet in a single location for
training. In short, buying the property will help
address the maintenance needs of its aging housing
portfolio in Anchorage and allow them to more
efficiently plan and prepare for routine activities
and emergent needs in other communities.
AHFC's Public Housing Department has verified with the
U.S. Department of Housing & Urban Development that
federal funds available through AHFCs existing Moving
to Work Plan can be used to purchase the building with
proper reporting of expenditures. Together with the
sale of existing assets, AHFC has adequate funds to
address the purchase the facility.
Pursuant to statutory requirement in AS 18.56.090(d),
the legislative branch must authorize any property
purchase by AHFC. If approved by the legislature, and
following signature by the Governor, AHFC intends to
pursue acquisition of the property in 2024.
Ms. Torkelson displayed a document on the screen:
Timeline
September 2022
AHFC issues RFP inviting owners of Anchorage area
real estate to provide AHFC with a proposal to
lease a combination of office and warehouse with
a net useable combined space of 13,000 sq. ft.
October 2022
Responses were received
• One response offered for 700 Bragaw with
availability in October 2023.
• Offer accepted; Tenant Improvements commence
September 2023
AHFC took possession of the facility and began
paying rent.
October 2023
Move AHFC staff and materials from 1525 Boniface.
10:15:07 AM
Co-Chair Olson asked how the bill would alleviate the
vandalism problem.
10:15:36 AM
Ms. Torkelson replied that the facility would house the
shipping containers that were being vandalized.
10:16:10 AM
STACY BARNES, DIRECTOR OF GOVERNMENT RELATIONS AND PUBLIC
AFFAIRS, ALASKA HOUSING FINANCE CORPORATION, (AHFC)
explained the reason for the legislation. She stated that
taking ownership of the space would create new safety
opportunities for employees and the properties cared for by
AHFC. She said that the property was gated and had a fence
surrounding it. She shared that current public housing
assets were spread throughout the city. She explained that
the AHFC had been created by the legislature in 1971,
however, the Alaska State Housing Authority (ASHA) had
overseen public housing. In 1992 the ASHA portfolio was
brought within the AHFC, which now served 11,000 Alaskans.
Public housing was broken into two programs; a program that
offered housing vouchers for qualifying participants to
rent from private renter, and public housing, which offered
units owned by AHFC. She relayed that 1000 of the units
were outside of the Anchorage area. The corporation had
issued a request for proposal (RFP) to acquire a
maintenance space that was more acceptable for the
challenges faced by ageing housing stock. She referred to
the timeline on the slide. She listed the various ageing
public housing units in the state. She lamented that it was
taking longer to turn units and get new families into
housing.
10:20:29 AM
Ms. Barnes explained how to enhance the housing that was
managed and owned by AHFC. She explained that AHFC was
addressing the public housing work in Alaska in three
different ways; by putting more housing vouchers into
communities, by recognizing landlords participating with
the voucher program in the private sector and taking care
of already owned housing stock. She shared that public
housing units had to be used for storage and overflow,
which had led to vandalism of office space and vehicles.
She said that access to a hydraulic lift and loading
materials had allowed fort the distribution of Connex units
to be distributed in more remote areas of the state. She
elaborated on the various benefits of the purchase of the
warehouse facility. She spoke to the training
opportunities for 50 employees and pointed out that many
came in with specialized skills. She acknowledged that many
employees had to go into dark modular spaces to respond to
maintenance requests outside of general work hours.
Ms. Barnes relayed that there were federal funds available
for the project, and that AHFC was seeking $9 million for
the purchase. She mentioned removal of the temporary
storage units and modular spaces in Anchorage. She
mentioned the goal of broadening the vendor list. She
looked forward to greater collaborations with AVTEC, DPS,
and others that had expressed interest in collaborating
with AHFC.
10:25:03 AM
Senator Wilson pointed out that the building was built in
the 1970s, was formerly an athletic club, and had been
remodeled extensively. He asked whether the building would
be suitable for AHFCs current needs or if another building
would be better suited.
Ms. Barnes relayed British Petroleum (BP) was a recent
tenant and had made improvements that were appropriate for
further use by AHFC such as the hydraulic lift. She
asserted that the building was well outfitted to serve the
needs of AHFC.
10:26:57 AM
Senator Wilson wondered whether any of the other properties
near the building had been vandalized.
10:27:34 AM
Ms. Barnes responded that she was not aware of any damage
or vandalism in proximity of the building. She noted that
the building was close to many of the corporations public
housing units.
10:28:37 AM
BRYAN BUTCHER, CEO AND EXECUTIVE DIRECTOR, ALASKA HOUSING
FINANCE CORPORATION, ANCHORAGE (via teleconference),
reiterated the statements made by Ms. Barnes. He said that
the places they previously used for storage had been in
more remote, darker areas, more susceptible to break ins.
He contended that this new location was in a more well-lit
area, with fencing, and was less likely to be vandalized.
10:29:13 AM
Senator Kiehl asked how the building had been determined to
be the best facility in Anchorage. He wondered how many
RFPs had been issued.
10:30:23 AM
Ms. Barnes responded that the RFP had requested a minimum
of 13,000 square feet. She said that the corporation had
been intent on seeking a space that was near the housing
units managed by the corporation.
10:30:46 AM
Mr. Butcher furthered that the property had presented
opportunities that AHFC had not considered. He provided
examples of supply chain issues, and benefits to partners.
10:32:38 AM
Senator Kiehl appreciated the vision. He asked about the
shift from an Anchorage area maintenance facility to a
statewide facility. He queried the exclusion of certain
areas from the RFP and wondered whether all Anchorage
options had been considered.
10:33:25 AM
Mr. Butcher responded that there was a hope to keep the
facility near the AHFC units and be close to a bus route.
10:34:43 AM
Senator Kiehl considered that Anchorage was a pretty short
drive from Anchorage.
10:34:54 AM
Senator Bishop expressed excitement with the building
choice. He asked whether a savings factor had been applied
to the purchase of the property, given the centralized
location. He believed that building made sense for the
mission of the corporation. He wondered about incorporating
a childcare center for employees.
10:36:19 AM
Mr. Butcher responded agreed with Co-Chair Bishops
statements and reiterated that the facility would offer
numerous opportunities for the corporation. He offered to
provide numbers detailing the financial benefits to the
committee in the future. He believed that the new facility
would aide in recruitment and retention of maintenance
workers.
10:37:43 AM
Co-Chair Hoffman noted that the major facility would be in
Anchorage to service the 500-700 units in the area. He
asked that that Mr. Butcher provide information pertaining
to other goal pins throughout the state. He asked whether
an inventory of current public housing needs for the rest
of the state could be provided to the committee.
Mr. Butcher agreed to provide the information.
10:39:52 AM
Senator Kiehl noted that the building was assessed at $5
million and wondered why the request was for $9 million.
10:40:09 AM
Mr. Butcher responded that the hope was to come in under $9
million but the corporation did not want to underestimate
and come before the legislature in the future to ask for
additional funds.
10:40:40 AM
Co-Chair Olson looked at the fiscal note and remarked that
it did not provide numbers reflecting the savings that
would come from not having to pay rent on the facility. He
asked how much AHFC was currently paying in rent for their
maintenance and storage facilities.
10:41:02 AM
Mr. Butcher replied that the corporation currently paid
approximately $785,000 per year. He stated that once the
facility was up and running actual numbers of cost would be
made available to the committee.
10:41:45 AM
Co-Chair Olson wondered whether there would be a change in
the maintenance management and costs in the building once
it w3as owned by AHFC.
10:41:55 AM
Mr. Butcher responded in the affirmative and stated that it
was too premature to determine the actual numbers. He said
that AHFC had not spent even a year in the building yet.
10:42:34 AM
Co-Chair Olson queried the advantage of a fixed hydraulic
lift.
10:43:01 AM
Mr. Butcher agreed to provide that information.
10:43:14 AM
Ms. Barnes agreed to follow up on the question.
10:43:27 AM
Co-Chair Olson OPENED and CLOSED public testimony.
SB 205 was HEARD and HELD in committee for further
consideration.