Legislature(2001 - 2002)

04/19/2001 08:59 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                 ALASKA STATE LEGISLATURE                                                                                     
      HOUSE COMMUNITY AND REGIONAL AFFAIRS COMMITTEE                                                                          
                      April 19, 2001                                                                                            
                         8:59 a.m.                                                                                              
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
OVERVIEW BY  THE ALASKA  ASSOCIATION OF  HOUSING AUTHORITIES                                                                    
ON RURAL HOUSING ISSUES                                                                                                         
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
01-22, SIDES A & B                                                                                                              
                                                                                                                              
CALL TO ORDER                                                                                                                 
                                                                                                                              
REPRESENTATIVE CARL  MORGAN, CO-CHAIR, reconvened  the House                                                                    
Community and Regional Affairs Committee at 8:59 a.m.                                                                           
                                                                                                                                
PRESENT                                                                                                                       
                                                                                                                              
Committee  members  present   were  Representatives  Morgan,                                                                    
Meyer, Halcro, Scalzi, Murkowski, Guess, and Kerttula.                                                                          
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
[Dr.  Kazama's handouts  entitled  "Native American  Housing                                                                    
Assistance   and  Self-Determination   Act   of  1966"   and                                                                    
"Supplemental  Housing   Development  Grant   Program"  were                                                                    
distributed to the committee.]                                                                                                  
                                                                                                                                
DR. BLAKE  KAZAMA, President, Alaska Association  of Housing                                                                    
Authorities,   stated   that    his   association   is   the                                                                    
practitioner in the  building industry in rural  Alaska.  He                                                                    
asked  representatives of  the  various housing  authorities                                                                    
across the  state to introduce themselves  to the committee.                                                                    
Dr.  Kazama explained  the difficulties  of construction  of                                                                    
houses  in rural  Alaska.   He provided  an overview  of the                                                                    
Native  American Housing  Assistance Self  Determination Act                                                                    
(NAHASDA)  program.    He  also  reviewed  how  houses  were                                                                    
constructed  before  NAHASDA.   He  referred  to a  document                                                                    
listing all tribes in Alaska  [the document was not provided                                                                    
to the  committee] and  explained that  all the  tribes were                                                                    
getting some funds under NAHASDA.                                                                                               
                                                                                                                                
DELBERT J.  REXFORD related some  of his experiences  on the                                                                    
North  Slope  for  TNHA  Housing  [actual  name  of  housing                                                                    
authority  not distinguishable].    He explained  logistical                                                                    
problems with  getting building supplies to  the North Slope                                                                    
for each  building season.   He also explained  that NAHASDA                                                                    
funds  only provide  a small  portion of  the funds  for the                                                                    
housing needs  in his region.   He spoke to the  benefits of                                                                    
the Alaska Housing Finance Corporation supplemental funds.                                                                      
                                                                                                                                
REPRESENTATIVE HALCRO asked Mr.  Rexford if the construction                                                                    
of 25 homes is really progress, since 400 homes are needed.                                                                     
                                                                                                                                
MR. REXFORD  answered that they  are seeking funds  from all                                                                    
sources.                                                                                                                        
                                                                                                                                
REPRESENTATIVE   MURKOWSKI  asked   Mr.  Rexford   how  AHFC                                                                    
supplemental   funding  is   allocated  among   the  various                                                                    
authorities.                                                                                                                    
                                                                                                                                
MR.  REXFORD  answered  that  he   believes  the  funds  are                                                                    
allocated on a fair and equitable formula basis.                                                                                
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked  if the  money  was  spread                                                                    
across the state.                                                                                                               
                                                                                                                                
DR. KAZAMA  explained how supplemental  funds are  used, but                                                                    
expressed concern over the dwindling amounts.                                                                                   
                                                                                                                                
REPRESENTATIVE  GUESS asked  if  supplemental funding  comes                                                                    
from the capital budget or AHFC funds.                                                                                          
                                                                                                                                
JAMES   WRIGHT,  AHFC   Program  Manager   for  supplemental                                                                    
funding, replied that $6 million is  in the budget and is an                                                                    
AHFC  priority.    The  AHFC  originally  recommended  $12.5                                                                    
million  to the  Office of  Management and  Budget; however,                                                                    
that  was reduced  to  $6  million and  that  is the  amount                                                                    
currently in  the budget.   Reductions in the past  have all                                                                    
come from the legislature.                                                                                                      
                                                                                                                                
CO-CHAIR  MORGAN  asked Mr.  Wright  if  the $6  million  is                                                                    
general fund or AFHC money.                                                                                                     
                                                                                                                                
MR. WRIGHT replied that the funds are AHFC.                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO asked Mr. Wright  if SB 181, having to                                                                    
do with the rural loan  program, would affect the $6 million                                                                    
for rural housing.                                                                                                              
                                                                                                                                
MR. WRIGHT  replied that  to his knowledge  SB 181  does not                                                                    
affect the $6 million.                                                                                                          
                                                                                                                                
REPRESENTATIVE   MURKOWSKI  asked   Mr.  Wright   if  Denali                                                                    
Commission monies are used for housing construction.                                                                            
                                                                                                                                
MR.  WRIGHT answered  that Denali  Commission funds  are not                                                                    
yet  used for  housing,  but there  has  been discussion  of                                                                    
such.  AHFC has not requested Denali Commission funding.                                                                        
                                                                                                                                
REPRESENTATIVE  GUESS  replied  that Denali  Commission  has                                                                    
been focused on bulk fuel.                                                                                                      
                                                                                                                                
REPRESENTATIVE  SCALZI  asked  if  the  Village  Safe  Water                                                                    
Program is included when projects are expanded.                                                                                 
                                                                                                                                
MR. WRIGHT  replied that other  monies are used  for Village                                                                    
Safe Water.                                                                                                                     
                                                                                                                                
MR.  JEFF DOTY,  Executive  Director,  Copper River  Housing                                                                    
Authority,  AHTNA  Native  Corporation Region,  spoke  about                                                                    
construction   in  his   region,   including  problems   and                                                                    
logistics.   Without  AHFC  supplemental  funds [the  Copper                                                                    
River] housing  authority would  be building  lesser quality                                                                    
homes that would  be comparable to the old  Bureau of Indian                                                                    
Affairs (BIA) homes built many years ago.                                                                                       
                                                                                                                                
CO-CHAIR  MEYER remarked  that if  rural areas  are healthy,                                                                    
then  Anchorage is  healthy.   He  inquired as  to how  it's                                                                    
determined  who gets  the house  and what  does the  typical                                                                    
house cost.                                                                                                                     
                                                                                                                                
MR. DOTY, in response to  the second question, said that his                                                                    
board of commissioners sets priorities.                                                                                         
                                                                                                                                
CO-CHAIR  MEYER asked  what happens  when  someone moves  to                                                                    
Anchorage.                                                                                                                      
                                                                                                                                
MR. DOTY answered  that the house is put back  on the market                                                                    
for another tribal member.                                                                                                      
                                                                                                                                
REPRESENTATIVE  MURKOWSKI   asked  whether   minimum  income                                                                    
requirements have to be met to qualify for housing.                                                                             
                                                                                                                                
DR.  KAZAMA added  that the  NAHASDA requirements  stipulate                                                                    
that those  qualifying for houses  must be at 80  percent or                                                                    
below the  median income  in order to  qualify.   He further                                                                    
explained the qualifying criteria.                                                                                              
                                                                                                                                
CO-CHAIR  MEYER asked  for  a cost  estimate  on building  a                                                                    
house.  He recalled that  the U.S. Department of Housing and                                                                    
Urban Development  (HUD) sets a  limit of $159,000 for  a 4-                                                                    
bedroom house.                                                                                                                  
                                                                                                                                
[Joe Wilson distributed handouts entitled, "Village and                                                                         
Rivers in the TCC region" and "Our Mission."]                                                                                   
                                                                                                                                
JOE  WILSON,  Executive  Director, Interior  Region  Housing                                                                    
Authority, Fairbanks, said his  authority has been operating                                                                    
for  30 years  and covers  half the  State of  Alaska.   The                                                                    
region is the  Doyon Native Corporation region.   He covered                                                                    
the  challenges of  building in  Interior  Alaska.   Support                                                                    
from AHFC  is critical  to his program  because construction                                                                    
costs  run  $225 per  square  foot  for the  structure,  not                                                                    
including  water and  sewer, electricity,  access to  roads,                                                                    
and site  preparation.  His housing  authority supports over                                                                    
1000  vendors.   He  stressed  the  importance of  the  AHFC                                                                    
supplemental  grant  program.    Mr.  Wilson  explained  how                                                                    
various tribes sign certifications  to the housing authority                                                                    
so that the authority will carry  out what the tribe has put                                                                    
in  the plan.   He  said some  villages/tribes receive  less                                                                    
than  $50,000 annually,  which is  not adequate  to build  a                                                                    
house.   Therefore, they have  to pool for several  years to                                                                    
build a house.   He noted that they also  may decide to make                                                                    
improvements  to  existing  non-HUD   housing.    He  echoed                                                                    
earlier comments regarding  logistical problems with getting                                                                    
building materials to the construction site.                                                                                    
                                                                                                                                
REPRESENTATIVE  MURKOWSKI   asked  how  much   the  Interior                                                                    
Regional   Housing   Authority   received  from   the   AHFC                                                                    
supplemental funding program last year.                                                                                         
                                                                                                                                
MR. WILSON said they received approximately $250,000.                                                                           
                                                                                                                                
REPRESENTATIVE  MURKOWSKI asked  if the  $250,000 had  to be                                                                    
spread around all the communities in the region.                                                                                
                                                                                                                                
MR. WILSON  replied that it is  only used where they  have a                                                                    
plan for new  construction, it is not for  repair on non-HUD                                                                    
housing.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  MURKOWSKI said  she thought  she heard  that                                                                    
the supplemental  funding had been  used for  maintenance on                                                                    
non-HUD housing.                                                                                                                
                                                                                                                                
MR. WILSON  said he meant  that some tribes have  decided to                                                                    
use their block grants for repair work on non-HUD housing.                                                                      
                                                                                                                                
DR.  KAZAMA concluded  the presentation  by reiterating  the                                                                    
difficulties  and  highlighting   their  commitment  to  get                                                                    
houses for  those in rural  areas.  He also  highlighted the                                                                    
importance   of  obtaining   the  $6   million  supplemental                                                                    
funding.  He thanked the committee for having the hearing.                                                                      
                                                                                                                                
CO-CHAIRMAN  MORGAN asked  the committee  members to  sign a                                                                    
memorandum of  support for the  $6 million to the  House and                                                                    
Senate Finance Committees.                                                                                                      
                                                                                                                                
CO-CHAIRMAN  MORGAN  thanked  the  housing  authorities  for                                                                    
their presentation to the committee.                                                                                            
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
CO-CHAIR MORGAN  announced the next committee  meeting would                                                                    
be held on the following Tuesday [April 24, 2001].                                                                              
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The House Community and  Regional Affairs Standing Committee                                                                    
meeting was adjourned at 10:00 a.m.                                                                                             
                                                                                                                                
NOTE:  The meeting  was recorded  and handwritten  log notes                                                                    
were taken.   A  copy of  the tape(s) and  log notes  may be                                                                    
obtained  by contacting  the House  Records Office  at State                                                                    
Capitol,  Room 3,  Juneau, Alaska  99801 (mailing  address),                                                                    
(907) 465-2214, and after adjournment  of the second session                                                                    
of   the  Twenty-Second   Alaska   State  Legislature   this                                                                    
information may  be obtained  by contacting  the Legislative                                                                    
Reference Library at (907) 465-3808.                                                                                            

Document Name Date/Time Subjects