Legislature(2001 - 2002)
04/19/2001 08:59 AM House CRA
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* first hearing in first committee of referral
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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.
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