Legislature(1995 - 1996)

04/22/1996 02:32 PM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE                         
                         April 22, 1996                                        
                           2:32 p.m.                                           
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator John Torgerson, Chairman                                              
 Senator Randy Phillips, Vice Chairman                                         
 Senator Tim Kelly                                                             
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 Senator Fred Zharoff                                                          
 Senator Lyman Hoffman                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 CS FOR HOUSE BILL NO. 322(FIN)                                                
 "An Act authorizing grants for temporary housing assistance during            
 emergencies and disasters."                                                   
                                                                               
 CS FOR HOUSE BILL NO.  192(FIN) am                                            
 "An Act relating to housing assistance provided by the Alaska                 
 Housing Finance Corporation and to its rural housing programs, to             
 the corporation's supplemental housing development grants to                  
 regional housing authorities, and to housing programs of regional             
 housing authorities; permitting regional housing authorities to               
 make, originate, and service loans for the purchase and development           
 of residential housing; and amending the definitions of `rural' and           
 `small community' as applied in various housing programs."                    
                                                                               
 SENATE BILL NO. 322                                                           
 "An Act relating to distribution of national forest income to                 
 boroughs; and providing for an effective date."                               
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
 HB 322 - See Community & Regional Affairs minutes dated 4/3/96,               
          4/10/96.                                                             
                                                                               
 HB 192 - See State Affairs minutes dated 4/11/96.                             
                                                                               
 SB 322 - No previous action to record.                                        
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 Carol Carroll, Director                                                       
 Administrative & Support Services Division                                    
 Department of Military & Veterans Affairs                                     
 P.O. Box 110900                                                               
 Juneau, AK 99811-0900                                                         
  POSITION STATEMENT:   Offered information on HB 322                          
                                                                               
 Bryce Edgmon, Staff to Representative Richard Foster                          
 State Capitol                                                                 
 Juneau, AK 99801-1182                                                         
  POSITION STATEMENT:   Offered information on HB 192                          
                                                                               
 Kay Murphy, Mortgage Operations Director                                      
 Alaska Housing Finance Corporation                                            
 P.O. Box 101020                                                               
 Anchorage, AK 99510-1020                                                      
  POSITION STATEMENT:   Responded to questions on HB 192                       
                                                                               
 Bruce Kovarik, Executive Director                                             
 Bering Straits Regional Housing Authority                                     
 P.O. Box 995                                                                  
 Nome, AK 99762                                                                
  POSITION STATEMENT:   Testified in support of HB 192                         
                                                                               
 John Bitney                                                                   
 Alaska Housing Finance Corporation                                            
 P.O. Box 101020                                                               
 Anchorage, AK 99510-1020                                                      
  POSITION STATEMENT:   Testified in support of HB 192                         
                                                                               
 Senator Robin Taylor                                                          
 State Capitol                                                                 
 Juneau, AK 99801-1182                                                         
  POSITION STATEMENT:   Prime Sponsor of SB 322                                
                                                                               
 Julie Penn                                                                    
 Alaska Environmenal Lobby                                                     
 P.O. Box 22474                                                                
 Juneau, AK 99802                                                              
  POSITION STATEMENT:   Opposes SB 322                                         
                                                                               
  ACTION NARRATIVE                                                             
 TAPE 96-22, SIDE A                                                            
                                                                               
 Number 001                                                                    
     CSHB 322(FIN) GRANTS FOR HOUSING FOR DISASTER VICTIMS                    
                                                                              
                                                                               
  CHAIRMAN TORGERSON  called the Senate Community & Regional Affairs           
 Committee meeting to order at 2:32 p.m., and brought CSHB 322(FIN)            
 before the committee as the first order of business.  He noted that           
 at the previous hearing on the legislation, concern was expressed             
 by the committee about this possibly being a new program and that             
 it would set an unlimited amount of money that could go forward for           
 disaster relief funds.                                                        
                                                                               
 CAROL CARROLL, Director, Administrative & Support Services                    
 Division, Department of Military & Veterans Affairs, explained the            
 state already has programs that provide temporary housing, and the            
 only difference that the bill would make is that instead of the               
 department signing the leases and providing for rent for disaster             
 victims, they would give the victims the money and they would then            
 go and find their own rental units.  The department would stop                
 being a landlord or rental agent.                                             
                                                                               
 SENATOR TORGERSON asked how the department proposed handling some             
 of the concerns that the committee had about the possibility of               
 potential fraud if the grants were to be made directly to the                 
 individuals.  MS. CARROLL said the department would do an                     
 assessment of what the rental rates are in a community at the pre-            
 disaster rate and then come up with an amount they will provide               
 toward their monthly lodging.  If individuals choose to stay in a             
 higher rental unit, they would have to provide the difference over            
 the average rental rate, which is the way the program is run at the           
 present time.                                                                 
                                                                               
 SENATOR KELLY asked if disaster victims have to contact the                   
 department in advance and the department then tells them the game             
 rules before they can go out and commit the department to paying              
 for their temporary housing.  MS. CARROLL replied the individuals             
 have to come in and do an interview and establish their eligibility           
 before any assistance is provided.  She also acknowledged it is               
 exactly the way the federal government runs their program, and when           
 there is a federal declaration, then the federal government runs              
 the temporary housing program.                                                
                                                                               
 Number 100                                                                    
                                                                               
 There being no further questions from the committee,  SENATOR                 
 TORGERSON asked for the will of the committee.                                
                                                                               
 SENATOR RANDY PHILLIPS moved CSHB 322(FIN) be passed out of                   
 committee with individual recommendations.  Hearing no objection,             
 it was so ordered.                                                            
                                                                               
             CSHB 192(FIN) am AHFC HOUSING LOANS                             
                                                                               
 SENATOR TORGERSON brought CSHB 192(FIN) am before the committee as            
 the next order of business.                                                   
                                                                               
 BRYCE EDGMON, staff to Representative Richard Foster who is prime             
 sponsor of HB 192, said the legislation essentially brings statutes           
 for rural areas into compliance with urban areas.  He noted the               
 bill is supported by the regional housing authorities, as well as             
 the Alaska Housing Finance Corporation.                                       
                                                                               
 The primary change made by the legislation will enable regional               
 housing authorities to process loans and refinance applications               
 within their jurisdictions instead of having to go through a loan             
 examiner in Anchorage.  The legislation also reduces the age of               
 qualification for senior citizens from 60 to 55 for senior housing            
 programs.  Language was also added to ensure that regional housing            
 authorities are restricted to making loans only in their areas of             
 jurisdictions and that any AHFC loan programs must adhere to non-             
 discrimination statutes.                                                      
                                                                               
 Mr. Edgmon also presented a section-by-section analysis of the bill           
 and responded to committee members' questions.                                
                                                                               
 Number 270                                                                    
                                                                               
 SENATOR TORGERSON asked if a provision in the legislation puts the            
 AHFC in the water and sewer business.  KAY MURPHY, Mortgage                   
 Operations Director, Alaska Housing Finance Corporation, testifying           
 via teleconference from Anchorage, answered that it does not.  She            
 explained the funds that Alaska Housing would be using to                     
 supplement Federal HUD funds would be used to pay for off-site                
 water and sewer improvements, but AHFC would not take ownership of            
 those utilities.                                                              
                                                                               
 Number 285                                                                    
                                                                               
 SENATOR KELLY commented that if a regional housing is doing one of            
 these water and sewer projects, they can hook up to these                     
 individuals' homes and call that part of the project, but in                  
 developed areas, generally most homes have to assume that cost                
 themselves.  He observed AHFC is doing something for free that in             
 most urban developments the homeowner pays for.                               
                                                                               
 Number 315                                                                    
                                                                               
 BRUCE KOVARIK, Executive Director, Bering Straits Regional Housing            
 Authority and also representing the Association of Alaska Housing             
 Authorities, testifying via teleconference from Nome, voiced their            
 support for HB 192.  The legislation will allow regional housing              
 authorities to originate and service AHFC loans in rural areas; it            
 adds the outside water and sewer capability; it will allow more               
 activity for the supplemental housing grants; and it will provide             
 clarification and improvement of AHFC loan programs which affect              
 rural communities.                                                            
                                                                               
 Addressing Senator Kelly's concern with water and sewer projects,             
 Mr. Kovarik said more and more regional housing authorities find              
 themselves acting as private developers and being treated exactly             
 as private developers by both the Public Health Service and the               
 state of Alaska.  The bill doesn't add any more money to the                  
 program, but it gives them the flexibility for making those                   
 connections and making those off-site ties that are not currently             
 available with supplemental housing grants.  Additionally, the                
 authorities are limited by HUD with a total development cost for              
 their projects.                                                               
                                                                               
 Number 342                                                                    
                                                                               
 SENATOR KELLY asked what AHFC's delinquency rate has been in the              
 rural unincorporated areas.  KAY MURPHY responded their regular               
 rural loan program has averaged under 4 percent.  The rural program           
 has had delinquencies in the past, but the portfolio looks good now           
 as do the urban loans.  She said AHFC doesn't see them being any              
 higher risk than they do with the urban loans if they are properly            
 underwritten.  SENATOR KELLY said he just wanted to get that point            
 on the record because we continue to hear how the unorganized areas           
 of the state can't afford to pay property taxes, to fund education,           
 etc., and yet AHFC says they are having no problem paying their               
 mortgages.                                                                    
                                                                               
 Number 377                                                                    
                                                                               
 SENATOR TORGERSON noted Section 17 changes the age of seniors from            
 60 years of age to 55 years of age to qualify for these programs,             
 and he asked why the age limit was being lowered.  KAY MURPHY                 
 clarified that AHFC was not the party to institute that change, but           
 they do not anticipate that the decrease in the age limit will add            
 a lot of activity to their loan program or for the requests for               
 grant funds.  She also clarified to Senator Torgerson that the                
 declaration of age applies to AHFC's senior housing loan program              
 and its grant programs and doesn't distinguish between urban or               
 rural.                                                                        
                                                                               
 Number 418                                                                    
                                                                               
 JOHN BITNEY, representing Alaska Housing Finance Corporation,                 
 stated their support for HB 192.                                              
                                                                               
 Number 422                                                                    
                                                                               
 SENATOR TORGERSON stated it was his intent to hold HB 192 in                  
 committee until its next meeting so that the committee could take             
 a closer look at sections of the bill.                                        
                                                                               
         SB 322 DISTRIBUTION OF NATIONAL FOREST INCOME                        
                                                                              
 SENATOR TORGERSON introduced SB 322 as the next order of business,            
 and invited Senator Taylor to present an overview on the                      
 legislation.                                                                  
                                                                               
 SENATOR ROBIN TAYLOR, prime sponsor of SB 322, said timber receipts           
 have vacillated significantly over the last several years, but they           
 do provide a significant portion of the funding base for many of              
 the school districts within his district.  However, when the law              
 was amended approximately three years ago, it was amended in such             
 a way that it provides a distribution of forest receipts based on             
 a formula of average daily membership within the schools, the                 
 population factor and the number of acres within a borough.  The              
 largest number of acres and highest population is Juneau, Alaska,             
 where there has not been a timber harvest for a lengthy period of             
 time.  He said it seems that funds are being distributed based on             
 a formula that drives the majority of those into an area that has             
 no harvesting of timber and has no roads to maintain because there            
 are not roads being built as the result of havesting of timber.               
                                                                               
 Senator Taylor said SB 322 will revise the formula so as to find a            
 triggering mechanism which indicates that if a community is being             
 impacted by timber harvesting, that community should receive those            
 impact funds.  He acknowledged that the bill as it is currently               
 structured is a bit cumbersome and doesn't work as well as he would           
 have hoped.  He advised that he would look to the committee for its           
 advice and assistance in redrafting the bill so as to accomplish              
 its overall purpose.                                                          
                                                                               
 Senator Taylor believes it is an issue that needs to be revisited             
 because he doesn't think the funds are currently being equitably              
 distributed.                                                                  
                                                                               
 Number 492                                                                    
                                                                               
 SENATOR TORGERSON said he agrees with what Senator Taylor is trying           
 to do with the legislation, but he wasn't sure if it would be legal           
 according to the federal regulations on how those forest receipts             
 are divided up.  He wondered if there was a way to tie the                    
 allowable cut acreage into where the funds are distributed.                   
 SENATOR TAYLOR said he has thought about that too, but he hasn't              
 come up with a good alternative.  He said it may be that we will              
 have to look at some radius from where the timber is harvested that           
 would then impact and allow all of the communities within that                
 radius to share within that fund.                                             
                                                                               
 Number 532                                                                    
                                                                               
 JULIE PENN, representing the Alaska Environmental Lobby, said the             
 Federal Code, 16 U.S.C. 500, designating U.S. Forest Service 25               
 percent receipts, clearly prohibits Alaska from allocating those              
 receipts based on logging activity or any other criteria except for           
 the proportional share of national forest land in each borough.               
 She pointed out Juneau would lose money on this while other                   
 boroughs in Southeast would gain, and she said it sounds divisive             
 to her as a person who lives in Southeast.  She also the noted the            
 bill's sponsor statement singles out the boroughs that oppose                 
 logging, and because of that she thinks that the bill is punitive             
 in its intent.  As a member of the Alaska Environmental lobby, she            
 respectfully suggested that the committee pursue the legislation no           
 further.                                                                      
                                                                               
 Number 550                                                                    
                                                                               
 There being no further testimony on SB 322, SENATOR TORGERSON asked           
 for the pleasure of the committee.                                            
                                                                               
 SENATOR KELLY moved SB 322 be passed out of committee with                    
 individual recommendations.  Hearing no objection, it was so                  
 ordered.                                                                      
                                                                               
 There being no further business to come before the committee, the             
 meeting was adjourned at 3:15 p.m.                                            
                                                                               

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