SENATE BILL NO. 14 "An Act relating to the Alaska Industrial Development and Export Authority; and relating to workforce housing development projects." 9:16:41 AM SENATOR FORREST DUNBAR, SPONSOR, introduced the legislation. 9:19:34 AM Senator Kiehl wondered how the bill would guide Alaska Industrial Development and Export Authority's (AIDEA) participation. Senator Dunbar replied that there would be private sectors involved, but there would be flexibility to decide the various means of financing. Senator Kiehl stated that he would have further conversations with the sponsor about the financing. 9:21:48 AM Co-Chair Stedman asked whether the bill would inadvertently put the state in a mortgage business with the inclusion of AIDEA in the bill. Senator Dunbar replied that it was difficult to get private sector financing for multi-family housing construction in the state. 9:25:04 AM Co-Chair Stedman stressed that the issue was about suitable lenders. He felt that the state might undercut the private marketplace. He felt that there was already a housing mechanism in the state through the Alaska Housing Finance Corporation (AHFC). Senator Dunbar replied that the idea was originally proposed by a private sector developer, in which could be provided by AIDEA. Co-Chair Stedman felt that AHFC had various means of financing. 9:30:34 AM MICHELE BROWN, PROGRAM DIRECTOR, HOUSING ALASKANS PUBLIC PRIVATE PARTNERSHIP, ANCHORAGE (via teleconference), spoke in support of the bill. 9:34:39 AM AT EASE 9:35:03 AM RECONVENED 9:35:58 AM Co-Chair Hoffman OPENED public testimony. 9:36:19 AM NITHYA THIRU, HOUSING ORGANIZER, ALASKA PUBLIC INTEREST RESEARCH GROUP, ANCHORAGE (via teleconference), spoke in support of the bill. 9:38:27 AM JASON NORRIS, SELF, ANCHORAGE (via teleconference), testified in support of the legislation. Co-Chair Stedman wanted to hear from AIDEA. Co-Chair Hoffman CLOSED public testimony. Co-Chair Stedman wanted to know about the housing development in commercial areas, and AIDEA's participation in those projects. 9:41:56 AM MARK DAVIS, SPECIAL COUNSEL, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY, ANCHORAGE (via teleconference), replied that AIDEA had the ability to work on workforce housing with various programs, and currently used the programs for housing on shipyards. He stressed that AIDEA did not make many direct loans, so it was usually a collaborative process with other funding sources. 9:43:47 AM BRANDON BREFCZYNSKI, DEPUTY DIRECTOR, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY, ANCHORAGE (via teleconference), echoed Mr. Davis's comments. He stated that the loan participation programs was one of AIDEA's most successful programs. 9:45:32 AM Co-Chair Stedman stressed that he was aware of a housing need in his district, and cautioned AIDEA about converting a fabrication facility into housing. He encouraged the examination of offsite housing. Senator Kiehl reviewed the fiscal note. SB 14 was HEARD and HELD in committee for further consideration.