SB 239-AIDEA WORKFORCE HOUSING DEVELOPMENT  1:38:22 PM CHAIR BJORKMAN reconvened the meeting and announced the consideration of SENATE BILL NO. 239, "An Act relating to the Alaska Industrial Development and Export Authority; and relating to workforce housing development projects." 1:38:43 PM SENATOR FORREST DUNBAR, District J, Alaska State Legislature, Juneau, Alaska, sponsor of SB 239, informed the committee that those testifying by invitation were not able to attend the meeting and offered a brief overview of the legislation. He briefly explained genesis of SB 239, which would allow Alaska Industrial Development and Export Authority (AIDEA) to engage in financing for housing construction. He emphasized the importance of building more housing in the state. He stated that AIDEA agrees that housing for workers is a part of industrial development and building value-added industrial industries. He noted that AIDEA did take part in housing construction and financing in the early 1980s; however, a housing market crash ended this practice. He explained that while AIDEA is technically able to use their current resources to fund housing, the intention behind SB 239 is to make this explicit. He stated that this is not creating a mandate but states that AIDEA has the legal authority to finance housing construction. He stated that "multi-family workforce housing" is highlighted. He explained that the Bankers' Association was not comfortable with potentially competing with AIDEA for certain kinds of loans. SENATOR DUNBAR said there are very few multi-family workforce housing projects currently under construction. He stated that the only projects he is aware of in Anchorage are funded by the Cook Inlet Housing Authority and he expressed the desire to see more private builders taking on these kinds of projects. He said he is hopeful that AIDEA would provide additional financing mechanisms. He reiterated that this legislation is not prescriptive and leaves it to AIDEA to determine what this would look like in practice and added that AIDEA is comfortable with this insofar as no mandate is included. He said that Alaska Housing Finance Corporation (AHFC) does not oppose SB 239. 1:42:35 PM JAMES HOLZENBERG, Staff, Senator Forrest Dunbar, Alaska State Legislature, Juneau, Alaska, presented the sectional analysis for SB 239. [Original punctuation provided.] SECTIONAL ANALYSIS  SB 239: AIDEA WORKFORCE HOUSING DEVELOPMENT Section 1: AS 44.88.070: Adds new subsection 7 to AS 44.88.070 stating the purpose of the authority. Part of the mission of the authority will now be to provide financing and the means of financing construction of new workforce housing facilities with five or more units. Section 2: AS 44.88.080: Adds new subsection 33 to AS 44.88.080, granting AIDEA the ability to provide the various means of financing and facilitating the financing of construction of new workforce housing facilities with five or more dwelling units. Section 3: AS 44.88.900(6): Conforming change to extend the definition of "development project" to include workforce housing facilities with five or more dwelling units, as defined in the new section J. Section 5: AS 44.88.900: Adds a new section J to define "workforce housing". Workforce housing will be defined as residential housing that costs the occupants less than 30 percent of the income of a household with 120 percent of the area median family income, as determined by the United States Department of Housing and Urban Development. 1:44:45 PM SENATOR MERRICK asked if Senator Dunbar has spoken with any private contractors who have expressed interest in utilizing this program. 1:44:55 PM SENATOR DUNBAR said that he has spoken with a developer who expressed interest; however, the developer does not build workforce housing and would therefore not be able to take advantage of this program. 1:46:14 PM SENATOR DUNBAR asked if the committee would hear public testimony at this time. 1:46:22 PM CHAIR BJORKMAN replied that public testimony was not noticed for this hearing; however, the committee is flexible if anyone present wished to testify. 1:46:46 PM SENATOR DUNBAR thanked the committee for hearing the bill. 1:46:57 PM CHAIR BJORKMAN held SB 239 in committee.