HOUSE BILL NO. 324 An Act relating to the Alaska housing trust fund and to the Alaska Council on the Homeless; and providing for an effective date. DAN FAUSKE, CEO/EXECUTIVE DIRECTOR, ALASKA HOUSING FINANCE CORPORATION, DEPARTMENT OF REVENUE AND CHAIRMAN, GOVERNOR'S COUNCIL ON THE HOMELESS, explained that HB 324 would create a housing trust fund within the Alaska Housing Finance Corporation to address homelessness in Alaska and codify the role of the Governor's Council on the Homeless. He has learned a great deal regarding the issue of homelessness and the costs associated. Society is paying a heavy price for homelessness; incarceration is more expensive than housing. 3:19:44 PM JEFF JESSE, EXECUTIVE DIRECTOR, ALASKA MENTAL HEALTH TRUST AUTHORITY, reviewed a few points regarding homelessness: · 45% of the homeless in Alaska are families with children. · The average age is nine years. · The price paid for homelessness includes poor performance in school, emergency room visits, and criminal justice system involvement. Mr. Jesse emphasized that the most important feature of the housing trust is the linking of support services to housing. Over 30 states have developed housing trusts with excellent results. 3:22:47 PM BRYAN BUTCHER, PUBLIC AFFAIRS DIRECTOR, ALASKA HOUSING FINANCE CORPORATION pointed out a change in a fiscal note. Co-Chair Meyer asked if the appropriations were for one year or five years. Mr. Butcher said one year, for projects with a five-year cycle. Mr. Jesse restated the importance of combining support services with housing. Out of the first year's appropriation of ten million dollars, some of the resources would be obligated for five to ten years of support service funding. Otherwise, non-profit partners would not participate in developing the services. 3:25:33 PM Representative Hawker wanted clarification regarding the one-time $10 million appropriation. He thought the testimony earlier in the session indicated a sequence of $10 million appropriations for ten years. Mr. Jesse agreed that the intent was for the appropriation to be annual. The $10 million on the table is for the first year, but the process is on-going. He thought $15 million per year for ten years would better address the current homeless problem. Mr. Fauske added that he is convinced there is a problem. He thought the problem would grow worse as the cost of heating oil rose. He agreed with Mr. Jesse that the problem will not be solved with a one-time $10 million appropriation, but it would start the trust. 3:29:45 PM Representative Gara asked for more information. Mr. Jesse said the trust was not being set up on an endowment model. Mr. Fauske said there was currently a $10 million line item in the capital budget. Mr. Butcher clarified that the item is in the mental health bill which is within the capital budget. Mr. Jesse said there were roughly 3500 homeless people statewide on any given night and outlined the strategic plan. 3:34:45 PM Mr. Fauske said there has been $2 million in the capital budget for homelessness for many years. He pointed out that most people coming out of jail don't have a place to stay. He would like better coordination to address the issues. Representative Crawford asked for more information on how to identify homeless people and give them a hand. Mr. Jesse described the process of setting up housing units and then providing case management to help people solve a wide variety of problems that contribute to their homelessness. He gave examples of skills that people need to learn. He described how the Gates Foundation approached assisting homeless families. 3:41:11 PM PUBLIC TESTIMONY CLOSED. HB 324 was HEARD and HELD in Committee for further consideration.