8:54:48 AM CS FOR SENATE BILL NO. 231(HES) An Act relating to the Alaska housing trust fund and to the Alaska Council on the Homeless; and providing for an effective date. Vice-Chair Stoltze MOVED to ADOPT work draft 25-GS2006\M, Cook, 4/10/08 as the version of the bill before the Committee. There being NO OBJECTION, it was adopted. BRYAN BUTCHER, PUBLIC AFFAIRS DIRECTOR & LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE CORPORATION (AHFC), ANCHORAGE, explained the bill. He stated that the legislation creates a housing trust fund within AHFC to address concerns of homelessness in the State of Alaska. The bill increases AHFC's flexibility in addressing long term solutions for homelessness. SB 231 would codify the role of the Governor's Council on the Homeless, which has been operating under Administrative Order. The original bill is the culmination of many years of work by several statewide advocacy groups and is a recommendation of the Governor's Council on the Homeless. Mr. Butcher noted that homelessness is one of the most important social issues facing Alaska. • 3,500 Alaskans are homeless on any given night, including 1,600 people in families with children; • 4,000 Alaskan households are on the waiting list for public housing programs, most are families with children; and • 20,000 low-income Alaskan households spend more than half their income on housing, placing them at risk of homelessness. Mr. Butcher pointed out that the development of housing alone is not enough to provide permanent solutions to homeless crisis. People who are homeless or at risk of becoming homeless, frequently need supportive services to be successful, such as treatment, crisis intervention, tenant education, financial literacy, job counseling and life skills training. Placing a housing trust within AHFC expands the services of the State without expanding government's size. SB 231 provides AHFC the flexibility to address homelessness in Alaska. Mr. Butcher concluded that the Governor's proposed FY09 capital budget includes a $10 million dollar request for the establishment of the Housing Trust Fund. The $10 million is made up of funds from four different sources: • AHFC dividends • Mental Health Trust Authority receipts • State General Funds • Contributions from other private sources 8:57:00 AM Representative Hawker asked how the draft differed from the original version of the bill. The original request was for a $150 million dollar commitment for a ten year project. Mr. Butcher explained that the State currently offers a Homeless Assistance Program. AHFC has been administering the residential side of that program. AFHC is the agency for the State in dealing with homelessness. The bill no longer includes putting the Governor's Council on the Homeless into statute. That action is not necessary since it was created by an Administrative Order. Representative Hawker offered his continued assistance in addressing homelessness in the State of Alaska. He proposed a greater buy-in from the Department of Health and Human Services. He encouraged that the Mental Health Trust Authority (AMHTA) expand their outreach to legislators. If embarking on a $150 million dollar building program, the entire legislature will need to accept it. He pointed out that the capital budget added $6 million dollars to the homeless programs at AHFC for foundation building. 9:02:30 AM Mr. Butcher added that Jeff Jesse, Executive Director, Alaska Mental Health Trust Authority, was supportive of the program. Co-Chair Chenault directed comments to the conversations his office has had with the Mental Health Trust Board funding for the program. He acknowledged the outreach needs. Representative Kelly indicated that he was not in support as the program appears to be a State "entitlement". He noted for the record that he is "very concerned with the long-term effect the program will have on the State. 9:04:40 AM Representative Gara understood from testimony that there would be no funding included for the Housing Trust in the current budget. Mr. Butcher explained that yesterday [5/10/08], during the Mental Health Conference Committee meeting established a Homeless Assistance Program that would operate on $2 million dollars per year. The amount would be generated from $1 million AHFC dividend dollars, $500 hundred thousand dollars of General Fund Mental Health and $500 thousand from the AMHTA receipts. Funding would have ceased if the $10 million for the Trust had been funded. The Conference Committee moved $6 million dollars of that amount to $2 million and moved $2.5 million of AHFC raised funds from private sources, which moves the program from $2 million funding dollars to $8 million funding dollars. Next year, AHFC will come back to revisit the situation. He added, the Governor's Council has been increased to a membership of an additional five members. 9:06:14 AM Representative Gara emphasized that the work draft puts the Housing Trust on hold for another year. Mr. Butcher said yes. Representative Gara strongly disagreed with that, noting that the Housing Trust has been deliberating on the issue for a long time. The intent is to transition the homeless into permanent housing. He stressed that the program is good and that he strongly disagrees with putting it off for another year. Co-Chair Meyer responded it is an attempt to transition the program. 9:07:59 AM MARIE DARLIN, CAPITAL CITY TASK FORCE, AARP, voiced support for the intention behind the bill. The bill addresses the situation from a long-term plan at providing supportive services. She maintained it is important to accomplish addressing the concerns with homelessness. She urged passage of the bill from the Committee. 9:09:49 AM PUBLIC TESTIMONY CLOSED RECESS: 9:10:13 AM RECONVENE: 10:49:52 AM SUZANNE ARMSTRONG, STAFF, REPRESENTATIVE KEVIN MEYER, addressed the fiscal note, which enumerates information on the additional funds added to HB 312 for the current program. HB 231 allows AHFC to expand the general power of limitations. The additional funds will be used for that expansion. 10:51:36 AM Vice-Chair Stoltze MOVED to REPORT HCS CSSB 231(FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS SB 231(FIN) was REPORTED out of Committee with a "do pass" recommendation and with a new zero note by the House Finance Committee for the Alaska Housing Finance Corporation, zero note #2 by the Department of Public Safety, zero note #3 by the Department of Health and Social Services and zero note #4 by the Department of Corrections.