HB 404-REPEAL AK HOUSING FINANCE CORP. DIVIDEND  9:04:39 AM CO-CHAIR FIELDS announced that the first order of business would be HOUSE BILL NO. 404, "An Act repealing the requirement that the Alaska Housing Finance Corporation make a dividend available to the state, and repealing associated definitions." [Before the committee was Version I, the proposed committee substitute (CS) for HB 404, Version 24-LS1638\I, Klein, 4/15/22, adopted on 4/18/22.] 9:05:02 AM CO-CHAIR SPOHNHOLZ reminded members that the changes made in Version I of HB 404 [a bill sponsored by the committee] were made at the recommendation of Alaska Housing Finance Corporation (AHFC), which wanted the dividend to remain on the books due to its importance in ensuring that AHFC's bond rating remains high to keep the rates low in Alaska, allowing AHFC to be effective. She said Version I requires the dividend be designated for affordable and workforce housing, given the statewide housing crisis in Alaska that includes a strategic problem for the military in Fairbanks where military housing needs to be upgraded and the issue in Anchorage where the average home now is $420,000. In recent years of tight budgets, she continued, the dividend has been spent on other state departments rather than on workforce and affordable housing, so HB 404 will ensure that AHFC continues to be effective moving forward and increases the state's strategic investments without increasing overhead. No new programs would be created, rather it would turn up the dose of AHFC's investment in affordable and workforce housing. 9:07:12 AM CO-CHAIR FIELDS opened public testimony on HB 404. 9:07:35 AM BRITTANY SMART, Special Assistant to the Mayor, Mayor's Office, Fairbanks North Star Borough (FNSB), testified that neither the assembly nor the administration has taken a formal stance on HB 404 but are grateful that the state is looking at options to help address the housing issue in the Fairbanks community and statewide. She noted that she has served as the point of contact working on the military housing issue in the community. Housing is a challenge across Alaska and nationwide, she stated, and tools should be looked at to help communities meet this need. The borough looks forward to working with the committee on this issue, she said. 9:09:09 AM CO-CHAIR FIELDS closed public testimony on HB 404 after ascertaining that no one else wished to testify. 9:09:18 AM CO-CHAIR SPOHNHOLZ moved to report CSHB 404, Version 24- LS1638\I, Klein, 4/15/22, from committee with individual recommendations and the accompanying [zero] fiscal notes. There being no objection, CSHB 404(HL&C) was moved out of the House Labor and Commerce Standing Committee.