The Senate Community & Regional Affairs Committee was called to order by Chairman Randy Phillips at 9:10 a.m. Due to the lack of a quorum, he stated only testimony would be taken on the legislation before the committee. He then introduced HB 180 am (AHFC HOUSING INSPECTION REQUIREMENTS) as the first order of business. Number 025 DAVID HARDING, staff to Representative Eileen MacLean, said the legislation is a response to an unintended problem that happened when the Department Community & Regional Affairs' rural housing loan program was merged into the Alaska Housing Finance Corporation last year. When that happened, that loan program became subject to housing inspection requirements that were never intended to apply to those rural loans. The inspection requirements include at least four or more site visits by a certified inspector. In the more remote areas of the state that can be a real problem because of the lack of inspectors, and there never will be enough inspectors because there is not enough building going on in those areas. HB 180 am proposes to add some flexibility to allow the inspection program to stay in place for those loans, but to allow some flexibility in the requirements by broadening the pool of people who are eligible to do the inspections. The legislation also authorizes AHFC to accept building methods or materials that may not meet state building codes if the corporation is satisfied that the code variation does not sacrifice health or safety. Number 070 SENATOR SUZANNE LITTLE said she has had duties as a building official in Soldotna, and they struggled very hard and are very much in favor of having International Conference of Building Officials (ICBO) certification for inspectors, especially involving AHFC funds. Senator Little stated her concern that the bill is a little broad, and she suggested that narrowing it down to benefit those communities that really have problems would be the best way to handle it. Senator Little asked if the problem was mostly in bush communities. DAVID HARDING responded that it is and that is what they are trying to deal with in the legislation. There is a definition of "rural" in the bill which essentially gets it off the road system. The added expense is for flying people in to do an inspection which is above and beyond the cost of the inspection. Senator Little also expressed concern with a provision in the hill which allows an inspection by video tape. Number 165 SENATOR RANDY PHILLIPS asked Mr. Harding to look over an amendment in the members' packets which addresses a concern expressed by the Kenai Peninsula Builders' Association relating to eliminating ICBO inspectors. Number 175 PETE CRANDALL, National Bank of Alaska, stated NBA finds the rural housing program to be one of the most effective housing tools is has, and that having some flexibility is critical for them in increasing housing in rural areas. Mr. Crandall related that wherever there is a potential to use inspectors or the qualified people, they are going to use them, but it is not feasible to fly four people out to a very rural village at a tremendous cost where one house may be under construction. SENATOR RANDY PHILLIPS closed the public hearing on HB 180 am