SENATE BILL NO. 217 "An Act relating to the issuance of state-guaranteed revenue bonds by the Alaska Housing Finance Corporation to finance mortgages for qualifying veterans; and providing for an effective date." 2:05:32 PM BRYAN BUTCHER, DIRECTOR, GOVERNMENT AFFAIRS AND PUBLIC RELATIONS, ALASKA HOUSING FINANCE CORPORATION, DEPARTMENT OF REVENUE, reviewed the legislation. He explained that SB 217 requests approval through general election of bond sales for Alaska Housing Finance Corporation's (AHFC) veteran mortgage program. He provided history on the veteran mortgage program, which provided a lower interest rate to veterans. He explained that five states opted in; Texas, California, Oregon, Wisconsin, and Alaska. Alaska can sell up to $100 million in bonds for the program; however, federal law requires a general obligation of the state's citizens. Co-Chair Stedman asked about the current number of veteran loans outstanding. JOE DUBLER, DIRECTOR OF FINANCE, ALASKA HOUSING FINANCE CORPORATION, responded that $341 million of outstanding veteran loans exist at an average rate of six percent. The current interest rate is 4.625 percent. The bonds issued are $2.6 million. Current outstanding bonds equal $338 million. The remaining authorization from prior voter approvals is $95 million. He informed of $11 million in delinquent loans. Co-Chair Stedman asked if the corporation was seeking authorization for the $600 million. Co-Chair Stedman mentioned the one fiscal note from Department of Revenue requesting authorization to use $150 thousand in AHFC receipts to cover the cost of voter education. He asked about marketing or information dissemination to encourage public participation. Mr. Butcher spoke to the process in 2002, which involved mailers for every Alaska household along with limited television and radio advertising. Senator Egan assumed that the funding would be used for instruction and information. Mr. Butcher concurred. SB 217 was HEARD and HELD in Committee for further consideration.