SENATE RULES COMMITTEE February 5, 1998 11:25 a.m. MEMBERS PRESENT Senator Tim Kelly, Chair Senator Loren Leman, Vice Chair Senator Robin Taylor MEMBERS ABSENT Senator John Torgerson Senator Jim Duncan COMMITTEE CALENDAR SENATE BILL NO. 223 "An Act lowering the age requirement from 60 years to 55 years for purposes of senior housing programs; and repealing a provision relating to the interest rate on senior housing loans made by the Alaska Housing Finance Corporation." PREVIOUS SENATE COMMITTEE ACTION SB 223 - See State Affairs minutes dated 1/27/98. Rules minutes dated 1/30/98. WITNESS REGISTER John Bitney Alaska Housing Finance Corporation P.O. Box 101020 Anchorage, AK 99510-1020 POSITION STATEMENT: Offered information on CSSB 223(RLS) ACTION NARRATIVE TAPE 98-1 , SIDE A SB 223 - SENIOR HOUSING CHAIRMAN KELLY called the Senate Rules Committee meeting to order at 11:25 a.m., and noted the presence of Senators Leman, Taylor and Kelly. CHAIRMAN KELLY brought SB 223 before the committee and directed attention to a proposed Rules committee substitute, which was requested by Alaska Housing Finance Corporation (AHFC). SENATOR TAYLOR moved adoption of CSSB 223(RLS). Hearing no objection, it was so ordered. JOHN BITNEY, representing Alaska Housing Finance Corporation, expressed appreciation for the Rules Committee consideration of the proposed committee substitute which will resolve a problem with their program. The committee substitute adds in new sections 2 and 3. Mr. Bitney explained the purpose of the legislation is to make some technical changes to their senior revolving loan fund that the corporation uses to make loans for senior housing programs. The program was originally set up under the Department of Community and Regional Affairs, However, when the program was put under AHFC, the statutes were merged and there were some technical problems within that program because of the way the statutes were merged, and this resulted in AHFC not really being able to use it and offer competitive rates. Mr. Bitney said since the merger AHFC has been making senior loans through their Special Needs Multi-Family Program, but they think it is much simpler to use the senior program for senior projects. The amendment to SB 223 will make it one fund so that the process will be much simpler and clearer to both the bond holder and the person getting the loan. CHAIRMAN KELLY noted Kay Murphy of AHFC was listening to the meeting via teleconference from Anchorage, however, she had nothing to add to Mr. Bitney's testimony. He then asked for a calendaring motion on SB 223. SENATOR LEMAN moved and asked unanimous consent CSSB 223(RLS) be approved for calendaring at the discretion of the Chair. Hearing no objection, it was so ordered. There being no further business to come before the committee, the meeting adjourned at 11:28 a.m.