Enrolled SB 274: Relating to the housing assistance loan fund in the Alaska Housing Finance Corporation; creating the housing assistance loan program; repealing loans for teacher housing and providing for loans for multi-family housing; making conforming amendments; and providing for an effective date.
00Enrolled SB 274 01 Relating to the housing assistance loan fund in the Alaska Housing Finance Corporation; 02 creating the housing assistance loan program; repealing loans for teacher housing and 03 providing for loans for multi-family housing; making conforming amendments; and providing 04 for an effective date. 05 _______________ 06 * Section 1. AS 18.56.420(a) is amended to read: 07 (a) There is created in the corporation [, AS A REVOLVING LOAN FUND,] 08 the housing assistance loan program [FUND CONSISTING OF MONEY 09 APPROPRIATED TO IT BY THE LEGISLATURE AND DEPOSITED IN IT BY 10 THE CORPORATION, AND REPAYMENTS OF PRINCIPAL AND INTEREST 11 ON LOANS MADE OR PURCHASED FROM THE ASSETS OF THE FUND]. The 12 corporation shall 13 [(1) ADOPT REGULATIONS TO ADMINISTER THE HOUSING 14 ASSISTANCE LOAN FUND UNDER AS 18.56.400 - 18.56.600; AND
01 (2) SUBJECT TO APPROPRIATION,] provide money [FOR A 02 RURAL ASSISTANCE LOAN PROGRAM] to originate, purchase, participate in the 03 purchase of, or refinance 04 (1) [(A)] small community housing mortgage loans; 05 (2) [(B)] loans made for building materials for small community 06 housing; 07 (3) [(C)] loans made for renovations or improvements to small 08 community housing; and 09 (4) [(D)] loans made for the construction of owner-occupied small 10 community housing other than loans to builders or contractors or loans that 11 compensate an owner for the owner's labor or services in constructing the owner's own 12 housing. 13 * Sec. 2. AS 18.56.440 is amended to read: 14 Sec. 18.56.440. Limitations on use of housing assistance loan program 15 [FUND]. The housing assistance loan program may not be used [CORPORATION 16 MAY NOT USE THE MONEY IN THE HOUSING ASSISTANCE LOAN FUND] 17 to 18 (1) originate a direct loan or purchase or participate in the purchase of 19 a small community housing mortgage loan that exceeds the limitations on mortgage 20 loans purchased by the Federal National Mortgage Association as to principal amount 21 or loan-to-value ratio; 22 (2) originate a direct loan or purchase or participate in the purchase of 23 a loan made for building materials for small community housing 24 (A) that exceeds $45,000 or exceeds 25 (i) 80 percent of the appraised value of the work 26 completed on the small community housing for which the loan is made 27 if the small community housing is pledged as collateral for the loan; or 28 (ii) 90 percent of the value of other property that is 29 pledged as security for the loan and that is satisfactory to the 30 corporation as collateral; 31 (B) unless the terms of the loan agreement require inspections
01 and certifications, as required by regulations of the corporation, at the expense 02 of the borrower; and 03 (C) unless the period of time allowed for repayment of the loan 04 is equal to or less than 15 years; 05 (3) originate direct loans or purchase or participate in the purchase of a 06 small community housing mortgage loan that is secured by real property the 07 marketable title to which is shown under AS 18.56.480(b)(2) if the total amount of 08 outstanding small community housing mortgage loans held by the corporation exceeds 09 10 times the amount of money in the restricted title loss reserve account established by 10 AS 18.56.490; 11 (4) originate a direct loan for small community housing or purchase or 12 participate in the purchase of a small community housing mortgage loan, other than a 13 loan for the repair, remodeling, rehabilitation, or expansion of an existing owner- 14 occupied residence, if the borrower has an outstanding housing loan made under a 15 state loan program, other than a loan for nonowner-occupied housing under 16 AS 18.56.580 or under former AS 44.47.520, that bears interest at a rate that was less 17 than the prevailing market interest rate for similar housing loans at the time the loan 18 was made; 19 (5) originate a direct mortgage loan or purchase or participate in the 20 purchase of a mortgage loan for rental housing unless the borrower agrees not to 21 discriminate against tenants or prospective tenants because of sex, marital status, 22 changes in marital status, pregnancy, parenthood, race, religion, color, national origin, 23 or status as a student; or 24 (6) originate, purchase, or participate in a loan to a person who has a 25 past due child support obligation established by court order or by the child support 26 enforcement division under AS 25.27.160 - 25.27.220 at the time of application. 27 * Sec. 3. AS 18.56.470(a) is amended to read: 28 (a) The interest rate on a mortgage loan originated or purchased in whole or in 29 part under AS 18.56.420 for small community housing or multi-family [TEACHER] 30 housing under AS 18.56.580 is one percent less than the interest rate, as determined 31 under AS 18.56.098(f)(1) - (4), on a mortgage loan purchased under AS 18.56.098(a)
01 from the proceeds of the most recent applicable issue of taxable bonds before the 02 origination or purchase of the mortgage loan originated or purchased under 03 AS 18.56.420. However, [OTHER THAN A LOAN FOR TEACHER HOUSING 04 UNDER AS 18.56.580,] the interest rate on that portion of a loan [FOR A SINGLE- 05 FAMILY HOUSE OR OWNER-OCCUPIED DUPLEX] that exceeds $250,000 is the 06 same as the interest rate determined under AS 18.56.098(f)(1) - (4). 07 * Sec. 4. AS 18.56.490(b) is amended to read: 08 (b) The corporation may withdraw money from the restricted title loss reserve 09 account in an amount equal to the loss to the corporation on a small community 10 housing mortgage loan originated or purchased in whole or in part by the corporation 11 if marketable title to the real property used to secure the loan was shown under 12 AS 18.56.480(b)(2). Money withdrawn from the restricted title loss reserve account 13 under this section shall be deposited in the Alaska housing finance revolving fund 14 (AS 18.56.082) [HOUSING ASSISTANCE LOAN FUND]. 15 * Sec. 5. AS 18.56.550(b) is amended to read: 16 (b) The personnel described in (a) of this section may make visits to small 17 communities [THE REGIONS ESTABLISHED UNDER AS 18.56.570(a)] to provide 18 preconstruction and post-construction inspections of real property for which loans are 19 originated or purchased by the corporation in whole or in part under AS 18.56.420 and 20 to provide assistance to private financial institutions and their borrowers [IN THE 21 REGIONS]. Authority for final approval of loans may not be exercised by the 22 personnel described in this section. 23 * Sec. 6. AS 18.56.560 is amended to read: 24 Sec. 18.56.560. Demonstration projects and information. The corporation 25 may enter into agreements with public and private agencies to provide demonstration 26 projects and information concerning housing construction in small communities 27 [EACH OF THE REGIONS ESTABLISHED UNDER AS 18.56.570(a)]. 28 * Sec. 7. AS 18.56.580 is repealed and reenacted to read: 29 Sec. 18.56.580. Loans for multi-family housing. (a) The corporation may 30 use the housing assistance loan program created in AS 18.56.420 to make loans for the 31 purchase, participation in the purchase, origination, development, or refinancing of
01 multi-family housing in small communities. 02 (b) In this section, 03 (1) "development" means the construction of a new residence or the 04 acquisition, repair, remodeling, rehabilitation, or expansion of an existing residence; 05 (2) "multi-family housing" means a multi-family residence containing 06 two or more dwelling units that may be nonowner-occupied or owner-occupied. 07 * Sec. 8. AS 18.56.420(b) and 18.56.570 are repealed. 08 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).