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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled HB 50                                                                                                          
01 Authorizing the Alaska Housing Finance Corporation to allow certain commercial uses in a                                
02 multi-unit residential housing development owned or financed by the corporation and limiting                            
03 the Alcoholic Beverage Control Board's issuance of certain licenses to premises in the                                  
04 residential housing development.                                                                                        
05                           _______________                                                                               
06    * Section 1. AS 04.11 is amended by adding a new section to read:                                                  
07            Sec. 04.11.365. Denial of certain licenses in multi-unit residential housing                               
08       developments owned or financed by the Alaska Housing Finance Corporation.                                       
09       For premises located in a multi-unit residential housing development owned or                                     
10       financed by the Alaska Housing Finance Corporation, the board may issue a new                                     
11       license under AS 04.11.320, renew a license under AS 04.11.330, or approve a request                              
12       for relocation under AS 04.11.340 if the Alaska Housing Finance Corporation                                       
13       authorizes the use under AS 18.56.340 and                                                                         
14                 (1)  the license is for a restaurant or eating place under AS 04.11.100;                                
01       or                                                                                                                
02                 (2)  the premises are designated by the board as a restaurant under                                     
03       AS 04.16.049.                                                                                                     
04    * Sec. 2. AS 18.56.090(a) is amended to read:                                                                      
05            (a)  In addition to other powers granted in this chapter, the corporation may,                               
06       for the purpose of providing housing for persons of lower and moderate income or                                  
07       persons located in remote, underdeveloped, or blighted areas of the state and for its                             
08       other corporate purposes,                                                                                         
09                 (1)  make or participate in the making of mortgage loans to sponsors,                                   
10       developers, builders, and purchasers of residential housing, if the corporation                                   
11       determines that                                                                                                   
12                      (A)  mortgage loans are not otherwise available, wholly or in                                      
13            part, from private lenders upon reasonably equivalent terms and conditions;                                  
14            and                                                                                                          
15                      (B)  the residential housing for which the mortgage loans are                                      
16            made complies with applicable provisions of AS 18.56.096(c) and the                                          
17            applicable thermal and lighting energy standards of AS 46.11.040;                                            
18                 (2)  purchase or participate in the purchase of mortgage loans made to                                  
19       sponsors, developers, builders, owners, and purchasers of residential housing, if the                             
20       corporation                                                                                                       
21                      (A)  has given approval before the initial making of the loan and                                  
22            has determined that mortgage loans were, at the time the approval was given,                                 
23            not otherwise available, wholly or in part, from private lenders upon                                        
24            reasonably equivalent terms and conditions; or                                                               
25                      (B)  has determined that                                                                           
26                           (i)  the purchase or participation will result in additional                                  
27                 residential housing, taking into account without limitation such factors                                
28                 as reinvestment of the proceeds of the sale in additional mortgage                                      
29                 loans, increased availability of mortgage loans insured by the federal                                  
30                 government, its agencies or departments, the reduction, if any, of                                      
31                 interest payments to be made with respect to mortgage loans, or such                                    
01                 other factors as will tend to increase or improve the supply of                                         
02                 residential housing within the state; and                                                               
03                           (ii)  the residential housing covered by the mortgage                                         
04                 loan complies with applicable provisions of AS 18.56.096(c) and the                                     
05                 applicable thermal and lighting energy standards of AS 46.11.040;                                       
06                 (3)  make partial rental payments and mortgage interest payments under                                  
07       a contract with any housing owner if the payments will be applied to decrease rental or                           
08       mortgage interest charges of persons of lower and moderate income or owners or                                    
09       purchasers of residential housing in remote, underdeveloped, or blighted areas of the                             
10       state;                                                                                                            
11                 (4)  make loans from the housing development fund;                                                      
12                 (5)  collect and pay reasonable fees and charges in connection with                                     
13       making, purchasing, and servicing its mortgages, loans, notes, bonds, certificates,                               
14       commitments, and other evidences of indebtedness;                                                                 
15                 (6)  acquire real property, or any interest in real property, in its own                                
16       name, by purchase, transfer, or foreclosure, when the acquisition is necessary or                                 
17       appropriate to protect any loan in which the corporation has an interest; sell, transfer,                         
18       and convey the property to a buyer; and, if the sale, transfer, or conveyance cannot be                           
19       effected with reasonable promptness or at a reasonable price, rent or lease the property                          
20       to a tenant pending the sale, transfer, or conveyance;                                                            
21                 (7)  sell, at public or private sale, to any purchaser, including the                                   
22       Federal National Mortgage Association, all or any part of a mortgage or other                                     
23       instrument or document securing a construction, land development, mortgage, or                                    
24       temporary loan of any type permitted by this chapter;                                                             
25                 (8)  purchase, in order to meet the requirements of the sale of its                                     
26       mortgages to the Federal National Mortgage Association, stock of the Federal                                      
27       National Mortgage Association;                                                                                    
28                 (9)  procure insurance against any loss in connection with its operation;                               
29                 (10)  consent to the modification of the rate of interest, time of payment                              
30       of any installment of principal or interest, or any other terms, of the mortgage loan,                            
31       mortgage loan commitment, construction loan, temporary loan, contract, or agreement                               
01       of any kind to which the corporation is a party;                                                                  
02                 (11)  borrow money as provided in this chapter to carry out and                                         
03       effectuate its corporate purposes, and issue its obligations as evidence of borrowing;                            
04                 (12)  include in any borrowing the amounts necessary to pay financing                                   
05       charges, interest on the obligations for a period not exceeding one year after the date                           
06       on which the corporation estimates funds will otherwise be available to pay the                                   
07       interest, consultant, advisory, and legal fees, and other expenses that are necessary or                          
08       incident to this borrowing;                                                                                       
09                 (13)  under AS 18.56.088, adopt and publish regulations respecting its                                  
10       lending programs and other regulations that are necessary to effectuate its purposes;                             
11                 (14)  provide technical and advisory services to sponsors, builders, and                                
12       developers of residential housing and to residents of it;                                                         
13                 (15)  promote research and development in scientific methods of                                         
14       constructing low-cost and energy-efficient residential housing of high durability;                                
15                 (16)  make and execute agreements, contracts, and other instruments                                     
16       necessary or convenient in the exercise of the powers and functions of the corporation                            
17       under this chapter, including contracts with any person, firm, corporation,                                       
18       governmental agency, or other entity;                                                                             
19                 (17)  receive, administer, and comply with the conditions and                                           
20       requirements respecting any appropriation or gift, grant, or donation of property or                              
21       money;                                                                                                            
22                 (18)  sue and be sued in its own name;                                                                  
23                 (19)  adopt an official seal;                                                                           
24                 (20)  adopt bylaws for the regulation of its affairs and the conduct of its                             
25       business and adopt regulations and policies in connection with the performance of its                             
26       functions and duties;                                                                                             
27                 (21)  employ fiscal consultants, engineers, attorneys, real estate                                      
28       counselors, appraisers, and other consultants and employees that may be required in                               
29       the judgment of the corporation, and fix and pay their compensation from funds                                    
30       available to the corporation;                                                                                     
31                 (22)  do all acts and things necessary, convenient, or desirable to carry                               
01       out the powers expressly granted or necessarily implied in this chapter;                                          
02                 (23)  invest or reinvest, subject to its contracts with noteholders and                                 
03       bondholders, any money or funds held by the corporation in any obligations or other                               
04       securities or investments in which banks or trust companies in the state may legally                              
05       invest funds held in reserves or sinking funds or any funds not required for immediate                            
06       disbursement, and in certificates of deposit or time deposits secured by obligations of,                          
07       or guaranteed by, the state or the United States;                                                                 
08                 (24)  purchase a mortgage loan made to refinance an existing mortgage                                   
09       loan, without regard to whether the corporation holds the existing mortgage loan, as                              
10       long as the interest rate and fees charged to the borrower are sufficient to fully                                
11       reimburse the corporation for all costs incurred by the corporation in purchasing the                             
12       mortgage loan and as long as the borrower will be in compliance with                                              
13       AS 18.56.096(a)(6) after purchase of the mortgage loan by the corporation;                                        
14                 (25)  participate in the making of mortgage loans to borrowers for                                      
15       congregate housing under AS 18.56.100(b)(1) as the purchaser of those loans; loans                                
16       made for congregate housing under this paragraph must reflect application of prudent                              
17       underwriting standards and lending practices that include, but are not limited to,                                
18       appropriate loan-to-value ratios and the ability of a borrower to repay the loan;                                 
19                 (26)  participate in the development of buildings or units that, by their                               
20       use, address homelessness but that, by their operation, appear nonresidential in nature;                          
21                 (27)  provide financial assistance to prevent homelessness, including                                   
22       prevention of foreclosures and evictions;                                                                         
23                 (28)  provide financial assistance to support housing retention services                                
24       or facilitate transition from dependency on low-cost housing;                                                     
25                 (29)  participate with appropriate sponsoring agencies or groups in                                     
26       demonstration housing projects that address homelessness;                                                     
27                 (30)  authorize, under AS 18.56.340, certain commercial uses in a                                   
28       multi-unit residential housing development owned or financed by the                                           
29       corporation.                                                                                                  
30    * Sec. 3. AS 18.56 is amended by adding a new section to read:                                                     
31            Sec. 18.56.340. Commercial use in a multi-unit residential housing                                         
01       development owned or financed by the corporation; limitations. (a) The                                          
02       corporation may authorize commercial use in a multi-unit residential housing                                      
03       development it owns or finances if                                                                                
04                 (1)  the use is not prohibited under (b) of this section; and                                           
05                 (2)  the total of all commercial uses does not occupy more than a                                       
06       percentage of the space in the multi-unit residential housing development that the                                
07       corporation has determined is consistent with the corporation's goal of increasing                                
08       available affordable housing.                                                                                     
09            (b)  The corporation may not authorize the commercial use of space in a multi-                               
10       unit residential housing development owned or financed by the corporation for                                     
11                 (1)  a business that offers adult entertainment;                                                        
12                 (2)  the sale of alcoholic beverages, unless the sale is in a restaurant or                             
13       eating place licensed under AS 04.11.100 or is in premises designated by the                                      
14       Alcoholic Beverage Control Board as a restaurant under AS 04.16.049;                                              
15                 (3)  substance abuse treatment; or                                                                      
16                 (4)  a business that primarily sells, transfers, or stores cigarettes or                                
17       tobacco-related products.                                                                                         
18            (c)  This section does not require the corporation to authorize commercial use                               
19       in a multi-unit residential housing development owned or financed by the corporation.                             
20            (d)  In this section,                                                                                        
21                 (1)  "business that offers adult entertainment" has the meaning given in                                
22       AS 23.10.350(f);                                                                                                  
23                 (2)  "cigarette" has the meaning given in AS 18.74.290;                                                 
24                 (3)  "commercial use" includes a business or nonprofit activity                                         
25       conducted by a sole proprietorship, cooperative, corporation, firm, partnership, or                               
26       other association of persons organized in any manner.                                                             
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