News from the Senate Majority
Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

Senate Votes to Amend Alaska Senior Housing Laws

Makes Housing More Available for Alaska Seniors

For Immediate Release: April 8, 1998 Contact: Ben Brown, Assistant to Senator Tim Kelly, at (907) 465-3822.

Juneau – The Senate unanimously passed legislation Wednesday to expand housing options for Alaska seniors and eliminate unnecessary costs tied to senior housing programs. Committee Substitute for Senate Bill 223 (Finance) is sponsored by the Senate Rules Committee.

Senator Tim Kelly (R-Anchorage), Chair of the Senate Rules Committee, said the bill is a legislative remedy for several problems in Alaska’s senior housing laws. The first issue is the age of eligibility for certain senior housing programs. A second problem is a mandated interest rate surcharge on Senior Housing Revolving Fund loans. Finally, changes are needed in the language to allow the Senior Housing Revolving Fund to be more fully utilized.

"In the face of reduced incomes, Alaska’s seniors don’t need additional roadblocks in securing housing," said Senator Kelly. "By allowing the age of eligibility to be lowered from 60 to 55, and eliminating the interest surcharge on loans, we clear the way for more seniors to find an affordable place to live." "We’ve also responded to bond counsel suggestions by improving the workability of the Senior Revolving Housing Fund."

Federal law considers seniors as those aged 55 and older. SB 223 standardizes the age of eligibility for loans under the Senior Housing Revolving Fund, making it consistent with federal law.

The interest rate surcharge on Senior Housing Revolving Fund loans was once needed to defray administrative costs to the Department of Community & Regional Affairs. Now that the program is administered by Alaska Housing Finance Corporation (AHFC), the surcharge is no longer necessary.

Proceeds from loans made from the Senior Housing Revolving Fund will be repaid directly into the Fund under the provisions of SB 223, contributing to its asset base. AHFC will use the Fund to make loans or pledge for bonds, in support of a variety of worthy senior housing goals.

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Media Note: The amendment adopted by the Senate today addressed AHFC’s concerns about reallocation of funds in the senior housing bond account. The net effect of the amendment will be the immediate transfer of the senior housing bond account balance to the senior housing revolving fund.