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 Passes "HomeKeeper" Measure

Helps Seniors Keep Their Homes

For Immediate Release: February 2, 1998.

Juneau – Alaska seniors will receive a helping hand in retaining their homes if Senate Bill 221 becomes law. The bill, that passed the Senate Monday by a vote of 16 to 1, would change state law allowing for shared equity loans between seniors and sponsoring financial institutions if loan programs are approved by the State of Alaska or the federal government.

Senator Randy Phillips (R-Eagle River), said the bill creates needed options for Alaska’s seniors when it comes to financing their homes.

"So often, seniors are faced with dwindling incomes leading to the possibility of losing their homes," said Senator Phillips. "This legislation provides an easy solution that benefits Alaska’s seniors and participating financial institutions."

One option for seniors is a "reverse annuity mortgage." Under this plan, the financial institution provides a stream of payments to the senior citizen in return for an equity position in his/her home. The senior is able to stay in the home while receiving the financial benefits of home ownership.

An example, called the 'Homekeeper' loan program, allows seniors to access equity without a payment plan or to purchase a home without high payments. One program option is an equity share agreement granting a higher income allowance for the senior. This option cannot be utilized in Alaska because of a prohibition in current law.

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