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

Legislature Passes "HomeKeeper" Measure

Helps Seniors Keep Their Homes

For Immediate Release: April 27, 1998 Contact: Senator Randy Phillips, at (907) 465-4949.

Juneau – The House passed Senate Bill 221 Monday to give Alaska seniors a helping hand in retaining their homes. The bill, which passed by a vote of 35 to 1, would change state law to allow for shared equity loans between seniors and sponsoring financial institutions as long as the loan programs are approved by the State of Alaska or the federal government.

Senator Randy Phillips (R-Eagle River), member of the Senate Finance Committee that sponsored the bill, said SB 221 creates needed options for Alaska’s seniors when it comes to financing their homes.

"So often, seniors face losing their homes because they receive smaller incomes as they get older," said Senator Phillips. "This legislation removes the legal roadblocks to allow shared equity loans which provides an easy solution to benefit Alaska 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.

# # #