SB 264

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                                      SENATE BILL NO. 264
                   IN THE LEGISLATURE OF THE STATE OF ALASKA
                  THIRTY-FOURTH LEGISLATURE - SECOND SESSION
 BY SENATOR KAUFMAN
 Introduced: 2/23/26
 Referred: Labor and Commerce, Finance
                                              A BILL
                                    FOR AN ACT ENTITLED
1  "An Act relating to the housing assistance loan program; repealing the home ownership
2  assistance fund; repealing the operating loss reserve account; repealing the restricted
3  title loss reserve account; and providing for an effective date."
4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
5   * Section 1. AS 18.56.440 is amended to read:
6Sec. 18.56.440. Limitations on use of housing assistance loan program. The
7housing assistance loan program may not be used to
8(1) originate a direct loan or purchase or participate in the purchase of
9a small community housing mortgage loan that exceeds the limitations on mortgage
10loans purchased by the Federal National Mortgage Association as to principal amount
11or loan-to-value ratio;
12(2) originate a direct loan or purchase or participate in the purchase of
13a loan made for building materials for small community housing
14(A) that exceeds $45,000 or exceeds
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1(i)   80 percent of the appraised value of the work
2completed on the small community housing for which the loan is made
3if the small community housing is pledged as collateral for the loan; or
4(ii) 90 percent of the value of other property that is
5pledged as security for the loan and that is satisfactory to the
6corporation as collateral;
7(B) unless the terms of the loan agreement require inspections
8and certifications, as required by regulations of the corporation, at the expense
9of the borrower; and
10(C) unless the period of time allowed for repayment of the loan
11is equal to or less than 15 years;
12(3) originate direct loans or purchase or participate in the purchase of a
13small community housing mortgage loan that is secured by real property the
14marketable title to which is shown under AS 18.56.480(b)(2) [IF THE TOTAL
15AMOUNT OF OUTSTANDING SMALL COMMUNITY HOUSING MORTGAGE
16LOANS HELD BY THE CORPORATION EXCEEDS 10 TIMES THE AMOUNT
17OF MONEY IN THE RESTRICTED TITLE LOSS RESERVE ACCOUNT
18ESTABLISHED BY AS 18.56.490];
19(4) originate a direct loan for small community housing or purchase or
20participate in the purchase of a small community housing mortgage loan, other than a
21loan for the repair, remodeling, rehabilitation, or expansion of an existing owner-
22occupied residence, if the borrower has an outstanding housing loan made under a
23state loan program, other than a loan for nonowner-occupied housing under
24AS 18.56.580 or under former AS 44.47.520, that bears interest at a rate that was less
25than the prevailing market interest rate for similar housing loans at the time the loan
26was made;
27(5) originate a direct mortgage loan or purchase or participate in the
28purchase of a mortgage loan for rental housing unless the borrower agrees not to
29discriminate against tenants or prospective tenants because of sex, marital status,
30changes in marital status, pregnancy, parenthood, race, religion, color, national origin,
31or status as a student; or
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1(6) originate, purchase, or participate in a loan to a person who has a
2past due child support obligation established by court order or by the child support
3services agency under AS 25.27.160 - 25.27.220 at the time of application.
4  * Sec. 2. AS 18.56.430, 18.56.450, and 18.56.490 are repealed.
5  * Sec. 3. This Act takes effect July 1, 2026.
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