House of Representatives

HB 2615

housing; department; financing authority

Sponsors: Representative Flake

 

DPA

Committee on Commerce and Economic Development Committee

X

Caucus and COW

 

 

As Passed the House

 

The Committee on Commerce and Economic Development adopted a strike-everything amendment as follows:

 

History

A recent publication by the Arizona Housing Commission, The State of Housing in Arizona:2000, outlines both housing data and potential recommendations and options for policy makers.  One recommendation includes the creation of a state housing agency by using the existing programs located within the Department of Commerce [DOC] as a foundation for the new agency.  To that end, this amendment establishes a stand-alone entity by transferring the present powers, duties, related monies and employees from the Department of Commerce Office of Housing Development to the new Arizona Department of Housing [ADOH].  The strike-everything amendment also creates the Arizona Housing Finance Authority to act as an administrative extension of the agency to issue bonds for affordable single-family and multi-family housing programs for the rural areas.  An interim phase will transfer the aforementioned programs first to the Governor's Office of Housing Development [Office] beginning January 1, 2002, and ultimately to the new Arizona Department of Housing on October 1, 2002. 

 

Provisions

Governor's Office of Housing Development and Arizona Department of Housing

 

·                      Transfers all existing housing development programs from the Department of Commerce to the Office of Housing Development in the Governor's Office on January 1, 2002.

·                      Ultimately shifts the housing programs to the new Arizona Department of Housing on October 1, 2002.  Establishes the Housing Finance Authority.

·                      Prescribes the responsibility for establishing the necessary policies, procedures and programs, taking into consideration the housing affordability for low/moderate income families, special needs populations and decaying housing stock.  [41-1505 and 41-3953] 

·                      Requires guidelines to meet or exceed state/local building, health and safety code requirements.  [41-1505 and 41-3953]

·                      Outlines the additional duties of the Office and ADOH as follows:

-         Provide staff support to AHFA.

-         Perform duties relating to the bond program, low income housing tax credit program, and the mortgage revenue bond and mortgage credit certificates programs.

-         Provide information and advice to interested parties.

-         Make recommendations and an annual report to the Governor and Legislature.

-         Contract/subcontract for financial work, outside advisers/consultants.

-         Adopt necessary and applicable rules.

-         Establish and collect fees and receive reimbursement for costs in connection with program duties.  [41-1505 and 41-3953]

·                      Designates the Office and ADOH as the state public housing authority.  [41-1505 and 41-3903] 

·                      Exempts DOC, the Office and ultimately ADOH from the procurement code and contracting restrictions.  [35-729, 41-1505, 41-3953]

 

 

Transfer of Existing Programs and Funds

·                      Housing Trust Fund [41-1512]

·                      Arizona Housing Commission and their related powers and duties.  [41-3954 and Sections 20 and 21]

·                      Housing Development Fund [41-1518 and 41-3956]

·                      Office of Housing Development powers, duties, property, records, personnel and monies transfer to ADOH and maintain their same status.  [Section 19]

·                      Review and approval of multifamily private activity bonds.  [35-726 and 41-3953]

·                      Designation as the state's "housing credit agency" for low-income housing tax credits.  [35-728 and 41-3953]

·                      Performance of duties relating to the Neighborhood Preservation Program.  [41-3953]

 

Arizona Housing Finance Authority

·                      Establishes the AHFA and its 7-member governing board. [41-3902 and 41-3903]

·                      Authorizes the Board to issue bonds or certificates, administer grants of monies or property of any kind from a federal agency or others.  Allows the Board to contract with consultants, experts and others as may be necessary to carry out their duties.  Authorizes the Board to appoint a director and hire other employees, acquire office space, equipment and supplies as required.  [HUD Risk Sharing Program] [41-3904]

·                      States that the costs of operation are not the responsibility of the state and must be paid only from bond proceeds.  Exempts AHFA from state taxation.  [41-3905]

·                      Outlines the activities the Authority may undertake, by resolution, such as issue bonds for multifamily residential rental projects and residential dwellings, and establish mortgage credit certificate programs to finance residential dwelling units.  [41-3906]

·                      Allows the Board to enter into intergovernmental agreements.  [41-3906]

·                      Allows the Board to irrevocably transfer any surplus monies in the bond funds and certificate fund to ADOH for deposit in the program fund or the housing trust fund.  [41-3907, as amended]

·                      Allows the Board to credit enhance its bonds and pay the related costs from bond proceeds or other available funds.  [41-3908]

·                      Assures bondholders that the state will not limit or alter the rights of AHFA and specifies the bonds are obligations of AHFA only and not the state.  [41-3909 and 41-3911]

 

Notification to Local Jurisdictions Regarding Projects/Programs

·                      Requires ADOH to notify the city, town, county or Tribal government when a multifamily rental project is planned for its jurisdiction and further requires the appropriate governing body's written consent prior to proceeding with the project.  Stipulates ADOH shall not in any way interfere with the local jurisdiction's planning, zoning or use regulations.  [35-728 and 41-3953]

·                      Requires notification to the jurisdiction or Tribal government when a program or project is planned and before proceeding, ADOH shall seek comment from the governing bodies.  [41-1512 and 41-1518]

·                      Authorizes the AHFA to annually submit an allocation reservation [for rural areas] to ADOH for mortgage revenue bonds and mortgage credit certificates.  Allows a governing body to opt-out in writing within 21 days of written notification by AHFA that proceeds of bonds or mortgage credit certificates may be used to finance projects that are owner-occupied single family dwellings.   [35-913]

·                      Provides effective dates to coincide with the transfer of the programs as outlined.

·                      Terminates the Arizona Department of Housing on July 1, 2011.

·                       

·                       

·                      ---------- DOCUMENT FOOTER ---------

·                      45th Legislature                                                                                                                       

·                      First Regular Session                           3                                                            March 7, 2001

·                       

·                      ---------- DOCUMENT FOOTER ---------