House of Representatives

HB 2615

housing; department; financing authority

(now: housing; financing authority; department)

Sponsors: Representative Flake

DPA	Committee on Commerce and Economic Development Committee
DPA	Caucus and COW
X	As Transmitted to the Governor [Laws 2001, Chapter 22]

HB 2615 creates the Arizona Department of Housing and administratively attaches the new Arizona Housing Finance Authority, which is a bond issuance authority specializing in affordable housing programs for rural areas of the State.

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 utilizing the existing programs located within the Department of Commerce [DOC] as a foundation for the new agency. To that end, HB 2615 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 bill also creates the Arizona Housing Finance Authority [AHFA] 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 Arizona 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.

· Requires guidelines to meet or exceed state/local building, health and safety codes.

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

1. Provide staff support to AHFA.

2. Perform duties relating to the bond program, low income housing tax credit program, and the mortgage revenue bond and mortgage credit certificate program.

3. Provide information and advice to interested parties.

4. Make recommendations and submit an annual report to the Governor and Legislature.

5. Contract/subcontract for financial work, outside advisers and consultants.

6. Adopt necessary and applicable rules.

7. Establish/collect fees and receive reimbursement for costs related to program duties.

· Designates the Office and ADOH as the state public housing authority.

· Exempts the Department, the Office and ultimately ADOH from the procurement code and contracting restrictions.

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

Transfer of Existing Programs and Funds

· Transfers the following programs, powers, duties and related funds:

1. Housing Trust Fund, Housing Development Fund and Housing Commission.

2. Office of Housing Development property, records, personnel and monies transfer to ADOH and maintain their same status.

3. Approval/review of multifamily private activity bonds.

4. Designation as the state's housing credit agency for low-income housing tax credits.

5. Performance of duties relating to the Neighborhood Preservation Program.

Arizona Housing Finance Authority

· Establishes the AHFA and its seven-member governing board.

· Authorizes the Board to issue bonds or certificates, administer grants or property of any kind from a federal agency or others. Permits the Board to contract with consultants or other experts as 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]

· 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.

· 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.

· Allows the Board to enter into intergovernmental agreements.

· Permits 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.

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

· 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.

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.

· 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 body.

· 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.

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45th Legislature

First Regular Session 3 April 23, 2001

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