A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA, OPPOSING SB 150 IN ITS PRESENT STATE; AND SUPPORTING THE EXPANSION OF THE CURRENT ALASKA HOUSING FINANCE CORPORATION RURAL HOUSING ASSISTANCE PROGRAM INTO OTHER GEOGRAPHIC AREAS BY MODIFYING THE SPECIFICATIONS OF THE FUNDING PROGRAM.

WHEREAS, the Alaska Housing Finance Corporation has had significant success in rural areas of Alaska under the present rural loan program and has provided mortgage opportunities to those who might not have qualified under other programs, or where alternative lenders were not available; and

WHEREAS, SB 150, if passed, in its proposed form, would eliminate the current rural program and create an economic hardship for the Alaskan resident currently served by this program; and

WHEREAS, the existing proven program should be preserved and further expanded into other rural areas, including municipalities of slightly larger populations that are currently approved, creating similar economic benefits, and better housing opportunities in those areas and communities; and

WHEREAS, the Alaska Housing Finance Corporation rural loan program has been fiscally sound and profitable, and new loans in the expanded area would average down the level of exposure to default for the program overall; and

WHEREAS, the Kachemak Bay Board of Realtors has provided in put and supports this Resolution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska opposes SB 150 in its present form, and supports the preservation of the existing Alaska Housing Finance Corporation rural loan program; and

BE IT FURTHER RESOLVED, that the City Council supports the expansion of the existing program, to include areas and/or municipalities that meet the criteria established by the USDA/Rural Development definition of rural small communities (20,000 and under population).

PASSED AND ADOPTED by the Homer City Council this 14th day of February, 2000.

City of Homer

ATTEST: ______________________________

JACK CUSHING, MAYOR

_________________________________

Mary L. Calhoun, CMC, City Clerk

Fiscal Note: NA