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S1384......................................................by STATE AFFAIRS
IDAHO HOUSING AND FINANCE ASSOCIATION - Amends existing law to provide
powers for the Idaho Housing and Finance Association to act as a
clearinghouse for housing matters and to coordinate and develop a state
housing policy and to remove the limitation on the amount of bonds not
secured by the state sales tax which may be issued by the association.
02/03 Senate intro - 1st rdg - to printing
02/04 Rpt prt - to St Aff
02/17 Rpt out - rec d/p - to 2nd rdg
02/18 2nd rdg - to 3rd rdg
02/20 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
Sweeney, Thorne, Wheeler, Whitworth
NAYS--None
Absent and excused--Twiggs
Floor Sponsors - Sweeney, Ingram
Title apvd - to House
02/23 House intro - 1st rdg - to St Aff
03/12 Rpt out - rec d/p - to 2nd rdg
03/13 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 68-0-2
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
Clark, Crane, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13),
Field(20), Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck,
Jaquet, Jones(9), Jones(20), Judd, Kellogg, Kempton, Kendell,
Kjellander, Kunz, Lake, Linford, Mader, Marley, McKague, Meyer,
Miller, Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman,
Ridinger, Robison, Sali, Schaefer, Stevenson, Stoicheff, Stone,
Stubbs, Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Wood,
Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Jones(22), Loertscher
Floor Sponsor - Gagner
Title apvd - to Senate
03/16 To enrol
03/18 Rpt enrol - Pres signed
03/19 Sp signed - to Governor
03/25 Governor signed
Session Law Chapter 374
Effective: 03/25/98
S1384|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1384 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO HOUSING AND FINANCE ASSOCIATION; AMENDING SECTION 3 67-6206, IDAHO CODE, TO PROVIDE POWERS FOR THE ASSOCIATION TO ACT AS A 4 CLEARINGHOUSE FOR HOUSING MATTERS AND TO COORDINATE AND DEVELOP A STATE 5 HOUSING POLICY; AMENDING SECTION 67-6211, IDAHO CODE, TO REMOVE THE LIMI- 6 TATION ON THE AMOUNT OF BONDS NOT SECURED BY THE STATE SALES TAX WHICH MAY 7 BE ISSUED BY THE ASSOCIATION AND TO MAKE A TECHNICAL CORRECTION; AND 8 DECLARING AN EMERGENCY. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 67-6206, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 67-6206. POWERS OF ASSOCIATION. The housing and finance association is an 13 independent public body corporate and politic, exercising public and essential 14 governmental functions, and having all the powers which are hereby declared to 15 be public purposes necessary or convenient to carry out and effectuate the 16 purposes and provisions of this act, including the following powers in addi- 17 tion to others herein granted: 18 (a) To sue and to be sued; to have a seal and to alter the same at pleas- 19 ure; to have perpetual succession; to make and execute contracts and other 20 instruments necessary or convenient to the exercise of the powers of the asso- 21 ciation; and to make and from time to time amend and repeal bylaws, rules, not 22 inconsistent with this act, to carry into effect the powers and purposes of 23 the association. 24 (b) To conduct its operations within any or all of the counties of the 25 state. 26 (c) To cooperate with housing authorities throughout Idaho in the devel- 27 opment of housing projects. 28 (d) To assign priorities for action and revise or modify said priorities 29 from time to time. 30 (e) To make and execute agreements, contracts and other instruments nec- 31 essary or convenient in the exercise of the powers and functions of the asso- 32 ciation under this act, including contracts with any housing sponsor, mortgage 33 lender, person, firm, corporation, governmental agency, or other entity; and 34 to include in any contract let in connection with a project, stipulations 35 requiring that the contractor and any subcontractors comply with requirements 36 as to minimum wages and maximum hours of labor, and comply with any conditions 37 which the federal government may have attached to its financial aid of the 38 project and to designate mortgage lenders to act for and in behalf of the 39 association, with respect to originating or servicing and processing mortgage 40 loans of the association, and to pay the reasonable value of service rendered 41 to the association by such mortgage lenders pursuant to contracts with mort- 42 gage lenders. 43 (f) To lease, sell, construct, finance, reconstruct, restore, rehabili- 2 1 tate, operate or rent any housing projects, nonprofit facilities or any dwell- 2 ings, houses, accommodations, lands, buildings, structures or facilities 3 embraced in any housing project or nonprofit facilities and, subject to the 4 limitations contained in this act, to establish and revise the rents or 5 charges therefor. 6 (g) To own, hold and improve real or personal property; to purchase, 7 lease, obtain options upon, acquire by gift, grant, bequest, devise, eminent 8 domain or otherwise, any real or personal property or any interest therein. 9 (h) To acquire any real property; to sell, lease, exchange, transfer, 10 assign, pledge or dispose of any real or personal property or any interest 11 therein. 12 (i) To insure or provide for the insurance of any real or personal prop- 13 erty or operation of the association against any risks or hazards, and to pro- 14 cure or agree to the procurement of insurance or guarantees from the federal 15 government or other source for the payment or purchase of any bonds or parts 16 thereof issued by the association, including the power to pay for any such 17 insurance or guarantees. 18 (j) To invest any funds held in reserves or sinking funds, or any funds 19 not required for immediate disbursement, in property or securities in which a 20 bank, as defined in the "bank act," title 26, Idaho Code, may legally invest 21 funds including without limitation, to agree to purchase the obligations of 22 any federal, state or local government upon such conditions as the association 23 may determine to be prudent and in its best interest. 24 (k) Within its area of operation: to investigate into living, dwelling 25 and housing conditions and into the means and methods of improving such condi- 26 tions; to determine where slum areas exist or where there is a shortage of 27 adequate, safe and sanitary dwelling accommodations for persons of low-income; 28 to make studies and recommendations relating to the problem of clearing, 29 replanning and reconstruction of slum areas and the problem of providing 30 dwelling accommodations for persons of low-income, and to cooperate with the 31 city, the county, the state or any political subdivision thereof in action 32 taken in connection with such problems; and to engage in research, studies and 33 experimentation on the subject of housing. 34 (l) To participate in cooperative ventures with any agencies, organiza- 35 tions and individuals in order to undertake the provision of housing for per- 36 sons of low-income or to undertake the provision of nonprofit facilities. 37 (m) To provide research and technical assistance to eligible agencies, 38 organizations and individuals eligible to develop low cost housing and to 39 research new low cost housing development and construction methods. 40 (n) To make and undertake commitments to make or participate in the mak- 41 ing of mortgage loans to persons of low-income and to housing sponsors, 42 including without limitation federally insured mortgage loans, and to make 43 temporary loans and advances in anticipation of permanent loans to housing 44 sponsors; said mortgage loans to housing sponsors shall be made to finance the 45 construction, improvement, or rehabilitation of housing projects for persons 46 of low-income, and/or mixed income housing projects upon the terms and condi- 47 tions set forth in this act; provided, however, that such loans shall be made 48 only upon the determination by the association that mortgage loans are not 49 otherwise available, wholly or in part, from private lenders upon reasonably 50 equivalent terms and conditions. 51 (o) To purchase, or make commitments to purchase or participate in the 52 purchase of mortgage loans from mortgage lenders which loans have been made 53 for the construction, improvement, or rehabilitation of housing projects for 54 persons of low-income and/or mixed income housing projects or loans which have 55 been made to persons of low-income for residential housing, upon terms set 3 1 forth in this act; provided, however, that any such purchase shall be made 2 only upon the determination by the association that the mortgage loans to be 3 made are not otherwise being made by mortgage lenders upon reasonably equiva- 4 lent terms and conditions. Also, to purchase, or make commitments to purchase 5 or participate in the purchase of mortgage loans from mortgage lenders whether 6 or not said loans were made to persons of low-income, upon terms set forth in 7 this act; provided, however, that the proceeds from such purchase or the 8 equivalent thereof shall be reinvested in obligations of the association, in 9 mortgage loans to persons of low-income or in mortgage loans for housing proj- 10 ects for persons of low-income and/or mixed income housing projects, and pro- 11 vided that any such purchase shall be made only upon the determination by the 12 association that the mortgage loans to be made are not otherwise being made by 13 mortgage lenders upon reasonably equivalent terms and conditions. 14 (p) To provide interim financing for housing projects including mixed 15 income housing projects approved by the association, provided that the associ- 16 ation has determined that such financing is not otherwise available from mort- 17 gage lenders upon reasonably equivalent terms and conditions. 18 (q) To prescribe rules and policies in connection with the performance of 19 its functions and duties. 20 (r) To do all other things deemed necessary and desirable to accomplish 21 the objectives of this act. 22 (s) To borrow money and issue bonds and notes or other obligations, to 23 invest the proceeds thereof in any lawful manner and to fund or refund the 24 same, and to provide for the rights of the holders of its obligations as pro- 25 vided in this act and in connection therewith, to waive, by resolution or 26 other document of the association, the exemption from federal income taxation 27 of interest on any of the association's obligations under existing or future 28 federal law and to establish, maintain and preserve the association's general 29 obligation rating and any rating on its bonds, notes or other obligations. 30 (t) To receive and accept aid or contributions from any source. 31 (u) To employ architects, engineers, attorneys, accountants, housing con- 32 struction and financial experts and such other advisors, consultants and 33 agents as may be necessary in its judgment and to fix their compensation. 34 (v) To insure mortgage payments of any mortgage loan made for the purpose 35 of constructing, rehabilitating, purchasing, leasing, or refinancing housing 36 projects upon such terms and conditions as the association may prescribe. 37 (w) To fix and revise from time to time and charge and collect fees and 38 charges in connection with loans made or other services provided by the asso- 39 ciation pursuant to this act, and to make and publish rules respecting the 40 making and purchase of mortgage loans. 41 (x) To organize a nonprofit corporation to assist the association in pro- 42 viding for housing projects. 43 (y) To enter upon and inspect any housing project, including housing 44 projects undertaken by housing sponsors, for the purpose of investigating the 45 physical and financial condition thereof, and its construction, rehabilita- 46 tion, operation, management and maintenance, and to examine all books and 47 records with respect to capitalization, income and other matters relating 48 thereto. 49 (z) To order such alterations, changes or repairs as may be necessary to 50 protect the security of its investment in a housing project or the health, 51 safety, and welfare of the occupants thereof. 52 (aa) To make secured loans for the purpose of providing temporary or per- 53 manent financing or refinancing of all or part of the project costs of any 54 nonprofit facility, including the refunding of any outstanding obligations, 55 mortgages or advances issued, made or given by any person for the project 4 1 costs of a nonprofit facility; and to charge and collect interest on the loans 2 for the loan payments upon such terms and conditions, including without limi- 3 tation bond rating and issuance conditions, as the board of commissioners con- 4 siders advisable which are not in conflict with this chapter. 5 (bb) As security for the payment of the principal of and interest on any 6 revenue bonds issued and any agreements made in connection therewith, to mort- 7 gage, pledge, or otherwise encumber any or all of nonprofit facilities or any 8 part or parts thereof, whether then owned or thereafter acquired, and to 9 assign any mortgage and repledge any security conveyed to the association, to 10 secure any loan made by the association and to pledge the revenues and 11 receipts therefrom. 12 (cc) To issue bonds for the purpose of financing all or part of the proj- 13 ect cost on any nonprofit facility and to secure the payment of the bonds as 14 provided in this chapter. 15 (dd) To purchase or sell by installment contract or otherwise, and convey 16 all or any part of any nonprofit facility for such purchase price and upon 17 such terms and conditions as this board of commissioners considers advisable 18 which are not in conflict with this chapter. 19 (ee) To lease all or any part of any nonprofit facility for such rentals 20 and upon such terms and conditions, including options to purchase, as the 21 board of commissioners considers advisable and not in conflict with this chap- 22 ter. 23 (ff) To construct and maintain one (1) or more nonprofit facilities that 24 the association shall not operate any nonprofit facility as a business other 25 than as lessor, seller or lender. The purchase, holding and enforcing of mort- 26 gages, deeds of trust, or other security interests and contracting for any 27 servicing thereof is not considered the operation of a nonprofit facility as a 28 business. 29 (gg) To act as the designated housing resource clearinghouse in the 30 state for matters relating to affordable housing. 31 (hh) To coordinate the development and maintenance of a housing policy for 32 the state. 33 SECTION 2. That Section 67-6211, Idaho Code, be, and the same is hereby 34 amended to read as follows: 35 67-6211. ADDITIONAL DEFINITIONS AND CAPITAL RESERVE FUND PROCEDURES. As 36 used in this section, the following words and phrases shall have the following 37 meanings unless the context shall indicate another or different meaning or 38 intent: 39 (a) "Maximum capital reserve fund requirement" shall mean the amount set 40 forth in the association's resolution or indenture authorizing the bonds or 41 other obligations secured by a capital reserve fund, or, if no amount is 42 stated in such resolution or indenture, then, as of any particular date of 43 computation, an amount of money equal to the greatest of the respective 44 amounts, for the then current or any future fiscal year of the association, of 45 annual debt service of the association, such annual debt service for any fis- 46 cal year being the amount of money equal to the aggregate of: 47 (1) All interest payable during such fiscal year on all bonds secured by 48 such capital reserve fund of the association outstanding on said date of 49 computation, plus 50 (2) The principal amount of all bonds of the association secured by such 51 capital reserve fund, outstanding on said date of computation which 52 matures during such fiscal year, plus 53 (3) The amount of all annual sinking fund payments payable during such 5 1 fiscal year with respect to any bonds of the association secured by such 2 capital reserve fund, outstanding on said date of computation. 3 (b) "Annual sinking fund payment" shall mean the amount of money speci- 4 fied in the resolution authorizing term bonds as payable into a sinking fund 5 during a particular fiscal year for the retirement of term bonds which mature 6 after such fiscal year, but shall not include any amount payable by reason 7 only of the maturity of a bond. 8 (c) "Available operating revenues" shall mean all amounts received on 9 account of rentals and fees and other charges imposed by the association, if 10 any, and income or interest earned or added to funds of the association due to 11 the investment thereof and not required under the terms or provisions of any 12 covenant or agreement with holders of any bonds or notes of the association to 13 be applied to any purposes other than payment of expenses of the association. 14 (d) "Amortized value," when used with respect to securities purchased at 15 a premium above or a discount below par, shall mean the value as of any given 16 date obtained by dividing the total premiums or discount at which such securi- 17 ties were purchased by the number of interest payments remaining to maturity 18 on such securities after such purchase, and by multiplying the amount so cal- 19 culated by the number of interest payment dates having passed since the date 20 of such purchase; and 21 (1) In the case of securities purchased at a premium, by deducting the 22 product thus obtained from the purchase price, and 23 (2) In the case of securities purchased at a discount, by adding the 24 product thus obtained to the purchase price. 25 (e) The association shall create and establish one (1) or 26 more special funds (herein referred to as "capital reserve funds"), and shall 27 credit each such capital reserve fund: 28 (1) Any proceeds of sale of notes or bonds, to the extent provided in the 29 resolution or resolutions of the association authorizing the issuance 30 thereof, 31 (2) Any funds directed to be transferred by the association to such fund, 32 and 33 (3) Any other moneys which may be made available to the association for 34 the purpose of such fund from any other source or sources. 35 (f) All moneys held in or credited to each such capital reserve fund, 36 except as hereinafter provided, shall be used, as required, solely for the 37 payment of the principal of bonds or of the sinking fund payments hereinafter 38 mentioned with respect to such bonds, the purchase or redemption of bonds, the 39 payment of interest on bonds or the payment of any redemption premium required 40 to be paid when such bonds are redeemed prior to maturity; provided, however: 41 (1) That moneys in any such fund shall not be withdrawn therefrom at any 42 time in such amount as would reduce the amount of such fund to less than 43 the maximum capital reserve fund requirement, except for the purposes of 44 making payment, when due, with respect to such bonds, of principal or 45 redemption price of, interest and the sinking fund payments, as the same 46 become due, and for the payment of which other moneys of the association 47 are not available. 48 (2) Any income or interest earned by, or increment to, any capital 49 reserve fund due to the investment thereof may be transferred by the asso- 50 ciation to other funds or accounts of the association to the extent it 51 does not reduce the amount of such capital reserve fund below the maximum 52 capital reserve fund requirement. 53 (g) Within sixty (60) days after the close of the association's fiscal 54 year, the chairman of the association shall certify to the state tax commis- 55 sion the amount, if any, required to maintain the capital reserve funds estab- 6 1 lished pursuant to this section at the maximum capital reserve fund require- 2 ment, but only for any capital reserve fund of the association which is 3 required by a resolution of the association to be maintained by a continuing 4 appropriation from the sales tax account. The chairman of the association 5 shall not be entitled to so certify to the state tax commission for any capi- 6 tal reserve fund of the association for bonds issued by the association after 7 January 1, 1996, or at any time that the total principal amount of the8association's outstanding bonds exceeds the sum of one thousand four hundred9million dollars ($1,400,000,000). 10 (h) The association shall not issue bonds at any time if upon issuance 11 there will be created a capital reserve fund and the amount in the capital 12 reserve fund securing such bonds will be less than the maximum capital reserve 13 fund requirement, unless the association, at the time of issuance of such 14 bonds, shall deposit in such fund, from the proceeds of the bonds so to be 15 issued, or sources other than the state sales tax fund, an amount which, 16 together with the amount then in such fund, will not be less than the maximum 17 capital reserve fund requirement. 18 (i) Moneys in a capital reserve fund not required for immediate use or 19 disbursement may be invested in obligations of the state or the United States 20 of America or obligations the principal of and interest on which are guaran- 21 teed by the state or the United States of America or obligations of agencies 22 of the United States of America or any obligations which may from time to time 23 be legally purchased by banks under title 26, Idaho Code, as investment of 24 funds belonging to them or in their control. In computing the amount of a cap- 25 ital reserve fund for the purposes of this section, securities in which all or 26 a portion of such fund are invested shall be valued at par if purchased at par 27 or, if purchased at other than par, at amortized value. 28 (j) The association shall create and establish such other fund or funds 29 as may be necessary or desirable for its corporate purposes. 30 (k) In the event of the dissolution of the association, any funds or 31 assets of the association remaining after paying its bonds, notes or other 32 obligations shall revert to the state. 33 (l) The total principal amount of the association's outstanding bonds 34 secured by a capital reserve fund entitled to appropriation from the state 35 sales tax account pursuant to section 67-6211(g), Idaho Code, and section 36 63-3638(d)(1), Idaho Code, shall not exceed the sum of eighty-nine million 37 dollars ($89,000,000). 38 SECTION 3. An emergency existing therefor, which emergency is hereby 39 declared to exist, this act shall be in full force and effect on and after its 40 passage and approval.
STATEMENT OF PURPOSE
RS 07615
The Governors Affordable Housing Advisory Task
Force recommended that:
1. The Idaho Housing and Finance Association (IHFA)
be the designated housing resource clear house for
Idaho.
2. That IHFA coordinate the development and maintenance or
housing policy for the State.
3. This legislation would also eliminate the ceiling for
tocal outstanding IHFA bonds required to maintain State
Sales Tax backing. IHFA has not used sales tax-backed
bonds since 1995 and cannot use the backing for bonds
issued after January 1, 1996.
F I S CAL NOTE
There is no fiscal impact to the State or its
political subdivisions.
Contract: Susan Rowe,
Governor's Office
334-2000
Rod Beck, Executive Director
Idaho Housing and Finance Association
331-4889
S 1384