Print Friendly SENATE BILL NO. 1384 – Idaho Housing/Finance Assn, powers
SENATE BILL NO. 1384
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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
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
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fourth Legislature Second Regular Session - 1998
IN 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
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-
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
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
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
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
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-
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
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
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
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
31 (2) Any funds directed to be transferred by the association to such fund,
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-
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 the
8 association's outstanding bonds exceeds the sum of one thousand four hundred
9 million 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
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
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
Contract: Susan Rowe,
Rod Beck, Executive Director
Idaho Housing and Finance Association