Print Friendly HOUSE BILL NO. 685 – Housing/Finance Assn, property
HOUSE BILL NO. 685
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H0685......................................................by STATE AFFAIRS
IDAHO HOUSING AND FINANCE ASSOCIATION - Amends existing law to remove the
power of the Idaho Housing and Finance Association to acquire any real or
personal property or interest therein by eminent domain.
02/24 House intro - 1st rdg - to printing
02/25 Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 685
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO HOUSING AND FINANCE ASSOCIATION; AMENDING SECTION
3 67-6206, IDAHO CODE, TO REMOVE POWER OF THE ASSOCIATION TO ACQUIRE ANY
4 REAL OR PERSONAL PROPERTY OR INTEREST THEREIN BY EMINENT DOMAIN; AND PRO-
5 VIDING AN EFFECTIVE DATE.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 67-6206, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 67-6206. POWERS OF ASSOCIATION. The housing and finance association is an
10 independent public body corporate and politic, exercising public and essential
11 governmental functions, and having all the powers which are hereby declared to
12 be public purposes necessary or convenient to carry out and effectuate the
13 purposes and provisions of this act, including the following powers in addi-
14 tion to others herein granted:
15 (a) To sue and to be sued; to have a seal and to alter the same at pleas-
16 ure; to have perpetual succession; to make and execute contracts and other
17 instruments necessary or convenient to the exercise of the powers of the asso-
18 ciation; and to make and from time to time amend and repeal bylaws, rules, not
19 inconsistent with this act, to carry into effect the powers and purposes of
20 the association.
21 (b) To conduct its operations within any or all of the counties of the
23 (c) To cooperate with housing authorities throughout Idaho in the devel-
24 opment of housing projects.
25 (d) To assign priorities for action and revise or modify said priorities
26 from time to time.
27 (e) To make and execute agreements, contracts and other instruments nec-
28 essary or convenient in the exercise of the powers and functions of the asso-
29 ciation under this act, including contracts with any housing sponsor, mortgage
30 lender, person, firm, corporation, governmental agency, or other entity; and
31 to include in any contract let in connection with a project, stipulations
32 requiring that the contractor and any subcontractors comply with requirements
33 as to minimum wages and maximum hours of labor, and comply with any conditions
34 which the federal government may have attached to its financial aid of the
35 project and to designate mortgage lenders to act for and in behalf of the
36 association, with respect to originating or servicing and processing mortgage
37 loans of the association, and to pay the reasonable value of service rendered
38 to the association by such mortgage lenders pursuant to contracts with mort-
39 gage lenders.
40 (f) To lease, sell, construct, finance, reconstruct, restore, rehabili-
41 tate, operate or rent any housing projects, nonprofit facilities or any dwell-
42 ings, houses, accommodations, lands, buildings, structures or facilities
43 embraced in any housing project or nonprofit facilities and, subject to the
1 limitations contained in this act, to establish and revise the rents or
2 charges therefor.
3 (g) To own, hold and improve real or personal property; to purchase,
4 lease, obtain options upon, acquire by gift, grant, bequest, devise , eminent
5 domain or otherwise, any real or personal property or any interest therein.
6 (h) To acquire any real property; to sell, lease, exchange, transfer,
7 assign, pledge or dispose of any real or personal property or any interest
9 (i) To insure or provide for the insurance of any real or personal prop-
10 erty or operation of the association against any risks or hazards, and to pro-
11 cure or agree to the procurement of insurance or guarantees from the federal
12 government or other source for the payment or purchase of any bonds or parts
13 thereof issued by the association, including the power to pay for any such
14 insurance or guarantees.
15 (j) To invest any funds held in reserves or sinking funds, or any funds
16 not required for immediate disbursement, in property or securities in which a
17 bank, as defined in the "bank act," title 26, Idaho Code, may legally invest
18 funds including without limitation, to agree to purchase the obligations of
19 any federal, state or local government upon such conditions as the association
20 may determine to be prudent and in its best interest.
21 (k) Within its area of operation: to investigate into living, dwelling
22 and housing conditions and into the means and methods of improving such condi-
23 tions; to determine where slum areas exist or where there is a shortage of
24 adequate, safe and sanitary dwelling accommodations for persons of low-income;
25 to make studies and recommendations relating to the problem of clearing,
26 replanning and reconstruction of slum areas and the problem of providing
27 dwelling accommodations for persons of low-income, and to cooperate with the
28 city, the county, the state or any political subdivision thereof in action
29 taken in connection with such problems; and to engage in research, studies and
30 experimentation on the subject of housing.
31 (l) To participate in cooperative ventures with any agencies, organiza-
32 tions and individuals in order to undertake the provision of housing for per-
33 sons of low-income or to undertake the provision of nonprofit facilities.
34 (m) To provide research and technical assistance to eligible agencies,
35 organizations and individuals eligible to develop low cost housing and to
36 research new low cost housing development and construction methods.
37 (n) To make and undertake commitments to make or participate in the mak-
38 ing of mortgage loans to persons of low-income and to housing sponsors,
39 including without limitation federally insured mortgage loans, and to make
40 temporary loans and advances in anticipation of permanent loans to housing
41 sponsors; said mortgage loans to housing sponsors shall be made to finance the
42 construction, improvement, or rehabilitation of housing projects for persons
43 of low-income, and/or mixed income housing projects upon the terms and condi-
44 tions set forth in this act; provided, however, that such loans shall be made
45 only upon the determination by the association that mortgage loans are not
46 otherwise available, wholly or in part, from private lenders upon reasonably
47 equivalent terms and conditions.
48 (o) To purchase, or make commitments to purchase or participate in the
49 purchase of mortgage loans from mortgage lenders which loans have been made
50 for the construction, improvement, or rehabilitation of housing projects for
51 persons of low-income and/or mixed income housing projects or loans which have
52 been made to persons of low-income for residential housing, upon terms set
53 forth in this act; provided, however, that any such purchase shall be made
54 only upon the determination by the association that the mortgage loans to be
55 made are not otherwise being made by mortgage lenders upon reasonably equiva-
1 lent terms and conditions. Also, to purchase, or make commitments to purchase
2 or participate in the purchase of mortgage loans from mortgage lenders whether
3 or not said loans were made to persons of low-income, upon terms set forth in
4 this act; provided, however, that the proceeds from such purchase or the
5 equivalent thereof shall be reinvested in obligations of the association, in
6 mortgage loans to persons of low-income or in mortgage loans for housing proj-
7 ects for persons of low-income and/or mixed income housing projects, and pro-
8 vided that any such purchase shall be made only upon the determination by the
9 association that the mortgage loans to be made are not otherwise being made
10 by mortgage lenders upon reasonably equivalent terms and conditions.
11 (p) To provide interim financing for housing projects including mixed
12 income housing projects approved by the association, provided that the associ-
13 ation has determined that such financing is not otherwise available from mort-
14 gage lenders upon reasonably equivalent terms and conditions.
15 (q) To prescribe rules and policies in connection with the performance of
16 its functions and duties.
17 (r) To do all other things deemed necessary and desirable to accomplish
18 the objectives of this act.
19 (s) To borrow money and issue bonds and notes or other obligations, to
20 invest the proceeds thereof in any lawful manner and to fund or refund the
21 same, and to provide for the rights of the holders of its obligations as pro-
22 vided in this act and in connection therewith, to waive, by resolution or
23 other document of the association, the exemption from federal income taxation
24 of interest on any of the association's obligations under existing or future
25 federal law and to establish, maintain and preserve the association's general
26 obligation rating and any rating on its bonds, notes or other obligations.
27 (t) To receive and accept aid or contributions from any source.
28 (u) To employ architects, engineers, attorneys, accountants, housing con-
29 struction and financial experts and such other advisors, consultants and
30 agents as may be necessary in its judgment and to fix their compensation.
31 (v) To insure mortgage payments of any mortgage loan made for the purpose
32 of constructing, rehabilitating, purchasing, leasing, or refinancing housing
33 projects upon such terms and conditions as the association may prescribe.
34 (w) To fix and revise from time to time and charge and collect fees and
35 charges in connection with loans made or other services provided by the asso-
36 ciation pursuant to this act, and to make and publish rules respecting the
37 making and purchase of mortgage loans.
38 (x) To organize a nonprofit corporation to assist the association in pro-
39 viding for housing projects.
40 (y) To enter upon and inspect any housing project, including housing
41 projects undertaken by housing sponsors, for the purpose of investigating the
42 physical and financial condition thereof, and its construction, rehabilita-
43 tion, operation, management and maintenance, and to examine all books and
44 records with respect to capitalization, income and other matters relating
46 (z) To order such alterations, changes or repairs as may be necessary to
47 protect the security of its investment in a housing project or the health,
48 safety, and welfare of the occupants thereof.
49 (aa) To make secured loans for the purpose of providing temporary or per-
50 manent financing or refinancing of all or part of the project costs of any
51 nonprofit facility, including the refunding of any outstanding obligations,
52 mortgages or advances issued, made or given by any person for the project
53 costs of a nonprofit facility; and to charge and collect interest on the loans
54 for the loan payments upon such terms and conditions, including without limi-
55 tation bond rating and issuance conditions, as the board of commissioners con-
1 siders advisable which are not in conflict with this chapter.
2 (bb) As security for the payment of the principal of and interest on any
3 revenue bonds issued and any agreements made in connection therewith, to mort-
4 gage, pledge, or otherwise encumber any or all of nonprofit facilities or any
5 part or parts thereof, whether then owned or thereafter acquired, and to
6 assign any mortgage and repledge any security conveyed to the association, to
7 secure any loan made by the association and to pledge the revenues and
8 receipts therefrom.
9 (cc) To issue bonds for the purpose of financing all or part of the proj-
10 ect cost on any nonprofit facility and to secure the payment of the bonds as
11 provided in this chapter.
12 (dd) To purchase or sell by installment contract or otherwise, and convey
13 all or any part of any nonprofit facility for such purchase price and upon
14 such terms and conditions as this board of commissioners considers advisable
15 which are not in conflict with this chapter.
16 (ee) To lease all or any part of any nonprofit facility for such rentals
17 and upon such terms and conditions, including options to purchase, as the
18 board of commissioners considers advisable and not in conflict with this chap-
20 (ff) To construct and maintain one (1) or more nonprofit facilities that
21 the association shall not operate any nonprofit facility as a business other
22 than as lessor, seller or lender. The purchase, holding and enforcing of mort-
23 gages, deeds of trust, or other security interests and contracting for any
24 servicing thereof is not considered the operation of a nonprofit facility as a
26 (gg) To act as the designated housing resource clearinghouse in the state
27 for matters relating to affordable housing.
28 (hh) To coordinate the development and maintenance of a housing policy for
29 the state.
30 SECTION 2. This act shall be in full force and effect on and after July
31 1, 2000.
STATEMENT OF PURPOSE
The Idaho Housing and Finance Association has the governmental power of
eminent domain. This legislation would repeal such governmental power from an
organization that claims to be a non- public private entity. This is the first of many
governmental powers that should be repealed if they are to be a non-public private
No fiscal impact.
Name: Representative Lenore Hardy Barrett
STATEMENT OF PURPOSE/FISCAL NOTE H 685