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SENATE BILL NO. 1436
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S1436................................................by JUDICIARY AND RULES
HIGHWAY PROJECTS - FUNDING - Amends and adds to existing law to set forth
powers and duties of the Idaho Transportation Board relating to federally
funded highway project financing; to provide that the State Highway Account
shall include certain federal surface transportation funds; to revise the
appropriation of moneys in the State Highway Account; to revise the
legislative purpose; to further define terms; to provide additional powers
to the Idaho Housing and Finance Association; to provide for cooperation
with municipalities or state bodies for transportation projects; to provide
for additional provisions for resolutions authorizing notes or bonds or any
issue thereof; and to provide that the Idaho Housing and Finance
Association shall not issue bonds or notes to finance transportation
projects unless certain conditions are met.
03/04 Senate intro - 1st rdg - to printing
03/05 Rpt prt - to Transp
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE SENATE
SENATE BILL NO. 1436
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO TRANSPORTATION PROJECTS; AMENDING CHAPTER 3, TITLE 40, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 40-315, IDAHO CODE, TO SET FORTH POWERS
4 AND DUTIES OF THE IDAHO TRANSPORTATION BOARD RELATING TO FEDERALLY FUNDED
5 HIGHWAY PROJECT FINANCING; AMENDING SECTION 40-702, IDAHO CODE, TO PROVIDE
6 THAT THE STATE HIGHWAY ACCOUNT SHALL INCLUDE CERTAIN FEDERAL SURFACE
7 TRANSPORTATION FUNDS; AMENDING SECTION 40-707, IDAHO CODE, TO REVISE THE
8 APPROPRIATION OF MONEYS IN THE STATE HIGHWAY ACCOUNT; AMENDING SECTION
9 67-6201, IDAHO CODE, TO REVISE THE LEGISLATIVE PURPOSE; AMENDING SECTION
10 67-6205, IDAHO CODE, TO FURTHER DEFINE TERMS; AMENDING SECTION 67-6206,
11 IDAHO CODE, TO PROVIDE ADDITIONAL POWERS OF THE IDAHO HOUSING AND FINANCE
12 ASSOCIATION; AMENDING CHAPTER 62, TITLE 67, IDAHO CODE, BY THE ADDITION OF
13 A NEW SECTION 67-6206A, IDAHO CODE, TO PROVIDE FOR COOPERATION WITH MUNIC-
14 IPALITIES OR STATE BODIES FOR TRANSPORTATION PROJECTS; AMENDING SECTION
15 67-6210, IDAHO CODE, TO PROVIDE FOR ADDITIONAL PROVISIONS FOR RESOLUTIONS
16 AUTHORIZING NOTES OR BONDS OR ANY ISSUE THEREOF AND TO PROVIDE THAT THE
17 ASSOCIATION SHALL NOT ISSUE BONDS OR NOTES TO FINANCE TRANSPORTATION PROJ-
18 ECTS UNLESS CERTAIN CONDITIONS ARE MET; AND DECLARING AN EMERGENCY.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Chapter 3, Title 40, Idaho Code, be, and the same is
21 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
22 ignated as Section 40-315, Idaho Code, and to read as follows:
23 40-315. POWERS AND DUTIES -- FEDERALLY FUNDED HIGHWAY PROJECT FINANCING.
24 In order to address the increasing need for timely improvements to Idaho's
25 highway transportation infrastructure, the board may:
26 (1) Enter into agreements with the Idaho housing and finance association
27 in connection with the funding of highway transportation projects qualifying
28 for reimbursement from federal funds.
29 (2) Approve and recommend federal highway transportation projects to the
30 Idaho housing and finance association for financing by the association.
31 (3) Prior to issuance by the Idaho housing and finance association of any
32 bonds or notes to finance highway transportation projects, certify to the
33 association that sufficient federal transportation funds are available to make
34 any payments required for such bonds or notes, provided that no such certifi-
35 cation shall be made if, at such time, the annual repayment obligations of the
36 proposed bonds or notes and all other outstanding bonds or notes of the
37 authority payable from federal transportation funds, in any fiscal year, would
38 exceed twenty-five percent (25%) of the total amount of federal transportation
39 funds deposited in the state highway account under Section 40-702, Idaho Code,
40 for any consecutive twelve (12) month period within the preceding twenty-four
41 (24) months.
42 SECTION 2. That Section 40-702, Idaho Code, be, and the same is hereby
1 amended to read as follows:
2 40-702. STATE HIGHWAY ACCOUNT -- ESTABLISHMENT. For the purpose of carry-
3 ing out the provisions of this title, there is established in the dedicated
4 fund of the state treasury an account to be known as the state highway
5 account, which account shall include:
6 (1) All moneys received by the state treasurer for deposit to the state
7 highway account.
8 (2) All fines, penalties and forfeitures incurred and collected for
9 violations of the provisions of this title, except as otherwise provided.
10 (3) All donations to the state from any source for the construction and
11 improvement of highways.
12 (4) All moneys received from local boards under joint contracts for the
13 construction of state highways.
14 (5) All federal surface transportation funds received from the U.S. gov-
15 ernment, including, but not limited to, funds received pursuant to chapter 1
16 of title 23, United States Code, for the national highway systems program, the
17 surface transportation program, the highway bridge program, the minimum guar-
18 antee program, the federal lands highways program and other similar programs
19 under successor laws, shall be deposited in the state highway account.
20 (6) Other moneys which may be provided by law for the construction and
21 improvement of state highways.
22 ( 67) Interest earned on the investment of idle moneys in the state high-
23 way account shall be paid to the state highway account.
24 SECTION 3. That Section 40-707, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 40-707. APPROPRIATION OF MONEYS IN STATE HIGHWAY ACCOUNT. From federal
27 funds within the state highway account there is hereby continually allocated
28 and appropriated first such amounts as, from time to time, shall be certified
29 by the Idaho housing and finance association as necessary for payment of prin-
30 cipal, interest and other amounts required for transportation bonds or notes
31 of the Idaho housing and finance association in accordance with chapter 62,
32 title 67, Idaho Code, which amounts shall be paid over as directed by the
33 association. Federal funds within the state highway account not needed for
34 such bonds or notes shall then be applied as hereafter set forth in this sec-
35 tion. Any proceeds of the transportation bonds or notes issued by the Idaho
36 housing and finance association which are paid over to the department or the
37 board are hereby continuously appropriated for the transportation projects
38 approved and recommended by the board.
39 One-half of one percent (.5%) of the moneys in the state highway account
40 may be utilized to encourage the use of recycled materials including, but not
41 limited to, recycled glass, reclaimed asphalt, asphalt containing recycled
42 plastic, recycled rubber tires and paper in highway construction and mainte-
43 nance projects. All other moneys at any time in the state highway account,
44 except those as are otherwise required by law to be placed in the state high-
45 way redemption account, are hereby appropriated for the purpose of defraying
46 the expenses, debts and costs incurred in carrying out the powers and duties
47 of the highway board as provided by law, and for defraying administrative
48 expenses of the department, including salaries of the board, the salary of the
49 director, and salaries and wages of employees of the department and board and
50 expenses for traveling. Communication supplies, equipment, fixed charges and
51 all other necessary expenses of the department and board, not otherwise pro-
52 vided for and all claims against the state highway account shall be examined
1 by the department and certified to the state controller, who shall, upon
2 approval of the board of examiners, draw his warrant against the state highway
3 account for all bills and claims allowed by the board.
4 SECTION 4. That Section 67-6201, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 67-6201. PURPOSE. It is hereby declared:
7 (a) That within the state there is a shortage of safe or sanitary dwell-
8 ing accommodations available which persons of low incomes can afford and that
9 such persons are forced to occupy overcrowded and congested dwelling accommo-
10 dations; that the aforesaid conditions cause an increase in and spread of dis-
11 ease and crime, and constitute a menace to the health, safety, morals and wel-
12 fare of the residents of the state and impair economic values; that these con-
13 ditions necessitate excessive and disproportionate expenditures of public
14 funds for crime prevention and punishment, public health and safety, fire and
15 accident protection, and other public services and facilities.
16 (b) That private enterprise has not been able to provide, without assis-
17 tance, an adequate supply of safe and sanitary dwellings at prices or rents
18 which persons and families of low income can afford, or to achieve rehabilita-
19 tion of much of the present low-income housing. It is imperative that the sup-
20 ply of housing for persons and families of low income be increased and that
21 coordination and cooperation among private enterprise, state and local govern-
22 ment be encouraged to sponsor, build and rehabilitate residential housing for
23 such persons and families.
24 (c) That the clearance, replanning and reconstruction of the areas in
25 which unsanitary or unsafe housing conditions exist, and the providing of safe
26 and sanitary dwelling accommodations for persons of low incomes (which
27 dwelling-accommodations need not be solely for persons of low incomes in order
28 to avoid concentrations of such persons in specific localities), are public
29 uses, and uses and purposes for which public money may be spent and private
30 property acquired, and are governmental functions.
31 (d) It is also declared and the legislature hereby finds that charitable,
32 educational, human service, cultural and other purposes pursued by nonprofit
33 corporations are important public functions and public purposes that should be
34 encouraged and that financing of nonprofit facilities for these purposes
35 should be encouraged, without using state funds or lending the credit of the
36 state, through the issuance of nonrecourse revenue bonds and the lending of
37 the proceeds thereof to nonprofit corporations to promote their purposes.
38 (e) It is further declared that in this state:
39 (1) There exists an inadequate supply of funds at interest rates suffi-
40 ciently low to enable persons engaged in agriculture in this state, par-
41 ticularly beginning farmers and ranchers, to pursue agricultural opera-
42 tions at present levels;
43 (2) That such inability to pursue agricultural operations lessens the
44 supply of agricultural commodities available to fulfill the needs of the
45 citizens of this state;
46 (3) That such inability to continue operations decreases available
47 employment in the agricultural sector of the state and results in unem-
48 ployment and its attendant problems;
49 (4) That such conditions prevent the acquisition of an adequate capital
50 stock of farm and ranch equipment and machinery, therefore impairing the
51 productivity of agricultural land;
52 (5) That such conditions are conducive to consolidation of acreage of
53 agricultural land with fewer individuals living and farming and ranching
1 on the traditional family farm and ranch;
2 (6) That these conditions result in a loss in population, unemployment
3 and movement of persons from rural to urban areas accompanied by added
4 costs to communities for creation of new public facilities and services;
5 (7) That there have been recurrent shortages of funds from private market
6 sources at reasonable rates of interest;
7 (8) That these shortages have made the sale and purchase of agricultural
8 land to beginning farmers and ranchers a virtual impossibility in many
9 parts of the state;
10 (9) That the ordinary operations of private enterprise have not in the
11 past corrected these conditions; and
12 (10) That a stable supply of adequate funds for agricultural financing is
13 required to encourage beginning farmers and ranchers in an orderly and
14 sustained manner and to reduce the problems described herein.
15 (f) It is hereby declared:
16 (1) The growth of the economy of this state has prompted new and ever
17 increasing uses of public highways, roads, and other transportation infra-
18 structure, and the existing transportation infrastructure of this state
19 and its municipalities cannot adequately accommodate such greatly
20 increased uses;
21 (2) One of the major concerns of the citizens of this state is the abil-
22 ity of the state and its municipalities to address the long-term transpor-
23 tation infrastructure needs of this state and its municipalities that are
24 critical to the continued growth of the state's economy and the mainte-
25 nance of citizens' quality of life;
26 (3) Utilizing bonds or notes to finance projects for transportation in-
27 frastructure results in significant cost savings to the state and its
28 municipalities, since such transportation projects can be completed at
29 present day costs and at an accelerated pace, but such bonds and notes
30 need to be issued promptly in order to realize these cost savings; and
31 (4) It is reasonable and necessary to utilize such bonds or notes for the
32 financing of transportation projects.
33 (g) It is hereby further declared that all of the foregoing are public
34 purposes and uses for which public moneys may be borrowed, expended or granted
35 and that such activities are governmental functions and serve a public purpose
36 in improving or otherwise benefiting the people of this state; that the neces-
37 sity of enacting the provisions hereinafter set forth is in the public inter-
38 est and is hereby so declared as a matter of express legislative determina-
40 SECTION 5. That Section 67-6205, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 67-6205. DEFINITIONS. The following terms, wherever used or referred to
43 in this chapter, shall have the following respective meanings, unless a dif-
44 ferent meaning clearly appears from the context:
45 (a) "Association" or "housing association" shall mean the Idaho housing
46 and finance association created by section 67-6202, Idaho Code.
47 (b) "Housing project" shall mean any work or undertaking:
48 (1) To demolish, clear or remove buildings from any slum area; such work
49 or undertaking may embrace the adoption of such area to public purposes,
50 including parks or other recreational or community purposes; or
51 (2) To construct, sell, lease, finance, improve, operate or otherwise
52 provide decent, safe and sanitary urban or rural dwellings, apartments or
53 other living accommodations for persons of low income; such work or
1 undertaking may include buildings, land, equipment, facilities and other
2 real or personal property which are necessary, convenient or desirable
3 appurtenances, such as, but not limited to, streets, sewers, water ser-
4 vice, parks, site preparation, gardening, administrative, community,
5 health, recreational, and welfare or other purposes; or
6 (3) To accomplish a combination of the foregoing. The term "housing proj-
7 ect" also may be applied to the planning of the buildings and improve-
8 ments, for either single or multi-family housing, the acquisition of prop-
9 erty, the demolition of existing structures, the construction, reconstruc-
10 tion, rehabilitation, alteration and repair of the buildings and improve-
11 ments and all other work in connection therewith.
12 (c) "Governing body" shall mean the city council, board of commissioners,
13 board of trustees or other body having charge of the locality in which the
14 association desires to undertake a housing project.
15 (d) "Federal government" shall include the United States of America, or
16 any other agency or instrumentality, corporate or otherwise, of the United
17 States of America.
18 (e) "City" shall mean any city in the state of Idaho, including each city
19 having a special charter.
20 (f) "County" or "counties" shall include all counties in the state of
21 Idaho as designated in chapter 1, title 31, Idaho Code.
22 (g) "Clerk" shall mean the clerk of the city or county as the case may be
23 or the officer charged with the duties customarily imposed on such clerk.
24 (h) "Area of operation" shall mean the state of Idaho.
25 (i) "Slum" shall mean any area where dwellings predominate which, by rea-
26 son of dilapidation, overcrowding, lack of ventilation, light or sanitary
27 facilities or any combination of these factors, are detrimental to safety,
28 health or morals.
29 (j) "Person of low-income" means persons deemed by the association,
30 including those defined as "elderly" in the United States Housing Act of 1937
31 [42 U.S.C., sec. 1437--1437dd], as amended, to require assistance available
32 under this act on account of insufficient personal or family income, to pay
33 the rents or carrying charges required by the unaided operation of private
34 enterprise in providing an adequate supply of decent, safe and sanitary hous-
35 ing and in making such determination the association shall take into consider-
36 ation, without limitation, such factors as:
37 (1) The amount of the total income of such persons available for housing
39 (2) The size of the family;
40 (3) The cost and condition of housing facilities available;
41 (4) Standards established for various federal programs determining eligi-
42 bility based on income of such persons; and
43 (5) The ability of such persons to compete successfully in the normal
44 housing market and to pay the amounts at which private enterprise is pro-
45 viding decent, safe and sanitary housing.
46 (k) "Bonds," "notes" or "bond anticipation notes," and "obligations"
47 shall mean any bonds, notes, interim certificates, debentures or other evi-
48 dences of financial indebtedness issued by the association pursuant to this
50 (l) "Real property" shall include all lands, including improvements and
51 fixtures thereon, and property of any nature, appurtenant thereto, or used in
52 connection therewith, and every estate, interest and right, legal or equita-
53 ble, therein, including terms for years and liens by way of judgment, mortgage
54 or otherwise and the indebtedness secured by such liens.
55 (m) "Housing authority" or "authority" means a housing authority estab-
1 lished pursuant to the "housing authorities and cooperation law" constituting
2 chapter 19, title 50, Idaho Code.
3 (n) "Rent" shall mean the periodic payment made by a person of low-income
4 in a housing project whether such money is being used as rent, or for the
5 development of equity by such person.
6 (o) "Interim financing" means a short-term construction loan for planning
7 and/or development of residential housing for persons of low-income and other
8 persons which loan shall run until financing can be assumed through other fed-
9 eral, state or private financing.
10 (p) "Housing sponsor" means individuals, joint ventures, partnerships,
11 limited partnerships, public bodies, trusts, firms, associations, or other
12 legal entities or any combination thereof, and corporations, cooperatives, and
13 condominiums, approved by the association as qualified either to own, con-
14 struct, acquire, rehabilitate, operate, manage or maintain a housing project,
15 subject to the regulatory powers of the association and other terms and condi-
16 tions set forth in this chapter. A "housing sponsor" shall be either a
17 "limited profit" sponsor or a "nonprofit" sponsor.
18 (q) "Mortgage lender" means any bank or trust company, savings bank,
19 mortgage company, mortgage banker, credit union, national banking association,
20 savings and loan association, building and loan association, life insurance
21 company, and any other financial institution authorized to transact business
22 in the state.
23 (r) "Mortgage loan" means an interest-bearing obligation secured by a
24 deed of trust, a mortgage, bond, note, or other instrument which is a lien on
25 property in the state except in the case of loans insured by the federal hous-
26 ing administration or the association and which are made for the rehabilita-
27 tion or improvement of existing dwellings; in such case the loans need not be
28 secured by an instrument constituting a lien on property in the state.
29 (s) "Mixed income housing project" means a housing project which contains
30 dwellings occupied or to be occupied by persons of low-income constituting at
31 least twenty percent (20%) of such occupancy.
32 (t) "Facilities" means land, rights in land, buildings, structures,
33 equipment, landscaping, utilities, approaches, roadways and parking, handling
34 and storage areas, and portions of any of the foregoing and similar ancillary
36 (u) "Nonprofit corporation" means a nonprofit corporation organized and
37 operating in accordance with Idaho law or a nonprofit corporation organized
38 and operating in accordance with comparable laws within another state or ter-
39 ritory of the United States.
40 (v) "Nonprofit facilities" means facilities owned or used by a nonprofit
41 corporation for a nonprofit purpose of the corporation; provided that facili-
42 ties for health facilities which may be funded pursuant to chapter 14, title
43 39, Idaho Code, shall not be included in this definition, except for such
44 health facilities as may be specifically approved by the Idaho health facili-
45 ties authority. Facilities owned or used, consistent with its nonprofit pur-
46 pose, by a nonprofit corporation recognized by a state institution of higher
47 education as its college or university foundation shall be considered non-
48 profit facilities under this chapter.
49 (w) "Project costs of a nonprofit facility" means costs of:
50 (1) Acquisition, construction and improvement of any facilities included
51 in a nonprofit facility;
52 (2) Architectural, engineering, consulting, accounting and legal costs
53 related directly to the development, financing and construction of a non-
54 profit facility, including costs of studies assessing the feasibility of a
55 nonprofit facility;
1 (3) Finance costs, including discounts, if any, the costs of issuing
2 bonds, and costs incurred in carrying out any provisions thereof;
3 (4) Interest during construction and during the six (6) months after
4 estimated completion of construction, and capitalized debt service or
5 repair and replacement or other appropriate reserves;
6 (5) The refunding of any outstanding obligations incurred for any of the
7 costs outlined in this subsection; and
8 (6) Other costs incidental to any of the costs listed in this section.
9 (x) "Agricultural facility or facilities" means land, any building or
10 other improvement thereon or thereto, to be owned by a beginning farmer or
11 rancher and any personal properties deemed necessary or suitable for use,
12 whether or not now in existence in farming or ranching, the production of
13 agricultural commodities, including, without limitation, the products of aqua-
14 culture, hydroponics and silviculture, or the treating, processing or storing
15 of such agricultural commodities when such activities are customarily engaged
16 in by beginning farmers or ranchers as a part of farming or ranching.
17 (y) "Municipality" means any county, municipal corporation, highway dis-
18 trict, taxing district or other political subdivision of this state.
19 (z) "State" means the state of Idaho.
20 (aa) "State body" means any department, board, commission or agency of the
21 state of Idaho.
22 (bb) "Transportation board" means the Idaho transportation board and its
24 (cc) "Transportation department" means the Idaho transportation department
25 and its successors.
26 (dd) "Transportation project" means any transportation infrastructure
27 project including, without limitation, a road, street, parkway, right-of-way,
28 bridge, railroad crossing, drainage structure, sign, guardrail, structure,
29 interstate, surface, resurface, shoulder, roadside, or any other work, and any
30 planning development, management and construction related thereto, all as
31 approved or recommended to the association by the transportation board.
32 SECTION 6. That Section 67-6206, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 67-6206. POWERS OF ASSOCIATION. The housing and finance association is an
35 independent public body corporate and politic, exercising public and essential
36 governmental functions, and having all the powers which are hereby declared to
37 be public purposes necessary or convenient to carry out and effectuate the
38 purposes and provisions of this act, including the following powers in addi-
39 tion to others herein granted:
40 (a) To sue and to be sued; to have a seal and to alter the same at pleas-
41 ure; to have perpetual succession; to make and execute contracts and other
42 instruments necessary or convenient to the exercise of the powers of the asso-
43 ciation; and to make and from time to time amend and repeal bylaws, rules, not
44 inconsistent with this act, to carry into effect the powers and purposes of
45 the association.
46 (b) To conduct its operations within any or all of the counties of the
48 (c) To cooperate with housing authorities throughout Idaho in the devel-
49 opment of housing projects.
50 (d) To assign priorities for action and revise or modify said priorities
51 from time to time.
52 (e) To make and execute agreements, contracts and other instruments nec-
53 essary or convenient in the exercise of the powers and functions of the asso-
1 ciation under this act, including contracts with any housing sponsor, mortgage
2 lender, person, firm, corporation, governmental agency, or other entity; and
3 to include in any contract let in connection with a project, stipulations
4 requiring that the contractor and any subcontractors comply with requirements
5 as to minimum wages and maximum hours of labor, and comply with any conditions
6 which the federal government may have attached to its financial aid of the
7 project and to designate mortgage lenders to act for and in behalf of the
8 association, with respect to originating or servicing and processing mortgage
9 loans of the association, and to pay the reasonable value of service rendered
10 to the association by such mortgage lenders pursuant to contracts with mort-
11 gage lenders.
12 (f) To lease, sell, construct, finance, reconstruct, restore, rehabili-
13 tate, operate or rent any housing projects, nonprofit facilities or any dwell-
14 ings, houses, accommodations, lands, buildings, structures or facilities
15 embraced in any housing project or nonprofit facilities and, subject to the
16 limitations contained in this act, to establish and revise the rents or
17 charges therefor.
18 (g) To own, hold and improve real or personal property; to purchase,
19 lease, obtain options upon, acquire by gift, grant, bequest, devise, eminent
20 domain or otherwise, any real or personal property or any interest therein.
21 (h) To acquire any real property; to sell, lease, exchange, transfer,
22 assign, pledge or dispose of any real or personal property or any interest
24 (i) To insure or provide for the insurance of any real or personal prop-
25 erty or operation of the association against any risks or hazards, and to pro-
26 cure or agree to the procurement of insurance or guarantees from the federal
27 government or other source for the payment or purchase of any bonds or parts
28 thereof issued by the association, including the power to pay for any such
29 insurance or guarantees.
30 (j) To invest any funds held in reserves or sinking funds, or any funds
31 not required for immediate disbursement, in property or securities in which a
32 bank, as defined in the "bank act," title 26, Idaho Code, may legally invest
33 funds including without limitation, to agree to purchase the obligations of
34 any federal, state or local government upon such conditions as the association
35 may determine to be prudent and in its best interest.
36 (k) Within its area of operation: to investigate into living, dwelling
37 and housing conditions and into the means and methods of improving such condi-
38 tions; to determine where slum areas exist or where there is a shortage of
39 adequate, safe and sanitary dwelling accommodations for persons of low-income;
40 to make studies and recommendations relating to the problem of clearing,
41 replanning and reconstruction of slum areas and the problem of providing
42 dwelling accommodations for persons of low-income, and to cooperate with the
43 city, the county, the state or any political subdivision thereof in action
44 taken in connection with such problems; and to engage in research, studies and
45 experimentation on the subject of housing.
46 (l) To participate in cooperative ventures with any agencies, organiza-
47 tions and individuals in order to undertake the provision of housing for per-
48 sons of low-income, to undertake the provision of nonprofit facilities or
49 agricultural facilities.
50 (m) To provide research and technical assistance to eligible agencies,
51 organizations and individuals eligible to develop low cost housing and to
52 research new low cost housing development and construction methods.
53 (n) To make and undertake commitments to make or participate in the mak-
54 ing of mortgage loans to persons of low-income and to housing sponsors,
55 including without limitation federally insured mortgage loans, and to make
1 temporary loans and advances in anticipation of permanent loans to housing
2 sponsors; said mortgage loans to housing sponsors shall be made to finance the
3 construction, improvement, or rehabilitation of housing projects for persons
4 of low-income, and/or mixed income housing projects upon the terms and condi-
5 tions set forth in this act; provided, however, that such loans shall be made
6 only upon the determination by the association that mortgage loans are not
7 otherwise available, wholly or in part, from private lenders upon reasonably
8 equivalent terms and conditions.
9 (o) To purchase, or make commitments to purchase or participate in the
10 purchase of mortgage loans from mortgage lenders which loans have been made
11 for the construction, improvement, or rehabilitation of housing projects for
12 persons of low-income and/or mixed income housing projects or loans which have
13 been made to persons of low-income for residential housing, upon terms set
14 forth in this act; provided, however, that any such purchase shall be made
15 only upon the determination by the association that the mortgage loans to be
16 made are not otherwise being made by mortgage lenders upon reasonably equiva-
17 lent terms and conditions. Also, to purchase, or make commitments to purchase
18 or participate in the purchase of mortgage loans from mortgage lenders whether
19 or not said loans were made to persons of low-income, upon terms set forth in
20 this act; provided, however, that the proceeds from such purchase or the
21 equivalent thereof shall be reinvested in obligations of the association, in
22 mortgage loans to persons of low-income or in mortgage loans for housing proj-
23 ects for persons of low-income and/or mixed income housing projects, and pro-
24 vided that any such purchase shall be made only upon the determination by the
25 association that the mortgage loans to be made are not otherwise being made by
26 mortgage lenders upon reasonably equivalent terms and conditions.
27 (p) To provide interim financing for housing projects including mixed
28 income housing projects approved by the association, provided that the associ-
29 ation has determined that such financing is not otherwise available from mort-
30 gage lenders upon reasonably equivalent terms and conditions.
31 (q) To prescribe rules and policies in connection with the performance of
32 its functions and duties.
33 (r) To do all other things deemed necessary and desirable to accomplish
34 the objectives of this act.
35 (s) To borrow money and issue bonds and notes or other obligations, to
36 invest the proceeds thereof in any lawful manner and to fund or refund the
37 same, and to provide for the rights of the holders of its obligations as pro-
38 vided in this act and in connection therewith, to waive, by resolution or
39 other document of the association, the exemption from federal income taxation
40 of interest on any of the association's obligations under existing or future
41 federal law and to establish, maintain and preserve the association's general
42 obligation rating and any rating on its bonds, notes or other obligations.
43 (t) To receive and accept aid or contributions from any source.
44 (u) To employ architects, engineers, attorneys, accountants, housing con-
45 struction and financial experts and such other advisors, consultants and
46 agents as may be necessary in its judgment and to fix their compensation.
47 (v) To insure mortgage payments of any mortgage loan made for the purpose
48 of constructing, rehabilitating, purchasing, leasing, or refinancing housing
49 projects upon such terms and conditions as the association may prescribe.
50 (w) To fix and revise from time to time and charge and collect fees and
51 charges in connection with loans made or other services provided by the asso-
52 ciation pursuant to this act, and to make and publish rules respecting the
53 making and purchase of mortgage loans.
54 (x) To organize a nonprofit corporation to assist the association in pro-
55 viding for housing projects.
1 (y) To enter upon and inspect any housing project, including housing
2 projects undertaken by housing sponsors, for the purpose of investigating the
3 physical and financial condition thereof, and its construction, rehabilita-
4 tion, operation, management and maintenance, and to examine all books and
5 records with respect to capitalization, income and other matters relating
7 (z) To order such alterations, changes or repairs as may be necessary to
8 protect the security of its investment in a housing project or the health,
9 safety, and welfare of the occupants thereof.
10 (aa) To make or purchase secured loans for the purpose of providing tempo-
11 rary or permanent financing or refinancing of all or part of the project costs
12 of any nonprofit facility or agricultural facility, including the refunding of
13 any outstanding obligations, mortgages or advances issued, made or given by
14 any person for the project costs of a nonprofit facility or agricultural
15 facility; and to charge and collect interest on the loans for the loan pay-
16 ments upon such terms and conditions, including without limitation bond rating
17 and issuance conditions, as the board of commissioners considers advisable
18 which are not in conflict with this chapter.
19 (bb) As security for the payment of the principal of and interest on any
20 revenue bonds issued and any agreements made in connection therewith, to mort-
21 gage, pledge, or otherwise encumber any or all of nonprofit facilities or
22 agricultural facilities or any part or parts thereof, whether then owned or
23 thereafter acquired, and to assign any mortgage and repledge any security con-
24 veyed to the association, to secure any loan made by the association and to
25 pledge the revenues and receipts therefrom.
26 (cc) To issue bonds for the purpose of financing all or part of the proj-
27 ect cost on any nonprofit facility or agricultural facility and to secure the
28 payment of the bonds as provided in this chapter.
29 (dd) To purchase or sell by installment contract or otherwise, and convey
30 all or any part of any nonprofit facility or agricultural facility for such
31 purchase price and upon such terms and conditions as this board of commission-
32 ers considers advisable which are not in conflict with this chapter.
33 (ee) To lease all or any part of any nonprofit facility or agricultural
34 facility for such rentals and upon such terms and conditions, including
35 options to purchase, as the board of commissioners considers advisable and not
36 in conflict with this chapter.
37 (ff) To construct and maintain one (1) or more nonprofit facilities or
38 agricultural facilities, provided that the association shall not operate any
39 nonprofit facility or agricultural facility as a business other than as les-
40 sor, seller or lender. The purchase, holding and enforcing of mortgages, deeds
41 of trust, or other security interests and contracting for any servicing
42 thereof is not considered the operation of a nonprofit facility or agricul-
43 tural facility as a business.
44 (gg) To act as the designated housing resource clearinghouse in the state
45 for matters relating to affordable housing.
46 (hh) To coordinate the development and maintenance of a housing policy for
47 the state.
48 (ii) To enter into agreements or other transactions with and accept
49 grants, reimbursements or other payments and the cooperation of the United
50 States or any agency thereof or of the state of Idaho or any agency thereof or
51 municipality of the state in furtherance of the purposes of this act, includ-
52 ing, but not limited to, the development, maintenance, operation and financing
53 of any transportation project and to do any and all things necessary in order
54 to avail the association of such aid and cooperation.
55 (jj) To borrow money and issue bonds and notes or other evidences of
1 indebtedness thereof as hereinafter provided to finance transportation proj-
2 ects approved and recommended by the transportation board.
3 SECTION 7. That Chapter 62, Title 67, Idaho Code, be, and the same is
4 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
5 ignated as Section 67-6206A, Idaho Code, and to read as follows:
6 67-6206A. COOPERATION WITH MUNICIPALITIES OR STATE BODIES FOR TRANSPORTA-
7 TION PROJECTS. (1) The association may obtain the aid and cooperation of, and
8 contract with, the municipalities in which transportation projects are to be
9 located and shall have the power to enter into such agreements and arrange-
10 ments as the association deems necessary or advisable to provide for the
11 financing thereof or to obtain such aid and cooperation in order to carry out
12 the provisions of this act.
13 (2) The association, the Idaho transportation department, the Idaho
14 transportation board and/or any state body or municipality may join or cooper-
15 ate with each other, either jointly or otherwise, in the exercise of any of
16 their powers for the purposes of financing or facilitating transportation
18 SECTION 8. That Section 67-6210, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 67-6210. POWER TO ISSUE BONDS. The association shall have power and is
21 hereby authorized to issue, from time to time, its negotiable notes and bonds
22 in conformity with the applicable provisions of the uniform commercial code in
23 such principal amount as the association shall determine to be necessary for
24 sufficient funds for achieving any of its corporate purposes, including the
25 payment of interest on notes and bonds of the association, establishment of
26 reserves to secure such notes and bonds, and all other expenditures of the
27 association incidental and necessary or convenient to carry out its corporate
28 purposes and powers; provided, however, that the association shall provide in
29 its resolution authorizing such bonds that all revenues received by the asso-
30 ciation as a result of the issuance of such bonds shall be pledged first to
31 the payment of principal and interest on such bonds.
32 (a) The association shall have the power, from time to time, to issue:
33 (1) notes to renew notes and
34 (2) bonds to pay notes, including the interest thereon, and
35 (3) whenever it deems refunding expedient, to refund any bonds by the
36 issuance of new bonds, whether the bonds to be refunded have or have not
37 matured, and to issue bonds partly to refund bonds then outstanding and
38 partly for any of its corporate purposes.
39 The refunding bonds may be:
40 (1) exchanged for the bonds to be refunded or
41 (2) sold and the proceeds applied to the purchase, redemption or payment
42 of such bonds.
43 (b) Except as may otherwise be expressly provided by the association,
44 every issue of its notes and bonds shall be payable exclusively from the reve-
45 nues or income of the association, including grants and contributions from the
46 United States of America, subject only to any agreements with the holders of
47 particular notes or bonds pledging any particular revenues.
48 (c) The notes and bonds shall be authorized by resolution or resolutions
49 of the association, shall bear such date or dates and shall mature at such
50 time or times as such resolution or resolutions may provide. The bonds may be
51 issued as serial bonds payable in annual installments or as term bonds or as a
1 combination thereof. The notes and bonds shall bear interest at such rate or
2 rates, be in such denominations, be in such form, either coupon or registered,
3 carry such registration privileges, be executed in such manner, be payable in
4 such medium of payment, at such place or places, and be subject to such terms
5 of redemption as such resolution or resolutions may provide. The notes and
6 bonds of the association may be sold by the association, at public or private
7 sale, at such price or prices as the association shall determine.
8 (d) Any resolution or resolutions authorizing any notes or bonds or any
9 issue thereof may contain provisions, which shall be a part of the contract or
10 contracts with the holders thereof, as to:
11 (1) pledging all or any part of the revenues to secure the payment of the
12 notes or bonds or of any issue thereof, subject to such agreements with
13 noteholders or bondholders as may then exist;
14 (2) pledging all or any part of the assets of the association including
15 mortgages and obligations securing the same, to secure the payment of the
16 notes or bonds or of any issue of notes or bonds, subject to such agree-
17 ments with noteholders or bondholders as may then exist;
18 (3) the use and disposition of the gross income from mortgages owned by
19 the association and payment of principal of mortgages owned by the associ-
21 (4) the setting aside of reserves or sinking funds and the regulation and
22 disposition thereof;
23 (5) limitations on the purpose to which the proceeds of sale of notes or
24 bonds may be applied and pledging such proceeds to secure the payment of
25 the notes or bonds or of any issue thereof;
26 (6) limitations on the issuance of additional notes or bonds; the terms
27 upon which additional notes or bonds may be issued and secured; and the
28 refunding of outstanding or other notes or bonds;
29 (7) the procedure, if any, by which the terms of any contract with
30 noteholders or bondholders may be amended or abrogated, the amount of
31 notes or bonds the holders of which must consent thereto; and the manner
32 in which such consent may be given;
33 (8) limitations on the amount of moneys to be expended by the association
34 for operating expenses of the association;
35 (9) vesting in a trustee or trustees such property, rights, powers and
36 duties in trust as the association may determine, which may include any or
37 all of the rights, powers and duties of the trustee appointed by the bond-
38 holders pursuant to this act; and limiting or abrogating the right of the
39 bondholders to appoint a trustee under this act, or limiting the rights,
40 powers and duties of such trustee;
41 (10) defining the acts or omissions to act which shall constitute a
42 default in the obligations and duties of the association to the holders of
43 the notes or bonds and providing for the rights and remedies of the hold-
44 ers of the notes or bonds in the event of such default, including as a
45 matter of right the appointment of a receiver; provided, however, that
46 such rights and remedies shall not be inconsistent with the general laws
47 of the state and the other provisions of this act;
48 (11) pledging all or any part of funds allocated to the association under
49 Idaho law or other revenues or the proceeds of notes or bonds to secure
50 the payment of notes or bonds issued to finance transportation projects,
51 subject to such agreements with noteholders or bondholders as may then
53 (12) setting forth the provisions for any contracts relating to its bonds
54 or notes, including, without limitation, any investment or interest rate
55 contracts, or any contract providing for a credit enhancement, including,
1 but not limited to, letters of credit, bond insurance and surety bonds
2 provided by private financial institutions;
3 (13) setting forth the provisions for representations or certifications to
4 be made by an officer of the association with respect to funds to be allo-
5 cated to the association for transportation projects and provisions for
6 the disbursements of the proceeds of the bonds or notes for payment of the
7 costs of a transportation project, costs of issuance and other related
9 (14) any other matters, of like or different character, which in any way
10 affect the security or protection of the holders of the notes or bonds.
11 (e) Any pledge made by the association shall be valid and binding from
12 the time when the pledge is made; the revenues, moneys or property so pledged
13 and thereafter received by the association shall immediately be subject to the
14 lien of such pledge without any physical delivery thereof or further act, and
15 the lien of any such pledge shall be valid and binding as against all parties
16 having claims of any kind in tort, contract or otherwise against the associa-
17 tion, irrespective of whether such parties have notice thereof. Neither the
18 resolution nor any other instrument by which a pledge is created need be
20 (f) Neither the commissioners of the association nor any other person
21 executing such notes or bonds shall be subject to any personal liability or
22 accountability by reason of the issuance thereof.
23 (g) The association, subject to such agreements with noteholders or bond-
24 holders as may then exist, shall have power out of any funds available there-
25 for to purchase notes or bonds of the association, which shall thereupon be
26 canceled, at a price not exceeding:
27 (1) if the notes or bonds are then redeemable, the redemption price then
28 applicable plus accrued interest to the next interest payment thereon, or
29 (2) if the notes or bonds are not then redeemable, the redemption price
30 applicable on the first date after such purchase upon which the notes or
31 bonds become subject to redemption plus accrued interest to such date.
32 (h) In the discretion of the association, the bonds may be secured by a
33 trust indenture by and between the association and a corporate trustee, which
34 may be any trust company or bank having the power of a trust company in the
35 state. Such trust indenture may contain such provisions for protecting and
36 enforcing the rights and remedies of the bondholders as may be reasonable and
37 proper and not in violation of law, including covenants setting forth the
38 duties of the association in relation to the exercise of its corporate powers
39 and the custody, safeguarding and application of all moneys. The association
40 may provide by such trust indenture for the payment of the proceeds of the
41 bonds and the revenues to the trustee under such trust indenture or other
42 depository, and for the method of disbursement thereof, with such safeguards
43 and restrictions as it may determine. All expenses incurred in carrying out
44 such trust indenture may be treated as a part of the operating expenses of the
45 association. If the bonds shall be secured by a trust indenture, the bondhold-
46 ers shall have no authority to appoint a separate trustee to represent them.
47 (i) Whether or not the notes and bonds are of such form and character as
48 to be negotiable instruments under the terms of the uniform commercial code,
49 the notes and bonds are hereby made negotiable instruments within the meaning
50 of and for all the purposes of the uniform commercial code, subject only to
51 the provisions of the notes and bonds for registration.
52 (j) In case any of the commissioners or officers of the association whose
53 signatures appear on any notes or bonds or coupons shall cease to be such com-
54 missioners or officers before the delivery of such notes or bonds, such signa-
55 tures shall, nevertheless, be valid and sufficient for all purposes, the same
1 as if such commissioners or officers had remained in office until such deliv-
3 (k) The association shall not issue any bonds or notes to finance trans-
4 portation projects unless:
5 (1) the Idaho transportation board has approved and recommended the
6 transportation projects for financing through the association;
7 (2) the Idaho transportation board has certified to the association that
8 sufficient funds are available to make the payments required for the bonds
9 or notes to be issued to finance the transportation projects; and
10 (3) the association and the Idaho transportation board have entered into
11 an agreement for the association to provide financing of the transporta-
12 tion projects.
13 SECTION 9. An emergency existing therefor, which emergency is hereby
14 declared to exist, this act shall be in full force and effect on and after its
15 passage and approval.
STATEMENT OF PURPOSE
This legislation gives the Idaho Transportation Board (the Board)
a limited but important management tool for providing needed cash
flow to pay for those road infrastructure projects that if not
timely completed would have a significant negative effect on the
Under this legislation, the board may dedicate no more than
twenty-five percent (25%) of the state's annual distribution of
federal fuel taxes for servicing bonds issued to pay for
qualified road projects. This use of federal fuel tax revenue for
Grant Anticipation Revenue Vehicles (GARVEE bonds)is authorized
under federal law.
The average term of most bonds will likely be eighteen years. At
current municipal interest rates, $1 million of fuel tax revenue
will yield $12 to $13 million in bod proceeds. Presently, Idaho
receives approximately $220 million a year from federal fuel tax
In theory, this dedication of up to 25% of the federal fuel tax
revenues would finance a maximum of $700 million in bond
proceeds. Practically speaking, the Board would never reach the
25% cap because it needs the flexibility to raise cash in the
event of an emergency. For example, currently, if a business that
is dependent on quality roads wants to grow or bring a large
number of quality jobs to Idaho, the Board may be limited in what
they can do with existing cash flow. This legislation would allow
the Board the flexibility of issuing bonds to raise the cash and
move promptly to build the needed road system.
The Idaho Housing Finance Association (IHFA) is authorized in
this legislation to issue the bonds approved by the Board as well
as manage the issuance and servicing of the bonds. IHFA has in-
house, the trained personnel and systems needed to handle this
work. This legislation amends the IHFA enabling statue to
authorize its participation.
Local highway jurisdiction piggyback participation using up to
25% of their federal tax revenues would be permitted at their
This legislation increases no taxes. It would, however, have a
significant positive effect on economic development and the
resulting increase in tax revenues to the general fund from an
improved economy. Additionally, bond interest costs would be more
than offset by the reduced cost of corridor right-of-way
acquisition and construction. Delaying completion of needed road
infrastructure projects generally cost substantially more than if
they are promptly completed.
Name: Senator Cecil Ingram
Senator Hal Bunderson
Representative Lee Gagner
Phone: 332-1315 - 332-1330 - 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE S 1436