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H0387...............................................by REVENUE AND TAXATION IDAHO HOUSING AND FINANCE ASSOCIATION - Amends existing law relating to the Idaho Housing and Finance Association to provide that the financial assistance for economic development projects is a public purpose; to define "economic development project or projects"; to provide powers of the association relating to loans for economic development projects; and to extend the borrowing power and administration powers of the association to include receipt and administration of private sources of financial assistance for economic development projects. 03/24 House intro - 1st rdg - to printing 03/28 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 387 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO HOUSING AND FINANCE ASSOCIATION; AMENDING SECTION 3 67-6201, IDAHO CODE, TO PROVIDE THAT FINANCIAL ASSISTANCE FOR ECONOMIC 4 DEVELOPMENT PROJECTS IS A PUBLIC PURPOSE AND TO MAKE TECHNICAL CORREC- 5 TIONS; AMENDING SECTION 67-6205, IDAHO CODE, TO DEFINE "ECONOMIC DEVELOP- 6 MENT PROJECT OR PROJECTS" AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC- 7 TION 67-6206, IDAHO CODE, TO PROVIDE POWERS OF THE ASSOCIATION RELATING TO 8 THE FINANCING OF ECONOMIC DEVELOPMENT PROJECTS AND TO MAKE TECHNICAL COR- 9 RECTIONS; AMENDING SECTION 67-6207A, IDAHO CODE, TO PROVIDE ADDITIONAL 10 POWERS OF THE ASSOCIATION RELATING TO LOANS FOR ECONOMIC DEVELOPMENT PROJ- 11 ECTS; AND AMENDING SECTION 67-6223, IDAHO CODE, TO EXTEND THE BORROWING 12 POWER AND ADMINISTRATIVE POWERS OF THE ASSOCIATION TO INCLUDE RECEIPT AND 13 ADMINISTRATION OF PRIVATE SOURCES OF FINANCIAL ASSISTANCE FOR ECONOMIC 14 DEVELOPMENT PROJECTS. 15 Be It Enacted by the Legislature of the State of Idaho: 16 SECTION 1. That Section 67-6201, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 67-6201. PURPOSE. It is hereby declared: 19 (a) That within the state there is a shortage of safe or sanitary dwell- 20 ing accommodations available which persons of lowincomesincome can afford 21 and that such persons are forced to occupy overcrowded and congested dwelling 22 accommodations; that the aforesaid conditions cause an increase in and spread 23 of disease and crime, and constitute a menace to the health, safety, morals 24 and welfare of the residents of the state and impair economic values; that 25 these conditions necessitate excessive and disproportionate expenditures of 26 public funds for crime prevention and punishment, public health and safety, 27 fire and accident protection, and other public services and facilities. 28 (b) That private enterprise has not been able to provide, without assis- 29 tance, an adequate supply of safe and sanitary dwellings at prices or rents 30 which persons and families of low income can afford, or to achieve rehabilita- 31 tion of much of the present low-income housing. It is imperative that the sup- 32 ply of housing for persons and families of low income be increased and that 33 coordination and cooperation among private enterprise, state and local govern- 34 ment be encouraged to sponsor, build and rehabilitate residential housing for 35 such persons and families. 36 (c) That the clearance, replanning and reconstruction of the areas in 37 which unsanitary or unsafe housing conditions exist, and the providing of safe 38 and sanitary dwelling accommodations for persons of lowincomesincome (which 39dwelling-accommodationsdwelling accommodations need not be solely for persons 40 of lowincomesincome in order to avoid concentrations of such persons in spe- 41 cific localities), are public uses, and uses and purposes for which public 42 money may be spent and private property acquired, and are governmental func- 43 tions. 2 1 (d) It is also declared and the legislature hereby finds that charitable, 2 educational, human service, cultural and other purposes pursued by nonprofit 3 corporations are important public functions and public purposes that should be 4 encouraged and that financing of nonprofit facilities for these purposes 5 should be encouraged, without using state funds or lending the credit of the 6 state, through the issuance of nonrecourse revenue bonds and the lending of 7 the proceeds thereof to nonprofit corporations to promote their purposes. 8 (e) It is further declared that in this state: 9 (1) There exists an inadequate supply of funds at interest rates suffi- 10 ciently low to enable persons engaged in agriculture in this state, par- 11 ticularly beginning farmers and ranchers, to pursue agricultural opera- 12 tions at present levels; 13 (2) That such inability to pursue agricultural operations lessens the 14 supply of agricultural commodities available to fulfill the needs of the 15 citizens of this state; 16 (3) That such inability to continue operations decreases available 17 employment in the agricultural sector of the state and results in unem- 18 ployment and its attendant problems; 19 (4) That such conditions prevent the acquisition of an adequate capital 20 stock of farm and ranch equipment and machinery, therefore impairing the 21 productivity of agricultural land; 22 (5) That such conditions are conducive to consolidation of acreage of 23 agricultural land with fewer individuals living and farming and ranching 24 on the traditional family farm and ranch; 25 (6) That these conditions result in a loss in population, unemployment 26 and movement of persons from rural to urban areas accompanied by added 27 costs to communities for creation of new public facilities and services; 28 (7) That there have been recurrent shortages of funds from private market 29 sources at reasonable rates of interest; 30 (8) That these shortages have made the sale and purchase of agricultural 31 land to beginning farmers and ranchers a virtual impossibility in many 32 parts of the state; 33 (9) That the ordinary operations of private enterprise have not in the 34 past corrected these conditions; and 35 (10) That a stable supply of adequate funds for agricultural financing is 36 required to encourage beginning farmers and ranchers in an orderly and 37 sustained manner and to reduce the problems described herein. 38 (f) It is further declared that in this state there is an urgent need to 39 promote higher rates of employment; encourage the development of new jobs; 40 maintain and supplement the capital investments in industry and commerce that 41 currently exist in this state; encourage future employment by ensuring future 42 capital investment; attract environmentally-sound industry and commerce to the 43 state; protect and enhance the quality of natural resources and the environ- 44 ment; and promote the production and conservation of energy; and that financ- 45 ing of economic development projects for these purposes should be encouraged, 46 without using state funds or lending the credit of the state, through the 47 issuance of nonrecourse revenue bonds and the lending of the proceeds thereof 48 for such purposes. 49 (g) It is hereby further declared that all of the foregoing are public 50 purposes and uses for which public moneys may be borrowed, expended or granted 51 and that such activities are governmental functions and serve a public purpose 52 in improving or otherwise benefiting the people of this state; that the neces- 53 sity of enacting the provisions hereinafter set forth is in the public inter- 54 est and is hereby so declared as a matter of express legislative determina- 55 tion. 3 1 SECTION 2. That Section 67-6205, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 67-6205. DEFINITIONS. The following terms, wherever used or referred to 4 in this chapter, shall have the following respective meanings, unless a dif- 5 ferent meaning clearly appears from the context: 6 (a) "Association" or "housing association" shall mean the Idaho housing 7 and finance association created by section 67-6202, Idaho Code. 8 (b) "Housing project" shall mean any work or undertaking: 9 (1) To demolish, clear or remove buildings from any slum area; such work 10 or undertaking may embrace the adoption of such area to public purposes, 11 including parks or other recreational or community purposes; or 12 (2) To construct, sell, lease, finance, improve, operate or otherwise 13 provide decent, safe and sanitary urban or rural dwellings, apartments or 14 other living accommodations for persons of low income; such work or under- 15 taking may include buildings, land, equipment, facilities and other real 16 or personal property which are necessary, convenient or desirable appurte- 17 nances, such as, but not limited to, streets, sewers, water service, 18 parks, site preparation, gardening, administrative, community, health, 19 recreational, and welfare or other purposes; or 20 (3) To accomplish a combination of the foregoing. The term "housing proj- 21 ect" also may be applied to the planning of the buildings and improve- 22 ments, for either single ormulti-familymultifamily housing, the acquisi- 23 tion of property, the demolition of existing structures, the construction, 24 reconstruction, rehabilitation, alteration and repair of the buildings and 25 improvements and all other work in connection therewith. 26 (c) "Governing body" shall mean the city council, board of commissioners, 27 board of trustees or other body having charge of the locality in which the 28 association desires to undertake a housing project. 29 (d) "Federal government" shall include the United States of America, or 30 any other agency or instrumentality, corporate or otherwise, of the United 31 States of America. 32 (e) "City" shall mean any city in the state of Idaho, including each city 33 having a special charter. 34 (f) "County" or "counties" shall include all counties in the state of 35 Idaho as designated in chapter 1, title 31, Idaho Code. 36 (g) "Clerk" shall mean the clerk of the city or county as the case may be 37 or the officer charged with the duties customarily imposed on such clerk. 38 (h) "Area of operation" shall mean the state of Idaho. 39 (i) "Slum" shall mean any area where dwellings predominate which, by rea- 40 son of dilapidation, overcrowding, lack of ventilation, light or sanitary 41 facilities or any combination of these factors, are detrimental to safety, 42 health or morals. 43 (j) "Person oflow-incomelow income" means persons deemed by the associ- 44 ation, including those defined as "elderly" in the United States Housing Act 45 of 1937 (42 U.S.C., sec. 1437--1437dd), as amended, to require assistance 46 available under this act on account of insufficient personal or family income, 47 to pay the rents or carrying charges required by the unaided operation of pri- 48 vate enterprise in providing an adequate supply of decent, safe and sanitary 49 housing and in making such determination the association shall take into con- 50 sideration, without limitation, such factors as: 51 (1) The amount of the total income of such persons available for housing 52 needs; 53 (2) The size of the family; 54 (3) The cost and condition of housing facilities available; 4 1 (4) Standards established for various federal programs determining eligi- 2 bility based on income of such persons; and 3 (5) The ability of such persons to compete successfully in the normal 4 housing market and to pay the amounts at which private enterprise is pro- 5 viding decent, safe and sanitary housing. 6 (k) "Bonds," "notes" or "bond anticipation notes," and "obligations" 7 shall mean any bonds, notes, interim certificates, debentures or other evi- 8 dences of financial indebtedness issued by the association pursuant to this 9 chapter. 10 (l) "Real property" shall include all lands, including improvements and 11 fixtures thereon, and property of any nature, appurtenant thereto, or used in 12 connection therewith, and every estate, interest and right, legal or equita- 13 ble, therein, including terms for years and liens by way of judgment, mortgage 14 or otherwise and the indebtedness secured by such liens. 15 (m) "Housing authority" or "authority" means a housing authority estab- 16 lished pursuant to the "housing authorities and cooperation law" constituting 17 chapter 19, title 50, Idaho Code. 18 (n) "Rent" shall mean the periodic payment made by a person oflow-income19 low income in a housing project whether such money is being used as rent, or 20 for the development of equity by such person. 21 (o) "Interim financing" means a short-term construction loan for planning 22 and/or development of residential housing for persons oflow-incomelow income 23 and other persons which loan shall run until financing can be assumed through 24 other federal, state or private financing. 25 (p) "Housing sponsor" means individuals, joint ventures, partnerships, 26 limited partnerships, public bodies, trusts, firms, associations, or other 27 legal entities or any combination thereof, and corporations, cooperatives, and 28 condominiums, approved by the association as qualified either to own, con- 29 struct, acquire, rehabilitate, operate, manage or maintain a housing project, 30 subject to the regulatory powers of the association and other terms and condi- 31 tions set forth in this chapter. A "housing sponsor" shall be either a 32 "limited profit" sponsor or a "nonprofit" sponsor. 33 (q) "Mortgage lender" means any bank or trust company, savings bank, 34 mortgage company, mortgage banker, credit union, national banking association, 35 savings and loan association, building and loan association, life insurance 36 company, and any other financial institution authorized to transact business 37 in the state. 38 (r) "Mortgage loan" means an interest-bearing obligation secured by a 39 deed of trust, a mortgage, bond, note, or other instrument which is a lien on 40 property in the state except in the case of loans insured by the federal hous- 41 ing administration or the association and which are made for the rehabilita- 42 tion or improvement of existing dwellings; in such case the loans need not be 43 secured by an instrument constituting a lien on property in the state. 44 (s) "Mixed income housing project" means a housing project which contains 45 dwellings occupied or to be occupied by persons oflow-incomelow income con- 46 stituting at least twenty percent (20%) of such occupancy. 47 (t) "Facilities" means land, rights in land, buildings, structures, 48 equipment, landscaping, utilities, approaches, roadways and parking, handling 49 and storage areas, and portions of any of the foregoing and similar ancillary 50 facilities. 51 (u) "Nonprofit corporation" means a nonprofit corporation organized and 52 operating in accordance with Idaho law or a nonprofit corporation organized 53 and operating in accordance with comparable laws within another state or ter- 54 ritory of the United States. 55 (v) "Nonprofit facilities" means facilities owned or used by a nonprofit 5 1 corporation for a nonprofit purpose of the corporation; provided that facili- 2 ties for health facilities which may be funded pursuant to chapter 14, title 3 39, Idaho Code, shall not be included in this definition, except for such 4 health facilities as may be specifically approved by the Idaho health facili- 5 ties authority. Facilities owned or used, consistent with its nonprofit pur- 6 pose, by a nonprofit corporation recognized by a state institution of higher 7 education as its college or university foundation shall be considered non- 8 profit facilities under this chapter. 9 (w) "Project costs of a nonprofit facility" means costs of: 10 (1) Acquisition, construction and improvement of any facilities included 11 in a nonprofit facility; 12 (2) Architectural, engineering, consulting, accounting and legal costs 13 related directly to the development, financing and construction of a non- 14 profit facility, including costs of studies assessing the feasibility of a 15 nonprofit facility; 16 (3) Finance costs, including discounts, if any, the costs of issuing 17 bonds, and costs incurred in carrying out any provisions thereof; 18 (4) Interest during construction and during the six (6) months after 19 estimated completion of construction, and capitalized debt service or 20 repair and replacement or other appropriate reserves; 21 (5) The refunding of any outstanding obligations incurred for any of the 22 costs outlined in this subsection; and 23 (6) Other costs incidental to any of the costs listed in this section. 24 (x) "Agricultural facility or facilities" means land, any building or 25 other improvement thereon or thereto, to be owned by a beginning farmer or 26 rancher and any personal properties deemed necessary or suitable for use, 27 whether or not now in existence in farming or ranching, the production of 28 agricultural commodities, including, without limitation, the products of aqua- 29 culture, hydroponics and silviculture, or the treating, processing or storing 30 of such agricultural commodities when such activities are customarily engaged 31 in by beginning farmers or ranchers as a part of farming or ranching. 32 (y) "Economic development project or projects" means any commercial or 33 industrial project including, without limitation, any manufacturing, process- 34 ing, production, assembly, warehousing, solid waste disposal, recreation, 35 office, research and development, energy or other business project owned by 36 one (1) or more persons or other legal entities, any costs relating thereto 37 including, without limitation, costs for buildings, land, equipment, furnish- 38 ings, interest, costs of operation, financing, architectural, engineering and 39 other professional costs and other related costs, as well as any working capi- 40 tal costs or expenses for such businesses. 41 SECTION 3. That Section 67-6206, Idaho Code, be, and the same is hereby 42 amended to read as follows: 43 67-6206. POWERS OF ASSOCIATION. The housing and finance association is an 44 independent public body corporate and politic, exercising public and essential 45 governmental functions, and having all the powers which are hereby declared to 46 be public purposes necessary or convenient to carry out and effectuate the 47 purposes and provisions of this act, including the following powers in addi- 48 tion to others herein granted: 49 (a) To sue and to be sued; to have a seal and to alter the same at pleas- 50 ure; to have perpetual succession; to make and execute contracts and other 51 instruments necessary or convenient to the exercise of the powers of the 52 association; and to make and from time to time amend and repeal bylaws, rules, 53 not inconsistent with this act, to carry into effect the powers and purposes 6 1 of the association. 2 (b) To conduct its operations within any or all of the counties of the 3 state. 4 (c) To cooperate with housing authorities throughout Idaho in the devel- 5 opment of housing projects. 6 (d) To assign priorities for action and revise or modify said priorities 7 from time to time. 8 (e) To make and execute agreements, contracts and other instruments nec- 9 essary or convenient in the exercise of the powers and functions of the asso- 10 ciation under this act, including contracts with any housing sponsor, mortgage 11 lender, person, firm, corporation, governmental agency, or other entity; and 12 to include in any contract let in connection with a project, stipulations 13 requiring that the contractor and any subcontractors comply with requirements 14 as to minimum wages and maximum hours of labor, and comply with any conditions 15 which the federal government may have attached to its financial aid of the 16 project and to designate mortgage lenders to act for and in behalf of the 17 association, with respect to originating or servicing and processing mortgage 18 loans of the association, and to pay the reasonable value of service rendered 19 to the association by such mortgage lenders pursuant to contracts with mort- 20 gage lenders. 21 (f) To lease, sell, construct, finance, reconstruct, restore, rehabili- 22 tate, operate or rent any housing projects, nonprofit facilities or any dwell- 23 ings, houses, accommodations, lands, buildings, structures or facilities 24 embraced in any housing project or nonprofit facilities and, subject to the 25 limitations contained in this act, to establish and revise the rents or 26 charges therefor. 27 (g) To own, hold and improve real or personal property; to purchase, 28 lease, obtain options upon, acquire by gift, grant, bequest, devise, eminent 29 domain or otherwise, any real or personal property or any interest therein. 30 (h) To acquire any real property; to sell, lease, exchange, transfer, 31 assign, pledge or dispose of any real or personal property or any interest 32 therein. 33 (i) To insure or provide for the insurance of any real or personal prop- 34 erty or operation of the association against any risks or hazards, and to pro- 35 cure or agree to the procurement of insurance or guarantees from the federal 36 government or other source for the payment or purchase of any bonds or parts 37 thereof issued by the association, including the power to pay for any such 38 insurance or guarantees. 39 (j) To invest any funds held in reserves or sinking funds, or any funds 40 not required for immediate disbursement, in property or securities in which a 41 bank, as defined in the "bank act," title 26, Idaho Code, may legally invest 42 funds including without limitation, to agree to purchase the obligations of 43 any federal, state or local government upon such conditions as the association 44 may determine to be prudent and in its best interest. 45 (k) Within its area of operation: to investigate into living, dwelling 46 and housing conditions and into the means and methods of improving such condi- 47 tions; to determine where slum areas exist or where there is a shortage of 48 adequate, safe and sanitary dwelling accommodations for persons oflow-income49 low income; to make studies and recommendations relating to the problem of 50 clearing, replanning and reconstruction of slum areas and the problem of pro- 51 viding dwelling accommodations for persons oflow-incomelow income, and to 52 cooperate with the city, the county, the state or any political subdivision 53 thereof in action taken in connection with such problems; and to engage in 54 research, studies and experimentation on the subject of housing. 55 (l) To participate in cooperative ventures with any agencies, organiza- 7 1 tions and individuals in order to undertake the provision of housing for per- 2 sons oflow-incomelow income, to undertake the provision of nonprofit facili- 3 ties, economic development projects or agricultural facilities. 4 (m) To provide research and technical assistance to eligible agencies, 5 organizations and individuals eligible to develop low cost housing and to 6 research new low cost housing development and construction methods. 7 (n) To make and undertake commitments to make or participate in the mak- 8 ing of mortgage loans to persons oflow-incomelow income and to housing spon- 9 sors, including without limitation federally insured mortgage loans, and to 10 make temporary loans and advances in anticipation of permanent loans to hous- 11 ing sponsors; said mortgage loans to housing sponsors shall be made to finance 12 the construction, improvement, or rehabilitation of housing projects for per- 13 sons oflow-incomelow income, and/or mixed income housing projects upon the 14 terms and conditions set forth in this act; provided, however, that such loans 15 shall be made only upon the determination by the association that mortgage 16 loans are not otherwise available, wholly or in part, from private lenders 17 upon reasonably equivalent terms and conditions. 18 (o) To purchase, or make commitments to purchase or participate in the 19 purchase of mortgage loans from mortgage lenders which loans have been made 20 for the construction, improvement, or rehabilitation of housing projects for 21 persons oflow-incomelow income and/or mixed income housing projects or loans 22 which have been made to persons oflow-incomelow income for residential hous- 23 ing, upon terms set forth in this act; provided, however, that any such pur- 24 chase shall be made only upon the determination by the association that the 25 mortgage loans to be made are not otherwise being made by mortgage lenders 26 upon reasonably equivalent terms and conditions. Also, to purchase, or make 27 commitments to purchase or participate in the purchase of mortgage loans from 28 mortgage lenders whether or not said loans were made to persons oflow-income29 low income, upon terms set forth in this act; provided, however, that the pro- 30 ceeds from such purchase or the equivalent thereof shall be reinvested in 31 obligations of the association, in mortgage loans to persons oflow-incomelow 32 income or in mortgage loans for housing projects for persons oflow-incomelow 33 income and/or mixed income housing projects, and provided that any such pur- 34 chase shall be made only upon the determination by the association that the 35 mortgage loans to be made are not otherwise being made by mortgage lenders 36 upon reasonably equivalent terms and conditions. 37 (p) To provide interim financing for housing projects including mixed 38 income housing projects approved by the association, provided that the associ- 39 ation has determined that such financing is not otherwise available from mort- 40 gage lenders upon reasonably equivalent terms and conditions. 41 (q) To prescribe rules and policies in connection with the performance of 42 its functions and duties. 43 (r) To do all other things deemed necessary and desirable to accomplish 44 the objectives of this act. 45 (s) To borrow money and issue bonds and notes or other obligations, to 46 invest the proceeds thereof in any lawful manner and to fund or refund the 47 same, and to provide for the rights of the holders of its obligations as pro- 48 vided in this act and in connection therewith, to waive, by resolution or 49 other document of the association, the exemption from federal income taxation 50 of interest on any of the association's obligations under existing or future 51 federal law and to establish, maintain and preserve the association's general 52 obligation rating and any rating on its bonds, notes or other obligations. 53 (t) To receive and accept aid or contributions from any source. 54 (u) To employ architects, engineers, attorneys, accountants, housing con- 55 struction and financial experts and such other advisors, consultants and 8 1 agents as may be necessary in its judgment and to fix their compensation. 2 (v) To insure mortgage payments of any mortgage loan made for the purpose 3 of constructing, rehabilitating, purchasing, leasing, or refinancing housing 4 projects upon such terms and conditions as the association may prescribe. 5 (w) To fix and revise from time to time and charge and collect fees and 6 charges in connection with loans made or other services provided by the asso- 7 ciation pursuant to this act, and to make and publish rules respecting the 8 making and purchase of mortgage loans. 9 (x) To organize a nonprofit corporation to assist the association in pro- 10 viding for housing projects. 11 (y) To enter upon and inspect any housing project, including housing 12 projects undertaken by housing sponsors, for the purpose of investigating the 13 physical and financial condition thereof, and its construction, rehabilita- 14 tion, operation, management and maintenance, and to examine all books and 15 records with respect to capitalization, income and other matters relating 16 thereto. 17 (z) To order such alterations, changes or repairs as may be necessary to 18 protect the security of its investment in a housing project or the health, 19 safety, and welfare of the occupants thereof. 20 (aa) To make or purchase secured loans for the purpose of providing tempo- 21 rary or permanent financing or refinancing of all or part of the project costs 22 of any nonprofit facility, economic development project or agricultural facil- 23 ity, including the refunding of any outstanding obligations, mortgages or 24 advances issued, made or given by any person for the project costs of a non- 25 profit facility, economic development project or agricultural facility; and to 26 charge and collect interest on the loans for the loan payments upon such terms 27 and conditions, including without limitation bond rating and issuance condi- 28 tions, as the board of commissioners considers advisable which are not in con- 29 flict with this chapter. 30 (bb) As security for the payment of the principal of and interest on any 31 revenue bonds issued and any agreements made in connection therewith, to mort- 32 gage, pledge, or otherwise encumber any or all of nonprofit facilities, eco- 33 nomic development projects or agricultural facilities or any part or parts 34 thereof, whether then owned or thereafter acquired, and to assign any mortgage 35 and repledge any security conveyed to the association, to secure any loan made 36 by the association and to pledge the revenues and receipts therefrom. 37 (cc) To issue bonds for the purpose of financing all or part of the proj- 38 ect cost on any nonprofit facility, economic development project or agricul- 39 tural facility and to secure the payment of the bonds as provided in this 40 chapter. 41 (dd) To purchase or sell by installment contract or otherwise, and convey 42 all or any part of any nonprofit facility, economic development project or 43 agricultural facility for such purchase price and upon such terms and condi- 44 tions as this board of commissioners considers advisable which are not in con- 45 flict with this chapter. 46 (ee) To lease all or any part of any nonprofit facility, economic develop- 47 ment project or agricultural facility for such rentals and upon such terms and 48 conditions, including options to purchase, as the board of commissioners con- 49 siders advisable and not in conflict with this chapter. 50 (ff) To construct and maintain one (1) or more nonprofit facilities, eco- 51 nomic development projects or agricultural facilities, provided that the asso- 52 ciation shall not operate any nonprofit facility, economic development proj- 53 ect or agricultural facility as a business other than as lessor, seller or 54 lender. The purchase, holding and enforcing of mortgages, deeds of trust, or 55 other security interests and contracting for any servicing thereof is not con- 9 1 sidered the operation of a nonprofit facility, economic development project or 2 agricultural facility as a business. 3 (gg) To act as the designated housing resource clearinghouse in the state 4 for matters relating to affordable housing. 5 (hh) To coordinate the development and maintenance of a housing policy for 6 the state. 7 SECTION 4. That Section 67-6207A, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 67-6207A. ADDITIONAL POWERS. In addition to all other powers, the associ- 10 ation also shall have the following specific powers: 11 (a) To make and publish rules respecting making mortgage loans pursuant 12 to this act, the regulations of borrowers, housing sponsors, mortgage lenders, 13 and the construction of ancillary commercial facilities. 14 (b) To make rules respecting the qualifications for admission to housing 15 projects pursuant to this act. 16 (c) To invest in, purchase, sell, or to make commitments to purchase, and 17 take assignments from lenders, of notes and mortgages or other obligations 18 evidencing loans for housing projects, loans for nonprofit facilities, loans 19 for economic development projects or loans for agricultural facilities, at 20 public or private sale, with or without public bidding. 21 (d) To make loans to mortgage lenders under terms and conditions requir- 22 ing the proceeds thereof to be used by such mortgage lenders for the making of 23 new mortgage loans for housing projects. 24 (e) To enter into mortgage insurance agreements with mortgage lenders in 25 connection with the lending of money by such institutions for housing proj- 26 ects. 27 (f) Subject to any agreement with bondholders or noteholders, to collect, 28 enforce the collection of, and foreclose on any collateral securing its loans 29 to mortgage lenders and acquire or take possession of such collateral and sell 30 the same at public or private sale, with or without public bidding, and other- 31 wise deal with such collateral as may be necessary to protect the interest of 32 the association therein. 33 SECTION 5. That Section 67-6223, Idaho Code, be, and the same is hereby 34 amended to read as follows: 35 67-6223. BORROWING POWER -- FINANCIAL ASSISTANCE -- COOPERATION WITH 36 STATE AND FEDERAL GOVERNMENT. In addition to the powers conferred upon the 37 association by other provisions of this act, the association is empowered to 38 administer any other state, private or federal assistance program including 39 without limitation all tax credit programs, loans or investment funds and 40 block grants and to borrow money or accept contributions, grants or other 41 financial assistance or investment from private sources or from the state or 42 federal government for or in aid of any housing project, nonprofit facility, 43 economic development project or agricultural facility within its area of oper- 44 ation, to take over or lease or manage any housing project, nonprofit 45 facility, economic development project or agricultural facility or undertaking 46 constructed or owned by the federal government, and to these ends, to comply 47 with such conditions and to make such trust indentures, leases or agreements 48 as may be necessary, convenient or desirable. It is the purpose and intent of 49 this act to authorize the association to do any and all things necessary or 50 desirable to secure the financial aid or cooperation of the state or federal 51 government in the undertaking, construction, maintenance or operation of any 10 1 housing project, nonprofit facility, economic development project or agricul- 2 tural facility by the association. The association is specifically authorized 3 to work with the Idaho department of agriculture in connection with any loan 4 for an agricultural facility and the Idaho department of agriculture shall 5 assist in the provisions of such loans.
STATEMENT OF PURPOSE RS 15182C1 The bill would amend the enabling legislation of the Idaho Housing and Finance Association (IHFA) to permit the financing of economic development projects through the issuance of revenue bonds by IHFA. No assets of IHFA or the state will be pledged for issuance of the bonds. These amendments will permit the financing of industrial, commercial and other projects to promote economic development throughout the state and will allow the pooling of loans for such projects to save financing transaction costs. Financing of these projects will still be permitted to the extent available through local issuers. However, some areas of the state do not have local issuers established to issue such bonds. The amendments would provide for a central, statewide point of contact for issuance of bonds for economic development projects. FISCAL IMPACT No expenditure of state funds is expected as a result of these amendments. To the extent that additional economic development results from the bonds provided for in these amendments, a net benefit of additional tax revenue could be expected. Contact Name: Gary Thompson Phone: 426-3689 STATEMENT OF PURPOSE/FISCAL NOTE H 387