Print Friendly HOUSE BILL NO. 387 – Idaho Housing&Finance, projects
HOUSE BILL NO. 387
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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 - 2005
IN 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 low incomes income 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 low incomes income (which
39 dwelling-accommodations dwelling accommodations need not be solely for persons
40 of low incomes income 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-
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-
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 or multi-family multifamily 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 of low-income low 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
53 (2) The size of the family;
54 (3) The cost and condition of housing facilities available;
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
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 of low-income
19 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 of low-income low 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 of low-income low 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
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
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
1 of the association.
2 (b) To conduct its operations within any or all of the counties of the
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
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 of low-income
49 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 of low-income low 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-
1 tions and individuals in order to undertake the provision of housing for per-
2 sons of low-income low 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 of low-income low 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 of low-income low 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 of low-income low income and/or mixed income housing projects or loans
22 which have been made to persons of low-income low 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 of low-income
29 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 of low-income low
32 income or in mortgage loans for housing projects for persons of low-income low
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
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
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
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-
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-
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
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
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
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.
Name: Gary Thompson
STATEMENT OF PURPOSE/FISCAL NOTE H 387