2005 Legislation
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HOUSE BILL NO. 387 – Idaho Housing&Finance, projects


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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

Bill Text

  ]]]]              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
 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-
 43    tions.
  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.
  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
 52        needs;
 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
  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 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
 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
  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
  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 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
 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-
  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:
 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 / Fiscal Impact

                       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

                          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. 

Name:  Gary Thompson 
Phone: 426-3689

STATEMENT OF PURPOSE/FISCAL NOTE                        H 387