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S1183aaH...................................................by STATE AFFAIRS
TRANSPORTATION INFRASTRUCTURE - FINANCE - Adds to and amends existing law
to provide for financing such state transportation infrastructure projects
as determined by the Idaho Transportation Board by the issuance of bonds or
notes by the Idaho Housing and Finance Association; and to provide for
payment of debt service and other bond related expenses with future federal
aid highway apportionments.
03/08 Senate intro - 1st rdg - to printing
03/09 Rpt prt - to St Aff
03/14 Rpt out - rec d/p - to 2nd rdg
03/15 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 30-4-0, 1 vacancy
AYES -- Andreason, Broadsword, Bunderson, Burkett, Burtenshaw,
Cameron, Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes,
Goedde, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai,
Marley, McGee, McKenzie, Richardson, Schroeder, Stegner, Stennett,
Sweet, Werk
NAYS -- Brandt, Hill, Pearce, Williams
Absent and excused -- (District 21 seat vacant)
Floor Sponsor - Stegner
Title apvd - to House
03/17 House intro - 1st rdg - Held at Desk
03/29 Ref'd to Transp
04/06 Rpt out - to Gen Ord
Rpt out amen - to 1st rdg as amen
1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 47-23-0
AYES -- Anderson, Andrus, Barraclough, Bastian, Bedke, Bilbao, Black,
Block, Boe, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Eskridge,
Field(18), Field(23), Garrett, Hart, Henderson, Jaquet, Jones, Kemp,
Martinez, McKague, Miller, Mitchell, Nonini, Pasley-Stuart, Pence,
Raybould, Ring(Roberge), Ringo, Rusche, Rydalch, Sayler(Callen),
Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smylie,
Snodgrass, Stevenson, Trail, Wills
NAYS -- Barrett, Bayer, Bell, Bolz, Bradford, Denney, Edmunson,
Ellsworth(Ellsworth), Harwood, Henbest, Lake, LeFavour, Loertscher,
Mathews, McGeachin, Moyle, Nielsen, Roberts, Sali, Schaefer,
Smith(24), Wood, Mr. Speaker
Absent and excused -- None
Floor Sponsor - Skippen
Title apvd - to Senate
04/06 Senate concurred in House amens - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 30-3-2
AYES -- Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner,
Compton, Corder, Darrington, Davis, Fulcher(Fulcher), Geddes, Goedde,
Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai,
Marley, McGee, McKenzie, Richardson, Schroeder, Stegner, Stennett,
Sweet, Werk
NAYS -- Brandt, Pearce, Williams
Absent and excused -- Andreason, Gannon
Floor Sponsor - Stegner
Title apvd - To enrol - Rpt enrol - Pres signed
04/07 Sp signed - To Governor
04/14 Governor signed
Session Law Chapter 378
Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE SENATE
SENATE BILL NO. 1183
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO TRANSPORTATION PROJECT FINANCING; AMENDING SECTION 40-105, IDAHO
3 CODE, TO DEFINE "DRAW"; AMENDING CHAPTER 1, TITLE 40, IDAHO CODE, BY THE
4 ADDITION OF A NEW SECTION 40-108, IDAHO CODE, TO DEFINE "GARVEE"; AMENDING
5 CHAPTER 3, TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 40-315,
6 IDAHO CODE, TO SET FORTH POWERS AND DUTIES OF THE IDAHO TRANSPORTATION
7 BOARD RELATING TO FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING AND TO PRO-
8 VIDE SPECIFIED ROUTES AND PROJECTS FOR SELECTION BY THE BOARD; AMENDING
9 SECTION 40-702, IDAHO CODE, TO PROVIDE THAT THE STATE HIGHWAY ACCOUNT
10 SHALL INCLUDE CERTAIN FEDERAL SURFACE TRANSPORTATION FUNDS; AMENDING SEC-
11 TION 40-707, IDAHO CODE, TO PROVIDE FOR APPROPRIATION OF FEDERAL MONEYS IN
12 THE STATE HIGHWAY ACCOUNT FOR PAYMENT OF PRINCIPAL, INTEREST AND OTHER
13 AMOUNTS REQUIRED FOR TRANSPORTATION BONDS OR NOTES, TO AUTHORIZE THE BOARD
14 TO USE NONFEDERAL FUNDS TO PAY THE MATCH FOR FEDERAL FUNDS USED TO PAY
15 BONDS OR NOTES AND TO AUTHORIZE TRANSFER OF SUCH MATCH TO THE GARVEE DEBT
16 SERVICE FUND; AMENDING CHAPTER 7, TITLE 40, IDAHO CODE, BY THE ADDITION OF
17 A NEW SECTION 40-718, IDAHO CODE, TO ESTABLISH THE GARVEE CAPITAL PROJECT
18 FUND AND THE GARVEE DEBT SERVICE FUND; AMENDING SECTION 67-6201, IDAHO
19 CODE, TO EXPAND THE PURPOSE OF THE IDAHO HOUSING AND FINANCE ASSOCIATION
20 AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 67-6205, IDAHO CODE,
21 TO DEFINE THE TERMS "MUNICIPALITY," "STATE," "STATE BODY," "TRANSPORTATION
22 BOARD," "TRANSPORTATION DEPARTMENT" AND "TRANSPORTATION PROJECT"; AMENDING
23 SECTION 67-6206, IDAHO CODE, TO PROVIDE ADDITIONAL POWERS OF THE IDAHO
24 HOUSING AND FINANCE ASSOCIATION; AMENDING SECTION 67-6210, IDAHO CODE, TO
25 PROVIDE ADDITIONAL PROVISIONS FOR RESOLUTIONS AUTHORIZING NOTES OR BONDS
26 OR ANY ISSUE THEREOF AND TO PROVIDE THAT THE ASSOCIATION SHALL NOT ISSUE
27 BONDS OR NOTES TO FINANCE TRANSPORTATION PROJECTS UNLESS CERTAIN CONDI-
28 TIONS ARE MET; AND PROVIDING SEVERABILITY.
29 Be It Enacted by the Legislature of the State of Idaho:
30 SECTION 1. That Section 40-105, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 40-105. DEFINITIONS -- D.
33 (1) "Department" means the Idaho transportation department.
34 (2) "Director" means the director of the Idaho transportation department.
35 (3) "Displaced person" means any individual, family, business or farm
36 operation which moves from real property or moves personal property from real
37 property acquired for a program or project of a state or local agency, in
38 whole or in part, or as the result of a written order of an acquiring agency
39 to vacate real property for a program or project of a state or local agency,
40 and, solely for the purposes of section 40-2004, Idaho Code, as a result of a
41 written order of an acquiring agency to vacate other real property, on which a
42 person conducts a business or farm operation, for a program or project of any
43 state or local agency.
2
1 (4) "Draw" means making a cash demand on the proceeds of transportation
2 bonds or notes issued by the Idaho housing and finance association as it per-
3 tains to section 40-718, Idaho Code.
4 (45) "Dump" means any place or area, not operated as a business, where
5 junk is deposited, stored or kept.
6 SECTION 2. That Chapter 1, Title 40, Idaho Code, be, and the same is
7 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
8 ignated as Section 40-108, Idaho Code, and to read as follows:
9 40-108. DEFINITIONS -- G.
10 (1) "GARVEE" means grant anticipation revenue vehicle, a debt financing
11 instrument which enables states to finance state transportation infrastructure
12 projects and to pay debt service and other bond-related expenses with future
13 federal-aid highway apportionments.
14 SECTION 3. That Chapter 3, Title 40, Idaho Code, be, and the same is
15 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
16 ignated as Section 40-315, Idaho Code, and to read as follows:
17 40-315. POWERS AND DUTIES -- FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING.
18 (1) In order to address the increasing need for timely improvements to Idaho's
19 highway transportation infrastructure, the board may:
20 (a) Enter into agreements with the Idaho housing and finance association
21 in connection with the funding of highway transportation projects qualify-
22 ing for reimbursement from federal funds.
23 (b) Approve and recommend federal highway transportation projects to the
24 Idaho housing and finance association for financing by the association.
25 Such federal highway transportation projects shall be eligible for feder-
26 al-aid debt financing under chapter 1, title 23, United States Code, and
27 approval by the federal highway administration as an advanced construction
28 (AC) project thereunder. The board shall select and designate such trans-
29 portation projects to be funded with bond proceeds from the following list
30 of eligible projects:
31 ROUTE PROJECT DESCRIPTION
32 US-95 SH-1 to Canadian border
33 US-95 Garwood to Sagle
34 US-95 Worley to Setters
35 US-95 Thorn Creek to Moscow
36 US-95 Smokey Boulder to Hazard Creek
37 SH-16 Ext South Emmett to Mesa with connection to SH-55
38 SH-16 Ext I-84 to South Emmett
39 I-84 Caldwell to Meridian
40 I-84 Orchard to Isaacs Canyon
41 US-93 Twin Falls alternate route and new Snake River crossing
42 SH-75 Timmerman to Ketchum
43 US-20 St. Anthony to Ashton
44 US-30 McCammon to Soda Springs
45 (2) Prior to issuance by the Idaho housing and finance association of any
46 bonds or notes to finance highway transportation projects, the board shall
47 certify to the association that sufficient federal transportation funds are
48 available to make any payments required for such bonds or notes.
49 (3) In the event the board selects and designates to be funded with bond
50 proceeds any of the transportation projects listed in subsection (1) of this
51 section, and prior to entering into agreements with the Idaho housing and
3
1 finance association as provided herein, the Idaho transportation department,
2 as part of its annual budget request prepared pursuant to section 67-3502,
3 Idaho Code, shall include a request for bonding authority as a separate item
4 of its budget request. This request for bonding authority shall include a list
5 of planned highway transportation projects to be financed with such bond
6 financing during the next succeeding fiscal year.
7 (4) By June 30 of each year, the board shall submit a report to the leg-
8 islature concerning projects currently under construction using the bond
9 financing as authorized by the provisions of this section, and shall include a
10 list of planned highway transportation projects to be financed with such bond
11 financing during the next succeeding fiscal year.
12 SECTION 4. That Section 40-702, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 40-702. STATE HIGHWAY ACCOUNT -- ESTABLISHMENT. For the purpose of carry-
15 ing out the provisions of this title, there is established in the dedicated
16 fund of the state treasury an account to be known as the state highway
17 account, which account shall include:
18 (1) All moneys received by the state treasurer for deposit to the state
19 highway account.
20 (2) All fines, penalties and forfeitures incurred and collected for
21 violations of the provisions of this title, except as otherwise provided.
22 (3) All donations to the state from any source for the construction and
23 improvement of highways.
24 (4) All moneys received from local boards under joint contracts for the
25 construction of state highways.
26 (5) All federal surface transportation funds received from the United
27 States government, including, but not limited to, funds received pursuant to
28 chapter 1 of title 23, United States Code, for the national highway systems
29 program, the surface transportation program, the highway bridge program, the
30 minimum guarantee program, the federal lands highways program and other simi-
31 lar programs under successor laws.
32 (6) Other moneys which may be provided by law for the construction and
33 improvement of state highways.
34 (67) Interest earned on the investment of idle moneys in the state high-
35 way account shall be paid to the state highway account.
36 SECTION 5. That Section 40-707, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 40-707. APPROPRIATION OF MONEYS IN STATE HIGHWAY ACCOUNT. (1) From fed-
39 eral funds within the state highway account, there are hereby continuously
40 appropriated first such amounts as, from time to time, shall be certified by
41 the Idaho housing and finance association to the state controller, state trea-
42 surer and the board as necessary for payment of principal, interest and other
43 amounts required for transportation bonds or notes of the Idaho housing and
44 finance association in accordance with chapter 62, title 67, Idaho Code, which
45 amounts shall be transferred to the GARVEE debt service fund established in
46 section 40-718, Idaho Code.
47 (2) The board may, but is not obligated to, use any nonfederal funds in
48 the state highway account to pay match as required for receipt of federal
49 funds used to pay the bonds or notes as described in subsection (1) of this
50 section. Such match may be transferred to the GARVEE debt service fund estab-
51 lished in section 40-718, Idaho Code.
4
1 (3) One-half of one percent (.5%) of the moneys in the state highway
2 account may be utilized to encourage the use of recycled materials including,
3 but not limited to, recycled glass, reclaimed asphalt, asphalt containing
4 recycled plastic, recycled rubber tires and paper in highway construction and
5 maintenance projects. All other moneys at any time in the state highway
6 account, except those as are otherwise required by law to be placed in the
7 state highway redemption account, are hereby appropriated for the purpose of
8 defraying the expenses, debts and costs incurred in carrying out the powers
9 and duties of the highway board as provided by law, and for defraying adminis-
10 trative expenses of the department, including salaries of the board, the sal-
11 ary of the director, and salaries and wages of employees of the department and
12 board and expenses for traveling. Communication supplies, equipment, fixed
13 charges and all other necessary expenses of the department and board, not
14 otherwise provided for and all claims against the state highway account shall
15 be examined by the department and certified to the state controller, who
16 shall, upon approval of the board of examiners, draw his warrant against the
17 state highway account for all bills and claims allowed by the board.
18 SECTION 6. That Chapter 7, Title 40, Idaho Code, be, and the same is
19 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
20 ignated as Section 40-718, Idaho Code, and to read as follows:
21 40-718. GARVEE FUNDS ESTABLISHED -- CAPITAL PROJECT FUND -- DEBT SERVICE
22 FUND. (1) There is established in the state treasury a fund known as the
23 "GARVEE Capital Project Fund" which shall include:
24 (a) Any draw by the board of proceeds from the transportation bonds or
25 notes issued by the Idaho housing and finance association in accordance
26 with chapter 62, title 67, Idaho Code.
27 (b) Interest earned on the investment of idle moneys in the GARVEE capi-
28 tal project fund shall be paid to the GARVEE capital project fund.
29 Disbursements from this fund shall be made for projects in accordance with
30 chapter 3, title 40, Idaho Code. All moneys in the fund are hereby continu-
31 ously appropriated to the department.
32 (2) There is established in the state treasury a fund known as the
33 "GARVEE Debt Service Fund" for the purpose of paying the principal, interest
34 and other amounts required for transportation bonds or notes of the Idaho
35 housing and finance association in accordance with chapter 62, title 67, Idaho
36 Code. The fund shall include:
37 (a) Amounts transferred from the state highway account upon certification
38 by the Idaho housing and finance association to the state controller,
39 state treasurer and the board as necessary for payment of principal,
40 interest and other amounts required for transportation bonds or notes.
41 (b) Interest earned on the investment of idle moneys in the GARVEE debt
42 service fund shall be paid to the GARVEE debt service fund.
43 From moneys within this fund, there are hereby continuously appropriated such
44 amounts as, from time to time, shall be certified by the Idaho housing and
45 finance association to the state controller, state treasurer and the board as
46 necessary for payment of principal, interest and other amounts required for
47 transportation bonds or notes of the Idaho housing and finance association in
48 accordance with chapter 62, title 67, Idaho Code, which amounts shall be paid
49 over as directed by the association.
50 SECTION 7. That Section 67-6201, Idaho Code, be, and the same is hereby
51 amended to read as follows:
5
1 67-6201. PURPOSE. It is hereby declared:
2 (a) That within the state there is a shortage of safe or sanitary dwell-
3 ing accommodations available which persons of low incomes can afford and that
4 such persons are forced to occupy overcrowded and congested dwelling accommo-
5 dations; that the aforesaid conditions cause an increase in and spread of dis-
6 ease and crime, and constitute a menace to the health, safety, morals and wel-
7 fare of the residents of the state and impair economic values; that these con-
8 ditions necessitate excessive and disproportionate expenditures of public
9 funds for crime prevention and punishment, public health and safety, fire and
10 accident protection, and other public services and facilities.
11 (b) That private enterprise has not been able to provide, without assis-
12 tance, an adequate supply of safe and sanitary dwellings at prices or rents
13 which persons and families of low income can afford, or to achieve rehabilita-
14 tion of much of the present low-income housing. It is imperative that the sup-
15 ply of housing for persons and families of low income be increased and that
16 coordination and cooperation among private enterprise, state and local govern-
17 ment be encouraged to sponsor, build and rehabilitate residential housing for
18 such persons and families.
19 (c) That the clearance, replanning and reconstruction of the areas in
20 which unsanitary or unsafe housing conditions exist, and the providing of safe
21 and sanitary dwelling accommodations for persons of low incomes (which
22 dwelling-accommodations need not be solely for persons of low incomes in order
23 to avoid concentrations of such persons in specific localities), are public
24 uses, and uses and purposes for which public money may be spent and private
25 property acquired, and are governmental functions.
26 (d) It is also declared and the legislature hereby finds that charitable,
27 educational, human service, cultural and other purposes pursued by nonprofit
28 corporations are important public functions and public purposes that should be
29 encouraged and that financing of nonprofit facilities for these purposes
30 should be encouraged, without using state funds or lending the credit of the
31 state, through the issuance of nonrecourse revenue bonds and the lending of
32 the proceeds thereof to nonprofit corporations to promote their purposes.
33 (e) It is further declared that in this state:
34 (1) There exists an inadequate supply of funds at interest rates suffi-
35 ciently low to enable persons engaged in agriculture in this state, par-
36 ticularly beginning farmers and ranchers, to pursue agricultural opera-
37 tions at present levels;
38 (2) That such inability to pursue agricultural operations lessens reduces
39 the supply of agricultural commodities available to fulfill the needs of
40 the citizens of this state;
41 (3) That such inability to continue operations decreases available
42 employment in the agricultural sector of the state and results in unem-
43 ployment and its attendant problems;
44 (4) That such conditions prevent the acquisition of an adequate capital
45 stock of farm and ranch equipment and machinery, therefore impairing the
46 productivity of agricultural land;
47 (5) That such conditions are conducive to consolidation of acreage of
48 agricultural land with fewer individuals living and farming and ranching
49 on the traditional family farm and ranch;
50 (6) That these conditions result in a loss in population, unemployment
51 and movement of persons from rural to urban areas accompanied by added
52 costs to communities for creation of new public facilities and services;
53 (7) That there have been recurrent shortages of funds from private market
54 sources at reasonable rates of interest;
55 (8) That these shortages have made the sale and purchase of agricultural
6
1 land to beginning farmers and ranchers a virtual impossibility in many
2 parts of the state;
3 (9) That the ordinary operations of private enterprise have not in the
4 past corrected these conditions; and
5 (10) That a stable supply of adequate funds for agricultural financing is
6 required to encourage beginning farmers and ranchers in an orderly and
7 sustained manner and to reduce the problems described herein.
8 (f) It is hereby further declared that:
9 (1) The growth of the economy of this state has prompted new and ever-
10 increasing uses of public highways, roads, and other transportation infra-
11 structure, and the existing transportation infrastructure of this state
12 cannot adequately accommodate such greatly increased uses;
13 (2) One of the major concerns of the citizens of this state is the abil-
14 ity of the state to address the long-term transportation infrastructure
15 needs of this state that are critical to the continued growth of the
16 state's economy and the maintenance of citizens' quality of life;
17 (3) Utilizing bonds or notes to finance projects for transportation in-
18 frastructure results in significant cost savings to the state, since such
19 transportation projects can be completed at present day costs and at an
20 accelerated pace, but such bonds and notes need to be issued promptly in
21 order to realize these cost savings; and
22 (4) It is reasonable and necessary to utilize such bonds or notes for the
23 financing of transportation projects.
24 (g) It is hereby further declared that all of the foregoing are public
25 purposes and uses for which public moneys may be borrowed, expended or granted
26 and that such activities are governmental functions and serve a public purpose
27 in improving or otherwise benefiting the people of this state; that the neces-
28 sity of enacting the provisions hereinafter set forth is in the public inter-
29 est and is hereby so declared as a matter of express legislative determina-
30 tion.
31 SECTION 8. That Section 67-6205, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 67-6205. DEFINITIONS. The following terms, wherever used or referred to
34 in this chapter, shall have the following respective meanings, unless a dif-
35 ferent meaning clearly appears from the context:
36 (a) "Association" or "housing association" shall mean the Idaho housing
37 and finance association created by section 67-6202, Idaho Code.
38 (b) "Housing project" shall mean any work or undertaking:
39 (1) To demolish, clear or remove buildings from any slum area; such work
40 or undertaking may embrace the adoption of such area to public purposes,
41 including parks or other recreational or community purposes; or
42 (2) To construct, sell, lease, finance, improve, operate or otherwise
43 provide decent, safe and sanitary urban or rural dwellings, apartments or
44 other living accommodations for persons of low income; such work or under-
45 taking may include buildings, land, equipment, facilities and other real
46 or personal property which are necessary, convenient or desirable appurte-
47 nances, such as, but not limited to, streets, sewers, water service,
48 parks, site preparation, gardening, administrative, community, health,
49 recreational, and welfare or other purposes; or
50 (3) To accomplish a combination of the foregoing. The term "housing proj-
51 ect" also may be applied to the planning of the buildings and improve-
52 ments, for either single or multi-family housing, the acquisition of prop-
53 erty, the demolition of existing structures, the construction, reconstruc-
7
1 tion, rehabilitation, alteration and repair of the buildings and improve-
2 ments and all other work in connection therewith.
3 (c) "Governing body" shall mean the city council, board of commissioners,
4 board of trustees or other body having charge of the locality in which the
5 association desires to undertake a housing project.
6 (d) "Federal government" shall include the United States of America, or
7 any other agency or instrumentality, corporate or otherwise, of the United
8 States of America.
9 (e) "City" shall mean any city in the state of Idaho, including each city
10 having a special charter.
11 (f) "County" or "counties" shall include all counties in the state of
12 Idaho as designated in chapter 1, title 31, Idaho Code.
13 (g) "Clerk" shall mean the clerk of the city or county as the case may be
14 or the officer charged with the duties customarily imposed on such clerk.
15 (h) "Area of operation" shall mean the state of Idaho.
16 (i) "Slum" shall mean any area where dwellings predominate which, by rea-
17 son of dilapidation, overcrowding, lack of ventilation, light or sanitary
18 facilities or any combination of these factors, are detrimental to safety,
19 health or morals.
20 (j) "Person of low-income" means persons deemed by the association,
21 including those defined as "elderly" in the United States Housing Act of 1937
22 [42 U.S.C., sec. 1437--1437dd], as amended, to require assistance available
23 under this act on account of insufficient personal or family income, to pay
24 the rents or carrying charges required by the unaided operation of private
25 enterprise in providing an adequate supply of decent, safe and sanitary hous-
26 ing and in making such determination the association shall take into consider-
27 ation, without limitation, such factors as:
28 (1) The amount of the total income of such persons available for housing
29 needs;
30 (2) The size of the family;
31 (3) The cost and condition of housing facilities available;
32 (4) Standards established for various federal programs determining eligi-
33 bility based on income of such persons; and
34 (5) The ability of such persons to compete successfully in the normal
35 housing market and to pay the amounts at which private enterprise is pro-
36 viding decent, safe and sanitary housing.
37 (k) "Bonds," "notes" or "bond anticipation notes," and "obligations"
38 shall mean any bonds, notes, interim certificates, debentures or other evi-
39 dences of financial indebtedness issued by the association pursuant to this
40 chapter.
41 (l) "Real property" shall include all lands, including improvements and
42 fixtures thereon, and property of any nature, appurtenant thereto, or used in
43 connection therewith, and every estate, interest and right, legal or equita-
44 ble, therein, including terms for years and liens by way of judgment, mortgage
45 or otherwise and the indebtedness secured by such liens.
46 (m) "Housing authority" or "authority" means a housing authority estab-
47 lished pursuant to the "housing authorities and cooperation law" constituting
48 chapter 19, title 50, Idaho Code.
49 (n) "Rent" shall mean the periodic payment made by a person of low-income
50 in a housing project whether such money is being used as rent, or for the
51 development of equity by such person.
52 (o) "Interim financing" means a short-term construction loan for planning
53 and/or development of residential housing for persons of low-income and other
54 persons which loan shall run until financing can be assumed through other fed-
55 eral, state or private financing.
8
1 (p) "Housing sponsor" means individuals, joint ventures, partnerships,
2 limited partnerships, public bodies, trusts, firms, associations, or other
3 legal entities or any combination thereof, and corporations, cooperatives, and
4 condominiums, approved by the association as qualified either to own, con-
5 struct, acquire, rehabilitate, operate, manage or maintain a housing project,
6 subject to the regulatory powers of the association and other terms and condi-
7 tions set forth in this chapter. A "housing sponsor" shall be either a
8 "limited profit" sponsor or a "nonprofit" sponsor.
9 (q) "Mortgage lender" means any bank or trust company, savings bank,
10 mortgage company, mortgage banker, credit union, national banking association,
11 savings and loan association, building and loan association, life insurance
12 company, and any other financial institution authorized to transact business
13 in the state.
14 (r) "Mortgage loan" means an interest-bearing obligation secured by a
15 deed of trust, a mortgage, bond, note, or other instrument which is a lien on
16 property in the state except in the case of loans insured by the federal hous-
17 ing administration or the association and which are made for the rehabilita-
18 tion or improvement of existing dwellings; in such case the loans need not be
19 secured by an instrument constituting a lien on property in the state.
20 (s) "Mixed income housing project" means a housing project which contains
21 dwellings occupied or to be occupied by persons of low-income constituting at
22 least twenty percent (20%) of such occupancy.
23 (t) "Facilities" means land, rights in land, buildings, structures,
24 equipment, landscaping, utilities, approaches, roadways and parking, handling
25 and storage areas, and portions of any of the foregoing and similar ancillary
26 facilities.
27 (u) "Nonprofit corporation" means a nonprofit corporation organized and
28 operating in accordance with Idaho law or a nonprofit corporation organized
29 and operating in accordance with comparable laws within another state or ter-
30 ritory of the United States.
31 (v) "Nonprofit facilities" means facilities owned or used by a nonprofit
32 corporation for a nonprofit purpose of the corporation; provided that facili-
33 ties for health facilities which may be funded pursuant to chapter 14, title
34 39, Idaho Code, shall not be included in this definition, except for such
35 health facilities as may be specifically approved by the Idaho health facili-
36 ties authority. Facilities owned or used, consistent with its nonprofit pur-
37 pose, by a nonprofit corporation recognized by a state institution of higher
38 education as its college or university foundation shall be considered non-
39 profit facilities under this chapter.
40 (w) "Project costs of a nonprofit facility" means costs of:
41 (1) Acquisition, construction and improvement of any facilities included
42 in a nonprofit facility;
43 (2) Architectural, engineering, consulting, accounting and legal costs
44 related directly to the development, financing and construction of a non-
45 profit facility, including costs of studies assessing the feasibility of a
46 nonprofit facility;
47 (3) Finance costs, including discounts, if any, the costs of issuing
48 bonds, and costs incurred in carrying out any provisions thereof;
49 (4) Interest during construction and during the six (6) months after
50 estimated completion of construction, and capitalized debt service or
51 repair and replacement or other appropriate reserves;
52 (5) The refunding of any outstanding obligations incurred for any of the
53 costs outlined in this subsection; and
54 (6) Other costs incidental to any of the costs listed in this section.
55 (x) "Agricultural facility or facilities" means land, any building or
9
1 other improvement thereon or thereto, to be owned by a beginning farmer or
2 rancher and any personal properties deemed necessary or suitable for use,
3 whether or not now in existence in farming or ranching, the production of
4 agricultural commodities, including, without limitation, the products of aqua-
5 culture, hydroponics and silviculture, or the treating, processing or storing
6 of such agricultural commodities when such activities are customarily engaged
7 in by beginning farmers or ranchers as a part of farming or ranching.
8 (y) "Municipality" means any county, municipal corporation, highway dis-
9 trict, taxing district or other political subdivision of this state.
10 (z) "State" means the state of Idaho.
11 (aa) "State body" means any department, board, commission or agency of the
12 state of Idaho.
13 (bb) "Transportation board" means the Idaho transportation board and its
14 successors.
15 (cc) "Transportation department" means the Idaho transportation department
16 and its successors.
17 (dd) "Transportation project" means any transportation infrastructure
18 project including, without limitation, a road, street, parkway, right-of-way,
19 bridge, railroad crossing, drainage structure, sign, guardrail, structure,
20 interstate, surface, resurface, shoulder, roadside, or any other work, and any
21 planning development, management and construction related thereto, all as
22 approved or recommended to the association by the transportation board.
23 SECTION 9. That Section 67-6206, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 67-6206. POWERS OF ASSOCIATION. The housing and finance association is an
26 independent public body corporate and politic, exercising public and essential
27 governmental functions, and having all the powers which are hereby declared to
28 be public purposes necessary or convenient to carry out and effectuate the
29 purposes and provisions of this act, including the following powers in addi-
30 tion to others herein granted:
31 (a) To sue and to be sued; to have a seal and to alter the same at pleas-
32 ure; to have perpetual succession; to make and execute contracts and other
33 instruments necessary or convenient to the exercise of the powers of the asso-
34 ciation; and to make and from time to time amend and repeal bylaws, rules, not
35 inconsistent with this act, to carry into effect the powers and purposes of
36 the association.
37 (b) To conduct its operations within any or all of the counties of the
38 state.
39 (c) To cooperate with housing authorities throughout Idaho in the devel-
40 opment of housing projects.
41 (d) To assign priorities for action and revise or modify said priorities
42 from time to time.
43 (e) To make and execute agreements, contracts and other instruments nec-
44 essary or convenient in the exercise of the powers and functions of the asso-
45 ciation under this act, including contracts with any housing sponsor, mortgage
46 lender, person, firm, corporation, governmental agency, or other entity; and
47 to include in any contract let in connection with a project, stipulations
48 requiring that the contractor and any subcontractors comply with requirements
49 as to minimum wages and maximum hours of labor, and comply with any conditions
50 which the federal government may have attached to its financial aid of the
51 project and to designate mortgage lenders to act for and in behalf of the
52 association, with respect to originating or servicing and processing mortgage
53 loans of the association, and to pay the reasonable value of service rendered
10
1 to the association by such mortgage lenders pursuant to contracts with mort-
2 gage lenders.
3 (f) To lease, sell, construct, finance, reconstruct, restore, rehabili-
4 tate, operate or rent any housing projects, nonprofit facilities or any dwell-
5 ings, houses, accommodations, lands, buildings, structures or facilities
6 embraced in any housing project or nonprofit facilities and, subject to the
7 limitations contained in this act, to establish and revise the rents or
8 charges therefor.
9 (g) To own, hold and improve real or personal property; to purchase,
10 lease, obtain options upon, acquire by gift, grant, bequest, devise, eminent
11 domain or otherwise, any real or personal property or any interest therein.
12 (h) To acquire any real property; to sell, lease, exchange, transfer,
13 assign, pledge or dispose of any real or personal property or any interest
14 therein.
15 (i) To insure or provide for the insurance of any real or personal prop-
16 erty or operation of the association against any risks or hazards, and to pro-
17 cure or agree to the procurement of insurance or guarantees from the federal
18 government or other source for the payment or purchase of any bonds or parts
19 thereof issued by the association, including the power to pay for any such
20 insurance or guarantees.
21 (j) To invest any funds held in reserves or sinking funds, or any funds
22 not required for immediate disbursement, in property or securities in which a
23 bank, as defined in the "bank act," title 26, Idaho Code, may legally invest
24 funds including without limitation, to agree to purchase the obligations of
25 any federal, state or local government upon such conditions as the association
26 may determine to be prudent and in its best interest.
27 (k) Within its area of operation: to investigate into living, dwelling
28 and housing conditions and into the means and methods of improving such condi-
29 tions; to determine where slum areas exist or where there is a shortage of
30 adequate, safe and sanitary dwelling accommodations for persons of low-income;
31 to make studies and recommendations relating to the problem of clearing,
32 replanning and reconstruction of slum areas and the problem of providing
33 dwelling accommodations for persons of low-income, and to cooperate with the
34 city, the county, the state or any political subdivision thereof in action
35 taken in connection with such problems; and to engage in research, studies
36 and experimentation on the subject of housing.
37 (l) To participate in cooperative ventures with any agencies, organiza-
38 tions and individuals in order to undertake the provision of housing for per-
39 sons of low-income, to undertake the provision of nonprofit facilities or
40 agricultural facilities.
41 (m) To provide research and technical assistance to eligible agencies,
42 organizations and individuals eligible to develop low cost housing and to
43 research new low cost housing development and construction methods.
44 (n) To make and undertake commitments to make or participate in the mak-
45 ing of mortgage loans to persons of low-income and to housing sponsors,
46 including without limitation federally insured mortgage loans, and to make
47 temporary loans and advances in anticipation of permanent loans to housing
48 sponsors; said mortgage loans to housing sponsors shall be made to finance the
49 construction, improvement, or rehabilitation of housing projects for persons
50 of low-income, and/or mixed income housing projects upon the terms and condi-
51 tions set forth in this act; provided, however, that such loans shall be made
52 only upon the determination by the association that mortgage loans are not
53 otherwise available, wholly or in part, from private lenders upon reasonably
54 equivalent terms and conditions.
55 (o) To purchase, or make commitments to purchase or participate in the
11
1 purchase of mortgage loans from mortgage lenders which loans have been made
2 for the construction, improvement, or rehabilitation of housing projects for
3 persons of low-income and/or mixed income housing projects or loans which have
4 been made to persons of low-income for residential housing, upon terms set
5 forth in this act; provided, however, that any such purchase shall be made
6 only upon the determination by the association that the mortgage loans to be
7 made are not otherwise being made by mortgage lenders upon reasonably equiva-
8 lent terms and conditions. Also, to purchase, or make commitments to purchase
9 or participate in the purchase of mortgage loans from mortgage lenders whether
10 or not said loans were made to persons of low-income, upon terms set forth in
11 this act; provided, however, that the proceeds from such purchase or the
12 equivalent thereof shall be reinvested in obligations of the association, in
13 mortgage loans to persons of low-income or in mortgage loans for housing proj-
14 ects for persons of low-income and/or mixed income housing projects, and pro-
15 vided that any such purchase shall be made only upon the determination by the
16 association that the mortgage loans to be made are not otherwise being made by
17 mortgage lenders upon reasonably equivalent terms and conditions.
18 (p) To provide interim financing for housing projects including mixed
19 income housing projects approved by the association, provided that the associ-
20 ation has determined that such financing is not otherwise available from mort-
21 gage lenders upon reasonably equivalent terms and conditions.
22 (q) To prescribe rules and policies in connection with the performance of
23 its functions and duties.
24 (r) To do all other things deemed necessary and desirable to accomplish
25 the objectives of this act.
26 (s) To borrow money and issue bonds and notes or other obligations, to
27 invest the proceeds thereof in any lawful manner and to fund or refund the
28 same, and to provide for the rights of the holders of its obligations as pro-
29 vided in this act and in connection therewith, to waive, by resolution or
30 other document of the association, the exemption from federal income taxation
31 of interest on any of the association's obligations under existing or future
32 federal law and to establish, maintain and preserve the association's general
33 obligation rating and any rating on its bonds, notes or other obligations.
34 (t) To receive and accept aid or contributions from any source.
35 (u) To employ architects, engineers, attorneys, accountants, housing con-
36 struction and financial experts and such other advisors, consultants and
37 agents as may be necessary in its judgment and to fix their compensation.
38 (v) To insure mortgage payments of any mortgage loan made for the purpose
39 of constructing, rehabilitating, purchasing, leasing, or refinancing housing
40 projects upon such terms and conditions as the association may prescribe.
41 (w) To fix and revise from time to time and charge and collect fees and
42 charges in connection with loans made or other services provided by the asso-
43 ciation pursuant to this act, and to make and publish rules respecting the
44 making and purchase of mortgage loans.
45 (x) To organize a nonprofit corporation to assist the association in pro-
46 viding for housing projects.
47 (y) To enter upon and inspect any housing project, including housing
48 projects undertaken by housing sponsors, for the purpose of investigating the
49 physical and financial condition thereof, and its construction, rehabilita-
50 tion, operation, management and maintenance, and to examine all books and
51 records with respect to capitalization, income and other matters relating
52 thereto.
53 (z) To order such alterations, changes or repairs as may be necessary to
54 protect the security of its investment in a housing project or the health,
55 safety, and welfare of the occupants thereof.
12
1 (aa) To make or purchase secured loans for the purpose of providing tempo-
2 rary or permanent financing or refinancing of all or part of the project costs
3 of any nonprofit facility or agricultural facility, including the refunding of
4 any outstanding obligations, mortgages or advances issued, made or given by
5 any person for the project costs of a nonprofit facility or agricultural
6 facility; and to charge and collect interest on the loans for the loan pay-
7 ments upon such terms and conditions, including without limitation bond rating
8 and issuance conditions, as the board of commissioners considers advisable
9 which are not in conflict with this chapter.
10 (bb) As security for the payment of the principal of and interest on any
11 revenue bonds issued and any agreements made in connection therewith, to mort-
12 gage, pledge, or otherwise encumber any or all of nonprofit facilities or
13 agricultural facilities or any part or parts thereof, whether then owned or
14 thereafter acquired, and to assign any mortgage and repledge any security con-
15 veyed to the association, to secure any loan made by the association and to
16 pledge the revenues and receipts therefrom.
17 (cc) To issue bonds for the purpose of financing all or part of the proj-
18 ect cost on any nonprofit facility or agricultural facility and to secure the
19 payment of the bonds as provided in this chapter.
20 (dd) To purchase or sell by installment contract or otherwise, and convey
21 all or any part of any nonprofit facility or agricultural facility for such
22 purchase price and upon such terms and conditions as this board of commission-
23 ers considers advisable which are not in conflict with this chapter.
24 (ee) To lease all or any part of any nonprofit facility or agricultural
25 facility for such rentals and upon such terms and conditions, including
26 options to purchase, as the board of commissioners considers advisable and not
27 in conflict with this chapter.
28 (ff) To construct and maintain one (1) or more nonprofit facilities or
29 agricultural facilities, provided that the association shall not operate any
30 nonprofit facility or agricultural facility as a business other than as les-
31 sor, seller or lender. The purchase, holding and enforcing of mortgages, deeds
32 of trust, or other security interests and contracting for any servicing
33 thereof is not considered the operation of a nonprofit facility or agricul-
34 tural facility as a business.
35 (gg) To act as the designated housing resource clearinghouse in the state
36 for matters relating to affordable housing.
37 (hh) To coordinate the development and maintenance of a housing policy for
38 the state.
39 (ii) To enter into agreements or other transactions and accept grants,
40 reimbursements or other payments, with the cooperation of the United States or
41 any agency thereof or of the state of Idaho or any agency thereof or munici-
42 pality of the state in furtherance of the purposes of this act, including, but
43 not limited to, the development, maintenance, operation and financing of any
44 transportation project and to do any and all things necessary in order to
45 avail the association of such aid and cooperation.
46 (jj) To borrow money and issue bonds and notes or other evidences of
47 indebtedness thereof as hereinafter provided to finance transportation proj-
48 ects approved and recommended by the transportation board.
49 SECTION 10. That Section 67-6210, Idaho Code, be, and the same is hereby
50 amended to read as follows:
51 67-6210. POWER TO ISSUE BONDS. The association shall have power and is
52 hereby authorized to issue, from time to time, its negotiable notes and bonds
53 in conformity with the applicable provisions of the uniform commercial code in
13
1 such principal amount as the association shall determine to be necessary for
2 sufficient funds for achieving any of its corporate purposes, including the
3 payment of interest on notes and bonds of the association, establishment of
4 reserves to secure such notes and bonds, and all other expenditures of the
5 association incidental and necessary or convenient to carry out its corporate
6 purposes and powers; provided, however, that the association shall provide in
7 its resolution authorizing such bonds that all revenues received by the asso-
8 ciation as a result of the issuance of such bonds shall be pledged first to
9 the payment of principal and interest on such bonds.
10 (a) The association shall have the power, from time to time, to issue:
11 (1) notes to renew notes and
12 (2) bonds to pay notes, including the interest thereon, and
13 (3) whenever it deems refunding expedient, to refund any bonds by the
14 issuance of new bonds, whether the bonds to be refunded have or have not
15 matured, and to issue bonds partly to refund bonds then outstanding and
16 partly for any of its corporate purposes.
17 The refunding bonds may be:
18 (1) exchanged for the bonds to be refunded or
19 (2) sold and the proceeds applied to the purchase, redemption or payment
20 of such bonds.
21 (b) Except as may otherwise be expressly provided by the association,
22 every issue of its notes and bonds shall be payable exclusively from the reve-
23 nues or income of the association, including grants and contributions from the
24 United States of America, subject only to any agreements with the holders of
25 particular notes or bonds pledging any particular revenues.
26 (c) The notes and bonds shall be authorized by resolution or resolutions
27 of the association, shall bear such date or dates and shall mature at such
28 time or times as such resolution or resolutions may provide. The bonds may be
29 issued as serial bonds payable in annual installments or as term bonds or as
30 a combination thereof. The notes and bonds shall bear interest at such rate or
31 rates, be in such denominations, be in such form, either coupon or registered,
32 carry such registration privileges, be executed in such manner, be payable in
33 such medium of payment, at such place or places, and be subject to such terms
34 of redemption as such resolution or resolutions may provide. The notes and
35 bonds of the association may be sold by the association, at public or private
36 sale, at such price or prices as the association shall determine.
37 (d) Any resolution or resolutions authorizing any notes or bonds or any
38 issue thereof may contain provisions, which shall be a part of the contract or
39 contracts with the holders thereof, as to:
40 (1) pledging all or any part of the revenues to secure the payment of the
41 notes or bonds or of any issue thereof, subject to such agreements with
42 noteholders or bondholders as may then exist;
43 (2) pledging all or any part of the assets of the association including
44 mortgages and obligations securing the same, to secure the payment of the
45 notes or bonds or of any issue of notes or bonds, subject to such agree-
46 ments with noteholders or bondholders as may then exist;
47 (3) the use and disposition of the gross income from mortgages owned by
48 the association and payment of principal of mortgages owned by the associ-
49 ation;
50 (4) the setting aside of reserves or sinking funds and the regulation and
51 disposition thereof;
52 (5) limitations on the purpose to which the proceeds of sale of notes or
53 bonds may be applied and pledging such proceeds to secure the payment of
54 the notes or bonds or of any issue thereof;
55 (6) limitations on the issuance of additional notes or bonds; the terms
14
1 upon which additional notes or bonds may be issued and secured; and the
2 refunding of outstanding or other notes or bonds;
3 (7) the procedure, if any, by which the terms of any contract with
4 noteholders or bondholders may be amended or abrogated, the amount of
5 notes or bonds the holders of which must consent thereto; and the manner
6 in which such consent may be given;
7 (8) limitations on the amount of moneys to be expended by the association
8 for operating expenses of the association;
9 (9) vesting in a trustee or trustees such property, rights, powers and
10 duties in trust as the association may determine, which may include any or
11 all of the rights, powers and duties of the trustee appointed by the bond-
12 holders pursuant to this act; and limiting or abrogating the right of the
13 bondholders to appoint a trustee under this act, or limiting the rights,
14 powers and duties of such trustee;
15 (10) defining the acts or omissions to act which shall constitute a
16 default in the obligations and duties of the association to the holders of
17 the notes or bonds and providing for the rights and remedies of the hold-
18 ers of the notes or bonds in the event of such default, including as a
19 matter of right the appointment of a receiver; provided, however, that
20 such rights and remedies shall not be inconsistent with the general laws
21 of the state and the other provisions of this act;
22 (11) pledging all or any part of funds allocated to the association under
23 Idaho law or other revenues or the proceeds of notes or bonds to secure
24 the payment of notes or bonds issued to finance transportation projects,
25 subject to such agreements with noteholders or bondholders as may then
26 exist;
27 (12) setting forth the provisions for any contracts relating to its bonds
28 or notes, including, without limitation, any investment or interest rate
29 contracts, or any contract providing for a credit enhancement, including,
30 but not limited to, letters of credit, bond insurance and surety bonds
31 provided by private financial institutions;
32 (13) setting forth the provisions for representations or certifications to
33 be made by an officer of the association with respect to funds to be allo-
34 cated to the association for transportation projects and provisions for
35 the disbursements of the proceeds of the bonds or notes for payment of the
36 costs of a transportation project, costs of issuance and other related
37 costs;
38 (14) any other matters, of like or different character, which in any way
39 affect the security or protection of the holders of the notes or bonds.
40 (e) Any pledge made by the association shall be valid and binding from
41 the time when the pledge is made; the revenues, moneys or property so pledged
42 and thereafter received by the association shall immediately be subject to the
43 lien of such pledge without any physical delivery thereof or further act, and
44 the lien of any such pledge shall be valid and binding as against all parties
45 having claims of any kind in tort, contract or otherwise against the associa-
46 tion, irrespective of whether such parties have notice thereof. Neither the
47 resolution nor any other instrument by which a pledge is created need be
48 recorded.
49 (f) Neither the commissioners of the association nor any other person
50 executing such notes or bonds shall be subject to any personal liability or
51 accountability by reason of the issuance thereof.
52 (g) The association, subject to such agreements with noteholders or bond-
53 holders as may then exist, shall have power out of any funds available there-
54 for to purchase notes or bonds of the association, which shall thereupon be
55 canceled, at a price not exceeding:
15
1 (1) if the notes or bonds are then redeemable, the redemption price then
2 applicable plus accrued interest to the next interest payment thereon, or
3 (2) if the notes or bonds are not then redeemable, the redemption price
4 applicable on the first date after such purchase upon which the notes or
5 bonds become subject to redemption plus accrued interest to such date.
6 (h) In the discretion of the association, the bonds may be secured by a
7 trust indenture by and between the association and a corporate trustee, which
8 may be any trust company or bank having the power of a trust company in the
9 state. Such trust indenture may contain such provisions for protecting and
10 enforcing the rights and remedies of the bondholders as may be reasonable and
11 proper and not in violation of law, including covenants setting forth the
12 duties of the association in relation to the exercise of its corporate powers
13 and the custody, safeguarding and application of all moneys. The association
14 may provide by such trust indenture for the payment of the proceeds of the
15 bonds and the revenues to the trustee under such trust indenture or other
16 depository, and for the method of disbursement thereof, with such safeguards
17 and restrictions as it may determine. All expenses incurred in carrying out
18 such trust indenture may be treated as a part of the operating expenses of the
19 association. If the bonds shall be secured by a trust indenture, the bondhold-
20 ers shall have no authority to appoint a separate trustee to represent them.
21 (i) Whether or not the notes and bonds are of such form and character as
22 to be negotiable instruments under the terms of the uniform commercial code,
23 the notes and bonds are hereby made negotiable instruments within the meaning
24 of and for all the purposes of the uniform commercial code, subject only to
25 the provisions of the notes and bonds for registration.
26 (j) In case any of the commissioners or officers of the association whose
27 signatures appear on any notes or bonds or coupons shall cease to be such com-
28 missioners or officers before the delivery of such notes or bonds, such signa-
29 tures shall, nevertheless, be valid and sufficient for all purposes, the same
30 as if such commissioners or officers had remained in office until such deliv-
31 ery.
32 (k) The association shall not issue any bonds or notes to finance trans-
33 portation projects unless:
34 (1) the Idaho transportation board has approved and recommended the
35 transportation projects for financing through the association;
36 (2) the Idaho transportation board has certified to the association that
37 sufficient funds are available to make the payments required for the bonds
38 or notes to be issued to finance the transportation projects; and
39 (3) the association and the Idaho transportation board have entered into
40 an agreement for the association to provide financing of the transporta-
41 tion projects.
42 SECTION 11. SEVERABILITY. The provisions of this act are hereby declared
43 to be severable and if any provision of this act or the application of such
44 provision to any person or circumstance is declared invalid for any reason,
45 such declaration shall not affect the validity of the remaining portions of
46 this act.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-eighth Legislature First Regular Session - 2005
Moved by Wood
Seconded by Roberts
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO S.B. NO. 1183
1 AMENDMENT TO SECTION 3
2 On page 2 of the printed bill, following line 44, insert:
3 "Notwithstanding the provisions of subsection (1)(b) wherein eligible projects
4 are listed for selection and designation by the board, if any of the desig-
5 nated projects are deemed to be ineligible by the board, the board shall have
6 the authority to replace those projects with other projects deemed eligible by
7 the board.".
2
Moved by Roberts
Seconded by Wood
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENTS TO S.B. NO. 1183
1 AMENDMENT TO SECTION 3
2 On page 2 of the printed bill, following line 48, insert:
3 "(3) The board shall limit annual, total cumulative debt service and
4 other bond-related expenses as follows:
5 (a) In the 2006 legislative session for the fiscal year 2007 budget,
6 total cumulative debt service and other bond-related expenses on
7 federally-funded highway project financing shall be no more than twenty
8 percent (20%) of annual federal-aid highway apportionments.
9 (b) In the 2007 legislative session for the fiscal year 2008 budget,
10 total cumulative debt service and other bond-related expenses on
11 federally-funded highway project financing shall be no more than twenty
12 percent (20%) of annual federal-aid highway apportionments.
13 (c) In the 2008 legislative session for the fiscal year 2009 budget,
14 total cumulative debt service and other bond-related expenses on
15 federally-funded highway project financing shall be no more than twenty
16 percent (20%) of annual federal-aid highway apportionments.
17 (d) In the 2009 legislative session for the fiscal year 2010 budget,
18 total cumulative debt service and other bond-related expenses on
19 federally-funded highway project financing shall be no more than twenty
20 percent (20%) of annual federal-aid highway apportionments.
21 (e) In the 2010 legislative session for the fiscal year 2011 budget,
22 total cumulative debt service and other bond-related expenses on
23 federally-funded highway project financing shall be no more than thirty
24 percent (30%) of annual federal-aid highway apportionments.
25 (f) Beginning with the 2011 legislative session for the fiscal year 2012
26 budget, or for any year thereafter, the thirty percent (30%) limit may be
27 exceeded, but only by affirmative action of both the house of representa-
28 tives and the senate, and with the approval of the governor.";
29 in line 49, delete "(3)" and insert: "(4)"; and on page 3, in line 7, delete
30 "(4)" and insert: "(5)".
31 AMENDMENT TO SECTION 10
32 On page 15, in line 38, following "projects" insert: "and that the annual,
33 total cumulative debt service and bond-related expenses on federally-funded
34 highway project financing do not exceed the limits specified in section
35 40-315(3), Idaho Code".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-eighth Legislature First Regular Session - 2005
IN THE SENATE
SENATE BILL NO. 1183, As Amended in the House
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO TRANSPORTATION PROJECT FINANCING; AMENDING SECTION 40-105, IDAHO
3 CODE, TO DEFINE "DRAW"; AMENDING CHAPTER 1, TITLE 40, IDAHO CODE, BY THE
4 ADDITION OF A NEW SECTION 40-108, IDAHO CODE, TO DEFINE "GARVEE"; AMENDING
5 CHAPTER 3, TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 40-315,
6 IDAHO CODE, TO SET FORTH POWERS AND DUTIES OF THE IDAHO TRANSPORTATION
7 BOARD RELATING TO FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING AND TO PRO-
8 VIDE SPECIFIED ROUTES AND PROJECTS FOR SELECTION BY THE BOARD; AMENDING
9 SECTION 40-702, IDAHO CODE, TO PROVIDE THAT THE STATE HIGHWAY ACCOUNT
10 SHALL INCLUDE CERTAIN FEDERAL SURFACE TRANSPORTATION FUNDS; AMENDING SEC-
11 TION 40-707, IDAHO CODE, TO PROVIDE FOR APPROPRIATION OF FEDERAL MONEYS IN
12 THE STATE HIGHWAY ACCOUNT FOR PAYMENT OF PRINCIPAL, INTEREST AND OTHER
13 AMOUNTS REQUIRED FOR TRANSPORTATION BONDS OR NOTES, TO AUTHORIZE THE BOARD
14 TO USE NONFEDERAL FUNDS TO PAY THE MATCH FOR FEDERAL FUNDS USED TO PAY
15 BONDS OR NOTES AND TO AUTHORIZE TRANSFER OF SUCH MATCH TO THE GARVEE DEBT
16 SERVICE FUND; AMENDING CHAPTER 7, TITLE 40, IDAHO CODE, BY THE ADDITION OF
17 A NEW SECTION 40-718, IDAHO CODE, TO ESTABLISH THE GARVEE CAPITAL PROJECT
18 FUND AND THE GARVEE DEBT SERVICE FUND; AMENDING SECTION 67-6201, IDAHO
19 CODE, TO EXPAND THE PURPOSE OF THE IDAHO HOUSING AND FINANCE ASSOCIATION
20 AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 67-6205, IDAHO CODE,
21 TO DEFINE THE TERMS "MUNICIPALITY," "STATE," "STATE BODY," "TRANSPORTATION
22 BOARD," "TRANSPORTATION DEPARTMENT" AND "TRANSPORTATION PROJECT"; AMENDING
23 SECTION 67-6206, IDAHO CODE, TO PROVIDE ADDITIONAL POWERS OF THE IDAHO
24 HOUSING AND FINANCE ASSOCIATION; AMENDING SECTION 67-6210, IDAHO CODE, TO
25 PROVIDE ADDITIONAL PROVISIONS FOR RESOLUTIONS AUTHORIZING NOTES OR BONDS
26 OR ANY ISSUE THEREOF AND TO PROVIDE THAT THE ASSOCIATION SHALL NOT ISSUE
27 BONDS OR NOTES TO FINANCE TRANSPORTATION PROJECTS UNLESS CERTAIN CONDI-
28 TIONS ARE MET; AND PROVIDING SEVERABILITY.
29 Be It Enacted by the Legislature of the State of Idaho:
30 SECTION 1. That Section 40-105, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 40-105. DEFINITIONS -- D.
33 (1) "Department" means the Idaho transportation department.
34 (2) "Director" means the director of the Idaho transportation department.
35 (3) "Displaced person" means any individual, family, business or farm
36 operation which moves from real property or moves personal property from real
37 property acquired for a program or project of a state or local agency, in
38 whole or in part, or as the result of a written order of an acquiring agency
39 to vacate real property for a program or project of a state or local agency,
40 and, solely for the purposes of section 40-2004, Idaho Code, as a result of a
41 written order of an acquiring agency to vacate other real property, on which a
42 person conducts a business or farm operation, for a program or project of any
43 state or local agency.
2
1 (4) "Draw" means making a cash demand on the proceeds of transportation
2 bonds or notes issued by the Idaho housing and finance association as it per-
3 tains to section 40-718, Idaho Code.
4 (45) "Dump" means any place or area, not operated as a business, where
5 junk is deposited, stored or kept.
6 SECTION 2. That Chapter 1, Title 40, Idaho Code, be, and the same is
7 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
8 ignated as Section 40-108, Idaho Code, and to read as follows:
9 40-108. DEFINITIONS -- G.
10 (1) "GARVEE" means grant anticipation revenue vehicle, a debt financing
11 instrument which enables states to finance state transportation infrastructure
12 projects and to pay debt service and other bond-related expenses with future
13 federal-aid highway apportionments.
14 SECTION 3. That Chapter 3, Title 40, Idaho Code, be, and the same is
15 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
16 ignated as Section 40-315, Idaho Code, and to read as follows:
17 40-315. POWERS AND DUTIES -- FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING.
18 (1) In order to address the increasing need for timely improvements to Idaho's
19 highway transportation infrastructure, the board may:
20 (a) Enter into agreements with the Idaho housing and finance association
21 in connection with the funding of highway transportation projects qualify-
22 ing for reimbursement from federal funds.
23 (b) Approve and recommend federal highway transportation projects to the
24 Idaho housing and finance association for financing by the association.
25 Such federal highway transportation projects shall be eligible for feder-
26 al-aid debt financing under chapter 1, title 23, United States Code, and
27 approval by the federal highway administration as an advanced construction
28 (AC) project thereunder. The board shall select and designate such trans-
29 portation projects to be funded with bond proceeds from the following list
30 of eligible projects:
31 ROUTE PROJECT DESCRIPTION
32 US-95 SH-1 to Canadian border
33 US-95 Garwood to Sagle
34 US-95 Worley to Setters
35 US-95 Thorn Creek to Moscow
36 US-95 Smokey Boulder to Hazard Creek
37 SH-16 Ext South Emmett to Mesa with connection to SH-55
38 SH-16 Ext I-84 to South Emmett
39 I-84 Caldwell to Meridian
40 I-84 Orchard to Isaacs Canyon
41 US-93 Twin Falls alternate route and new Snake River crossing
42 SH-75 Timmerman to Ketchum
43 US-20 St. Anthony to Ashton
44 US-30 McCammon to Soda Springs
45 Notwithstanding the provisions of subsection (1)(b) wherein eligible projects
46 are listed for selection and designation by the board, if any of the desig-
47 nated projects are deemed to be ineligible by the board, the board shall have
48 the authority to replace those projects with other projects deemed eligible by
49 the board.
50 (2) Prior to issuance by the Idaho housing and finance association of any
51 bonds or notes to finance highway transportation projects, the board shall
3
1 certify to the association that sufficient federal transportation funds are
2 available to make any payments required for such bonds or notes.
3 (3) The board shall limit annual, total cumulative debt service and other
4 bond-related expenses as follows:
5 (a) In the 2006 legislative session for the fiscal year 2007 budget,
6 total cumulative debt service and other bond-related expenses on
7 federally-funded highway project financing shall be no more than twenty
8 percent (20%) of annual federal-aid highway apportionments.
9 (b) In the 2007 legislative session for the fiscal year 2008 budget,
10 total cumulative debt service and other bond-related expenses on
11 federally-funded highway project financing shall be no more than twenty
12 percent (20%) of annual federal-aid highway apportionments.
13 (c) In the 2008 legislative session for the fiscal year 2009 budget,
14 total cumulative debt service and other bond-related expenses on
15 federally-funded highway project financing shall be no more than twenty
16 percent (20%) of annual federal-aid highway apportionments.
17 (d) In the 2009 legislative session for the fiscal year 2010 budget,
18 total cumulative debt service and other bond-related expenses on
19 federally-funded highway project financing shall be no more than twenty
20 percent (20%) of annual federal-aid highway apportionments.
21 (e) In the 2010 legislative session for the fiscal year 2011 budget,
22 total cumulative debt service and other bond-related expenses on
23 federally-funded highway project financing shall be no more than thirty
24 percent (30%) of annual federal-aid highway apportionments.
25 (f) Beginning with the 2011 legislative session for the fiscal year 2012
26 budget, or for any year thereafter, the thirty percent (30%) limit may be
27 exceeded, but only by affirmative action of both the house of representa-
28 tives and the senate, and with the approval of the governor.
29 (4) In the event the board selects and designates to be funded with bond
30 proceeds any of the transportation projects listed in subsection (1) of this
31 section, and prior to entering into agreements with the Idaho housing and
32 finance association as provided herein, the Idaho transportation department,
33 as part of its annual budget request prepared pursuant to section 67-3502,
34 Idaho Code, shall include a request for bonding authority as a separate item
35 of its budget request. This request for bonding authority shall include a list
36 of planned highway transportation projects to be financed with such bond
37 financing during the next succeeding fiscal year.
38 (5) By June 30 of each year, the board shall submit a report to the leg-
39 islature concerning projects currently under construction using the bond
40 financing as authorized by the provisions of this section, and shall include a
41 list of planned highway transportation projects to be financed with such bond
42 financing during the next succeeding fiscal year.
43 SECTION 4. That Section 40-702, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 40-702. STATE HIGHWAY ACCOUNT -- ESTABLISHMENT. For the purpose of carry-
46 ing out the provisions of this title, there is established in the dedicated
47 fund of the state treasury an account to be known as the state highway
48 account, which account shall include:
49 (1) All moneys received by the state treasurer for deposit to the state
50 highway account.
51 (2) All fines, penalties and forfeitures incurred and collected for
52 violations of the provisions of this title, except as otherwise provided.
53 (3) All donations to the state from any source for the construction and
4
1 improvement of highways.
2 (4) All moneys received from local boards under joint contracts for the
3 construction of state highways.
4 (5) All federal surface transportation funds received from the United
5 States government, including, but not limited to, funds received pursuant to
6 chapter 1 of title 23, United States Code, for the national highway systems
7 program, the surface transportation program, the highway bridge program, the
8 minimum guarantee program, the federal lands highways program and other simi-
9 lar programs under successor laws.
10 (6) Other moneys which may be provided by law for the construction and
11 improvement of state highways.
12 (67) Interest earned on the investment of idle moneys in the state high-
13 way account shall be paid to the state highway account.
14 SECTION 5. That Section 40-707, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 40-707. APPROPRIATION OF MONEYS IN STATE HIGHWAY ACCOUNT. (1) From fed-
17 eral funds within the state highway account, there are hereby continuously
18 appropriated first such amounts as, from time to time, shall be certified by
19 the Idaho housing and finance association to the state controller, state trea-
20 surer and the board as necessary for payment of principal, interest and other
21 amounts required for transportation bonds or notes of the Idaho housing and
22 finance association in accordance with chapter 62, title 67, Idaho Code, which
23 amounts shall be transferred to the GARVEE debt service fund established in
24 section 40-718, Idaho Code.
25 (2) The board may, but is not obligated to, use any nonfederal funds in
26 the state highway account to pay match as required for receipt of federal
27 funds used to pay the bonds or notes as described in subsection (1) of this
28 section. Such match may be transferred to the GARVEE debt service fund estab-
29 lished in section 40-718, Idaho Code.
30 (3) One-half of one percent (.5%) of the moneys in the state highway
31 account may be utilized to encourage the use of recycled materials including,
32 but not limited to, recycled glass, reclaimed asphalt, asphalt containing
33 recycled plastic, recycled rubber tires and paper in highway construction and
34 maintenance projects. All other moneys at any time in the state highway
35 account, except those as are otherwise required by law to be placed in the
36 state highway redemption account, are hereby appropriated for the purpose of
37 defraying the expenses, debts and costs incurred in carrying out the powers
38 and duties of the highway board as provided by law, and for defraying adminis-
39 trative expenses of the department, including salaries of the board, the sal-
40 ary of the director, and salaries and wages of employees of the department and
41 board and expenses for traveling. Communication supplies, equipment, fixed
42 charges and all other necessary expenses of the department and board, not
43 otherwise provided for and all claims against the state highway account shall
44 be examined by the department and certified to the state controller, who
45 shall, upon approval of the board of examiners, draw his warrant against the
46 state highway account for all bills and claims allowed by the board.
47 SECTION 6. That Chapter 7, Title 40, Idaho Code, be, and the same is
48 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
49 ignated as Section 40-718, Idaho Code, and to read as follows:
50 40-718. GARVEE FUNDS ESTABLISHED -- CAPITAL PROJECT FUND -- DEBT SERVICE
51 FUND. (1) There is established in the state treasury a fund known as the
5
1 "GARVEE Capital Project Fund" which shall include:
2 (a) Any draw by the board of proceeds from the transportation bonds or
3 notes issued by the Idaho housing and finance association in accordance
4 with chapter 62, title 67, Idaho Code.
5 (b) Interest earned on the investment of idle moneys in the GARVEE capi-
6 tal project fund shall be paid to the GARVEE capital project fund.
7 Disbursements from this fund shall be made for projects in accordance with
8 chapter 3, title 40, Idaho Code. All moneys in the fund are hereby continu-
9 ously appropriated to the department.
10 (2) There is established in the state treasury a fund known as the
11 "GARVEE Debt Service Fund" for the purpose of paying the principal, interest
12 and other amounts required for transportation bonds or notes of the Idaho
13 housing and finance association in accordance with chapter 62, title 67, Idaho
14 Code. The fund shall include:
15 (a) Amounts transferred from the state highway account upon certification
16 by the Idaho housing and finance association to the state controller,
17 state treasurer and the board as necessary for payment of principal,
18 interest and other amounts required for transportation bonds or notes.
19 (b) Interest earned on the investment of idle moneys in the GARVEE debt
20 service fund shall be paid to the GARVEE debt service fund.
21 From moneys within this fund, there are hereby continuously appropriated such
22 amounts as, from time to time, shall be certified by the Idaho housing and
23 finance association to the state controller, state treasurer and the board as
24 necessary for payment of principal, interest and other amounts required for
25 transportation bonds or notes of the Idaho housing and finance association in
26 accordance with chapter 62, title 67, Idaho Code, which amounts shall be paid
27 over as directed by the association.
28 SECTION 7. That Section 67-6201, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 67-6201. PURPOSE. It is hereby declared:
31 (a) That within the state there is a shortage of safe or sanitary dwell-
32 ing accommodations available which persons of low incomes can afford and that
33 such persons are forced to occupy overcrowded and congested dwelling accommo-
34 dations; that the aforesaid conditions cause an increase in and spread of dis-
35 ease and crime, and constitute a menace to the health, safety, morals and wel-
36 fare of the residents of the state and impair economic values; that these con-
37 ditions necessitate excessive and disproportionate expenditures of public
38 funds for crime prevention and punishment, public health and safety, fire and
39 accident protection, and other public services and facilities.
40 (b) That private enterprise has not been able to provide, without assis-
41 tance, an adequate supply of safe and sanitary dwellings at prices or rents
42 which persons and families of low income can afford, or to achieve rehabilita-
43 tion of much of the present low-income housing. It is imperative that the sup-
44 ply of housing for persons and families of low income be increased and that
45 coordination and cooperation among private enterprise, state and local govern-
46 ment be encouraged to sponsor, build and rehabilitate residential housing for
47 such persons and families.
48 (c) That the clearance, replanning and reconstruction of the areas in
49 which unsanitary or unsafe housing conditions exist, and the providing of safe
50 and sanitary dwelling accommodations for persons of low incomes (which
51 dwelling-accommodations need not be solely for persons of low incomes in order
52 to avoid concentrations of such persons in specific localities), are public
53 uses, and uses and purposes for which public money may be spent and private
6
1 property acquired, and are governmental functions.
2 (d) It is also declared and the legislature hereby finds that charitable,
3 educational, human service, cultural and other purposes pursued by nonprofit
4 corporations are important public functions and public purposes that should be
5 encouraged and that financing of nonprofit facilities for these purposes
6 should be encouraged, without using state funds or lending the credit of the
7 state, through the issuance of nonrecourse revenue bonds and the lending of
8 the proceeds thereof to nonprofit corporations to promote their purposes.
9 (e) It is further declared that in this state:
10 (1) There exists an inadequate supply of funds at interest rates suffi-
11 ciently low to enable persons engaged in agriculture in this state, par-
12 ticularly beginning farmers and ranchers, to pursue agricultural opera-
13 tions at present levels;
14 (2) That such inability to pursue agricultural operations lessens reduces
15 the supply of agricultural commodities available to fulfill the needs of
16 the citizens of this state;
17 (3) That such inability to continue operations decreases available
18 employment in the agricultural sector of the state and results in unem-
19 ployment and its attendant problems;
20 (4) That such conditions prevent the acquisition of an adequate capital
21 stock of farm and ranch equipment and machinery, therefore impairing the
22 productivity of agricultural land;
23 (5) That such conditions are conducive to consolidation of acreage of
24 agricultural land with fewer individuals living and farming and ranching
25 on the traditional family farm and ranch;
26 (6) That these conditions result in a loss in population, unemployment
27 and movement of persons from rural to urban areas accompanied by added
28 costs to communities for creation of new public facilities and services;
29 (7) That there have been recurrent shortages of funds from private market
30 sources at reasonable rates of interest;
31 (8) That these shortages have made the sale and purchase of agricultural
32 land to beginning farmers and ranchers a virtual impossibility in many
33 parts of the state;
34 (9) That the ordinary operations of private enterprise have not in the
35 past corrected these conditions; and
36 (10) That a stable supply of adequate funds for agricultural financing is
37 required to encourage beginning farmers and ranchers in an orderly and
38 sustained manner and to reduce the problems described herein.
39 (f) It is hereby further declared that:
40 (1) The growth of the economy of this state has prompted new and ever-
41 increasing uses of public highways, roads, and other transportation infra-
42 structure, and the existing transportation infrastructure of this state
43 cannot adequately accommodate such greatly increased uses;
44 (2) One of the major concerns of the citizens of this state is the abil-
45 ity of the state to address the long-term transportation infrastructure
46 needs of this state that are critical to the continued growth of the
47 state's economy and the maintenance of citizens' quality of life;
48 (3) Utilizing bonds or notes to finance projects for transportation in-
49 frastructure results in significant cost savings to the state, since such
50 transportation projects can be completed at present day costs and at an
51 accelerated pace, but such bonds and notes need to be issued promptly in
52 order to realize these cost savings; and
53 (4) It is reasonable and necessary to utilize such bonds or notes for the
54 financing of transportation projects.
55 (g) It is hereby further declared that all of the foregoing are public
7
1 purposes and uses for which public moneys may be borrowed, expended or granted
2 and that such activities are governmental functions and serve a public purpose
3 in improving or otherwise benefiting the people of this state; that the neces-
4 sity of enacting the provisions hereinafter set forth is in the public inter-
5 est and is hereby so declared as a matter of express legislative determina-
6 tion.
7 SECTION 8. That Section 67-6205, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 67-6205. DEFINITIONS. The following terms, wherever used or referred to
10 in this chapter, shall have the following respective meanings, unless a dif-
11 ferent meaning clearly appears from the context:
12 (a) "Association" or "housing association" shall mean the Idaho housing
13 and finance association created by section 67-6202, Idaho Code.
14 (b) "Housing project" shall mean any work or undertaking:
15 (1) To demolish, clear or remove buildings from any slum area; such work
16 or undertaking may embrace the adoption of such area to public purposes,
17 including parks or other recreational or community purposes; or
18 (2) To construct, sell, lease, finance, improve, operate or otherwise
19 provide decent, safe and sanitary urban or rural dwellings, apartments or
20 other living accommodations for persons of low income; such work or under-
21 taking may include buildings, land, equipment, facilities and other real
22 or personal property which are necessary, convenient or desirable appurte-
23 nances, such as, but not limited to, streets, sewers, water service,
24 parks, site preparation, gardening, administrative, community, health,
25 recreational, and welfare or other purposes; or
26 (3) To accomplish a combination of the foregoing. The term "housing proj-
27 ect" also may be applied to the planning of the buildings and improve-
28 ments, for either single or multi-family housing, the acquisition of prop-
29 erty, the demolition of existing structures, the construction, reconstruc-
30 tion, rehabilitation, alteration and repair of the buildings and improve-
31 ments and all other work in connection therewith.
32 (c) "Governing body" shall mean the city council, board of commissioners,
33 board of trustees or other body having charge of the locality in which the
34 association desires to undertake a housing project.
35 (d) "Federal government" shall include the United States of America, or
36 any other agency or instrumentality, corporate or otherwise, of the United
37 States of America.
38 (e) "City" shall mean any city in the state of Idaho, including each city
39 having a special charter.
40 (f) "County" or "counties" shall include all counties in the state of
41 Idaho as designated in chapter 1, title 31, Idaho Code.
42 (g) "Clerk" shall mean the clerk of the city or county as the case may be
43 or the officer charged with the duties customarily imposed on such clerk.
44 (h) "Area of operation" shall mean the state of Idaho.
45 (i) "Slum" shall mean any area where dwellings predominate which, by rea-
46 son of dilapidation, overcrowding, lack of ventilation, light or sanitary
47 facilities or any combination of these factors, are detrimental to safety,
48 health or morals.
49 (j) "Person of low-income" means persons deemed by the association,
50 including those defined as "elderly" in the United States Housing Act of 1937
51 [42 U.S.C., sec. 1437--1437dd], as amended, to require assistance available
52 under this act on account of insufficient personal or family income, to pay
53 the rents or carrying charges required by the unaided operation of private
8
1 enterprise in providing an adequate supply of decent, safe and sanitary hous-
2 ing and in making such determination the association shall take into consider-
3 ation, without limitation, such factors as:
4 (1) The amount of the total income of such persons available for housing
5 needs;
6 (2) The size of the family;
7 (3) The cost and condition of housing facilities available;
8 (4) Standards established for various federal programs determining eligi-
9 bility based on income of such persons; and
10 (5) The ability of such persons to compete successfully in the normal
11 housing market and to pay the amounts at which private enterprise is pro-
12 viding decent, safe and sanitary housing.
13 (k) "Bonds," "notes" or "bond anticipation notes," and "obligations"
14 shall mean any bonds, notes, interim certificates, debentures or other evi-
15 dences of financial indebtedness issued by the association pursuant to this
16 chapter.
17 (l) "Real property" shall include all lands, including improvements and
18 fixtures thereon, and property of any nature, appurtenant thereto, or used in
19 connection therewith, and every estate, interest and right, legal or equita-
20 ble, therein, including terms for years and liens by way of judgment, mortgage
21 or otherwise and the indebtedness secured by such liens.
22 (m) "Housing authority" or "authority" means a housing authority estab-
23 lished pursuant to the "housing authorities and cooperation law" constituting
24 chapter 19, title 50, Idaho Code.
25 (n) "Rent" shall mean the periodic payment made by a person of low-income
26 in a housing project whether such money is being used as rent, or for the
27 development of equity by such person.
28 (o) "Interim financing" means a short-term construction loan for planning
29 and/or development of residential housing for persons of low-income and other
30 persons which loan shall run until financing can be assumed through other fed-
31 eral, state or private financing.
32 (p) "Housing sponsor" means individuals, joint ventures, partnerships,
33 limited partnerships, public bodies, trusts, firms, associations, or other
34 legal entities or any combination thereof, and corporations, cooperatives, and
35 condominiums, approved by the association as qualified either to own, con-
36 struct, acquire, rehabilitate, operate, manage or maintain a housing project,
37 subject to the regulatory powers of the association and other terms and condi-
38 tions set forth in this chapter. A "housing sponsor" shall be either a
39 "limited profit" sponsor or a "nonprofit" sponsor.
40 (q) "Mortgage lender" means any bank or trust company, savings bank,
41 mortgage company, mortgage banker, credit union, national banking association,
42 savings and loan association, building and loan association, life insurance
43 company, and any other financial institution authorized to transact business
44 in the state.
45 (r) "Mortgage loan" means an interest-bearing obligation secured by a
46 deed of trust, a mortgage, bond, note, or other instrument which is a lien on
47 property in the state except in the case of loans insured by the federal hous-
48 ing administration or the association and which are made for the rehabilita-
49 tion or improvement of existing dwellings; in such case the loans need not be
50 secured by an instrument constituting a lien on property in the state.
51 (s) "Mixed income housing project" means a housing project which contains
52 dwellings occupied or to be occupied by persons of low-income constituting at
53 least twenty percent (20%) of such occupancy.
54 (t) "Facilities" means land, rights in land, buildings, structures,
55 equipment, landscaping, utilities, approaches, roadways and parking, handling
9
1 and storage areas, and portions of any of the foregoing and similar ancillary
2 facilities.
3 (u) "Nonprofit corporation" means a nonprofit corporation organized and
4 operating in accordance with Idaho law or a nonprofit corporation organized
5 and operating in accordance with comparable laws within another state or ter-
6 ritory of the United States.
7 (v) "Nonprofit facilities" means facilities owned or used by a nonprofit
8 corporation for a nonprofit purpose of the corporation; provided that facili-
9 ties for health facilities which may be funded pursuant to chapter 14, title
10 39, Idaho Code, shall not be included in this definition, except for such
11 health facilities as may be specifically approved by the Idaho health facili-
12 ties authority. Facilities owned or used, consistent with its nonprofit pur-
13 pose, by a nonprofit corporation recognized by a state institution of higher
14 education as its college or university foundation shall be considered non-
15 profit facilities under this chapter.
16 (w) "Project costs of a nonprofit facility" means costs of:
17 (1) Acquisition, construction and improvement of any facilities included
18 in a nonprofit facility;
19 (2) Architectural, engineering, consulting, accounting and legal costs
20 related directly to the development, financing and construction of a non-
21 profit facility, including costs of studies assessing the feasibility of a
22 nonprofit facility;
23 (3) Finance costs, including discounts, if any, the costs of issuing
24 bonds, and costs incurred in carrying out any provisions thereof;
25 (4) Interest during construction and during the six (6) months after
26 estimated completion of construction, and capitalized debt service or
27 repair and replacement or other appropriate reserves;
28 (5) The refunding of any outstanding obligations incurred for any of the
29 costs outlined in this subsection; and
30 (6) Other costs incidental to any of the costs listed in this section.
31 (x) "Agricultural facility or facilities" means land, any building or
32 other improvement thereon or thereto, to be owned by a beginning farmer or
33 rancher and any personal properties deemed necessary or suitable for use,
34 whether or not now in existence in farming or ranching, the production of
35 agricultural commodities, including, without limitation, the products of aqua-
36 culture, hydroponics and silviculture, or the treating, processing or storing
37 of such agricultural commodities when such activities are customarily engaged
38 in by beginning farmers or ranchers as a part of farming or ranching.
39 (y) "Municipality" means any county, municipal corporation, highway dis-
40 trict, taxing district or other political subdivision of this state.
41 (z) "State" means the state of Idaho.
42 (aa) "State body" means any department, board, commission or agency of the
43 state of Idaho.
44 (bb) "Transportation board" means the Idaho transportation board and its
45 successors.
46 (cc) "Transportation department" means the Idaho transportation department
47 and its successors.
48 (dd) "Transportation project" means any transportation infrastructure
49 project including, without limitation, a road, street, parkway, right-of-way,
50 bridge, railroad crossing, drainage structure, sign, guardrail, structure,
51 interstate, surface, resurface, shoulder, roadside, or any other work, and any
52 planning development, management and construction related thereto, all as
53 approved or recommended to the association by the transportation board.
54 SECTION 9. That Section 67-6206, Idaho Code, be, and the same is hereby
10
1 amended to read as follows:
2 67-6206. POWERS OF ASSOCIATION. The housing and finance association is an
3 independent public body corporate and politic, exercising public and essential
4 governmental functions, and having all the powers which are hereby declared to
5 be public purposes necessary or convenient to carry out and effectuate the
6 purposes and provisions of this act, including the following powers in addi-
7 tion to others herein granted:
8 (a) To sue and to be sued; to have a seal and to alter the same at pleas-
9 ure; to have perpetual succession; to make and execute contracts and other
10 instruments necessary or convenient to the exercise of the powers of the asso-
11 ciation; and to make and from time to time amend and repeal bylaws, rules, not
12 inconsistent with this act, to carry into effect the powers and purposes of
13 the association.
14 (b) To conduct its operations within any or all of the counties of the
15 state.
16 (c) To cooperate with housing authorities throughout Idaho in the devel-
17 opment of housing projects.
18 (d) To assign priorities for action and revise or modify said priorities
19 from time to time.
20 (e) To make and execute agreements, contracts and other instruments nec-
21 essary or convenient in the exercise of the powers and functions of the asso-
22 ciation under this act, including contracts with any housing sponsor, mortgage
23 lender, person, firm, corporation, governmental agency, or other entity; and
24 to include in any contract let in connection with a project, stipulations
25 requiring that the contractor and any subcontractors comply with requirements
26 as to minimum wages and maximum hours of labor, and comply with any conditions
27 which the federal government may have attached to its financial aid of the
28 project and to designate mortgage lenders to act for and in behalf of the
29 association, with respect to originating or servicing and processing mortgage
30 loans of the association, and to pay the reasonable value of service rendered
31 to the association by such mortgage lenders pursuant to contracts with mort-
32 gage lenders.
33 (f) To lease, sell, construct, finance, reconstruct, restore, rehabili-
34 tate, operate or rent any housing projects, nonprofit facilities or any dwell-
35 ings, houses, accommodations, lands, buildings, structures or facilities
36 embraced in any housing project or nonprofit facilities and, subject to the
37 limitations contained in this act, to establish and revise the rents or
38 charges therefor.
39 (g) To own, hold and improve real or personal property; to purchase,
40 lease, obtain options upon, acquire by gift, grant, bequest, devise, eminent
41 domain or otherwise, any real or personal property or any interest therein.
42 (h) To acquire any real property; to sell, lease, exchange, transfer,
43 assign, pledge or dispose of any real or personal property or any interest
44 therein.
45 (i) To insure or provide for the insurance of any real or personal prop-
46 erty or operation of the association against any risks or hazards, and to pro-
47 cure or agree to the procurement of insurance or guarantees from the federal
48 government or other source for the payment or purchase of any bonds or parts
49 thereof issued by the association, including the power to pay for any such
50 insurance or guarantees.
51 (j) To invest any funds held in reserves or sinking funds, or any funds
52 not required for immediate disbursement, in property or securities in which a
53 bank, as defined in the "bank act," title 26, Idaho Code, may legally invest
54 funds including without limitation, to agree to purchase the obligations of
11
1 any federal, state or local government upon such conditions as the association
2 may determine to be prudent and in its best interest.
3 (k) Within its area of operation: to investigate into living, dwelling
4 and housing conditions and into the means and methods of improving such condi-
5 tions; to determine where slum areas exist or where there is a shortage of
6 adequate, safe and sanitary dwelling accommodations for persons of low-income;
7 to make studies and recommendations relating to the problem of clearing,
8 replanning and reconstruction of slum areas and the problem of providing
9 dwelling accommodations for persons of low-income, and to cooperate with the
10 city, the county, the state or any political subdivision thereof in action
11 taken in connection with such problems; and to engage in research, studies
12 and experimentation on the subject of housing.
13 (l) To participate in cooperative ventures with any agencies, organiza-
14 tions and individuals in order to undertake the provision of housing for per-
15 sons of low-income, to undertake the provision of nonprofit facilities or
16 agricultural facilities.
17 (m) To provide research and technical assistance to eligible agencies,
18 organizations and individuals eligible to develop low cost housing and to
19 research new low cost housing development and construction methods.
20 (n) To make and undertake commitments to make or participate in the mak-
21 ing of mortgage loans to persons of low-income and to housing sponsors,
22 including without limitation federally insured mortgage loans, and to make
23 temporary loans and advances in anticipation of permanent loans to housing
24 sponsors; said mortgage loans to housing sponsors shall be made to finance the
25 construction, improvement, or rehabilitation of housing projects for persons
26 of low-income, and/or mixed income housing projects upon the terms and condi-
27 tions set forth in this act; provided, however, that such loans shall be made
28 only upon the determination by the association that mortgage loans are not
29 otherwise available, wholly or in part, from private lenders upon reasonably
30 equivalent terms and conditions.
31 (o) To purchase, or make commitments to purchase or participate in the
32 purchase of mortgage loans from mortgage lenders which loans have been made
33 for the construction, improvement, or rehabilitation of housing projects for
34 persons of low-income and/or mixed income housing projects or loans which have
35 been made to persons of low-income for residential housing, upon terms set
36 forth in this act; provided, however, that any such purchase shall be made
37 only upon the determination by the association that the mortgage loans to be
38 made are not otherwise being made by mortgage lenders upon reasonably equiva-
39 lent terms and conditions. Also, to purchase, or make commitments to purchase
40 or participate in the purchase of mortgage loans from mortgage lenders whether
41 or not said loans were made to persons of low-income, upon terms set forth in
42 this act; provided, however, that the proceeds from such purchase or the
43 equivalent thereof shall be reinvested in obligations of the association, in
44 mortgage loans to persons of low-income or in mortgage loans for housing proj-
45 ects for persons of low-income and/or mixed income housing projects, and pro-
46 vided that any such purchase shall be made only upon the determination by the
47 association that the mortgage loans to be made are not otherwise being made by
48 mortgage lenders upon reasonably equivalent terms and conditions.
49 (p) To provide interim financing for housing projects including mixed
50 income housing projects approved by the association, provided that the associ-
51 ation has determined that such financing is not otherwise available from mort-
52 gage lenders upon reasonably equivalent terms and conditions.
53 (q) To prescribe rules and policies in connection with the performance of
54 its functions and duties.
55 (r) To do all other things deemed necessary and desirable to accomplish
12
1 the objectives of this act.
2 (s) To borrow money and issue bonds and notes or other obligations, to
3 invest the proceeds thereof in any lawful manner and to fund or refund the
4 same, and to provide for the rights of the holders of its obligations as pro-
5 vided in this act and in connection therewith, to waive, by resolution or
6 other document of the association, the exemption from federal income taxation
7 of interest on any of the association's obligations under existing or future
8 federal law and to establish, maintain and preserve the association's general
9 obligation rating and any rating on its bonds, notes or other obligations.
10 (t) To receive and accept aid or contributions from any source.
11 (u) To employ architects, engineers, attorneys, accountants, housing con-
12 struction and financial experts and such other advisors, consultants and
13 agents as may be necessary in its judgment and to fix their compensation.
14 (v) To insure mortgage payments of any mortgage loan made for the purpose
15 of constructing, rehabilitating, purchasing, leasing, or refinancing housing
16 projects upon such terms and conditions as the association may prescribe.
17 (w) To fix and revise from time to time and charge and collect fees and
18 charges in connection with loans made or other services provided by the asso-
19 ciation pursuant to this act, and to make and publish rules respecting the
20 making and purchase of mortgage loans.
21 (x) To organize a nonprofit corporation to assist the association in pro-
22 viding for housing projects.
23 (y) To enter upon and inspect any housing project, including housing
24 projects undertaken by housing sponsors, for the purpose of investigating the
25 physical and financial condition thereof, and its construction, rehabilita-
26 tion, operation, management and maintenance, and to examine all books and
27 records with respect to capitalization, income and other matters relating
28 thereto.
29 (z) To order such alterations, changes or repairs as may be necessary to
30 protect the security of its investment in a housing project or the health,
31 safety, and welfare of the occupants thereof.
32 (aa) To make or purchase secured loans for the purpose of providing tempo-
33 rary or permanent financing or refinancing of all or part of the project costs
34 of any nonprofit facility or agricultural facility, including the refunding of
35 any outstanding obligations, mortgages or advances issued, made or given by
36 any person for the project costs of a nonprofit facility or agricultural
37 facility; and to charge and collect interest on the loans for the loan pay-
38 ments upon such terms and conditions, including without limitation bond rating
39 and issuance conditions, as the board of commissioners considers advisable
40 which are not in conflict with this chapter.
41 (bb) As security for the payment of the principal of and interest on any
42 revenue bonds issued and any agreements made in connection therewith, to mort-
43 gage, pledge, or otherwise encumber any or all of nonprofit facilities or
44 agricultural facilities or any part or parts thereof, whether then owned or
45 thereafter acquired, and to assign any mortgage and repledge any security con-
46 veyed to the association, to secure any loan made by the association and to
47 pledge the revenues and receipts therefrom.
48 (cc) To issue bonds for the purpose of financing all or part of the proj-
49 ect cost on any nonprofit facility or agricultural facility and to secure the
50 payment of the bonds as provided in this chapter.
51 (dd) To purchase or sell by installment contract or otherwise, and convey
52 all or any part of any nonprofit facility or agricultural facility for such
53 purchase price and upon such terms and conditions as this board of commission-
54 ers considers advisable which are not in conflict with this chapter.
55 (ee) To lease all or any part of any nonprofit facility or agricultural
13
1 facility for such rentals and upon such terms and conditions, including
2 options to purchase, as the board of commissioners considers advisable and not
3 in conflict with this chapter.
4 (ff) To construct and maintain one (1) or more nonprofit facilities or
5 agricultural facilities, provided that the association shall not operate any
6 nonprofit facility or agricultural facility as a business other than as les-
7 sor, seller or lender. The purchase, holding and enforcing of mortgages, deeds
8 of trust, or other security interests and contracting for any servicing
9 thereof is not considered the operation of a nonprofit facility or agricul-
10 tural facility as a business.
11 (gg) To act as the designated housing resource clearinghouse in the state
12 for matters relating to affordable housing.
13 (hh) To coordinate the development and maintenance of a housing policy for
14 the state.
15 (ii) To enter into agreements or other transactions and accept grants,
16 reimbursements or other payments, with the cooperation of the United States or
17 any agency thereof or of the state of Idaho or any agency thereof or munici-
18 pality of the state in furtherance of the purposes of this act, including, but
19 not limited to, the development, maintenance, operation and financing of any
20 transportation project and to do any and all things necessary in order to
21 avail the association of such aid and cooperation.
22 (jj) To borrow money and issue bonds and notes or other evidences of
23 indebtedness thereof as hereinafter provided to finance transportation proj-
24 ects approved and recommended by the transportation board.
25 SECTION 10. That Section 67-6210, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 67-6210. POWER TO ISSUE BONDS. The association shall have power and is
28 hereby authorized to issue, from time to time, its negotiable notes and bonds
29 in conformity with the applicable provisions of the uniform commercial code in
30 such principal amount as the association shall determine to be necessary for
31 sufficient funds for achieving any of its corporate purposes, including the
32 payment of interest on notes and bonds of the association, establishment of
33 reserves to secure such notes and bonds, and all other expenditures of the
34 association incidental and necessary or convenient to carry out its corporate
35 purposes and powers; provided, however, that the association shall provide in
36 its resolution authorizing such bonds that all revenues received by the asso-
37 ciation as a result of the issuance of such bonds shall be pledged first to
38 the payment of principal and interest on such bonds.
39 (a) The association shall have the power, from time to time, to issue:
40 (1) notes to renew notes and
41 (2) bonds to pay notes, including the interest thereon, and
42 (3) whenever it deems refunding expedient, to refund any bonds by the
43 issuance of new bonds, whether the bonds to be refunded have or have not
44 matured, and to issue bonds partly to refund bonds then outstanding and
45 partly for any of its corporate purposes.
46 The refunding bonds may be:
47 (1) exchanged for the bonds to be refunded or
48 (2) sold and the proceeds applied to the purchase, redemption or payment
49 of such bonds.
50 (b) Except as may otherwise be expressly provided by the association,
51 every issue of its notes and bonds shall be payable exclusively from the reve-
52 nues or income of the association, including grants and contributions from the
53 United States of America, subject only to any agreements with the holders of
14
1 particular notes or bonds pledging any particular revenues.
2 (c) The notes and bonds shall be authorized by resolution or resolutions
3 of the association, shall bear such date or dates and shall mature at such
4 time or times as such resolution or resolutions may provide. The bonds may be
5 issued as serial bonds payable in annual installments or as term bonds or as
6 a combination thereof. The notes and bonds shall bear interest at such rate or
7 rates, be in such denominations, be in such form, either coupon or registered,
8 carry such registration privileges, be executed in such manner, be payable in
9 such medium of payment, at such place or places, and be subject to such terms
10 of redemption as such resolution or resolutions may provide. The notes and
11 bonds of the association may be sold by the association, at public or private
12 sale, at such price or prices as the association shall determine.
13 (d) Any resolution or resolutions authorizing any notes or bonds or any
14 issue thereof may contain provisions, which shall be a part of the contract or
15 contracts with the holders thereof, as to:
16 (1) pledging all or any part of the revenues to secure the payment of the
17 notes or bonds or of any issue thereof, subject to such agreements with
18 noteholders or bondholders as may then exist;
19 (2) pledging all or any part of the assets of the association including
20 mortgages and obligations securing the same, to secure the payment of the
21 notes or bonds or of any issue of notes or bonds, subject to such agree-
22 ments with noteholders or bondholders as may then exist;
23 (3) the use and disposition of the gross income from mortgages owned by
24 the association and payment of principal of mortgages owned by the associ-
25 ation;
26 (4) the setting aside of reserves or sinking funds and the regulation and
27 disposition thereof;
28 (5) limitations on the purpose to which the proceeds of sale of notes or
29 bonds may be applied and pledging such proceeds to secure the payment of
30 the notes or bonds or of any issue thereof;
31 (6) limitations on the issuance of additional notes or bonds; the terms
32 upon which additional notes or bonds may be issued and secured; and the
33 refunding of outstanding or other notes or bonds;
34 (7) the procedure, if any, by which the terms of any contract with
35 noteholders or bondholders may be amended or abrogated, the amount of
36 notes or bonds the holders of which must consent thereto; and the manner
37 in which such consent may be given;
38 (8) limitations on the amount of moneys to be expended by the association
39 for operating expenses of the association;
40 (9) vesting in a trustee or trustees such property, rights, powers and
41 duties in trust as the association may determine, which may include any or
42 all of the rights, powers and duties of the trustee appointed by the bond-
43 holders pursuant to this act; and limiting or abrogating the right of the
44 bondholders to appoint a trustee under this act, or limiting the rights,
45 powers and duties of such trustee;
46 (10) defining the acts or omissions to act which shall constitute a
47 default in the obligations and duties of the association to the holders of
48 the notes or bonds and providing for the rights and remedies of the hold-
49 ers of the notes or bonds in the event of such default, including as a
50 matter of right the appointment of a receiver; provided, however, that
51 such rights and remedies shall not be inconsistent with the general laws
52 of the state and the other provisions of this act;
53 (11) pledging all or any part of funds allocated to the association under
54 Idaho law or other revenues or the proceeds of notes or bonds to secure
55 the payment of notes or bonds issued to finance transportation projects,
15
1 subject to such agreements with noteholders or bondholders as may then
2 exist;
3 (12) setting forth the provisions for any contracts relating to its bonds
4 or notes, including, without limitation, any investment or interest rate
5 contracts, or any contract providing for a credit enhancement, including,
6 but not limited to, letters of credit, bond insurance and surety bonds
7 provided by private financial institutions;
8 (13) setting forth the provisions for representations or certifications to
9 be made by an officer of the association with respect to funds to be allo-
10 cated to the association for transportation projects and provisions for
11 the disbursements of the proceeds of the bonds or notes for payment of the
12 costs of a transportation project, costs of issuance and other related
13 costs;
14 (14) any other matters, of like or different character, which in any way
15 affect the security or protection of the holders of the notes or bonds.
16 (e) Any pledge made by the association shall be valid and binding from
17 the time when the pledge is made; the revenues, moneys or property so pledged
18 and thereafter received by the association shall immediately be subject to the
19 lien of such pledge without any physical delivery thereof or further act, and
20 the lien of any such pledge shall be valid and binding as against all parties
21 having claims of any kind in tort, contract or otherwise against the associa-
22 tion, irrespective of whether such parties have notice thereof. Neither the
23 resolution nor any other instrument by which a pledge is created need be
24 recorded.
25 (f) Neither the commissioners of the association nor any other person
26 executing such notes or bonds shall be subject to any personal liability or
27 accountability by reason of the issuance thereof.
28 (g) The association, subject to such agreements with noteholders or bond-
29 holders as may then exist, shall have power out of any funds available there-
30 for to purchase notes or bonds of the association, which shall thereupon be
31 canceled, at a price not exceeding:
32 (1) if the notes or bonds are then redeemable, the redemption price then
33 applicable plus accrued interest to the next interest payment thereon, or
34 (2) if the notes or bonds are not then redeemable, the redemption price
35 applicable on the first date after such purchase upon which the notes or
36 bonds become subject to redemption plus accrued interest to such date.
37 (h) In the discretion of the association, the bonds may be secured by a
38 trust indenture by and between the association and a corporate trustee, which
39 may be any trust company or bank having the power of a trust company in the
40 state. Such trust indenture may contain such provisions for protecting and
41 enforcing the rights and remedies of the bondholders as may be reasonable and
42 proper and not in violation of law, including covenants setting forth the
43 duties of the association in relation to the exercise of its corporate powers
44 and the custody, safeguarding and application of all moneys. The association
45 may provide by such trust indenture for the payment of the proceeds of the
46 bonds and the revenues to the trustee under such trust indenture or other
47 depository, and for the method of disbursement thereof, with such safeguards
48 and restrictions as it may determine. All expenses incurred in carrying out
49 such trust indenture may be treated as a part of the operating expenses of the
50 association. If the bonds shall be secured by a trust indenture, the bondhold-
51 ers shall have no authority to appoint a separate trustee to represent them.
52 (i) Whether or not the notes and bonds are of such form and character as
53 to be negotiable instruments under the terms of the uniform commercial code,
54 the notes and bonds are hereby made negotiable instruments within the meaning
55 of and for all the purposes of the uniform commercial code, subject only to
16
1 the provisions of the notes and bonds for registration.
2 (j) In case any of the commissioners or officers of the association whose
3 signatures appear on any notes or bonds or coupons shall cease to be such com-
4 missioners or officers before the delivery of such notes or bonds, such signa-
5 tures shall, nevertheless, be valid and sufficient for all purposes, the same
6 as if such commissioners or officers had remained in office until such deliv-
7 ery.
8 (k) The association shall not issue any bonds or notes to finance trans-
9 portation projects unless:
10 (1) the Idaho transportation board has approved and recommended the
11 transportation projects for financing through the association;
12 (2) the Idaho transportation board has certified to the association that
13 sufficient funds are available to make the payments required for the bonds
14 or notes to be issued to finance the transportation projects and that the
15 annual, total cumulative debt service and bond-related expenses on
16 federally-funded highway project financing do not exceed the limits speci-
17 fied in section 40-315(3), Idaho Code; and
18 (3) the association and the Idaho transportation board have entered into
19 an agreement for the association to provide financing of the transporta-
20 tion projects.
21 SECTION 11. SEVERABILITY. The provisions of this act are hereby declared
22 to be severable and if any provision of this act or the application of such
23 provision to any person or circumstance is declared invalid for any reason,
24 such declaration shall not affect the validity of the remaining portions of
25 this act.
REPRINT REPRINT REPRINT REPRINT REPRINT REPRINT
STATEMENT OF PURPOSE
RS 15121
This legislation authorizes the Idaho Transportation Board to use
federal-aid highway funds to pay the principal, interest, and
other debt service costs incurred from bonds issued by the State
to finance a specified list of eligible highway projects. The
Board may select and designate specific transportation projects
to be funded with bond proceeds from the following list of
eligible projects:
ROUTE PROJECT DESCRIPTION
US-95 SH-1 CANADIAN BORDER
US-95 GARWOOD SAGLE
US-95 WORLEY SETTERS
US-95 THORN CREEK MOSCOW
US-95 SMOKEY BOULDER HAZARD CREEK
SH-16 EXT SOUTH EMMETT MESA (AND ADD A CONNECTION TO SH-55)
SH-16 EXT I-84 SOUTH EMMETT
I-84 CALDWELL MERIDIAN
I-84 ORCHARD ISAACS CANYON
US-93 TWIN FALLS ALTERNATE RTE. & NEW SNAKE RIVER CROSSING
SH-75 TIMMERMAN KETCHUM
US-20 ST. ANTHONY ASHTON
US-30 MCCAMMON SODA SPRINGS
A 1995 federal law allows states to use their apportioned federal-aid
funds as a debt-financing instrument known as "GARVEE" (Grant
Anticipation Revenue Vehicle) Bonds.
The average term of most bonds would likely be eighteen years.
Presently, Idaho receives approximately $220 million a year from
federal fuel tax revenues.
This legislation authorizes the Idaho Housing Finance Association
(IHFA) to issue GARVEE bonds then approved by the Board of
Transportation. IHFA would manage all aspects of the issuance and
servicing of the bonds. This legislation would amend the IHFA
enabling statute to authorize the issuance of GARVEE bonds.
Prior to entering into agreements to issue bonds, the Idaho
Transportation Department, as part of its annual budget request,
would be required to request legislative approval for each specific
bonding issuance as a separate item in its annual budget request.
FISCAL IMPACT
This legislation increases no taxes. It is anticipated that the debt
bond service would require the dedication of approximately 29 to 32
percent of the department's total annual budget in the peak year of
debt service. The legislation could have a significant positive
effect on economic development that could result in increased tax
revenues to the State from an improved economy. Additionally, bond
interest costs would be more than offset by the reduced cost of
corridor right-of-way acquisition and construction. Delaying
construction of needed road infrastructure projects would result in
substantially higher project costs, due to inflation of construction
costs over time. Exact cost savings are dependent on the specific
timing of individual projects.
Contacts
Rep. Kathy Skippen Phone: 332-1000
Sen. Joe Stegner Phone: 332-1000
Lance Giles, Office of the Governor Phone: 334-2100
Julie Pipal, Idaho Transportation Department
Phone: 334-8804
Steve Rector, Idaho Housing and Finance Association
Phone: 331-4725
Senate Sponsors
Sen. Joe Stegner Sen. Edgar Malepeai
Sen. Hal Bunderson Sen. John McGee
Sen. Richard Compton Sen. Curt McKenzie
Sen. Tim Corder Sen. Clint Stennett
Sen. John Goedde Sen. Michael Jorgenson
Sen. Patti Anne Lodge Sen. John Andreason
Sen. Bart Davis Sen. Joyce Broadsword
House Sponsors
Rep. Kathy Skippen Rep. Jana Kemp
Rep. Eric Anderson Rep. Frank Henderson
Rep. Stan Bastian Rep. Wendy Jaquet
Rep. Carlos Bilbao Rep. Janet Miller
Rep. Max Black Rep. Robert Ring
Rep. Marge Chadderdon Rep. Mary Lou Shepherd
Rep. William Deal Rep. Mark Snodgrass
Rep. Debbie Field Rep. Tom Trail
Rep. Kathie Garrett Rep. Rich Wills
Rep. Bob Nonini Rep. Donna Pence
Rep. John Rusche Rep. Elaine Smith
Rep. Ken Andrus Rep. George Sayler
STATEMENT OF PURPOSE/FISCAL NOTE S 1183 aaH
REVISED REVISED REVISED REVISE