Print Friendly HOUSE BILL NO. 198 – Housing/finance assn/economic dvlp
HOUSE BILL NO. 198
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H0198...............................................by REVENUE AND TAXATION
IDAHO HOUSING AND FINANCE ASSOCIATION - Amends existing law to enable the
Idaho Housing and Finance Association to permit financing of economic
development projects through the issuance of revenue bonds by the Idaho
Housing and Finance Association; and to provide for the financing of
industrial, commercial and other projects to promote economic development
throughout the state in partnership with private financial institutions and
state or local economic development entities.
02/14 House intro - 1st rdg - to printing
02/15 Rpt prt - to Rev/Tax
02/22 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 66-0-4
AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
Collins, Durst, Eskridge, Hagedorn, Hart, Harwood, Henbest,
Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring,
Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Mr. Speaker
NAYS -- None
Absent and excused -- Bedke, Crane, Edmunson, Wood(35)
Floor Sponsor - Hart
Title apvd - to Senate
02/28 Senate intro - 1st rdg - to Loc Gov
03/07 Rpt out - rec d/p - to 2nd rdg
03/08 2nd rdg - to 3rd rdg
03/13 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- None
Floor Sponsor - Siddoway
Title apvd - to House
03/14 To enrol
03/15 Rpt enrol - Sp signed - Pres signed
03/16 To Governor
03/22 Governor signed
Session Law Chapter 152
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 198
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO HOUSING AND FINANCE ASSOCIATION; AMENDING SECTION
3 67-6201, IDAHO CODE, TO INCLUDE ASSISTANCE FOR ECONOMIC DEVELOPMENT PROJ-
4 ECTS AS PUBLIC PURPOSES AND TO MAKE A TECHNICAL CORRECTION; AMENDING SEC-
5 TION 67-6205, IDAHO CODE, TO PROVIDE AN ADDITIONAL DEFINITION AND TO MAKE
6 A TECHNICAL CORRECTION; AMENDING SECTION 67-6206, IDAHO CODE, TO PROVIDE
7 POWERS RELATING TO THE FINANCING OF ECONOMIC DEVELOPMENT PROJECTS AND TO
8 MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 67-6207A, IDAHO CODE, TO PRO-
9 VIDE ADDITIONAL POWERS TO THE IDAHO HOUSING AND FINANCE ASSOCIATION AND TO
10 MAKE A TECHNICAL CORRECTION; AMENDING SECTION 67-6223, IDAHO CODE, TO PRO-
11 VIDE AUTHORITY TO RECEIVE STATE, PRIVATE OR FEDERAL ASSISTANCE FOR ECO-
12 NOMIC DEVELOPMENT PROJECTS, TO REVISE THE BORROWING POWER, FINANCIAL
13 ASSISTANCE AND COOPERATION WITH THE STATE AND FEDERAL GOVERNMENT BY THE
14 ASSOCIATION AND TO MAKE A TECHNICAL CORRECTION; AND DECLARING AN EMER-
16 Be It Enacted by the Legislature of the State of Idaho:
17 SECTION 1. That Section 67-6201, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 67-6201. PURPOSE. It is hereby declared:
20 (a) That within the state there is a shortage of safe or sanitary dwell-
21 ing accommodations available which persons of low incomes can afford and that
22 such persons are forced to occupy overcrowded and congested dwelling accommo-
23 dations; that the aforesaid conditions cause an increase in and spread of dis-
24 ease and crime, and constitute a menace to the health, safety, morals and wel-
25 fare of the residents of the state and impair economic values; that these con-
26 ditions necessitate excessive and disproportionate expenditures of public
27 funds for crime prevention and punishment, public health and safety, fire and
28 accident protection, and other public services and facilities.
29 (b) That private enterprise has not been able to provide, without assis-
30 tance, an adequate supply of safe and sanitary dwellings at prices or rents
31 which persons and families of low income can afford, or to achieve rehabilita-
32 tion of much of the present low-income housing. It is imperative that the sup-
33 ply of housing for persons and families of low income be increased and that
34 coordination and cooperation among private enterprise, state and local govern-
35 ment be encouraged to sponsor, build and rehabilitate residential housing for
36 such persons and families.
37 (c) That the clearance, replanning and reconstruction of the areas in
38 which unsanitary or unsafe housing conditions exist, and the providing of safe
39 and sanitary dwelling accommodations for persons of low incomes (which
40 dwelling-accommodations dwelling accommodations need not be solely for persons
41 of low incomes in order to avoid concentrations of such persons in specific
42 localities), are public uses, and uses and purposes for which public money may
43 be spent and private property acquired, and are governmental functions.
1 (d) It is also declared and the legislature hereby finds that charitable,
2 educational, human service, cultural and other purposes pursued by nonprofit
3 corporations are important public functions and public purposes that should be
4 encouraged and that financing of nonprofit facilities for these purposes
5 should be encouraged, without using state funds or lending the credit of the
6 state, through the issuance of nonrecourse revenue bonds and the lending of
7 the proceeds thereof to nonprofit corporations to promote their purposes.
8 (e) It is further declared that in this state:
9 (1) There exists an inadequate supply of funds at interest rates suffi-
10 ciently low to enable persons engaged in agriculture in this state, par-
11 ticularly beginning farmers and ranchers, to pursue agricultural opera-
12 tions at present levels;
13 (2) That such inability to pursue agricultural operations reduces the
14 supply of agricultural commodities available to fulfill the needs of the
15 citizens of this state;
16 (3) That such inability to continue operations decreases available
17 employment in the agricultural sector of the state and results in unem-
18 ployment and its attendant problems;
19 (4) That such conditions prevent the acquisition of an adequate capital
20 stock of farm and ranch equipment and machinery, therefore impairing the
21 productivity of agricultural land;
22 (5) That such conditions are conducive to consolidation of acreage of
23 agricultural land with fewer individuals living and farming and ranching
24 on the traditional family farm and ranch;
25 (6) That these conditions result in a loss in population, unemployment
26 and movement of persons from rural to urban areas accompanied by added
27 costs to communities for creation of new public facilities and services;
28 (7) That there have been recurrent shortages of funds from private market
29 sources at reasonable rates of interest;
30 (8) That these shortages have made the sale and purchase of agricultural
31 land to beginning farmers and ranchers a virtual impossibility in many
32 parts of the state;
33 (9) That the ordinary operations of private enterprise have not in the
34 past corrected these conditions; and
35 (10) That a stable supply of adequate funds for agricultural financing is
36 required to encourage beginning farmers and ranchers in an orderly and
37 sustained manner and to reduce the problems described herein.
38 (f) It is further declared that in this state there is an urgent need to
39 promote higher employment; encourage the development of new jobs; maintain and
40 supplement the capital investments in industry and commerce that currently
41 exist in this state; encourage future employment by ensuring future capital
42 investment; attract environmentally sound industry and commerce to the state;
43 protect and enhance the quality of natural resources and the environment; and
44 promote the production and conservation of energy; and that financing of eco-
45 nomic development projects in partnership with private financial institutions
46 and state or local economic development entities for these purposes should be
47 encouraged, without using state funds or lending the credit of the state
48 through the issuance of nonrecourse revenue bonds and the lending of the pro-
49 ceeds thereof for such purposes.
50 (g) It is hereby further declared that:
51 (1) The growth of the economy of this state has prompted new and ever-
52 increasing uses of public highways, roads, and other transportation infra-
53 structure, and the existing transportation infrastructure of this state
54 cannot adequately accommodate such greatly increased uses;
55 (2) One of the major concerns of the citizens of this state is the abil-
1 ity of the state to address the long-term transportation infrastructure
2 needs of this state that are critical to the continued growth of the
3 state's economy and the maintenance of citizens' quality of life;
4 (3) Utilizing bonds or notes to finance projects for transportation in-
5 frastructure results in significant cost savings to the state, since such
6 transportation projects can be completed at present day costs and at an
7 accelerated pace, but such bonds and notes need to be issued promptly in
8 order to realize these cost savings; and
9 (4) It is reasonable and necessary to utilize such bonds or notes for the
10 financing of transportation projects.
11 ( gh) It is hereby further declared that all of the foregoing are public
12 purposes and uses for which public moneys may be borrowed, expended or granted
13 and that such activities are governmental functions and serve a public purpose
14 in improving or otherwise benefiting the people of this state; that the neces-
15 sity of enacting the provisions hereinafter set forth is in the public inter-
16 est and is hereby so declared as a matter of express legislative determina-
18 SECTION 2. That Section 67-6205, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 67-6205. DEFINITIONS. The following terms, wherever used or referred to
21 in this chapter, shall have the following respective meanings, unless a dif-
22 ferent meaning clearly appears from the context:
23 (a) "Association" or "housing association" shall mean the Idaho housing
24 and finance association created by section 67-6202, Idaho Code.
25 (b) "Housing project" shall mean any work or undertaking:
26 (1) To demolish, clear or remove buildings from any slum area; such work
27 or undertaking may embrace the adoption of such area to public purposes,
28 including parks or other recreational or community purposes; or
29 (2) To construct, sell, lease, finance, improve, operate or otherwise
30 provide decent, safe and sanitary urban or rural dwellings, apartments or
31 other living accommodations for persons of low income; such work or under-
32 taking may include buildings, land, equipment, facilities and other real
33 or personal property which are necessary, convenient or desirable appurte-
34 nances, such as, but not limited to, streets, sewers, water service,
35 parks, site preparation, gardening, administrative, community, health,
36 recreational, and welfare or other purposes; or
37 (3) To accomplish a combination of the foregoing. The term "housing proj-
38 ect" also may be applied to the planning of the buildings and improve-
39 ments, for either single or multi-family housing, the acquisition of prop-
40 erty, the demolition of existing structures, the construction, reconstruc-
41 tion, rehabilitation, alteration and repair of the buildings and improve-
42 ments and all other work in connection therewith.
43 (c) "Governing body" shall mean the city council, board of commissioners,
44 board of trustees or other body having charge of the locality in which the
45 association desires to undertake a housing project.
46 (d) "Federal government" shall include the United States of America, or
47 any other agency or instrumentality, corporate or otherwise, of the United
48 States of America.
49 (e) "City" shall mean any city in the state of Idaho, including each city
50 having a special charter.
51 (f) "County" or "counties" shall include all counties in the state of
52 Idaho as designated in chapter 1, title 31, Idaho Code.
53 (g) "Clerk" shall mean the clerk of the city or county as the case may be
1 or the officer charged with the duties customarily imposed on such clerk.
2 (h) "Area of operation" shall mean the state of Idaho.
3 (i) "Slum" shall mean any area where dwellings predominate which, by rea-
4 son of dilapidation, overcrowding, lack of ventilation, light or sanitary
5 facilities or any combination of these factors, are detrimental to safety,
6 health or morals.
7 (j) "Person of low-income" means persons deemed by the association,
8 including those defined as "elderly" in the United States Housing Act of 1937
9 [42 U.S.C., sec. 1437 --1437dd et seq.], as amended, to require assistance
10 available under this act on account of insufficient personal or family income,
11 to pay the rents or carrying charges required by the unaided operation of pri-
12 vate enterprise in providing an adequate supply of decent, safe and sanitary
13 housing and in making such determination the association shall take into con-
14 sideration, without limitation, such factors as:
15 (1) The amount of the total income of such persons available for housing
17 (2) The size of the family;
18 (3) The cost and condition of housing facilities available;
19 (4) Standards established for various federal programs determining eligi-
20 bility based on income of such persons; and
21 (5) The ability of such persons to compete successfully in the normal
22 housing market and to pay the amounts at which private enterprise is pro-
23 viding decent, safe and sanitary housing.
24 (k) "Bonds," "notes" or "bond anticipation notes," and "obligations"
25 shall mean any bonds, notes, interim certificates, debentures or other evi-
26 dences of financial indebtedness issued by the association pursuant to this
28 (l) "Real property" shall include all lands, including improvements and
29 fixtures thereon, and property of any nature, appurtenant thereto, or used in
30 connection therewith, and every estate, interest and right, legal or equita-
31 ble, therein, including terms for years and liens by way of judgment, mortgage
32 or otherwise and the indebtedness secured by such liens.
33 (m) "Housing authority" or "authority" means a housing authority estab-
34 lished pursuant to the "housing authorities and cooperation law" constituting
35 chapter 19, title 50, Idaho Code.
36 (n) "Rent" shall mean the periodic payment made by a person of low-income
37 in a housing project whether such money is being used as rent, or for the
38 development of equity by such person.
39 (o) "Interim financing" means a short-term construction loan for planning
40 and/or development of residential housing for persons of low-income and other
41 persons which loan shall run until financing can be assumed through other fed-
42 eral, state or private financing.
43 (p) "Housing sponsor" means individuals, joint ventures, partnerships,
44 limited partnerships, public bodies, trusts, firms, associations, or other
45 legal entities or any combination thereof, and corporations, cooperatives, and
46 condominiums, approved by the association as qualified either to own, con-
47 struct, acquire, rehabilitate, operate, manage or maintain a housing project,
48 subject to the regulatory powers of the association and other terms and condi-
49 tions set forth in this chapter. A "housing sponsor" shall be either a
50 "limited profit" sponsor or a "nonprofit" sponsor.
51 (q) "Mortgage lender" means any bank or trust company, savings bank,
52 mortgage company, mortgage banker, credit union, national banking association,
53 savings and loan association, building and loan association, life insurance
54 company, and any other financial institution authorized to transact business
55 in the state.
1 (r) "Mortgage loan" means an interest-bearing obligation secured by a
2 deed of trust, a mortgage, bond, note, or other instrument which is a lien on
3 property in the state except in the case of loans insured by the federal hous-
4 ing administration or the association and which are made for the rehabilita-
5 tion or improvement of existing dwellings; in such case the loans need not be
6 secured by an instrument constituting a lien on property in the state.
7 (s) "Mixed income housing project" means a housing project which contains
8 dwellings occupied or to be occupied by persons of low-income constituting at
9 least twenty percent (20%) of such occupancy.
10 (t) "Facilities" means land, rights in land, buildings, structures,
11 equipment, landscaping, utilities, approaches, roadways and parking, handling
12 and storage areas, and portions of any of the foregoing and similar ancillary
14 (u) "Nonprofit corporation" means a nonprofit corporation organized and
15 operating in accordance with Idaho law or a nonprofit corporation organized
16 and operating in accordance with comparable laws within another state or ter-
17 ritory of the United States.
18 (v) "Nonprofit facilities" means facilities owned or used by a nonprofit
19 corporation for a nonprofit purpose of the corporation; provided that facili-
20 ties for health facilities which may be funded pursuant to chapter 14, title
21 39, Idaho Code, shall not be included in this definition, except for such
22 health facilities as may be specifically approved by the Idaho health facili-
23 ties authority. Facilities owned or used, consistent with its nonprofit pur-
24 pose, by a nonprofit corporation recognized by a state institution of higher
25 education as its college or university foundation shall be considered non-
26 profit facilities under this chapter.
27 (w) "Project costs of a nonprofit facility" means costs of:
28 (1) Acquisition, construction and improvement of any facilities included
29 in a nonprofit facility;
30 (2) Architectural, engineering, consulting, accounting and legal costs
31 related directly to the development, financing and construction of a non-
32 profit facility, including costs of studies assessing the feasibility of a
33 nonprofit facility;
34 (3) Finance costs, including discounts, if any, the costs of issuing
35 bonds, and costs incurred in carrying out any provisions thereof;
36 (4) Interest during construction and during the six (6) months after
37 estimated completion of construction, and capitalized debt service or
38 repair and replacement or other appropriate reserves;
39 (5) The refunding of any outstanding obligations incurred for any of the
40 costs outlined in this subsection; and
41 (6) Other costs incidental to any of the costs listed in this section.
42 (x) "Agricultural facility or facilities" means land, any building or
43 other improvement thereon or thereto, to be owned by a beginning farmer or
44 rancher and any personal properties deemed necessary or suitable for use,
45 whether or not now in existence in farming or ranching, the production of
46 agricultural commodities, including, without limitation, the products of aqua-
47 culture, hydroponics and silviculture, or the treating, processing or storing
48 of such agricultural commodities when such activities are customarily engaged
49 in by beginning farmers or ranchers as a part of farming or ranching.
50 (y) "Municipality" means any county, municipal corporation, highway dis-
51 trict, taxing district or other political subdivision of this state.
52 (z) "State" means the state of Idaho.
53 (aa) "State body" means any department, board, commission or agency of the
54 state of Idaho.
55 (bb) "Transportation board" means the Idaho transportation board and its
2 (cc) "Transportation department" means the Idaho transportation department
3 and its successors.
4 (dd) "Transportation project" means any transportation infrastructure
5 project including, without limitation, a road, street, parkway, right-of-way,
6 bridge, railroad crossing, drainage structure, sign, guardrail, structure,
7 interstate, surface, resurface, shoulder, roadside, or any other work, and any
8 planning development, management and construction related thereto, all as
9 approved or recommended to the association by the transportation board.
10 (ee) "Economic development project or projects" means any commercial or
11 industrial project including, without limitation, any manufacturing, process-
12 ing, production, assembly, warehousing, solid waste disposal, recreation,
13 office, research and development, energy or other business project owned by
14 one (1) or more persons or other legal entities, any costs relating thereto
15 including, without limitation, costs for buildings, land, equipment, furnish-
16 ings, interest, costs of operation, financing, architectural, engineering and
17 other professional costs and other related costs, as well as any working capi-
18 tal costs or expenses for such businesses.
19 SECTION 3. That Section 67-6206, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 67-6206. POWERS OF ASSOCIATION. The housing and finance association is an
22 independent public body corporate and politic, exercising public and essential
23 governmental functions, and having all the powers which are hereby declared to
24 be public purposes necessary or convenient to carry out and effectuate the
25 purposes and provisions of this act chapter, including the following powers in
26 addition to others herein granted:
27 (a) To sue and to be sued; to have a seal and to alter the same at pleas-
28 ure; to have perpetual succession; to make and execute contracts and other
29 instruments necessary or convenient to the exercise of the powers of the asso-
30 ciation; and to make and from time to time amend and repeal bylaws, rules, not
31 inconsistent with this act chapter, to carry into effect the powers and pur-
32 poses of the association.
33 (b) To conduct its operations within any or all of the counties of the
35 (c) To cooperate with housing authorities throughout Idaho in the devel-
36 opment of housing projects.
37 (d) To assign priorities for action and revise or modify said priorities
38 from time to time.
39 (e) To make and execute agreements, contracts and other instruments nec-
40 essary or convenient in the exercise of the powers and functions of the asso-
41 ciation under this act chapter, including contracts with any housing sponsor,
42 mortgage lender, person, firm, corporation, governmental agency, or other
43 entity; and to include in any contract let in connection with a project, stip-
44 ulations requiring that the contractor and any subcontractors comply with
45 requirements as to minimum wages and maximum hours of labor, and comply with
46 any conditions which the federal government may have attached to its financial
47 aid of the project and to designate mortgage lenders to act for and in behalf
48 of the association, with respect to originating or servicing and processing
49 mortgage loans of the association, and to pay the reasonable value of service
50 rendered to the association by such mortgage lenders pursuant to contracts
51 with mortgage lenders.
52 (f) To lease, sell, construct, finance, reconstruct, restore, rehabili-
53 tate, operate or rent any housing projects, nonprofit facilities or any dwell-
1 ings, houses, accommodations, lands, buildings, structures or facilities
2 embraced in any housing project or nonprofit facilities and, subject to the
3 limitations contained in this act chapter, to establish and revise the rents
4 or charges therefor.
5 (g) To own, hold and improve real or personal property; to purchase,
6 lease, obtain options upon, acquire by gift, grant, bequest, devise, eminent
7 domain or otherwise, any real or personal property or any interest therein.
8 (h) To acquire any real property; to sell, lease, exchange, transfer,
9 assign, pledge or dispose of any real or personal property or any interest
11 (i) To insure or provide for the insurance of any real or personal prop-
12 erty or operation of the association against any risks or hazards, and to pro-
13 cure or agree to the procurement of insurance or guarantees from the federal
14 government or other source for the payment or purchase of any bonds or parts
15 thereof issued by the association, including the power to pay for any such
16 insurance or guarantees.
17 (j) To invest any funds held in reserves or sinking funds, or any funds
18 not required for immediate disbursement, in property or securities in which a
19 bank, as defined in the "bank act," title 26, Idaho Code, may legally invest
20 funds including without limitation, to agree to purchase the obligations of
21 any federal, state or local government upon such conditions as the association
22 may determine to be prudent and in its best interest.
23 (k) Within its area of operation: to investigate into living, dwelling
24 and housing conditions and into the means and methods of improving such condi-
25 tions; to determine where slum areas exist or where there is a shortage of
26 adequate, safe and sanitary dwelling accommodations for persons of low-income;
27 to make studies and recommendations relating to the problem of clearing,
28 replanning and reconstruction of slum areas and the problem of providing
29 dwelling accommodations for persons of low-income, and to cooperate with the
30 city, the county, the state or any political subdivision thereof in action
31 taken in connection with such problems; and to engage in research, studies and
32 experimentation on the subject of housing.
33 (l) To participate in cooperative ventures with any agencies, organiza-
34 tions and individuals in order to undertake the provision of housing for per-
35 sons of low-income, to undertake the provision of nonprofit facilities, eco-
36 nomic development projects or agricultural facilities.
37 (m) To provide research and technical assistance to eligible agencies,
38 organizations and individuals eligible to develop low cost housing and to
39 research new low cost housing development and construction methods.
40 (n) To make and undertake commitments to make or participate in the mak-
41 ing of mortgage loans to persons of low-income and to housing sponsors,
42 including without limitation federally insured mortgage loans, and to make
43 temporary loans and advances in anticipation of permanent loans to housing
44 sponsors; said mortgage loans to housing sponsors shall be made to finance the
45 construction, improvement, or rehabilitation of housing projects for persons
46 of low-income, and/or mixed income housing projects upon the terms and condi-
47 tions set forth in this act chapter; provided, however, that such loans shall
48 be made only upon the determination by the association that mortgage loans are
49 not otherwise available, wholly or in part, from private lenders upon reason-
50 ably equivalent terms and conditions.
51 (o) To purchase, or make commitments to purchase or participate in the
52 purchase of mortgage loans from mortgage lenders which loans have been made
53 for the construction, improvement, or rehabilitation of housing projects for
54 persons of low-income and/or mixed income housing projects or loans which have
55 been made to persons of low-income for residential housing, upon terms set
1 forth in this act chapter; provided, however, that any such purchase shall be
2 made only upon the determination by the association that the mortgage loans to
3 be made are not otherwise being made by mortgage lenders upon reasonably
4 equivalent terms and conditions. Also, to purchase, or make commitments to
5 purchase or participate in the purchase of mortgage loans from mortgage lend-
6 ers whether or not said loans were made to persons of low-income, upon terms
7 set forth in this act chapter; provided, however, that the proceeds from such
8 purchase or the equivalent thereof shall be reinvested in obligations of the
9 association, in mortgage loans to persons of low-income or in mortgage loans
10 for housing projects for persons of low-income and/or mixed income housing
11 projects, and provided that any such purchase shall be made only upon the
12 determination by the association that the mortgage loans to be made are not
13 otherwise being made by mortgage lenders upon reasonably equivalent terms and
15 (p) To provide interim financing for housing projects including mixed
16 income housing projects approved by the association, provided that the associ-
17 ation has determined that such financing is not otherwise available from mort-
18 gage lenders upon reasonably equivalent terms and conditions.
19 (q) To prescribe rules and policies in connection with the performance of
20 its functions and duties.
21 (r) To do all other things deemed necessary and desirable to accomplish
22 the objectives of this act chapter.
23 (s) To borrow money and issue bonds and notes or other obligations, to
24 invest the proceeds thereof in any lawful manner and to fund or refund the
25 same, and to provide for the rights of the holders of its obligations as pro-
26 vided in this act chapter and in connection therewith, to waive, by resolution
27 or other document of the association, the exemption from federal income taxa-
28 tion of interest on any of the association's obligations under existing or
29 future federal law and to establish, maintain and preserve the association's
30 general obligation rating and any rating on its bonds, notes or other obliga-
32 (t) To receive and accept aid or contributions from any source.
33 (u) To employ architects, engineers, attorneys, accountants, housing con-
34 struction and financial experts and such other advisors, consultants and
35 agents as may be necessary in its judgment and to fix their compensation.
36 (v) To insure mortgage payments of any mortgage loan made for the purpose
37 of constructing, rehabilitating, purchasing, leasing, or refinancing housing
38 projects upon such terms and conditions as the association may prescribe.
39 (w) To fix and revise from time to time and charge and collect fees and
40 charges in connection with loans made or other services provided by the asso-
41 ciation pursuant to this act chapter, and to make and publish rules respecting
42 the making and purchase of mortgage loans.
43 (x) To organize a nonprofit corporation to assist the association in pro-
44 viding for housing projects.
45 (y) To enter upon and inspect any housing project, including housing
46 projects undertaken by housing sponsors, for the purpose of investigating the
47 physical and financial condition thereof, and its construction, rehabilita-
48 tion, operation, management and maintenance, and to examine all books and
49 records with respect to capitalization, income and other matters relating
51 (z) To order such alterations, changes or repairs as may be necessary to
52 protect the security of its investment in a housing project or the health,
53 safety, and welfare of the occupants thereof.
54 (aa) To make or purchase secured loans for the purpose of providing tempo-
55 rary or permanent financing or refinancing of all or part of the project costs
1 of any nonprofit facility, economic development project or agricultural facil-
2 ity, including the refunding of any outstanding obligations, mortgages or
3 advances issued, made or given by any person for the project costs of a non-
4 profit facility, economic development project or agricultural facility; pro-
5 vided that private financial institutions shall be involved in providing such
6 financing for economic development projects, and further, that the association
7 will work with private financial institutions as the primary or preferred
8 credit enhancement providers if credit enhancement is needed for such
9 financings, and to charge and collect interest on the loans for the loan pay-
10 ments upon such terms and conditions, including without limitation bond rating
11 and issuance conditions, as the board of commissioners considers advisable
12 which are not in conflict with this chapter.
13 (bb) As security for the payment of the principal of and interest on any
14 revenue bonds issued and any agreements made in connection therewith, to mort-
15 gage, pledge, or otherwise encumber any or all of nonprofit facilities, eco-
16 nomic development projects or agricultural facilities or any part or parts
17 thereof, whether then owned or thereafter acquired, and to assign any mortgage
18 and repledge any security conveyed to the association, to secure any loan made
19 by the association and to pledge the revenues and receipts therefrom.
20 (cc) To issue bonds for the purpose of financing all or part of the proj-
21 ect cost on any nonprofit facility, economic development project or agricul-
22 tural facility and to secure the payment of the bonds as provided in this
24 (dd) To purchase or sell by installment contract or otherwise, and convey
25 all or any part of any nonprofit facility, economic development project or
26 agricultural facility for such purchase price and upon such terms and condi-
27 tions as this board of commissioners considers advisable which are not in con-
28 flict with this chapter.
29 (ee) To lease all or any part of any nonprofit facility, economic develop-
30 ment project or agricultural facility for such rentals and upon such terms and
31 conditions, including options to purchase, as the board of commissioners con-
32 siders advisable and not in conflict with this chapter.
33 (ff) To construct and maintain one (1) or more nonprofit facilities, eco-
34 nomic development projects or agricultural facilities, provided that the asso-
35 ciation shall not operate any nonprofit facility, economic development project
36 or agricultural facility as a business other than as lessor, seller or lender.
37 The purchase, holding and enforcing of mortgages, deeds of trust, or other
38 security interests and contracting for any servicing thereof is not considered
39 the operation of a nonprofit facility, economic development project or agri-
40 cultural facility as a business.
41 (gg) To act as the designated housing resource clearinghouse in the state
42 for matters relating to affordable housing.
43 (hh) To coordinate the development and maintenance of a housing policy for
44 the state.
45 (ii) To enter into agreements or other transactions and accept grants,
46 reimbursements or other payments, with the cooperation of the United States or
47 any agency thereof or of the state of Idaho or any agency thereof or munici-
48 pality of the state in furtherance of the purposes of this act, including, but
49 not limited to, the development, maintenance, operation and financing of any
50 transportation project and to do any and all things necessary in order to
51 avail the association of such aid and cooperation.
52 (jj) To borrow money and issue bonds and notes or other evidences of
53 indebtedness thereof as hereinafter provided to finance transportation proj-
54 ects approved and recommended by the transportation board.
1 SECTION 4. That Section 67-6207A, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 67-6207A. ADDITIONAL POWERS. In addition to all other powers, the associ-
4 ation also shall have the following specific powers:
5 (a) To make and publish rules respecting making mortgage loans pursuant
6 to this act, the regulations of borrowers, housing sponsors, mortgage lenders,
7 and the construction of ancillary commercial facilities.
8 (b) To make rules respecting the qualifications for admission to housing
9 projects pursuant to this act chapter.
10 (c) To invest in, purchase, sell, or to make commitments to purchase, and
11 take assignments from lenders, of notes and mortgages or other obligations
12 evidencing loans for housing projects, loans for nonprofit facilities, loans
13 for economic development projects or loans for agricultural facilities, at
14 public or private sale, with or without public bidding.
15 (d) To make loans to mortgage lenders under terms and conditions requir-
16 ing the proceeds thereof to be used by such mortgage lenders for the making of
17 new mortgage loans for housing projects.
18 (e) To enter into mortgage insurance agreements with mortgage lenders in
19 connection with the lending of money by such institutions for housing proj-
21 (f) Subject to any agreement with bondholders or noteholders, to collect,
22 enforce the collection of, and foreclose on any collateral securing its loans
23 to mortgage lenders and acquire or take possession of such collateral and sell
24 the same at public or private sale, with or without public bidding, and other-
25 wise deal with such collateral as may be necessary to protect the interest of
26 the association therein.
27 SECTION 5. That Section 67-6223, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 67-6223. BORROWING POWER -- FINANCIAL ASSISTANCE -- COOPERATION WITH
30 STATE AND FEDERAL GOVERNMENT. In addition to the powers conferred upon the
31 association by other provisions of this act chapter, the association is empow-
32 ered to administer any other state, private or federal assistance program
33 including without limitation all tax credit programs, guaranty, loan or
34 investment funds and block grants and to borrow money or accept contributions,
35 grants or other financial assistance or investment from private sources or
36 from the state or federal government for or in aid of any housing project,
37 nonprofit facility, economic development project or agricultural facility
38 within its area of operation, to take over or lease or manage any housing
39 project, nonprofit facility, economic development project or agricultural
40 facility or undertaking constructed or owned by the federal government, and to
41 these ends, to comply with such conditions and to make such trust indentures,
42 leases or agreements as may be necessary, convenient or desirable. It is the
43 purpose and intent of this act to authorize the association to do any and all
44 things necessary or desirable to secure the financial aid or cooperation of
45 the state or federal government in the undertaking, construction, maintenance
46 or operation of any housing project, nonprofit facility, economic development
47 project or agricultural facility by the association. The association is spe-
48 cifically authorized to work with the Idaho department of agriculture in con-
49 nection with any loan for an agricultural facility and the Idaho department of
50 agriculture shall assist in the provisions of such loans.
51 SECTION 6. An emergency existing therefor, which emergency is hereby
1 declared to exist, this act shall be in full force and effect on and after its
2 passage and approval.
STATEMENT OF PURPOSE
The bill would amend the enabling legislation of the Idaho
Housing and Finance Association (IHFA) to permit the financing of
economic development projects through the issuance of revenue
bonds by IHFA. No assets of the state will be pledged for
issuance of the bonds. These amendments will permit the
financing of industrial, commercial, and other projects to
promote economic development throughout the state in partnership
with private financial institutions and state or local economic
development entities and will allow the pooling of loans for such
projects to save financing transaction costs. Financing of these
projects will still be permitted to the extent available through
local issuers. However, some areas of the state do not have
local issuers established to issue such bonds. The amendments
would provide for a central, statewide point of contact for
issuance of bonds for economic development projects.
No expenditure of state funds is expected as a result of these
amendments. To the extent that additional economic development
results from the bonds provided for in these amendments, a net
benefit of additional tax revenue could be expected.
Name: Steve Rector, Idaho Housing
STATEMENT OF PURPOSE/FISCAL NOTE H 198