ALASKA HOUSING FINANCE CORPORATION BOARD OF DIRECTORS REGULAR BOD MEETING IN ANCHORAGE February 28, 2018 Anchorage/Fairbanks/Juneau 10:00 a.m. ROLL CALL APPROVAL OF AGENDA MINUTES: January 31, 2018 Next Resolution: #18-04 PUBLIC COMMENTS OLD BUSINESS: NEW BUSINESS: A. Consideration of a term loan request in the amount of $642,000 for the long term financing of a proposed 20 unit affordable multifamily project to be known as Mill Bay Townhomes and located in Kodiak, Alaska. Item withdrawn by staff. B. Consideration of a resolution of the Board of Directors of the Alaska Housing Finance Corporation confirming the desire and intent that the Alaska Corporation for Affordable Housing (ACAH) be granted powers under AS 18.55 and AS 36.30 (18-04) REPORT OF THE CHAIR BOARD COMMITTEE REPORTS: NONE REPORT OF THE EXECUTIVE DIRECTOR ANY OTHER MATTERS TO PROPERLY COME BEFORE THE BOARD X. Monthly Department Reports and Meeting Schedules XI. EXECUTIVE SESSION: Corporation s operational matters that may have an impact on the Corporation s financial matters. Board action related to this matter, if any, will take place in the public session following the Executive Session. **The Chair may announce changes in the Order of Business during the meeting.
ALASKA HOUSING FINANCE CORPORATION BOARD OF DIRECTORS REGULAR MEETING January 31, 2018 Anchorage/Juneau/Fairbanks 10:00 a.m. The Board of Directors of Alaska Housing Finance Corporation met January 31, 2018 in the AHFC boardroom, 4300 Boniface Parkway in Anchorage, AK at 10:00 a.m. Board members present were: BRENT LEVALLEY Anchorage ALAN WILSON Via teleconference CAROL GORE Anchorage MIKE BARNHILL Anchorage CHAIRMAN Member of the Board VICE CHAIRMAN Member of the Board Member of the Board Designee for Commissioner Department of Revenue Member of the Board I. ROLL CALL. A quorum was declared present and the meeting was duly and properly convened for the transaction of business. II. APPROVAL OF AGENDA. CHAIR LEVALLEY proposed the agenda be approved as presented. Seeing and hearing no objections, the agenda was approved as presented. III. MINUTES OF NOVEMBER 29, 2017. CHAIR LEVALLEY asked for revisions or acceptance of the minutes. Seeing and hearing no objection, the minutes were approved as presented. IV. PUBLIC COMMENTS. In Anchorage: no public were present. In Fairbanks: no public were present. In Juneau: no public were present. V. OLD BUSINESS. No Old Business to discuss with the Board. 1
VI. A. CONSIDERATION OF A RESOLUTION FOR FINAL ADOPTION OF AMENDMENTS TO 15 AAC 151.542(G) MULTI-FAMILY LOAN PURCHASE PROGRAM. BRYAN BUTCHER introduced the item and ERIC HAVELOCK presented. Mr. Havelock stated that at the November 29, 2017 Board of Directors meeting proposed amendments to AHFC s Multifamily Loan Purchase Program loan commitment fee structure and length of term availability were presented. The Board passed a resolution directing staff to hold a public hearing. A public hearing was held in Anchorage at 3:00 p.m. on December 20 th, 2017. There were no members of the public that wished to provide testimony. The intent of the amendment is to amend the Multifamily Loan Purchase Program loan commitment fee structure to increase commitment fees for longer-term commitments. Staff recommends the Board s adoption of the attached resolution amending the regulations as proposed. Discussion followed. CAROL GORE made a motion to approve Resolution 2018-01. ALAN WILSON seconded the motion. The resolution was unanimously approved. (4-0) RESOLUTION #2018-01 RESOLUTION AMENDING 15 AAC 151.542(G) MULTIFAMILY LOAN PURCHASE PROGRAM. VI. B. CONSIDERATION OF A RESOLUTION FOR FINAL ADOPTION TO REPEAL 15 AAC 150.040(D) COMPLIANCE WITH BUILDING ENERGY EFFICIENCY STANDARD. BRYAN BUTCHER introduced the item and MICHELLE GRAVES presented. Ms. Graves stated that at the November 29, 2017 Board of Directors meeting, a proposed amendment to repeal the requirement that the proof of compliance to the building energy efficiency standard be recorded was presented. The Board passed a resolution directing staff to hold a public hearing. A public hearing was held in Anchorage at 1:00 p.m. on December 20, 2017. At the public hearing on December 20, 2017, there were no members of the public that wished to provide comments. As a result of a public request, a second public hearing was held in Anchorage at 3:00 p.m. on January 12, 2018. At the public hearing on January 12, 2018, there were two members of the public on line wanting more clarification on the proposed regulation amendment. At the end of the discussion, they understood the amendment and were in support of removing the requirement to record the PUR-101. There were no public comments in opposition to the proposed amendment. Several written comments were received in support and very few with any opposition of the proposed amendment. The intent of the amendment is to repeal the requirement that the proof of compliance with building energy efficiency standard be recorded. Staff recommends the Board s adoption of the resolution amending the regulation as proposed. Discussion followed. ALAN WILSON made a motion to approve Resolution 2018-02. CAROL GORE seconded the motion. The resolution was unanimously approved. (4-0) 2
RESOLUTION #2018-02 RESOLUTION REPEALING 15 AAC 150.040(D) COMPLIANCE WITH BUILDING ENERGY EFFICIENCY STANDARD. OFF RECORD: 10:12 A.M. AT EASE ON RECORD: 10:13 A.M. VI. C. CONSIDERATION OF A RESOLUTION FOR FINAL ADOPTION OF AMENDMENTS TO ADD A NEW SUBSECTION 15 AAC 155.030(A)(6) TO 15 AAC 155.030(A) COMPLIANCE WITH THE STANDARD AND FINAL ADOPTION TO REPEAL 15 AAC 155.030(F) COMPLIANCE WITH THE STANDARD. BRYAN BUTCHER introduced the item and MICHELLE GRAVES presented. Ms. Graves stated that At the November 29, 2017 Board of Directors meeting, a proposed amendment to add a new subsection to clarify when a condominium building is in compliance with 15 AAC 155.010 was presented along with a proposed amendment to repeal the requirement that the evidence of compliance be recorded. The Board passed a resolution directing staff to hold a public hearing. A public hearing was held in Anchorage at 2:00 p.m. on December 20, 2017. At the public hearing on December 20, 2017, there were two members of the public on line wanting more clarification on the proposed regulation amendment. At the end of the discussion, they understood the amendment and were in support of the proposed amendment to clarify when a condominium building is in compliance and the repeal of the requirement to record the evidence of compliance. There were no public comments in opposition to these proposed amendments. In addition, no written comments were received. The intent of the amendment is to clarify when a condominium building is in compliance so that all units in the complex can be financed by AHFC s loan programs. The second part of this amendment is to repeal the requirement that the evidence of compliance be recorded. Staff recommends the Board s adoption of the attached resolution amending the regulation as proposed. Discussion followed. ALAN WILSON made a motion to approve Resolution 2018-03. CAROL GORE seconded the motion. The resolution was approved. (4-0) RESOLUTION #2018-03 RESOLUTION AMENDING 15 AAC 155.030(A) COMPLIANCE WITH THE STANDARD TO ADD A NEW SUBSECTION 15 ACC 155.030(A)(6), AND TO REPEAL 15 ACC 155.030(F). 3
VI. D. RESIDENT ADVISORY BOARD REPORT TO THE AHFC BOARD OF DIRECTORS. BRYAN BUTCHER introduced the item and CATHY STONE presented. Ms. Stone gave an overview of the Resident Advisory Board of Directors meeting that was held recently. Discussion followed. No action was requested nor required of the Board. VII. REPORT OF THE CHAIR. CHAIR LEVALLEY stated that the next meetings will be February 28, 2018 in Anchorage along with NTSC Annual Meetings. Chair LeValley thanked complimented GRPA on the AHFC Annual report and the AHFC newsletter. VIII. BOARD COMMITTEE REPORTS. Alan Wilson gave an overview of the Audit Committee meeting that was held earlier today. IX. REPORT OF THE EXECUTIVE DIRECTOR. BRYAN BUTCHER reported on: 1.) NCSHA Executive Forum and the Tax reform bill (Sun-Tues 12/3-12/5, 11/3); 2.) Fairbanks Housing and Homeless Symposium (Wed 12/6); 3.) Joe Beedle retirement from Northrim (Tue 12/12); 4.) Dan Fauske citation event (Wed 12/13); 5.) Representative Pruitt tour of district (Fri 12/15); 6.) Resident holiday parties for Chugach Manor and Chugiach View (Wed 12/20 and Thurs 12/21); 7.) Meeting with AEA ED Janet Reiser (Fri 1/12); 8.) Foraker meetings where Bryan Butcher was elected Chairman of the Board (Thurs 1/18); 9.) Due Diligence trip to New York to consult with rating agencies (Mon 1/22 Thurs 1/25); 10.) Meeting with the new ANC City Manager Bill Falsey concerning homelessness (Fri 1/26); 11.) Kim Coy, AHFC s Compliance Officer, retires after 30 years with the Corporation on 1/31/18; 12.) Meeting coming up with USDA Director Jerry Ward (Fri 2/2); 13.) State Homebuilders Conference in Juneau (Mon 2/5 Tues 2/6). X. OTHER MATTERS. CHAIR LEVALLEY asked if there were any other matters to properly come before the board. 1. Monthly Loan Reports. Finance, Mortgage, PHD and R2D2 reports were presented for discussion and review. 2. Schedule of Board Meetings: NTSC Annual Membership & BOD AHFC BOD Meeting February 28, 2018 February 28, 2018 9:30am 10:00am Anchorage Anchorage XI. EXECUTIVE SESSION: CORPORATION S OPERATIONAL MATTERS THAT MAY HAVE AN IMPACT ON THE CORPORATION. No Executive Session was required today. 4
XII. OTHER MATTERS. CHAIR LEVALLEY asked if there were any other matters to properly come before the board. ALAN WILSON made a motion to adjourn. Seeing and hearing no objections, the meeting was adjourned at 11:17 a.m. ATTESTED: Brent LeValley Board Chair Bryan Butcher CEO/Executive Director 5
ALASKA HOUSING FINANCE CORPORATION BOARD CONSIDERATIO MEMORANDUM Date: February 28, 2018 Staff: Cathy Stone Item: Articles of Amendment Background: AS 18.56.086 allows the Alaska Housing Finance Corporation (AHFC) to create subsidiary corporations for various purposes, including for the acquisition, development, management, or operation of affordable housing. That statute provides that when created, the subsidiary corporation has all of the powers of [AHFC] that [AHFC] grants to it. AHFC incorporated the Alaska Corporation for Affordable Housing (ACAH) as permitted by AS 18.56.086. In the ACAH articles of incorporation, AHFC granted to ACAH the powers AHFC has under AS 18.56. The Board of Directors of ACAH passed Resolution 2018-1 which provides for amendment to ACAH s articles of incorporation to expressly clarify that ACAH was granted powers AHFC possesses under AS 18.55 (which includes powers useful for developing housing) and AS 36.30 (which exempts AHFC from the state procurement code). These additional powers will be useful for ACAH to fulfill its intended purpose to develop affordable housing. ACAH Resolution 2018-1 provides that the articles of amendment may not be filed with the Department of Commerce, Community and Economic Development unless the Board of Directors of AHFC passes a resolution confirming AHFC desires, intends, and ratifies that powers under AS 18.55 and AS 36.30 be granted to ACAH. AHFC Resolution No. 2018-05 confirms AHFC s desire and intent. Recommendation: Approve resolution confirming AHFC desires and intends that powers under AS 18.55 and AS 36.30 be granted to ACAH.
BOARD RESOLUTION OF ALASKA HOUSING FINANCE CORPORATION RESOLUTION 18-04 RESOLUTION OF THE BOARD OF DIRECTORS OF THE ALASKA HOUSING FINANCE CORPORATION CONFIRMING THE DESIRE AND INTENT THAT THE ALASKA CORPORATION FOR AFFORDABLE HOUSING BE GRANTED POWERS UNDER AS 18.55 AND AS 36.30 WHEREAS, the Alaska Housing Finance Corporation (AHFC) incorporated the Alaska Corporation for Affordable Housing (ACAH) as permitted by AS 18.56.086, and WHEREAS, in the ACAH articles of incorporation, AHFC granted to ACAH the powers AHFC has under AS 18.56, but did not expressly grant powers AHFC has under AS 18.55 and AS 36.30, and WHEREAS, the Board of Directors of ACAH in Resolution No. 2018-1 adopted amendments to ACAH s articles of incorporation that will expressly clarify that ACAH has all of the powers AHFC possesses under AS 18.55 and AS 36.30, and WHEREAS, ACAH Resolution No. 2018-1 provides that ACAH will not file the articles of amendment with the Department of Commerce, Community and Economic Development until after the AHFC Board of Directors by resolution confirms that AHFC desires, intends and ratifies that ACAH is granted the powers identified in AS 18.55 and AS 36.30. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors that AHFC confirms its desire and, intent, and ratifies, that ACAH is granted the powers identified in AS 18.55 and AS 36.30. PASSED AND APPROVED by the Board of Alaska Housing Finance Corporation this 28 th day of February, 2018. Brent LeValley Board Chair 1
ALASKA HOUSING FINANCE CORPORATION Finance Board Report JANUARY 2018 Current Month 1 Year Ago 2 Years Ago 1 Year Ago 2 Years Ago 01/31/18 01/31/17 01/31/16 % Change % Change Total Mortgage Portfolio 3,099,427,715 2,914,128,319 2,842,688,154 6% 9% 12-Month Mortgage Change 185,299,396 71,440,165 149,097,211 159% 24% Mortgage Average Rate % 4.55% 4.62% 4.72% (2%) (4%) Delinquency % (30+ Days) 3.59% 3.90% 3.74% (8%) (4%) Foreclosure % (Annualized) 0.33% 0.35% 0.38% (6%) (13%) Total Bonds Outstanding 2,164,590,000 2,116,545,000 2,102,200,000 2% 3% 12-Month Bond Change 48,045,000 14,345,000 (89,140,000) 235% N/A Bond Average Rate % 3.63% 3.63% 3.69% 0% (2%) Unhedged Variable Rate % 13.4% 9.0% 9.0% 49% 49% Mortgage/Bond Spread % 0.92% 0.99% 1.03% (7%) (11%) Mortgage/Bond Ratio 1.43 1.38 1.35 4% 6% Total Cash & Investments 589,908,706 681,142,506 663,556,608 (13%) (11%) Annualized Return % 0.97% 0.64% 0.42% 52% 131% 35% 30% 25% AHFC Mortgage Portfolio Comparison by Program January 2009 January 2018 20% 15% 10% 5% 0% Exempt FTHB Exempt Vets Rural Taxable Conven Taxable FTHB Multi Family/SN Non Conforming 60% 50% AHFC Bond Portfolio Comparison by Structure Type January 2009 January 2018 40% 30% 20% 10% 0% Fixed Rate Housing Fixed Rate Gen Ob Floating Hedged Floating Unhedged C:\Users\mstrand\Documents\Disclosure\201801_CAS\MLS
JANUARY 2018 ($ in Thousands) ALASKA HOUSING FINANCE CORPORATION Financial Statement Report Current Year 1 Year Ago 2 Years Ago 1 Year Ago 2 Years Ago FY2018 Q2 FY2017 Q2 FY2016 Q2 % Change % Change Mortgage and Loan Revenue 66,422 65,159 64,009 2% 4% Externally Funded Programs 42,806 44,154 59,790 (3%) (28%) Total Investment Income 5,028 3,604 2,600 40% 93% Other Revenues 6,936 7,703 6,345 (10%) 9% Total Operating Revenues 121,192 120,620 132,744 0% (9%) Interest Expenses 34,220 34,839 35,644 (2%) (4%) Housing Grants and Subsidies 33,217 40,845 50,949 (19%) (35%) Operations and Administration 23,660 24,172 26,685 (2%) (11%) Other Expenses 12,403 10,500 13,041 18% (5%) Total Operating Expenses 103,500 110,356 126,319 (6%) (18%) Total Operating Income/(Loss) 17,692 10,264 6,425 72% 175% State Contributions (61) (77) (3) 21% (1933%) Change in Net Position 17,631 10,187 6,422 73% 175% Adjusted Change Net Position 26,815 22,078 19,531 21% 37% Dividend Calculation (as of Q2) 20,111 16,559 14,648 21% 37% Total Assets/Deferred Outflows 4,032,178 3,961,531 3,903,796 2% 3% Total Liabilities/Deferred Inflows 2,500,919 2,451,811 2,411,893 2% 4% Net Position 1,531,259 1,509,720 1,491,903 1% 3% 110,000 100,000 90,000 Loan Revenue, Bond Interest & Net Spread Loan Revenue Bond Interest Net Spread 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 2016 Q2 2017 Q2 C:\Users\mstrand\Documents\Disclosure\201801_CAS\MLS
Mortgage Operations MORTGAGE ACTIVITY SUMMARY LOANS PURCHASED BY PROGRAM Monthly Highlights: Most loans purchased in month of January ever on record 178 Lock-Ins in January is third most on record (2012=211, 2010=210) AHFC Board Report: February 28, 2018
Mortgage Operations Real Estate Statistics for: 4th Quarter of 2016 vs. 2017 800 700 600 752 696 Real Estate Statistics: 4th Quarter 2016 vs 2017 500 400 300 200 100 0 404 395 288 255 230 248 140 148 125 128 52 46 22 29 0 0 0 0 0 0 16 9 Anchorage Mat-Su Upper Kenai Lower Kenai Southeast Fairbanks 2016 Residential 2017 Residential 2016 Condo 2017 Condo AHFC Board Report: February 28, 2018
Mortgage Operations Real Estate Statistics for: Year End 2016 vs. 2017 3,500 Real Estate Statistics for: Year End 2016 vs 2017 3,000 2,946 2,799 2,500 2,000 1,500 1,000 500 0 1,846 1,695 1,061 1,090 1,099 993 573 570 486 432 200 206 110 0 0 0 0 0 0 107 48 56 Anchorage Mat-Su Upper Kenai Lower Kenai Southeast Fairbanks 2016 Residential 2017 Residential 2016 Condo 2017 Condo AHFC Board Report: February 28, 2018
Public Housing Operations Update February 2018 Public Housing Units Statewide 1612 Housing Waiting List 3776 Housing Choice Vouchers Vouchers statewide 4397 Voucher Waiting List 2821 jumpstart Family Self-Sufficiency Family Self Sufficiency Total Enrolled 705 Operations Updates: Anchorage Housing Choice Voucher waiting list will open for applications March 1-31 Received HUD approval on FY2017 Moving to Work Report National Moving to Work study completed which indicates Moving to Work agencies are serving more families, improving residents quality of life and economic mobility, and preserving more public housing than comparable non-moving to Work agencies. Finalized Yardi software contract extension and began implementation timeline for new utilization options, including on-line applications, tenant and landlord portals, hand held inspections and others possibilities to improve customer service Multiple long time staff retirements are on the horizon this spring. Facilities Management & Construction Updates: Juneau The VCA/ADA site work at Cedar Park Annex: more work has been identified than originally reported by A&E, work plan is being formulated. Valdez Scope of work drafted for roof repair work at Valdez Arms, Statewide-roofing contractor is responding to issued RFP, no change. Ketchikan Seaview Terrace Fire Suppression and Detection project is out for proposals. Anchorage Scattered site roof replacement is being planned for spring work. Bethel one building is included in the Statewide Roof replacement contract, task order is not issued yet. Facilities Management Extraordinary Maintenance Team (Road Crew): Vacant position is on out for advertisement and will close on the 20 th of February; Bethel structural repair site visit was conducted and the work plan and materials was identified, project is being scheduled for March; Team is working on deferred maintenance projects and preventative maintenance tasks for the corporate properties. Facilities: several Recurring contracts for statewide services are being drafted for advertisement Preventative maintenance program development is still in progress.
Research and Rural Development 4,000 3,500 3,000 2,500 2,616 2,594 3,335 Weatherization Program 3,562 3,037 2,200 2,000 1,500 1,604 1,000 500 391 410 384 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 126 Home Energy Rebate 26,524 New Home Rebate 266 Rebates Initial Ratings 3,371 41,051 Initial Ratings Rebates 5 Star Plus 6 Star Supplemental Housing Development Grant Program SFY 18 Grant Allocations Aleutian Island Housing Authority $300,000 Bristol Bay Housing Authority $300,000 Baranof Island Housing Authority $44,500 Bering Strait Housing Authority $223,207 Cook Inlet Housing Authority $300,000 Copper River Basin Housing Authority $254,030 Interior Regional Housing Authority $300,000 Metlakatla Housing Authority $145,000 Northwest Inupiat Housing Authority $300,000 Tlingit Haida Regional Housing Authority $118,782 Tagiugmiullu Nunamiullu Housing Authority $118,519 Total $2,585,519 February 28, 2018 Research and Rural Development Board Report
Planning and Program Development Update February, 2018 Statewide Homeless and At-Risk Alaskans Inventory Utilization Data Utilization Rates for the January 1 through January 31: 2017 v 2018 Facility Type 2017 Utilization 2018 Utilization Shelter Beds 89.3% 73.3% Transitional Housing 74.9% 61.4% Permanent Supportive Housing 82.7% 87.7% Overall 83.3% 76.0% *SFY 2018 THHP & GOAL Program Award Recommendations have been Issued, but those data are excluded from this graphic because the protest period is still underway.
AHFC BOARD OF DIRECTORS SCHEDULE 2018 January 31, 2018 (AHFC regular & Audit Committee & AHCC Annual Membership & Board) February 28, 2018 (AHFC Regular & NTSC Membership and BOD, ADDED: ACAH Special BOD Meeting) April 25, 2018 (AHFC Regular & Audit Committee) May 30, 2018 (AHFC Regular) June 27, 2018 (AHFC Regular) July 25, 2018 BOD (AHFC Regular & Audit Committee) August 22, 2018 (AHFC Annual) (NCSHA Annual Conference October 13-16 2018 in Austin, TX) October 31, 2018 (AHFC Regular & Audit Committee & ACAH Annual Membership & Board) November 28, 2018 (AHFC Regular & NTSC Annual Membership and Board) Please note that all dates/locations may be subject to change November 2017