HomeMy WebLinkAboutRESOLUTION 2003-17Suggested by: Council
City of Kenai
RESOLUTION NO. 2003-17
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, STATING THE
HARMFUL IMPACTS OF AHFC'S RURAL OWNER-OCCUPIED LOAN PROGRAM ON
THE CITY OF KENAI AND URGING A CHANGE IN THAT PROGRAM SO THE ENTIRE
KENAI PENINSULA IS INCLUDED IN THE PROGRAM BY CHANGING THE DEFINITION
OF "SMALL COMMUNITY."
WHEREAS, under AS 18.56.470(a) the current AHFC rural owner occupied loan
program grants a 1% lower interest rate to houses in "small communities"; and,
WHEREAS, a "small community" is defined as "a community with a population of
6,500 or less that is not connected by road or rail to Anchorage or Fairbanks, or with a
population of 1,600 or less that is connected by road or rail to Anchorage or
Fairbanks; in this paragraph 'connected by road' does not include a connection by the
Alaska marine highway system"; and,
WHEREAS, the definition of small communities contained in AS 18.56.600(2) and 15
AAC 152.990(9) does not include the cities of Kenai, Soldotna, Seward or Homer on
the Kenai Peninsula; and,
WHEREAS, the result of that definition is that many home buyers on the peninsula
can get lower mortgages by purchasing homes outside the existing cities on the
peninsula; and,
WHEREAS, the 1% lower interest rate can provide a substantial financial incentive to
purchase a home outside the cities on the peninsula, and many home buyers have
done so because of that incentive; and, .
WHERAS, the growth of cities within the Kenai Peninsula has been hurt by the 1%
differential; and,
WHEREAS, the line dividing where the 1% differential takes effect can literally be
across the street in some cases; and,
WHEREAS, the policy encourages people to move to areas in the Kenai Peninsula
Borough without city services such as water and sewer, fire, police, and planning and
zoning, causing an increased burden on the Alaska State Troopers, the Department of
Transportation and the Department of Environmental Conservation; and,
WHEREAS, changing the definition of "small community" to include the entire state,
except for the Municipality of Anchorage, the City and Borough of Juneau and the City
of Fairbanks, is in the best interest of the State of Alaska and would eliminate a major
inequity in the program.
Resolution No. 2003-17
Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the definition of "small communities" under Alaska's rural housing
program be changed to include all of Alaska except the~ Municipality of Anchorage, the
City and Borough of Juneau and the City of Fairbanks.
ATTEST:
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of March,
2003. ~--
, WILLIA~'S,'~AYOR
Carol L. Freas, City Clerk
(2/20/03 sp)