Senate Finance Committee adopts CS for HB184, lowers workforce dwelling threshold and repeals sunset on tax exemption

The Alaska Senate Finance Committee on May 5 adopted a finance committee substitute for House Bill 184 that reduces the number of required workforce dwelling units from five to three and repeals a sunset provision that would have removed a tax exemption for certain ADA-owned properties.

Liz Harpold, staff to Senator Olson and the Senate Finance Committee, described the CS: "What this CS does is it changes, the number of workforce dwelling units from 5 to 3, and that's reflected in sections 1, 2, and 4. And additionally, in sections 5 and 6, which are new sections, it repeals, sections 2 and 26 of chapter 64 of 2018 session law. And what this does is it repeals the sunset date of a tax exemption for certain ADA owned properties. This would have gone into effect, November 2027, and it essentially keeps things status quo."

Senator Stedman praised the change, saying the lower threshold "would facilitate a lot more [construction]...Increase the ability for the more local people to build 3 plexes instead of the 5 plexes which would be a higher hurdle for a down payment," and said he hopes local workers — including teachers and public-safety personnel — take advantage of the change to expand workforce housing options.

After debate, Senator Stedman moved to report the committee substitute for HB184 from committee with an attached fiscal note and individual recommendations. There was no objection; Senator Hoffman announced the bill will be referred next to the Rules Committee.

The committee record provided the CS's policy changes and noted the attached fiscal documentation; the transcript does not include a recorded roll-call vote or a detailed fiscal summary read aloud in committee. The committee adjourned following the referral.