The bill proposes an amendment to the Alaska Housing Finance Corporation's loan interest rate structure, specifically targeting small community and multi-family housing loans. It seeks to increase the threshold for lower interest rates on these loans from $250,000 to $400,000. This change means that loans up to $400,000 will benefit from a reduced interest rate, set at one percent less than the standard rate determined by previous bond issues.

The amendment modifies AS 18.56.470(a) to reflect this new loan limit, ensuring that borrowers seeking financing for housing in small communities or multi-family units can access more favorable loan terms. The portion of any loan that exceeds the new limit of $400,000 will revert to the standard interest rate as previously established. This adjustment aims to make housing financing more accessible and affordable for Alaskans.

Statutes affected:
HB0226A, AM HB 226, introduced 05/12/2025: 18.56.470