Title 15 . Revenue

Chapter 151 . (Repealed)

Section 950. Definitions

15 AAC 151.950. Definitions

(a) In addition to the definitions provided at 15 AAC 150.900, the following terms have the following meanings for purposes of 15 AAC 151.010 - 15 AAC 151.250:

(1) "Code" means section 103A of the Internal Revenue Code of 1954, as amended, Section 143 of the Internal Revenue Code of 1986, as amended, and the regulations (including temporary, final, and proposed regulations) of the United States Department of Treasury or of the Internal Revenue Service published in the Federal Register with respect to either of those sections;

(2) "program" or "special mortgage loan purchase program" means the special mortgage loan purchase program established in AS 18.56.098 ;

(3) "qualified mortgage bond" means a bond the interest on which is excludible from gross income for federal income tax purposes pursuant to the Code; and

(4) "residence" means an owner-occupied single-family residence or duplex as described in, and subject to the conditions of, 15 AAC 151.110.

(b) In addition to the definitions provided at 15 AAC 150.900 and at (a) of this section, the following terms have the following meanings for purposes of 15 AAC 151.300 - 15 AAC 151.340:

(1) "dependent" means a person who:

(A) resides with the borrower for more than six months of the year, is under the age of 18, and is in the legal custody of the borrower; or

(B) the borrower declares as a dependent for federal income tax purposes except:

(i) the borrower's spouse; or

(ii) a child of the borrower who is in the custody of, and resides away from the borrower for a majority of each year, with another parent or legal guardian.

(2) "family" means, with respect to an individual, that individual's brothers and sisters (whether by whole or half blood), spouse, ancestors and lineal descendents;

(3) "family income" is defined as the gross monthly income of the mortgagor or mortgagors, family members over the age of 21 who occupy the dwelling on a permanent basis, and other individuals over the age of 18 who occupy the dwelling on a permanent basis, multiplied by twelve, and "gross monthly income" is the sum of monthly income items set forth in the Seller's Guide.

(4) "interest rate subsidy" means the assistance provided an applicant in the form of a subsidized interest rate on the first $50,000 of a mortgage loan. The subsidized interest rate is established in accordance with AS 18.56.098 (g). No assistance agreement or annual recertification is needed if only an interest rate subsidy has been granted;

(5) "payment subsidy" means the assistance provided an applicant in the form of a reduced principal and interest payment in accordance with 15 AAC 154.020(c) ;

(6) "severely and permanently disabled" means a borrower who:

(A) has provided a written statement from a physician stating that the nature of the individual's disability is permanent;

(B) has established that the disability caused a decrease in family income exceeding 25 percent; and

(C) can establish that the borrower is severely disabled through:

(i) proof of eligibility as a blind or disabled person under the federal supplemental security income program (42 U.S.C. 1381 - 1385) or the federal disability insurance benefits program (42 U.S.C. 423); or

(ii) a statement of eligibility from the Board of Vocational Rehabilitation.

(c) In addition to the definitions provided at 15 AAC 150.900 and at (a) of this section, the following terms have the following meanings for purposes of 15 AAC 151.400 - 15 AAC 151.440:

(1) "allowable costs" means all costs for land acquisition and for the construction of senior housing but excluding, developer's profit, fee and overhead;

(2) "allowable developmental costs" means all costs for land acquisition and for the construction of senior housing including developer's profit, fee and overhead acceptable to the Corporation;

(3) "commercial use facility" means an establishment that is primarily engaged in providing to the general public, products or services that are not directly related to the day-to-day needs of seniors;

(4) "duplex senior housing" means housing with two living units;

(5) "four-plex senior housing" means housing with four living units;

(6) "improvement" means the repair, remodeling, or expansion of the senior housing, including, on-site water and sewer installations, and other on-site utility installations;

(7) "operational apparatus" means the fixtures, furnishings, equipment and machinery and the like required to operate the senior housing;

(8) "project" means senior housing project;

(9) "rehabilitation" means the restoration of damaged or deteriorated housing to meet both the present and future needs of seniors;

(10) "senior housing" means construction or improvement undertaken primarily to provide dwelling accommodations with related services and support facilities for older individuals of senior households, including conventional housing, housing for frail elderly, group homes, congregate housing, residential horizontal property regimes organized under AS 34.07, residential cooperatives organized under AS 10.15 or AS 34.08, residential condominiums organized under AS 34.08, and other housing that meets special needs of the elderly; "senior housing" includes acquisition, construction, or rehabilitation of land, buildings, improvements, and other non-housing facilities that are incidental or appurtenant to the housing:

(A) "senior households": means households that consist exclusively of:

(i) two or more individuals that are related to each other at least one of whom is 60 years of age or older;

(ii) the surviving spouse of an individual who (a) was at least 60 years of age or older at the time of his or her death and (b) was living in the senior housing unit with the surviving spouse at the time of his or her death;

(iii) an individual who is 60 years of age or older; or

(iv) an individual or individuals described in (i), (ii) or (iii) of this paragraph and others, regardless of their ages, who are essential to the care or well being of the individual or individuals.

(B) in the event a senior housing facility is experiencing or anticipates experiencing economic distress, the minimum age may be lowered to 55 for an interval of time as determined by the Corporation. A request under this provision must:

(i) be in writing and specifically described the economic distress requiring the modification;

(ii) be accompanied by specific financial and market information supporting the borrower's request;

(iii) provide any other information and reasons in support of the request, and

(iv) provide proposed solutions to alleviate the economic distress.

(11) "senior housing project" means senior housing with five or more living units;

(12) "single-family senior housing" means housing with one living unit that might or might not be attached to another living unit; and

(13) "triplex senior housing" means housing with three living units.

(d) In addition to the definitions provided at 15 AAC 150.900 and at (a) of this section, the following terms have the following meanings for the purposes of 15 AAC 151.500 - 15 AAC 151.550:

(1) "allowable costs" means all costs for land acquisition and for the construction, rehabilitation or improvement of multi-family, congregate and special needs housing as well as other costs approved by the Corporation but excluding, developer's profit, fee and overhead;

(2) "allowable developmental costs" means all costs for land acquisition and for the construction rehabilitation or improvement of multi-family, congregate and special needs housing as well as other costs approved by the Corporation including developer's profit, fee and overhead acceptable to the Corporation;

(3) "congregate housing" means multi-family housing that has service(s) integrated into the housing and in which there may be some sharing of common facilities such as kitchen and sanitation;

(4) "congregate service" means a service or activity that is common (available) to all residents of the housing which may include, but is not limited to, general housekeeping, meal service, counseling, job training, medical care, or child care;

(5) "housing for the elderly" means construction or improvement undertaken primarily to provide dwelling accommodation with related services and support facilities for senior households, including conventional housing, housing for the frail elderly, group homes, congregate housing, residential horizontal property regimes organized under AS 34.07, residential housing organized under the Uniform Common Interest Ownership Act, AS 34.08, residential cooperatives organized under AS 10.15 or other housing that meets the special needs of the elderly; "housing for the elderly" includes acquisition, construction, or rehabilitation of land, buildings, improvements, and other non-housing facilities that are incidental or appurtenant to the housing:

(A) "senior households": means households that consist exclusively of:

(i) two or more individuals that are related to each other at least one of whom is 60 years of age or older;

(ii) the surviving spouse of an individual who (a) was at least 60 years of age or older at the time of his or her death and (b) was living in the senior housing unit with the surviving spouse at the time of his or her death;

(iii) an individual who is 60 years of age or older; or

(iv) an individual or individuals described in (i), (ii), or (iii) of this paragraph and others, regardless of their ages, who are essential to the care or well being of the individual or individuals.

(B) in the event a senior housing facility is experiencing or anticipates experiencing economic distress, the minimum age may be lowered to 55 for an interval of time as determined by the Corporation. A request under this provision must:

(i) be in writing the specifically describe the economic distress requiring the modification;

(ii) be accompanied by specific financial and market information supporting the borrower's request;

(iii) provide any other information and reasons in support of the request; and

(iv) provide proposed solutions to alleviate the economic distress.

(6) "improvement" means the repair, remodeling, or expansion of the housing, including, on-site water and sewer installations, and other on-site utility installations;

(7) "multi-family housing" means a building or a group of buildings, improvements or structures, including land, used or useful for housing persons and which may have related facilities, including without limitations, day care and other support facilities. "Multi-family housing" may be on contiguous, non-contiguous or scattered sites and may include operational apparatus;

(8) "operational apparatus" means the fixtures, furnishings, equipment, machinery and the like required to operate the housing and congregate services;

(9) "rehabilitation" means the restoration of damaged or deteriorated housing to meet both the present and future needs of it residents;

(10) "special needs housing" means residential housing, including operational apparatus, designed to meet the needs of persons with specific and special housing needs, including supportive services. Special needs housing includes:

(A) housing for the elderly;

(B) individuals with a disability;

(C) individuals with mental illness;

(D) emergency shelter for the homeless; and

(E) transitional housing.

"Special needs housing" may be on contiguous, non-contiguous or scattered sites and may include operational apparatus;

(11) "subordinate financing" means a loan made by the corporation that is either subordinate in lien position to another loan the Corporation has made and/or subordinate to other acceptable superior liens on the housing.

(e) In addition to the definitions provided at 15 AAC 150.900 and at (a) of this section, the following terms have the following meanings for purposes of 15 AAC 151.710 - 15 AAC 151.850:

(1) "code" means 26 U.S.C. section 42, as amended;

(2) "housing credit ceiling amount" means the annual amount established for allocation in the state under 26 U.S.C. section 42(h)(3)(C);

(3) "housing tax credit" or "low-income housing tax credit" means the tax credit which may be allocated by the Corporation to a qualified building from the Corporation's annual housing credit ceiling amount under the code and regulations adopted under applicable federal law;

(4) "qualified nonprofit organization" means an organization described in 26 U.S.C. section 501(c)(3) and (4) and exempt from tax under 26 U.S.C. section 501(a) and that meets the requirements of 26 U.S.C. section 42(h)(5)(B), (C), and (D);

(5) "tax credit year" means the calendar year in which a project will be placed in service and for which an allocation of low-income housing tax credit is made;

(6) "compliance period" means the period beginning on the first day of the first taxable year of the credit period of a building and ending fifteen (15) years from such date or as provided in an agreement made pursuant to 26 U.S.C. section 42 (h)(6);

(7) "qualified allocation plan" means a plan developed by the Corporation under the guidelines referred to in 26 U.S.C. section 42(m)(B)(i);

(8) "eligible basis" means properly capitalized and depreciable costs, including furnishings and other personal property, not including land and other separately capitalized costs;

(9) "qualified basis" is equal to the applicable fraction multiplied by the eligible basis; and

(10) "applicable fraction" means the fraction of a project's eligible basis attributable to the acquisition and rehabilitation or construction of the low-income units in the project; the fraction is equal to the lesser of the percentage of low-income units in the project or the percentage of floor space attributable to the low-income units in the project.

History: Eff. 5/7/93, am 4/22/94, Register 130; am 9/23/97, Register 145; am 10/21/98, Register 148; am 2/24/99, Register 149; am 9/22/99, Register 152

Authority: AS 18.55.100

AS 18.55.110

AS 18.55.240

AS 18.55.420

AS 18.56.088

AS 18.56.090

AS 18.56.099

AS 18.56.100

AS 18.56.730

Editor's note: Before Register 130, July, 1994, the substance of 15 AAC 151.950 was contained in 15 AAC 118.342, 3 AAC 98.490 and 19 AAC 89.900. The history note for 15 AAC 151.950 does not reflect the history of the sections under those numbers.