(a) There is created in the corporation the home ownership assistance fund consisting of money appropriated to it by the legislature and deposited in it by the corporation. Money in the fund shall be used solely to assist persons of lower and moderate income to purchase or construct single-family homes financed under Alaska Stat. § 18.56.400 – 18.56.600 by providing a subsidy to those persons.
Terms Used In Alaska Statutes 18.56.430
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
(b) The subsidy provided by this section may not exceed the amount that is necessary to reduce the annual interest rate paid on the mortgage loan to six percent.(c) A mortgage loan that is subsidized from the home ownership assistance fund may not exceed $120,000.(d) The corporation shall adopt regulations that establish maximum income-to-loan payment ratios for persons who apply for a subsidy under this section.(e) In this section, “persons of lower and moderate income” means individuals considered by the corporation to require assistance under this section because of inadequate income or other limited personal financial resources, taking into consideration
(1) the amount of total income available for housing needs;(2) the size of the family;(3) the cost and condition of available housing;(4) standards established in various federal programs for determining eligibility based on income;(5) the ability to enter the private housing market and to pay market amounts for decent, safe, and sanitary housing; and(6) other factors considered relevant by the corporation.
