Alaska Veterans Benefit From Heroes Bill

ANCHORAGE, AK -- (MARKET WIRE) -- 05/23/08 -- Legislation passed unanimously by both the U.S. House and the U.S. Senate this week provides $1.3 billion in tax benefits for America's active duty and retired military service members and for other public servants.

HR 6081, the Heroes Earnings Assistance and Relief Act of 2008, contains an added bonus for veterans who reside in Alaska. It quadruples the amount of tax-exempt mortgage bonds that the state may issue each year in order to provide veterans lower interest rate mortgages financed through Alaska Housing Finance Corporation.

Under current IRS regulations, the State's authority to issue tax-exempt bonds for qualified veterans' mortgages is capped at $25 million annually. Under the new law, now awaiting the President's signature, the cap is increased to $100 million.

According to Dan Fauske, CEO/Executive Director of Alaska Housing Finance Corporation, it took a "true Alaska team effort" to get this important change in federal law. "Alaska's Congressional Delegation, with strong, active support of our governor's office in Washington, D.C., ensured that other members of Congress understood the importance of this provision," Fauske said.

He noted that Alaska is one of only five states that has the authority to issue tax-exempt veterans bonds, which are state obligations approved by voters. "Over the years, Alaskans have voted strong support for veterans' mortgage bonds. Our problem has been various IRS restrictions that sought to limit the availability of this benefit to our veterans," Fauske said.

The AHFC executive said he has worked closely with Alaska governors since the mid-1990s and has had their full support for appealing to Congress to change the law in order to expand the veterans' mortgage loan program. He noted that Governor Sarah Palin has been particularly concerned that veterans in Alaska receive this benefit.

"This is terrific news for veterans of our state," said Governor Palin. "It gives us a meaningful way to say thank you to the men and women returning from Afghanistan, Iraq, and other military stations around the world."

Alaska's Senators and Congressman have cosponsored bills over the years to make the necessary changes, "but it's been a tough challenge to get Congress to support a measure that only benefits five states," Fauske said.

"We've kept at it though, along with Oregon, Wisconsin, Texas and California, and this year we prevailed," he said. "I am grateful to Governor Palin, Senators Lisa Murkowski and Ted Stevens, and to Congressman Don Young for all they have done."

AHFC is a self-supporting public corporation with offices in 16 communities statewide. It provides statewide financing for multi-family complexes, congregate facilities, and single-family homes, with special loans for first-time home buyers, low- and moderate-income borrowers, veterans, teachers, health care professionals, public safety officers, and those living in rural areas of the state. AHFC also provides energy and weatherization programs, low-income rental assistance in 17 communities, and special programs for the homeless. Since 1986, AHFC has contributed more than $1.5 billion to Alaska's State budget revenues through cash transfers, capital projects and debt service payments.

For more information, contact: Sherrie Simmonds Corporate Communications Officer 907-330-8447 ssimmond@ahfc.state.ak.us

2008-05-23 20:30:24 0369977 MARKETWIRE