Legislative Affairs Committee Update - February 4, 2026

Posted by b.reynolds on Feb. 4, 2026  /  LAC Update  /  Subscribe 0

legislative Affairs Committee Update - February 4, 2026

The Legislative Affairs Committee (LAC) is already off to a fast start with the beginning of this year's legislative session. While we are watching what is happening down in Juneau, we are also keeping an eye on our local municipalities and boroughs along with changes happening on a federal level with the support of the national Mortgage Bankers Association and other national advocacy groups that are engaged with the priorities of the mortgage and real estate industries. 

As we continue to review bills and regulations, respond to comment requests, and work with legislators and coalition partners, we aim to keep you updated on the work that we are doing that is supported by our members.

Local Updates

Fairbanks

FNSB ordinance No. 2026-01 - Tax Incentive for Multi-Unit housing

Sponsored by Mayor Hopkins, this ordinance adds a tax incentive for housing development in Fairbanks. This specific property tax incentive is targeted in addressing a housing shortage, especially in the 3BR+ range to assist in addressing an approximate 300 unit housing shortage for upcoming military influxes to Fairbanks. AMBA submitted a letter off support for this ordinance.

Status: Passed Assembly on January 9, 2026 Why it matters: This is exactly the kind of local policy innovation that could encourage housing development in underserved Alaska markets. We're watching to see if this model might work in other communities.

Anchorage

Anchorage ordinance AO 2026-10 - Safe Public Spaces

Sponsored by Mayor LaFrance and Assembly Members Perez-Verdia and Johnson, this ordinance was introduced January 14, 2026. The ordinance aims to address gaps in current criminal actions including public urination, public indecency, and engaging in threatening or menacing conduct, among other items. AMBA supported this measure to ensure neighborhood stability, business operations, and public safety.

Status: Originally brought forward January 27, 2026 and extended to February 3, 2026. Passed with amendments 11 to 1.

State Updates

HB 13 - Property tax Exemptions

HB 13 was an item introduced during last year's session that proposed broad property tax exemption frameworks to municipalities and boroughs specifically for short-to-long term rental conversion, first time homebuyers, mobile park updates/improvements, and low income housing construction. While AMBA supports the goals of these property tax exemptions, we believe that there are definitions and missing items in these exemptions that provide ways to potentially "game the system" along with the the fact that these exemptions can be enacted by ordinance vs. a public vote. This bill is currently in committee on the Senate side after being passed through the House in 2025.

HB 254 - property Assessment Increases

HB 254, put forward by Representative Vance, seeks to have a cap on assessed property values at 5% annually, unless triggered by sale or improvement. Property tax assessments are on everyone's minds currently, so we understand the intention of this bill. The LAC is currently undergoing discussions surrounding this legislation and will be reaching out to membership to request additional input. We're particularly interested in hearing from members about:

Our initial concerns are potential lock-in effects, deferred improvements, etc. however we are aware of concerns that surround affordability and the dream of homeownership of our customers and borrowers so we will continue to work with legislation to ensure the best results moving forward.

HB159/SB 207 - Unlawful Occupant Removal

"Sister" legislation in the House and Senate regarding the expedited removal of unlawful occupants or "squatters" are currently up for review. We have reached out to Sen. Bjorkman on SB 207 and he has ensured that this intends to remove unlawful occupants only vs. having any effect on loss prevention and foreclosure processes. A position paper has been developed and is pending review.

SB 227/HB 284 - Alaska Sales Tax

One of the newer items on our radar, Governor Dunleavy has made a request to implement a seasonal sales tax across the State of Alaska. While we may have opinions on the sales tax as a whole, we do not assume ourselves experts on the matter. However, we can work within our priorities and do have concerns surrounding the affect of a sales tax that has cutouts for Real Property Purchases, but no cutouts for purchase transaction services and fees. Specifically, we're concerned that while real property purchases may be exempt, the transaction costs—title insurance, escrow fees, appraisal fees, and other settlement services—could be subject to the sales tax, increasing the overall cost of homeownership in Alaska. The LAC is currently reviewing solutions and options to address these gaps and will continue to work with legislators as these conversations progress.

Federal updates

HR 6047 - Veterans Benefits expansion Act

This bill, sponsored by Representatives Barrett and Edmundson, intends to expand veteran's benefits via a changing in VA funding fees on specific IRRRL and other housing transactions. A note regarding the national MBA - they are aware of this piece of legislation and while they support the intent of the bill to expand the benefits for our veterans and service members, however it has been their long-held position that VA funding fees should not be used for non-housing benefits. We're monitoring its progress through committee as any changes to VA loan programs directly affect our members who serve Alaska's veteran community. The bill remains in committee at the federal level.

HR 5577 - NHP Extension Act of 2026

Introduced in September 2025, this legislation extends the Neighborhood Homes Program. As housing affordability remains a critical issue in Alaska, we have submitted letters of support of this legislation to Representative Begich.

HR 6644 - Housing for the 21st Century Act

This comprehensive housing legislation was introduced in December 2025 and remains in committee. The committee has submitted a letter of support to Representative Begich on this legislation as well.

What's Next?

The LAC and AMBA Board will continue to monitor current legislation that continues to come out across the our local assemblies, state legislature, and down in DC at the federal level. AMBA President and LAC Chairman, Benjamin Reynolds will be attending the MBA National Advocacy Conference in April to speak directly to Alaska's federal legislation. AMBA is also hosting an Anchorage Assembly Candidate Meet and Greet on March 18th - all proceeds of this event goes to support AMBA and the LAC to continue build capacity and supporting our work in advocating for the mortgage and real estate industry in Alaska.

How You Can Help: If any of these bills particularly affect your business or clients, we want to hear from you. Contact Benjamin at [email protected] or call (907) 727-1076. Your real-world insights strengthen our advocacy work. You can also visit www.alaskamba.org under the ADVOCACY tab and submit legislation for us to review.

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