Repealed or Renumbered
The commissioner may sell or transfer at par value or at a premium or discount to any bank or other private purchaser for cash or other consideration the mortgages and notes held by the department as security for loans made under this chapter.
(a) The department shall adopt regulations necessary to carry out the provisions of this chapter, including regulations to establish reasonable fees for services provided and charges for collecting the fees.
(b) The department may collect the fees and collection charges established under (a) of this section.
The department shall dispose of property acquired through default or foreclosure of a loan made under this chapter. Disposal shall be made in a manner that serves the best interests of the state, and may include the amortization of payments over a period of years.
(a) There is established as a special account within the residential energy conservation fund the foreclosure expense account. This account is established as a reserve from fund equity.
(b) The commissioner may expend money credited to the foreclosure expense account when necessary to protect the state's security interest in collateral on loans made under AS 45.89.030 or to defray expenses incurred during foreclosure proceedings after a default by an obligor.
(a) There is established in the Department of Commerce, Community, and Economic Development the residential energy conservation fund to carry out the purposes of this chapter. Loans and grants made under this chapter may be used to purchase, construct, and install an energy conservation improvement in residential buildings.
(b) Money in the fund may be used by the legislature to make appropriations for costs of administering this chapter.
(c) On June 30 of each fiscal year the unexpended and unobligated cash balance of the fund that is attributable to loans owned by the fund lapses into the general fund.
In this chapter
(1) 'commissioner' means the commissioner of commerce, community, and economic development;
(2) 'department' means the Department of Commerce, Community, and Economic Development;
(3) 'energy audit' means
(A) [Repealed, Sec. 10 ch 79 SLA 1983].
(B) an energy audit performed under Sec. 215(b)(1)(A) of the federal residential energy conservation program of the National Energy Conservation Policy Act (42 U.S.C. 8216(b)(1)(A)); or
(C) an energy audit completed before July 1, 1980, that has been approved by the commissioner as an audit that fairly demonstrates the energy consumption characteristics of a residence and that indicates likely energy conservation and cost savings measures;
(4) 'energy conservation improvement' means
(A) structural insulation;
(B) thermal windows and doors;
(C) a furnace replacement burner designed to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency;
(D) a device for modifying flue openings designed to increase the efficiency of operation of the heating system;
(E) an electrical or mechanical furnace ignition system which replaces a gas pilot light;
(F) an automatic energy-saving setback thermostat;
(G) a meter which displays the cost of energy usage;
(H) caulking and weatherstripping of doors and windows;
(I) insulating shades and shutters;
(J) air and water recuperators;
(K) any other energy-saving device approved by the commissioner.
(a) The department may make loans for the purchase, construction, and installation of an energy conservation improvement in a residential building.
(b) A loan for the purchase, construction, and installation of an energy conservation improvement under this chapter may not exceed the lesser of
(1) an amount, as determined by an energy audit, that is equal to the estimated total energy cost saving attributable to the energy conservation improvement at a date that is 10 years after purchase, construction, or installation of the energy conservation improvement;
(c) A loan for the purchase, construction, and installation of an energy conservation improvement under this chapter may be made for only an energy conservation improvement that has been recommended, in any energy audit, as a measure that is likely to result in energy conservation or energy cost savings.
(d) A loan made under this chapter may be used to finance
(1) all of the cost of purchasing, constructing, and installing an energy conservation improvement; and
(2) the costs of labor for the installation of an energy conservation improvement.
(e) Interest shall be charged on a loan made under this chapter. If a loan is made before January 1, 1984, interest shall be five percent. If the loan is made after December 31, 1983, interest shall equal the percentage of the average weekly yield of municipal bonds for the 12 months preceding the loan, as determined by the commissioner from the municipal bond yield rates reported in the 30-year revenue index of the Weekly Bond Buyer.
(f) The duration of repayment of a loan made under this chapter may not exceed 10 years.
(g) The department may require security for a loan under this section. When a loan is made under this section, the department may require the loan applicant to present copies of invoices or billings for expenses which the proceeds of the loan will be used to pay.
(h) All principal and interest payments, and money chargeable to principal or interest that is collected through liquidation by foreclosure or other process on a loan made under this chapter, shall be paid into the residential energy conservation fund.
(i) A person who receives a loan under this section and knowingly uses the loan proceeds for purposes other than those set out in (d) of this section is guilty of the crime of misapplication of property under AS 11.46.620.
(j) If, in the opinion of the department, it is not necessary to conduct an energy audit to determine that a loan application meets the requirements of this section, the department may waive the audit requirement for the applicant.
(k) The department may not make a loan under this chapter to a person who has a past due child support obligation established by court order or by the child support services agency under AS 25.27.160 - 25.27.220 at the time of application.