(a) The provisions of AS 37.07 (Executive Budget Act)

1. (1) apply to

   1. (A) the operating budget of the corporation;
   2. (B) amounts payable from corporate earnings or assets of the corporation for grants or grant programs authorized by this chapter;
   3. (C) interest rate subsidies and building subsidies as determined by the corporation;
   4. (D) the amount and source or sources of the total annual appropriation for the corporation's loan programs for which a subsidy is not provided, but the provisions of AS 37.07 are not otherwise applicable to that appropriation;
   5. (E) the amount and source or sources of the total annual appropriation for the corporation's multi-family housing loans and the corporation's housing programs and housing projects if a subsidy is provided from the corporation's arbitrage earnings for the loans, programs, or projects, but the provisions of AS 37.07 are not otherwise applicable to that appropriation; and
   6. (F) except as otherwise specifically provided in (2) of this subsection, the activities of the corporation under AS 18.55 and the activities of the corporation under this chapter;

2. (2) do not apply to activities of the corporation under AS 18.55 and this chapter that

   1. (A) relate to the corporation's borrowing of money as provided in this chapter to make or purchase mortgage loans, including the issuing of its obligations or evidence of that borrowing and the repayment of the debt obligation;
   2. (B) relate to the corporation's ability to refinance existing mortgage loans in order to achieve a lower interest rate; or
   3. (C) are directly attributable to the servicing of mortgage loans, including real estate acquired by the corporation as a result of foreclosure.

(b) To further ensure effective budgetary decision making by the legislature, the corporation shall

1. (1) annually review the corporation's assets, including the assets of the Alaska housing finance revolving fund under AS 18.56.082, to determine whether assets of the corporation exceed an amount required to fulfill the purposes of the corporation as defined in AS 18.55 and this chapter; in making its review, the board shall determine whether, and to what extent, assets in excess of the amount required to fulfill the purposes of the corporation during the next fiscal year are available without

   1. (A) breaching any agreement entered into by the corporation;
   2. (B) materially impairing the operations or financial integrity of the corporation; or

   3. (C) materially affecting the ability of the corporation to

      1. (i) stabilize the market price of and demand for residential housing; and
      2. (ii) ensure an adequate long-term supply of residential housing for persons of lower and moderate income;
2. (2) specifically identify in the corporation's assets the amounts that the corporation believes are necessary to meet the requirements of (1)(C) of this subsection; and

3. (3) present to the legislature by January 10 of each year a complete accounting of all assets of the corporation, including assets of the Alaska housing finance revolving fund under AS 18.56.082, and a report of the review and determination made under (1) and (2) of this subsection; the accounting shall be audited by an independent outside auditor and must include a full description of all mortgage loan interest and principal repayments and program receipts, including

   1. (A) mortgage loan commitment fees received by or accrued to the corporation during the preceding fiscal year; and
   2. (B) all income earned on assets of the corporation during that period, including earnings on assets of the state assisted mortgage fund.

(c) The corporation shall make a dividend available to the state each fiscal year. The corporation shall pay the dividend for a current fiscal year to the state before the end of that fiscal year. The legislature may appropriate the dividend for capital projects. The corporation shall notify the commissioner of revenue of the amount of each dividend under this subsection for inclusion in the state operating budget and shall also notify the commissioner when each dividend is available for payment to the state. The amount of the dividend for a current fiscal year is calculated as follows:

1. (1) the lesser of $103,000,000 or 75 percent of the adjusted change in net assets of the corporation for the base fiscal year;

2. (2) minus the amount of money from the corporation used during that current fiscal year for bond repayment and other costs related to the bonds issued under

   1. (A) ch. 26, SLA 1996, up to a maximum of $1,000,000;
   2. (B) sec. 10(b), ch. 130, SLA 2000;
   3. (C) sec. 1, ch. 1, SSSLA 2002;
   4. (D) sec. 4, ch. 120, SLA 2004; and
3. (3) minus any appropriation of unrestricted unencumbered money of the corporation during the current fiscal year, other than an appropriation for the corporation's operating budget.

(d) In (c) of this section,

1. (1) “adjusted change in net assets” means the change in net assets from the base fiscal year, adjusted for capital expenditures incurred during the base fiscal year and temporary market value adjustments to assets and liabilities made during the base fiscal year;
2. (2) “base fiscal year” means the fiscal year ending two years before the end of the current fiscal year in which the dividend is made available to the state;
3. (3) “dividend” means a payment made to the state under (c) of this section.