2017 - 2018 LEGISLATURE
December 28, 2017 - Introduced by Representatives Loudenbeck, Fields, Allen,
Anderson, Berceau, Considine, Krug, Mursau, Novak, Rohrkaste, Sinicki,
Tauchen, Zepnick, Crowley, Ballweg and Spiros, cosponsored by Senators
Darling and Bewley. Referred to Committee on Housing and Real Estate.
1An Act to repeal
234.01 (6) (b), 234.01 (8) (b), 234.01 (9) (a) 5., 234.13, 234.59 2
(3) (bc) and 234.60 (3); to consolidate, renumber and amend
234.01 (6) 3
(intro.) and (a) and 234.01 (8) (intro.) and (a); to amend
234.01 (9) (a) (intro.), 4
234.01 (9) (a) 1., 234.01 (9) (a) 2., 234.01 (9) (a) 3., 234.01 (9) (a) 4., 234.53 (2), 5
234.55 (1) and 234.65 (1) (c) 2.; and to create
234.135, 234.53 (2m), 234.59 (2) 6
(f), 234.59 (3) (bd) and 234.59 (3) (e) 3m. of the statutes; relating to: notes,
7bonds, and economic development programs of the Wisconsin Housing and
8Economic Development Authority, homeownership mortgage loans used to
9refinance existing mortgages, and uses of the housing rehabilitation loan fund.
Analysis by the Legislative Reference Bureau
This bill makes a number of changes to the laws governing the Wisconsin
Housing and Economic Development Authority, including the following:
1. Eliminates the requirement that certain organizations participating in
WHEDA's programs allow WHEDA under certain circumstances to appoint a
majority of the members of the organization's governing body.
2. Authorizes WHEDA to hold, sell, or cancel WHEDA's notes or bonds WHEDA
itself purchases. Under current law, such notes or bonds must be canceled.
3. Provides that every four years, beginning in 2018, WHEDA may request
approval of the Joint Committee on Finance to issue additional notes and bonds in
the amount specified in the request for economic development purposes if the
authority determines that the issuance of additional notes and bonds will promote
significant economic development in this state.
4. Authorizes WHEDA to issue a homeownership mortgage loan to a
homeowner for the refinancing of the homeowner's existing mortgage if the property
is located in an area in a first class city in which WHEDA determines there is a high
concentration of persons and families of low and moderate income, the homeowner
does not qualify for a mortgage loan through other lenders, and the homeownership
mortgage loan WHEDA issues is used in part to finance rehabilitation of the eligible
5. Allows WHEDA to use moneys from its housing rehabilitation loan fund to
purchase or fund loans under any down payment assistance program established by
WHEDA. Current law requires WHEDA to use moneys from the housing
rehabilitation loan fund for funding housing rehabilitation loans or administering
the housing rehabilitation loan program.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
234.01 (6) (intro.) and (a) of the statutes are consolidated, 2
renumbered 234.01 (6) and amended to read:
“Housing corporation" means a corporation organized under s. 4
182.004 and whose articles of incorporation, in addition to other requirements of law, 5
provide that: (a) If if
the corporation receives any loan or advance from the authority 6
under this chapter, it may enter into an agreement with the authority providing for 7
regulation with respect to rents, profits, dividends,
and disposition of property or 8
234.01 (6) (b) of the statutes is repealed.
234.01 (8) (intro.) and (a) of the statutes are consolidated, 11
renumbered 234.01 (8) and amended to read:
“Limited-profit entity" means any person or trust which, in its 2whose
articles of incorporation or comparable documents of organization,
or by 3whose
written agreement with the authority,
provides that: (a) As, as
a condition 4
of acceptance of a loan or advance under this chapter, the limited-profit entity shall 5
enter into an agreement with the authority providing for limitations of rents, profits, 6
and disposition of property or franchises
234.01 (8) (b) of the statutes is repealed.
234.01 (9) (a) (intro.) of the statutes is amended to read:
(a) (intro.) A nonprofit corporation incorporated under ch. 181 whose 10
articles of incorporation, in addition to other requirements of law, provide that all of
234.01 (9) (a) 1. of the statutes is amended to read:
(a) 1. The corporation has as its major purpose the providing of 14
housing facilities for persons and families of low and moderate income
234.01 (9) (a) 2. of the statutes is amended to read:
(a) 2. All income and earnings of the corporation shall be used 17
exclusively for corporation purposes and no part of the net income or net earnings 18
of the corporation shall inure to the benefit or profit of any private person;.
234.01 (9) (a) 3. of the statutes is amended to read:
(a) 3. The corporation is in no manner controlled or under the 21
direction or acting in the substantial interest of private persons seeking to derive 22
profit or gain therefrom or seeking to eliminate or minimize losses in any dealing or 23
234.01 (9) (a) 4. of the statutes is amended to read:
(a) 4. If the corporation receives any loan or advance from the 2
authority, it shall enter into an agreement with the authority, providing for 3
limitations on rents, profits, dividends,
and disposition of property or franchises;
234.01 (9) (a) 5. of the statutes is repealed.
234.13 of the statutes is repealed.
234.135 of the statutes is created to read:
8234.135 Same; purchase; cancellation. (1)
The authority may purchase 9
any notes or bonds of the authority. The authority may hold or sell, in whole or in 10
part and separately or together with other notes or bonds of the authority, notes or 11
bonds purchased under this subsection.
Subject to such agreements with noteholders or bondholders as may then 13
exist, any notes or bonds purchased and held by the authority under sub. (1), may, 14
upon the affirmative designation of the authority, be canceled, in whole or in part, 15
at the time specified in the authority's designation.
234.53 (2) of the statutes is amended to read:
234.53 (2) The Except as provided in sub. (2m), the
authority shall use moneys 18
in the fund for the purpose of purchasing housing rehabilitation loans or for funding 19
commitments for loans to lenders for housing rehabilitation loans. All 20
disbursements of funds under this section subsection
for purchasing such loans shall 21
be made payable to an authorized lender as defined in s. 234.49 (1) (b) or a duly 22
authorized agent thereof.
234.53 (2m) of the statutes is created to read:
The authority may use moneys in the fund for the purpose of 2
funding or purchasing loans under any down payment assistance program 3
established by the authority.
234.55 (1) of the statutes is amended to read:
The authority shall establish the housing rehabilitation loan 6
program bond redemption fund. All housing rehabilitation loans purchased with 7
moneys from the housing rehabilitation loan fund or notes evidencing loans to 8
lenders from such fund for housing rehabilitation loans shall be the exclusive 9
property of such redemption fund. All moneys received from the repayment of such 10
loans, any amounts transferred by the authority to such fund pursuant to s. 234.52 11
or from other funds or sources, any federal insurance or guarantee payments with 12
respect to such loans, all moneys resulting from the sale of bonds for the purpose of 13
refunding outstanding housing rehabilitation bonds unless credited to the housing 14
rehabilitation loan program capital reserve fund, and
any other moneys which may 15
be available to the authority for the purpose of such fund, and all moneys received
16from the repayment of loans provided under s. 234.53 (2m)
shall be deposited into 17
such fund to be used for the repayment of housing rehabilitation bonds issued under 18
the authority of s. 234.50.
234.59 (2) (f) of the statutes is created to read:
(f) May make a loan to a veteran, as defined in 38 USC 101
(2), who 21
has not previously received a homeownership mortgage loan financed by bonds or 22
notes issued under s. 234.60.
234.59 (3) (bc) of the statutes is repealed.
234.59 (3) (bd) of the statutes is created to read:
(bd) 1. To the extent required as a condition to maintaining the 2
exclusion from gross income for federal income tax purposes of interest on bonds, 3
notes, or other evidences of indebtedness issued by or on behalf of the authority, a 4
homeownership mortgage loan under this section shall be made to an applicant 5
whose income does not exceed the applicable level specified under 26 USC 143
The authority shall determine an applicant's income in the manner specified under 726 USC 143
(f) and applicable rulings of the Internal Revenue Service.
2. Nothing under this section precludes the authority from imposing income 9
limitations that are more restrictive than the income level determined in the manner 10
specified under 26 USC 143
(f) and applicable rulings of the Internal Revenue 11
234.59 (3) (e) 3m. of the statutes is created to read: