LRB-3432/1
PJK:jlg:km
1999 - 2000 LEGISLATURE
October 13, 1999 - Introduced by Senators Moore, Farrow, Plache, Erpenbach and
Darling, cosponsored by Representatives Sykora, Morris-Tatum, Turner,
Plale, Schooff, Young, Coggs, Richards, Riley, Hasenohrl, La Fave, Huber,
Miller, Berceau, Lassa, Seratti, Olsen, Musser, Stone, M. Lehman, Spillner,
Owens, Underheim and
Goetsch, by request of Wisconsin Housing and
Economic Development Authority. Referred to Committee on Economic
Development, Housing and Government Operations.
SB251,1,2
1An Act to amend 234.59 (3) (a) of the statutes;
relating to: property appraisals
2for homeownership mortgage loans.
Analysis by the Legislative Reference Bureau
The Wisconsin Housing and Economic Development Authority (WHEDA)
administers a homeownership mortgage loan program. Under the program,
WHEDA contracts with authorized lenders to make or service loans to persons with
incomes below a certain level for the construction, long-term financing or
rehabilitation of residential property. WHEDA may insure or provide additional
security for the loans. A loan may not exceed the lesser of 97% of the purchase price
of the property or 97% of the appraised value of the property. Under the bill, a loan
may not exceed 97% of the purchase price of the property, thus removing the
requirement that the property be appraised.
Because this bill directly or substantially affects the development,
construction, cost or availability of housing in this state, the department of
administration, as required by law, will prepare a report to be printed as an appendix
to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB251, s. 1
3Section
1. 234.59 (3) (a) of the statutes is amended to read:
SB251,2,3
1234.59
(3) (a) The amount of a homeownership mortgage loan may not exceed
2the lesser of 97% of the purchase price
or 97% of the appraised value of the eligible
3property.
SB251,2,65
(1) This act first applies to homeownership mortgage loans made on the
6effective date of this subsection.
