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2003 - 2004 LEGISLATURE
February 25, 2004 - Introduced by Representatives Wieckert, Morris, Hines,
Musser
and Ott, cosponsored by Senators Stepp and Moore. Referred to
Committee on Housing.
AB902,1,10 1An Act to repeal 234.18 (3), 234.49 (1) (d) 2., 234.49 (1) (d) 4., 234.49 (1) (d) 6.,
2234.49 (1) (e) 1., 234.59 (1) (g), 234.59 (3) (a) and 234.59 (3) (b) 2.; to renumber
3234.59 (3) (e); to renumber and amend 234.18 (1), 234.49 (1) (d) (intro.),
4234.49 (1) (f) (intro.), 234.49 (1) (f) 2. and 234.59 (3) (b) 1.; to consolidate,
5renumber and amend
234.49 (1) (e) (intro.) and 2.; and to amend 101.143 (4)
6(em) 2., 234.01 (7m), 234.265 (2), 234.40 (4), 234.49 (1) (c) 2., 234.49 (1) (g),
7234.50 (4), 234.60 (2), 234.61 (1), 234.65 (1) (b) and 234.66 (3) (b) of the statutes;
8relating to: various modifications to housing loan programs and increasing
9the bonding authority of the Wisconsin Housing and Economic Development
10Authority.
Analysis by the Legislative Reference Bureau
The Wisconsin Housing and Economic Development Authority (WHEDA)
administers a number of housing and economic development programs, including a
Housing Rehabilitation Program and a Homeownership Mortgage Loan Program.
Under the Housing Rehabilitation Program, WHEDA may purchase from
authorized lenders loans made for housing rehabilitation. Currently, housing

rehabilitation loans may be used for additions, alterations, or repairs to a structure
that was first occupied as a residence at least ten years earlier, but decks, patios,
fencing, landscaping, home appliances, and fireplaces are specifically excluded. This
bill eliminates both the requirement that the structure was first occupied as a
residence at least ten years before the granting of the loan and the exclusions, except
for decks and patios.
Also under the Housing Rehabilitation Program, loans generally may be made
only to persons or families with incomes that do not exceed 120 percent of the median
family income of the county in which the residence is located. This bill changes the
income limitation to 120 percent of the median family income of the area in which
the residence is located or of the state, whichever is greater.
Under the Homeownership Mortgage Loan Program, WHEDA contracts with
authorized lenders to make or service loans for the construction, long-term
financing, or rehabilitation of residential property. WHEDA may insure or provide
additional security for the loans. Currently, a loan may not exceed the lesser of 97
percent of the purchase price of the property or 97 percent of the appraised value of
the property. A person who receives a loan, generally, may not have income that
exceeds 110 percent of the median income of the county in which the property is
located. This bill removes the loan limit and the requirement for an appraisal of the
property. The bill also changes the income limit so that it is consistent with a
provision of federal law that, generally, requires a mortgagor's income to be 115
percent or less of the median income for the area in which the residence is located
or for the state, whichever is greater.
Under current law, the outstanding principal amount of bonds and notes that
WHEDA may issue for its corporate purposes may not exceed $325,000,000 in the
aggregate. This bill increases that amount to $475,000,000. In addition, the bill
removes the requirement in current law that WHEDA must employ the Building
Commission as its financial consultant to assist and coordinate the issuance of
WHEDA's notes and bonds.
Under current law, records consisting of personal or financial information
provided by persons seeking assistance under a number of WHEDA's programs are
confidential. This bill makes the technical correction of adding WHEDA's loan
program for housing projects for low-income and moderate-income persons and
families to the list of programs for which these records are confidential.
Because this bill directly or substantially affects the development,
construction, cost or availability of housing in this state, the Department of
Commerce, 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:
AB902, s. 1 1Section 1. 101.143 (4) (em) 2. of the statutes is amended to read:
AB902,3,12
1101.143 (4) (em) 2. The department shall issue the award under this paragraph
2without regard to fault for each home oil tank system in an amount equal to 75% of
3the amount of the eligible costs, except that, if the home oil tank system is owned by
4a nonprofit organization that provides housing assistance to families with incomes
5below 80% of the median family income, as defined in s. 234.49 (1) (g) determined
6annually by the U.S. department of housing and urban development for each county
7in the state
, of the county in which the home oil tank system is located, then the
8award shall equal 100% of the amount of the eligible costs. The department shall
9recalculate any award made to such a nonprofit organization under this paragraph
10before May 7, 1994, based on 100% of eligible costs and shall issue an award for the
11difference between the award as recalculated and the award issued before May 7,
121994.
AB902, s. 2 13Section 2. 234.01 (7m) of the statutes is amended to read:
AB902,3,1514 234.01 (7m) "Housing rehabilitation loan" means a low interest housing
15rehabilitation loan as defined in s. 234.49 (1) (f) and (fm).
AB902, s. 3 16Section 3. 234.18 (1) of the statutes is renumbered 234.18 and amended to
17read:
AB902,3,21 18234.18 Limit on amount of outstanding bonds and notes. The authority
19shall not have outstanding at any one time notes and bonds for any of its corporate
20purposes in an aggregate principal amount exceeding $325,000,000 $475,000,000,
21excluding bonds and notes issued to refund outstanding notes and bonds.
AB902, s. 4 22Section 4. 234.18 (3) of the statutes is repealed.
AB902, s. 5 23Section 5. 234.265 (2) of the statutes is amended to read:
AB902,4,524 234.265 (2) Records or portions of records consisting of personal or financial
25information provided by a person seeking a grant or loan under s. 234.04, 234.08,

1234.49, 234.59, 234.61, 234.65, 234.67, 234.83, 234.84, 234.90, 234.905, 234.907, or
2234.91, seeking a loan under ss. 234.621 to 234.626, seeking financial assistance
3under s. 234.66, seeking investment of funds under s. 234.03 (18m) , or in which the
4authority has invested funds under s. 234.03 (18m), unless the person consents to
5disclosure of the information.
AB902, s. 6 6Section 6. 234.40 (4) of the statutes is amended to read:
AB902,4,117 234.40 (4) The limitations established in ss. 234.18 (1), 234.50, 234.60, 234.61,
8234.65, and 234.66 are not applicable to bonds issued under the authority of this
9section. The authority may not have outstanding at any one time bonds for veterans
10housing loans in an aggregate principal amount exceeding $61,945,000, excluding
11bonds being issued to refund outstanding bonds.
AB902, s. 7 12Section 7. 234.49 (1) (c) 2. of the statutes is amended to read:
AB902,4,1413 234.49 (1) (c) 2. A family who or which falls within the income limits specified
14in par. (f) (fm).
AB902, s. 8 15Section 8. 234.49 (1) (d) (intro.) of the statutes is renumbered 234.49 (1) (d)
16and amended to read:
AB902,4,2117 234.49 (1) (d) "Eligible rehabilitation" means additions, alterations, or repairs
18of to housing to maintain it in a decent, safe, and sanitary condition or to restore it
19to that condition, to reduce the cost of owning or occupying dwelling units, to
20conserve energy, and to extend the economic or physical life of structures, but does
21not include any of the following: decks or patios.
AB902, s. 9 22Section 9. 234.49 (1) (d) 2. of the statutes is repealed.
AB902, s. 10 23Section 10. 234.49 (1) (d) 4. of the statutes is repealed.
AB902, s. 11 24Section 11. 234.49 (1) (d) 6. of the statutes is repealed.
AB902, s. 12
1Section 12. 234.49 (1) (e) (intro.) and 2. of the statutes are consolidated,
2renumbered 234.49 (1) (e) and amended to read:
AB902,5,83 234.49 (1) (e) "Housing" means a residential structure having not more than
44 dwelling units in which at least one unit is occupied by the owner as a principal
5residence and: 2. The, if a housing rehabilitation loan is granted for the property
6to implement energy conservation improvements, the
structure is not subject to rules
7adopted under s. 101.63, 101.73, or 101.973, if a housing rehabilitation loan is
8granted for the property to implement energy conservation improvements
.
AB902, s. 13 9Section 13. 234.49 (1) (e) 1. of the statutes is repealed.
AB902, s. 14 10Section 14. 234.49 (1) (f) (intro.) of the statutes is renumbered 234.49 (1) (f)
11and amended to read:
AB902,5,1812 234.49 (1) (f) "Housing rehabilitation loan" means a loan to finance eligible
13rehabilitation or a property tax deferral loan. The maximum amount of a housing
14rehabilitation loan, except a property tax deferral loan, is $17,500. The term of any
15housing rehabilitation loan, except a property tax deferral loan, the repayment of
16which is made in monthly or other periodic installments, may not exceed 15 years.
17Housing rehabilitation loans, except property tax deferral loans, include: low
18interest loans.
AB902, s. 15 19Section 15. 234.49 (1) (f) 2. of the statutes is renumbered 234.49 (1) (fm) and
20amended to read:
AB902,6,721 234.49 (1) (fm) "Low interest loans" which are means loans that meet or exceed
22the rate of interest required to pay the costs incurred by the authority for making and
23servicing such loans, but do not exceed the rate of interest specified in sub. (2) (a) 6.
24No low interest or other loan may be made to a person or family whose income exceeds
25120% of the median income for a family of 4 in the person's or family's county of

1residence
, except that in a designated reinvestment neighborhood or area as defined
2in s. 66.1107 no low interest loan at the highest rate of interest authorized by this
3subdivision paragraph may be made to a person or family whose income exceeds
4140% of the median income for a family of 4 in the person's or family's county of
5residence
, and except that the authority may increase or decrease the income limit
6for low interest loans by no more than 10% of the limit for each person more or less
7than 4.
AB902, s. 16 8Section 16. 234.49 (1) (g) of the statutes is amended to read:
AB902,6,129 234.49 (1) (g) "Median income" means the median family income as determined
10annually by the U.S. department of housing and urban development
for the area in
11which the residence is located or the median family income
for each county in the
12state, whichever is greater.
AB902, s. 17 13Section 17. 234.50 (4) of the statutes is amended to read:
AB902,6,2014 234.50 (4) The limitations established in ss. 234.18 (1), 234.40, 234.60, 234.61,
15234.65, and 234.66 are not applicable to bonds issued under the authority of this
16section. The authority may not have outstanding at any one time bonds for housing
17rehabilitation loans in an aggregate principal amount exceeding $100,000,000,
18excluding bonds being issued to refund outstanding bonds. The authority shall
19consult with and coordinate the issuance of bonds with the building commission prior
20to the issuance of bonds.
AB902, s. 18 21Section 18. 234.59 (1) (g) of the statutes is repealed.
AB902, s. 19 22Section 19. 234.59 (3) (a) of the statutes is repealed.
AB902, s. 20 23Section 20. 234.59 (3) (b) 1. of the statutes is renumbered 234.59 (3) (bc), and
24234.59 (3) (bc) 1., as renumbered, is amended to read:
AB902,7,8
1234.59 (3) (bc) 1. Except as provided in subd. 1. c. 3., a homeownership
2mortgage loan may not be made to an applicant if the applicant's income combined,
3except as provided in subd. 1. b., with the income from all sources of all persons who
4intend to occupy the same dwelling unit as that applicant, exceeds 110% of the
5median income of the county where the eligible property is located if the eligible
6property is not a targeted area residence or exceeds 140% of the median income of
7the county where the eligible property is located if the eligible property is a targeted
8area residence
exceeds the applicable level specified under 26 USC 143 (f).
AB902, s. 21 9Section 21. 234.59 (3) (b) 2. of the statutes is repealed.
AB902, s. 22 10Section 22. 234.59 (3) (e) of the statutes is renumbered 234.59 (3) (d).
AB902, s. 23 11Section 23. 234.60 (2) of the statutes is amended to read:
AB902,7,1312 234.60 (2) The limitations in ss. 234.18 (1), 234.40, 234.50, 234.61, 234.65, and
13234.66 do not apply to bonds or notes issued under this section.
AB902, s. 24 14Section 24. 234.61 (1) of the statutes is amended to read:
AB902,7,2215 234.61 (1) Upon the authorization of the department of health and family
16services, the authority may issue bonds or notes and make loans for the financing of
17housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the
18development costs of those housing projects, if the department of health and family
19services has approved the residential facilities for financing under s. 46.28 (2). The
20limitations in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.65, and 234.66 do not apply
21to bonds or notes issued under this section. The definition of "nonprofit corporation"
22in s. 234.01 (9) does not apply to this section.
AB902, s. 25 23Section 25. 234.65 (1) (b) of the statutes is amended to read:
AB902,7,2524 234.65 (1) (b) The limits in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.61, and
25234.66 do not apply to bonds or notes issued under this section.
AB902, s. 26
1Section 26. 234.66 (3) (b) of the statutes is amended to read:
AB902,8,32 234.66 (3) (b) The limits in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.61, and
3234.65 do not apply to bonds or notes issued under this section.
AB902, s. 27 4Section 27. Initial applicability.
AB902,8,85 (1) Housing rehabilitation loans. The treatment of sections 234.01 (7m) and
6234.49 (1) (c) 2., (d) (intro.), 2., 4., and 6., (e) (intro.), 1., and 2., (f) (intro.) and 2., and
7(g) of the statutes first applies to housing rehabilitation loans for which application
8is made on the effective date of this subsection.
AB902,8,119 (2) Homeownership mortgage loans. The treatment of section 234.59 (3) (a)
10and (b) 1. and 2. of the statutes first applies to homeownership mortgage loans for
11which application is made on the effective date of this subsection.
AB902,8,1212 (End)
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