LOAN GUARANTEE PROGRAMS
Recycling loan guarantees.
Public affairs network loan guarantee program.
Small business development loan guarantee program.
Job training loan guarantee program.
Drinking water loan guarantee program.
Agricultural production loan guarantees.
Agricultural production drought assistance loan guarantees.
Agricultural development loan guarantee program.
Farm assets reinvestment management loan guarantee program.
Financial assistance; fees.
Wisconsin development reserve fund.
Wisconsin job training reserve fund.
Wisconsin drinking water reserve fund.
COMMUNITY DEVELOPMENT FINANCE COMPANY
Community development finance company.
Community development project participation.
Sale or purchase of stock or interest.
GENERAL PROVISIONS; HOUSING AND ECONOMIC DEVELOPMENT PROGRAMS
In this chapter:
"Authority" means the Wisconsin Housing and Economic Development Authority.
"Authority cost" means any costs incurred by the authority in carrying out and administering any of its powers, duties and functions including, but not limited to, costs of financing by the authority, service charges, insurance premiums and administrative and operating costs of the authority.
"Business incubator" means a facility designed to encourage the growth of new businesses, if at least 2 of the following apply:
Space in the facility is rented at a rate lower than the market rate in the community.
Shared business services are provided in the facility.
Management and technical assistance are available at the facility.
Businesses using the facility may obtain financial capital through a direct relationship with at least one financial institution.
"Collateral" means a 3rd-party note, mortgage, guaranty, insurance policy, bond, letter of credit, security agreement or other instrument securing the repayment of an economic development loan or a mortgage loan.
"Development costs" mean the costs which have been approved by the authority as appropriate expenditures including but not limited to:
Payments for options to purchase properties on the proposed housing project site, deposits on contracts of purchase, or with the prior approval of the authority, payments for the purchase of such properties;
Legal, organizational and marketing expenses, including payment of attorney fees, project manager and clerical staff salaries, office rent, and other incidental expenses;
Payment of fees and preliminary feasibility studies and advances for planning, engineering and architectural work;
Expenses for surveys as to need and market analyses;
Necessary application and other fees to federal and other government agencies; and
Such other expenses incurred by the eligible sponsor as the authority deems appropriate to effectuate the purposes of this chapter.
"Economic development loan" means an advance of moneys, supported by a written promise of repayment, to finance an economic development project.
"Economic development project" means any of the following:
Land, plant or equipment for any of the following:
Facilities for manufacturing or commercial real estate activities.
Facilities for the storage or distribution of products of manufacturing activities, materials, components, or equipment.
Recreational and tourism facilities serving to attract visitors to this state.
Facilities for the production, packaging, processing or distribution of raw agricultural commodities.
Facilities for engaging in the business of operating a railroad.
Activities of a long-term nature, such as research and development or long-term working capital.
Equipment, materials or labor used to make an energy-conserving improvement to a commercial or industrial facility.
"Eligible sponsor" means any housing corporation, limited-profit entity or nonprofit corporation or any other entity meeting criteria established by the authority and which is organized to provide housing for persons and families of low and moderate income.
"Financial institution" means a bank, savings bank, savings and loan association, credit union, insurance company, finance company, mortgage banker licensed under s. 224.72
, community development corporation, small business investment corporation, pension fund or other lender which provides commercial loans in this state.
"Housing corporation" means a corporation organized under s. 182.004
and whose articles of incorporation, in addition to other requirements of law, provide that:
If the corporation receives any loan or advance from the authority under this chapter, it may enter into an agreement with the authority providing for regulation with respect to rents, profits, dividends and disposition of property or franchises; and
If the corporation receives a loan or advance under this chapter, the chairperson of the authority, acting with the prior approval of the majority of the members of the authority, may, if he or she determines that any such loan or advance is in jeopardy of not being repaid, that the proposed development for which such loan or advance was made is in jeopardy of not being constructed or that the corporation is not carrying out the intent and purposes of this chapter, appoint to the board of directors of such corporation a number of new directors, which number shall be sufficient to constitute a majority of such board, notwithstanding any other provision of such articles of incorporation or of any other provision of law.
"Housing project" means a specific work or improvement within this state undertaken primarily to provide dwelling accommodations, including land development and the acquisition, construction or rehabilitation of buildings and improvements thereto, for residential housing, and such other nonhousing facilities as may be determined by the authority to be either necessary for the economic viability thereof, required by law or by a master plan, or incidental or appurtenant thereto.
"Limited-profit entity" means any person or trust which, in its articles of incorporation or comparable documents of organization, or by written agreement with the authority, provides that:
As a condition of acceptance of a loan or advance under this chapter, the limited-profit entity shall enter into an agreement with the authority providing for limitations of rents, profits, dividends and disposition of property or franchises; and
If the limited-profit entity receives a loan or advance under this chapter, the chairperson of the authority, acting with the prior approval of the majority of members of the authority, may, if he or she determines that any such loan or advance is in jeopardy of not being repaid, that the proposed development for which such loan or advance was made is in jeopardy of not being constructed or that the limited-profit entity is otherwise not carrying out the intent and purposes of this chapter, appoint to the board of directors or other comparable controlling body of such limited-profit entity a number of new directors or persons, which number shall be sufficient to constitute a voting majority of such board or controlling body, notwithstanding any other provisions of the limited-profit entity's articles of incorporation or other documents of organization, or of any other provisions of law.
A nonprofit corporation incorporated under ch. 181
whose articles of incorporation, in addition to other requirements of law, provide that:
The corporation has as its major purpose the providing of housing facilities for persons and families of low and moderate income;
All income and earnings of the corporation shall be used exclusively for corporation purposes and no part of the net income or net earnings of the corporation shall inure to the benefit or profit of any private person;
The corporation is in no manner controlled or under the direction or acting in the substantial interest of private persons seeking to derive profit or gain therefrom or seeking to eliminate or minimize losses in any dealing or transactions therewith;
If the corporation receives any loan or advance from the authority, it shall enter into an agreement with the authority, providing for limitations on rents, profits, dividends and disposition of property or franchises; and
That if the corporation receives a loan or advance under this chapter, the chairperson of the authority, acting with the prior approval of the majority of the members of the authority, may, on determination that any such loan or advance is in jeopardy of not being repaid, that the proposed development for which such loan or advance was made is in jeopardy of not being constructed, that some part of the net income or net earnings of the corporation is inuring to the benefit of any private person, that the corporation is in some manner controlled or under the direction of or acting in the substantial interest of any private person seeking to derive benefit or gain therefrom or seeking to eliminate or minimize losses in any dealings or transactions therewith or that the corporation is not carrying out the intent and purposes of this chapter, appoint to the board of directors of such corporation a number of new directors, which number shall be sufficient to constitute a majority of such board, notwithstanding any other provisions of such articles of incorporation or of any other provisions of law.
"Persons and families of low and moderate income" means persons and families who cannot afford to pay the amounts at which private enterprise, without federally-aided mortgages or loans from the authority, can provide a substantial supply of decent, safe and sanitary housing and who fall within income limitations set by the authority in its rules. In determining such income limitations the authority shall consider the amounts of the total income of such persons available for housing needs, the size of the family, the cost and condition of available housing facilities, standards established for various federal programs and any other factors determined by the authority to be appropriate in arriving at such limitations. Among low- or moderate-income persons and families, preference shall be given to those displaced by governmental action.
History: 1971 c. 287
; 1975 c. 221
; 1977 c. 418
; 1979 c. 361
; 1981 c. 349
; 1983 a. 81
; 1983 a. 83
; 1985 a. 29
, 3202 (14)
; 1985 a. 334
; 1987 a. 27
; 1987 a. 403
; 1989 a. 281
; 1989 a. 335
; 1991 a. 37
; 1995 a. 27
; 1997 a. 27
; 1999 a. 150
; 2001 a. 104
; 2005 a. 75
; 2007 a. 20
; 2009 a. 2
; 2011 a. 32
"Limited-profit entity" has meaning only with reference to WHEDA's loan to the entity. The entity terminates when the loan is satisfied and nothing remains to be done except to dispose of what remains in the hands of the entity. WHEDA v. Bay Shore Apartments, 200 Wis. 2d 129
, 546 N.W.2d 480
(Ct. App. 1996), 93-1825
Wisconsin Housing and Economic Development Authority: creation; membership; appointment and tenure; meetings; officers. 234.02(1)
There is created a public body corporate and politic to be known as the "Wisconsin Housing and Economic Development Authority." The members of the authority shall be the chief executive officer of the Wisconsin Economic Development Corporation or his or her designee and the secretary of administration or his or her designee, and 6 public members nominated by the governor, and with the advice and consent of the senate appointed, for staggered 4-year terms commencing on the dates their predecessors' terms expire. In addition, one senator of each party and one representative to the assembly of each party appointed as are the members of standing committees in their respective houses shall serve as members of the authority. A member of the authority shall receive no compensation for services but shall be reimbursed for necessary expenses, including travel expenses, incurred in the discharge of duties. Subject to the bylaws of the authority respecting resignations, each member shall hold office until a successor has been appointed and has qualified. A certificate of appointment or reappointment of any member shall be filed with the authority and the certificate shall be conclusive evidence of the due and proper appointment.
The powers of the authority shall be vested in the members thereof in office. A majority of the members of the authority constitutes a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, notwithstanding the existence of any vacancies. Action may be taken by the authority upon a vote of a majority of the members present, unless the bylaws of the authority require a larger number. Meetings of the members of the authority may be held anywhere within or without the state.
The governor shall appoint a public member as the chairperson of the authority for a one-year term beginning on the expiration of the term of the chairperson's predecessor. The authority shall elect a vice chairperson. The governor shall nominate, and with the advice and consent of the senate appoint, the executive director of the authority, to serve a 2-year term. The authority shall employ the executive director so appointed, legal and technical experts and such other officers, agents and employees, permanent and temporary, as it may require, and shall determine their qualifications, duties and compensation, all notwithstanding subch. II of ch. 230
, except that s. 230.40
shall apply, and except that the compensation of any employee of the authority shall not exceed the maximum of the executive salary group range established under s. 20.923 (1)
for positions assigned to executive salary group 6. The authority may delegate any of its powers or duties to its employees with the consent of the executive director or to its agents.
The authority shall adhere to specifications prepared under s. 16.72 (2)
, if applicable to the product or service to be purchased.
Members and employees of the authority are subject to uniform travel schedule amounts approved under s. 20.916 (8)
The authority shall, with the advice of the government accountability board, adopt and enforce ethics guidelines applicable to its paid consultants which are similar to subch. III of ch. 19
, except that the authority may not require its paid consultants to file financial disclosure statements.
The authority shall continue in existence until terminated by law, but no such law shall take effect while the authority has obligations outstanding.
No cause of action of any nature may arise against and no civil liability may be imposed upon a member of the authority, or other officer or employee of the authority appointed by the governor, for any act or omission in the performance of his or her powers and duties under this chapter, unless the person asserting liability proves that the act or omission constitutes willful misconduct.
The Housing Authority Act, except for s. 234.15 (4), Stats. 1971, is constitutional. State ex rel. Warren v. Nusbaum, 59 Wis. 2d 391
, 208 N.W.2d 780
Powers of authority.
The authority shall have all the powers necessary or convenient to implement this chapter, including the following powers in connection with its projects or programs, in addition to all other powers granted by this chapter: