234.49(2)(a)5.
5. To enter into contracts with authorized lenders authorizing them to process applications and service housing rehabilitation loans. The contracts may include the responsibilities of the authorized lenders with respect to credit evaluations, financial eligibility determinations, valuation of the housing for which the loan is to be made, collection procedures in the event of delinquent loan repayments and other functions which the authority may require. Such contracts may provide for the payment of a fee for originating such loans or for servicing such loans.
234.49(2)(a)6.
6. To enter into contracts or agreements with authorized lenders and sponsors providing for the maximum and minimum acceptable rates of interest to be charged for various classifications of housing rehabilitation loans. In no event may the stated rate of interest on any housing rehabilitation loan under this section exceed the greater of 8% per year or 3% plus the rate necessary to fully repay interest and principal on housing rehabilitation loan program bonds issued pursuant to
s. 234.50.
234.49(2)(a)7.
7. To enter into contracts or agreements with authorized lenders and sponsors providing for the maximum acceptable amount, duration and other terms of housing rehabilitation loans in accordance with
sub. (1) (f).
234.49(2)(a)8.
8. To adopt procedures and forms necessary to effectuate the rehabilitation program or to facilitate the marketing of bonds issued under
s. 234.50.
234.49(2)(a)9.
9. To specify a rate of interest for a housing rehabilitation loan which is lower than the ordinary current rate for housing rehabilitation loans, if a substantial portion of the loan proceeds will be used for any of the following:
234.49(2)(a)9.b.
b. The repair or replacement of a heating system, electrical system, plumbing system, foundation or roof.
234.49(2)(a)9.d.
d. The authentic renovation of a listed property, as defined in
s. 44.31 (4), if the building is located on its original site.
234.49(2)(a)10.
10. To enter into contracts or agreements with the department of revenue or the department of administration to purchase property tax deferral loans under the housing rehabilitation loan program.
234.49(2)(c)
(c) In addition to the powers specified in
par. (a), the authority has all those powers necessary to implement this subsection.
234.49 History
History: 1977 c. 418;
1979 c. 110 s.
60 (13);
1979 c. 361 s.
59; Stats. 1979 s. 560.06;
1981 c. 21,
314;
1983 a. 81 s.
11;
1983 a. 83 s.
20;
1985 a. 29 ss.
2124d,
2244 to
2260,
3200 (14),
3202 (14);
1985 a. 120; Stats. 1985 s. 234.49;
1987 a. 27,
359,
395;
1987 a. 403 s.
256;
1989 a. 346;
1991 a. 39,
221,
269;
1993 a. 437;
1995 a. 27 ss.
6303,
9126 (19);
1995 a. 201,
404;
1997 a. 3;
1999 a. 9;
1999 a. 150 s.
672.
234.50
234.50
Bonds for housing rehabilitation loans; issuance; status. 234.50(1)(1) The authority may issue its negotiable bonds in such principal amount and of such length of maturity as, in the opinion of the authority, is necessary to provide sufficient funds for purchasing housing rehabilitation loans or for funding commitments for loans to lenders for housing rehabilitation loans; for purchasing property tax deferral loans under
s. 234.49 (2) (a) 10.; for the establishment of reserves to secure such bonds; and for all other expenditures of the authority incident to or necessary and convenient in connection therewith. The authority may, whenever it deems refunding expedient, refund any bonds by the issuance of new bonds whether the bonds to be refunded have or have not matured, and issue bonds partly to refund bonds then outstanding and partly for the purpose authorized by this section.
234.50(2)
(2) Bonds issued under the authority of this section shall be special obligations of the authority payable solely out of revenues, moneys or other property received in connection with the housing rehabilitation loan program, including, without limitation, repayments of housing rehabilitation loans, federal insurance or guarantee payments, the proceeds of bonds issued under the authority of this section, and the amounts made available under
ss. 234.54 and
234.55. All assets and liabilities created through the issuance of bonds to purchase housing rehabilitation loans shall be separate from all other assets and liabilities of the authority. No funds of the housing rehabilitation loan program may be commingled with any other funds of the authority.
234.50(4)
(4) The limitations established in
ss. 234.18 (1),
234.40,
234.60,
234.61,
234.65 and
234.66 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for housing rehabilitation loans in an aggregate principal amount exceeding $100,000,000, excluding bonds being issued to refund outstanding bonds. The authority shall consult with and coordinate the issuance of bonds with the building commission prior to the issuance of bonds.
234.51
234.51
Housing rehabilitation loan program administration fund; establishment and use. 234.51(1)
(1) There is established under the jurisdiction of the authority a housing rehabilitation loan program administration fund. There shall be paid into such fund the amounts appropriated under
s. 20.490 (2) (a), the amounts provided in
s. 234.55, any amounts transferred by the authority to such fund from other funds or sources and any other moneys which may be available to the authority for the purpose of such fund from any other source.
234.51(2)
(2) Subject to agreements with bondholders, the authority shall use moneys in the fund solely for the following purposes:
234.51(2)(a)
(a) To pay all administrative costs, expenses and charges, including origination fees and servicing fees, incurred in conducting the housing rehabilitation loan program other than those described in
ss. 234.53 (4) and
234.55 (2) (b).
234.51(2)(b)
(b) To transfer annually to the general fund, beginning no later than October 1, 2000, all moneys in the housing rehabilitation loan program administration fund that are no longer required for the housing rehabilitation loan program.
234.51(3)
(3) Moneys of the fund may be invested as provided in
s. 234.03 (18). All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.
234.52
234.52
Housing rehabilitation loan program loan-loss reserve fund; establishment and use. 234.52(1)
(1) There is established under the jurisdiction of the authority a housing rehabilitation loan program loan-loss reserve fund. There shall be paid into such fund the amounts appropriated under
s. 20.490 (2) (q), the amounts provided under
s. 234.55, any amounts transferred by the authority to such fund from other funds or sources and any other moneys which may be available to the authority for the purposes of such fund from any other source.
234.52(2)
(2) Subject to agreements with bondholders, the authority shall use moneys in the fund solely for transfer to the housing rehabilitation loan program bond redemption fund in amounts equal to losses on housing rehabilitation loans owned by that fund which are not made good by federal insurance or guarantee payments, and solely for the purposes described in
s. 234.55 (2) (a). Any balance remaining after payment or due provision for payment of all outstanding bonds issued under the authority of
s. 234.50 shall be transferred to the housing rehabilitation loan program administration fund.
234.52(3)
(3) Moneys of the fund may be invested as provided in
s. 234.03 (18). All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.
234.53
234.53
Housing rehabilitation loan fund. 234.53(1)
(1) The authority shall establish the housing rehabilitation loan fund. All moneys resulting from the sale of bonds issued under the authority of
s. 234.50, not including bonds issued to refund outstanding bonds, and unless credited to the housing rehabilitation loan program capital reserve or bond redemption funds, shall be credited to such fund.
234.53(2)
(2) The authority shall use moneys in the fund for the purpose of purchasing housing rehabilitation loans or for funding commitments for loans to lenders for housing rehabilitation loans. All disbursements of funds under this section for purchasing such loans shall be made payable to an authorized lender as defined in
s. 234.49 (1) (b) or a duly authorized agent thereof.
234.53(3)
(3) Moneys of the fund may be invested as provided in
s. 234.03 (18). All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.
234.53(4)
(4) The authority may use moneys in the fund to cover actual and necessary expenses incurred in the sale of housing rehabilitation bonds and investment of the proceeds thereof.
234.53(5)
(5) Any moneys not needed for the purposes of the fund shall be transferred to the housing rehabilitation loan program bond redemption fund.
234.54
234.54
Housing rehabilitation loan program capital reserve fund. 234.54(1g)(1g) In this section, "capital reserve fund requirement" means, as of any particular date of computation, an amount of money, as provided in the resolutions of the authority authorizing the bonds with respect to which the housing rehabilitation loan program capital reserve fund is established, which amount may not exceed the maximum annual debt service on the bonds of the authority for that calendar year or any future calendar year secured in whole or in part by the housing rehabilitation loan program capital reserve fund.
234.54(1r)
(1r) The authority shall establish the housing rehabilitation loan program capital reserve fund to secure the bonds issued under the authority of
s. 234.50, and shall pay into such fund any moneys appropriated and made available by the state for the purposes of such fund, any proceeds of sale of housing rehabilitation bonds to the extent provided in the resolution of the authority authorizing the issuance thereof and any other moneys which are made available to the authority for the purpose of such fund from any other source.
234.54(2)
(2) All moneys held in the housing rehabilitation loan program capital reserve fund, except as otherwise specifically provided, shall be used, as required, solely for the payment of the principal of bonds of the authority secured in whole or in part by such fund or of sinking fund payments with respect to such bonds, the purchase or redemption of such bonds, the payment of interest on such bonds or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity; but, if moneys in such fund at any time are less than the capital reserve fund requirement established for such fund as provided in this section, the authority shall not use such moneys for any optional purchase or optional redemption of such bonds. Any income or interest earned by, or increment to, the capital reserve fund due to the investment thereof may be transferred by the authority to other housing rehabilitation loan program funds or accounts of the authority to the extent such transfer does not reduce the amount of the capital reserve fund below the capital reserve fund requirement for the fund.
234.54(3)(a)(a) The authority may not issue bonds, secured in whole or in part by the capital reserve fund if upon the issuance of such bonds, the amount in the capital reserve fund will be less than the capital reserve fund requirement of the capital reserve fund, unless the authority, forthwith upon the issuance of the bonds, deposits in the capital reserve fund from the proceeds of the bonds to be issued, or from other sources, an amount which, together with the amount then in the capital reserve fund, will not be less than the capital reserve fund requirement for the fund. The annual debt service for any calendar year is the amount of money equal to the aggregate of all of the following:
234.54(3)(a)1.
1. All interest payable during the calendar year on all bonds secured in whole or in part by the capital reserve fund outstanding on the date of computation.
234.54(3)(a)2.
2. The principal amount of all bonds described in
subd. 1. outstanding on the date of computation which mature during the calendar year.
234.54(3)(a)3.
3. All amounts specified in any resolution of the authority authorizing any of the bonds described in
subd. 1. as payable during the calendar year as a sinking fund payment with respect to any of the bonds which mature after the calendar year.
234.54(3)(b)
(b) The annual debt service calculation made under
par. (a) shall be calculated on the assumption that the bonds will after the date of computation cease to be outstanding by reason, but only by reason, of the payment of bonds when due, and the payment when due and application in accordance with the resolution authorizing those bonds, of all of the sinking fund payments payable at or after the date of computation. However, in computing the annual debt service for any calendar year, bonds considered to have been paid in accordance with the defeasance provisions of the resolution of the authority authorizing the issuance thereof may not be included in bonds outstanding on the date of computation.
234.54(4)(a)(a) To assure the continued operation and solvency of the authority for the carrying out of the public purposes of this chapter, the authority shall accumulate in the capital reserve fund an amount equal to the capital reserve fund requirement for such fund.
234.54(4)(b)
(b) If at any time the capital reserve fund requirement for the capital reserve fund exceeds the amount of such capital reserve fund, the chairperson of the authority shall certify to the secretary of administration, the governor and the joint committee on finance the amount necessary to restore such capital reserve fund to an amount equal to the capital reserve fund requirement in respect thereto. If such certification is received by the secretary of administration in an even-numbered year prior to the completion of the budget compilation under
s. 16.43, the secretary shall include the certified amount in the budget compilation. In any case, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so certified to the capital reserve fund. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make such appropriation.
234.54(4)(c)
(c) Paragraph (b) applies only to bonds issued before December 31, 1983.
234.54(5)
(5) In computing the amount of the capital reserve fund for the purposes of this section, securities in which all or a portion of such capital reserve fund is invested shall be valued at par, or if purchased at less than par, at their cost to the authority, adjusted to reflect the amortization of discount or premium paid upon their purchase.
234.54(6)
(6) Notwithstanding
subs. (1r) to
(5), the authority, subject to such agreements with bondholders as may then exist, may elect not to secure any particular issue or series of its bonds with the capital reserve fund. Such election shall be made in the resolution authorizing such issue or series. In this event,
subs. (2) and
(3) shall not apply to the bonds of such issue or series in that they shall not be entitled to payment out of or be eligible for purchase by such fund nor may they be taken into account in computing or applying any capital reserve fund requirement.
234.55
234.55
Housing rehabilitation loan program bond redemption fund. 234.55(1)(1) The authority shall establish the housing rehabilitation loan program bond redemption fund. All housing rehabilitation loans purchased with moneys from the housing rehabilitation loan fund or notes evidencing loans to lenders from such fund for housing rehabilitation loans shall be the exclusive property of such redemption fund. All moneys received from the repayment of such loans, any amounts transferred by the authority to such fund pursuant to
s. 234.52 or from other funds or sources, any federal insurance or guarantee payments with respect to such loans, all moneys resulting from the sale of bonds for the purpose of refunding outstanding housing rehabilitation bonds unless credited to the housing rehabilitation loan program capital reserve fund, and any other moneys which may be available to the authority for the purpose of such fund, shall be deposited into such fund to be used for the repayment of housing rehabilitation bonds issued under the authority of
s. 234.50.
234.55(2)
(2) Subject to agreements with bondholders and except as provided in
sub. (3), the authority may use moneys in the fund solely:
234.55(2)(a)
(a) For the payment of the principal of and interest on housing rehabilitation bonds of the authority when the same become due whether at maturity or on call for redemption and for the payment of any redemption premium required to be paid when such bonds are redeemed prior to their stated maturities, and to purchase such bonds;
234.55(2)(b)
(b) To pay actual and necessary expenses incurred to service and administer outstanding housing rehabilitation bonds, including fees and expenses of trustees and paying agents, and to collect housing rehabilitation loans;
234.55(2)(c)
(c) For transfer to the housing rehabilitation loan program loan loss reserve fund; or
234.55(2)(d)
(d) For transfer to the housing rehabilitation loan fund.
234.55(3)
(3) Any balance remaining after satisfaction of all obligations under
sub. (2) shall be transferred to the housing rehabilitation loan program administration fund.
234.55(4)
(4) Moneys of the fund may be invested as provided in
s. 234.03 (18). All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.
234.59
234.59
Homeownership mortgage loan program. 234.59(1)(a)
(a) "Authorized lender" means a bank, savings bank, savings and loan association, credit union or mortgage banker.
234.59(1)(d)
(d) "Eligible property" means any of the following:
234.59(1)(d)1.
1. A residential structure having a single dwelling unit, if the structure is or will be the principal residence of an applicant.
234.59(1)(d)2.
2. A residential structure having no more than 4 dwelling units, if one of the units is or will be the principal residence of an applicant and the structure is an existing dwelling first occupied at least 5 years before execution of a homeownership mortgage loan secured by the dwelling.
234.59(1)(d)3.
3. A dwelling unit in a condominium or cooperative, together with an interest in common areas, if the unit is or will be the principal residence of an applicant.
234.59(1)(d)4.
4. A residential structure having 2 dwelling units, if one of the units will be the principal residence of an applicant and if the structure is a new dwelling and a targeted area residence.
234.59(1)(e)
(e) "Existing dwelling" means a previously occupied dwelling.
234.59(1)(f)
(f) "Homeownership mortgage loan" means a loan to finance the construction, long-term financing or qualified rehabilitation of an eligible property by an applicant.
234.59(1)(g)
(g) "Median income" means median family income as determined by the U.S. department of housing and urban development.
234.59(1)(h)
(h) "Mortgage banker" means a mortgage banker registered under
s. 224.72, but does not include a person licensed under
s. 138.09.
234.59(1)(i)
(i) "New dwelling" means a dwelling which has never been occupied.
234.59(1)(j)
(j) "Principal residence" means an eligible property in this state which an applicant maintains as a full-time residence, but does not use as a vacation home or for trade or business purposes.
234.59(2)
(2) Powers and duties of the authority. The authority shall establish and administer a homeownership mortgage loan program to encourage and to facilitate the acquisition or rehabilitation of eligible property by applicants. To implement the program, the authority:
234.59(2)(a)
(a) May enter into contracts permitting an authorized lender to make or service homeownership mortgage loans or both.
234.59(2)(c)
(c) Shall maintain a current list of authorized lenders.
234.59(2)(e)
(e) May enter into agreements to insure or provide additional security for homeownership mortgage loans or bonds or notes issued under
s. 234.60.
234.59(3)(a)(a) The amount of a homeownership mortgage loan may not exceed the lesser of 97% of the purchase price or 97% of the appraised value of the eligible property.
234.59(3)(b)1.a.a. Except as provided in
subd. 1. c., a homeownership mortgage loan may not be made to an applicant if the applicant's income combined, except as provided in
subd. 1. b., with the income from all sources of all persons who intend to occupy the same dwelling unit as that applicant, exceeds 110% of the median income of the county where the eligible property is located if the eligible property is not a targeted area residence or exceeds 140% of the median income of the county where the eligible property is located if the eligible property is a targeted area residence.
234.59(3)(b)1.b.
b. For the purpose of
subd. 1., no earned income of any minor who will occupy the same dwelling unit as the applicant may be considered.
234.59(3)(b)1.c.
c. If the authority sets aside at least 20% of the proceeds of a bond or note issuance under
s. 234.60 to fund homeownership mortgage loans for eligible properties that are targeted area residences, the authority may apply up to 33% of the proceeds that are set aside for that purpose without regard to the income of the applicant.
