SB148,348
12Section
348. Subchapter I (title) of chapter 234 [precedes 234.01] of the
13statutes is renumbered subchapter IV (title) of chapter 235 [precedes 235.40] and
14amended to read:
SB148,111,1515
CHAPTER 235
SB148,111,1616
SUBCHAPTER IV
SB148,111,18
17GENERAL PROVISIONS; HOUSING
AND
18ECONOMIC DEVELOPMENT PROGRAMS
SB148,349
19Section
349. 234.01 (intro.) of the statutes is renumbered 235.40 (intro.) and
20amended to read:
SB148,111,21
21235.40 Definitions. (intro.) In this
chapter subchapter:
SB148,350
22Section
350. 234.01 (1) of the statutes is repealed.
SB148,351
23Section
351. 234.01 (2) of the statutes is repealed.
SB148,352
24Section
352. 234.01 (3) of the statutes is repealed.
SB148,353
1Section
353. 234.01 (3m) of the statutes is renumbered 235.40 (3m) and
2amended to read:
SB148,112,53
235.40
(3m) "Collateral" means a 3rd-party note, mortgage, guaranty,
4insurance policy, bond, letter of credit, security agreement
, or other instrument
5securing the repayment of
an economic development loan or a mortgage loan.
SB148,354
6Section
354. 234.01 (4) of the statutes is renumbered 235.40 (4).
SB148,355
7Section
355. 234.01 (4m) of the statutes is repealed.
SB148,356
8Section
356. 234.01 (4n) of the statutes is repealed.
SB148,357
9Section
357. 234.01 (5) of the statutes is renumbered 235.40 (5).
SB148,358
10Section
358. 234.01 (5k) of the statutes is renumbered 235.40 (5k).
SB148,359
11Section
359. 234.01 (5m) of the statutes is renumbered 235.40 (5m) and
12amended to read:
SB148,112,1413
235.40
(5m) "Homeownership mortgage loan" has the meaning given under s.
14234.59 235.59 (1) (f).
SB148,360
15Section
360. 234.01 (6) of the statutes is renumbered 235.40 (6), and 235.40
16(6) (a) and (b), as renumbered, are amended to read:
SB148,112,2017
235.40
(6) (a) If the corporation receives any loan or advance from the authority
18under this
chapter subchapter, it may enter into an agreement with the authority
19providing for regulation with respect to rents, profits, dividends
, and disposition of
20property or franchises
; and.
SB148,113,521
(b) If the corporation receives a loan or advance under this
chapter subchapter,
22the chairperson of the
authority board, or his or her designee, acting with the prior
23approval of the
majority of the members of the authority board, may, if he or she
24determines that any such loan or advance is in jeopardy of not being repaid, that the
25proposed development for which such loan or advance was made is in jeopardy of not
1being constructed
, or that the corporation is not carrying out the intent and purposes
2of this
chapter subchapter, appoint to the board of directors of such corporation a
3number of new directors, which number shall be sufficient to constitute a majority
4of
such that board
of directors, notwithstanding any other provision of such articles
5of incorporation or of any other provision of law.
SB148,361
6Section
361. 234.01 (7) of the statutes is renumbered 235.40 (7).
SB148,362
7Section
362. 234.01 (7m) of the statutes is renumbered 235.40 (7m) and
8amended to read:
SB148,113,109
235.40
(7m) "Housing rehabilitation loan" means a low interest housing
10rehabilitation loan as defined in s.
234.49 235.49 (1) (f) and (fm).
SB148,363
11Section
363. 234.01 (8) of the statutes is renumbered 235.40 (8), and 235.40
12(8) (a) and (b), as renumbered, are amended to read:
SB148,113,1613
235.40
(8) (a) As a condition of acceptance of a loan or advance under this
14chapter subchapter, the limited-profit entity shall enter into an agreement with the
15authority providing for limitations of rents, profits, dividends
, and disposition of
16property or franchises
; and.
SB148,114,317
(b) If the limited-profit entity receives a loan or advance under this
chapter 18subchapter, the chairperson of the
authority board, or his or her designee, acting with
19the prior approval of the
majority of members of the authority board, may, if he or
20she determines that any such loan or advance is in jeopardy of not being repaid, that
21the proposed development for which such loan or advance was made is in jeopardy
22of not being constructed
, or that the limited-profit entity is otherwise not carrying
23out the intent and purposes of this
chapter subchapter, appoint to the board of
24directors or other comparable controlling body of such limited-profit entity a number
25of new directors or persons, which number shall be sufficient to constitute a voting
1majority of such board or controlling body, notwithstanding any other provisions of
2the limited-profit entity's articles of incorporation or other documents of
3organization, or of any other provisions of law.
SB148,364
4Section
364. 234.01 (9) of the statutes is renumbered 235.40 (9), and 235.40
5(9) (a) 5., as renumbered, is amended to read:
SB148,114,196
235.40
(9) (a) 5. That if the corporation receives a loan or advance under this
7chapter subchapter, the chairperson of the
authority board, or his or her designee,
8acting with the prior approval of the
majority of the members of the authority board,
9may, on determination that any such loan or advance is in jeopardy of not being
10repaid, that the proposed development for which such loan or advance was made is
11in jeopardy of not being constructed, that some part of the net income or net earnings
12of the corporation is inuring to the benefit of any private person, that the corporation
13is in some manner controlled or under the direction of or acting in the substantial
14interest of any private person seeking to derive benefit or gain therefrom or seeking
15to eliminate or minimize losses in any dealings or transactions therewith
, or that the
16corporation is not carrying out the intent and purposes of this
chapter subchapter,
17appoint to the board of directors of such corporation a number of new directors, which
18number shall be sufficient to constitute a majority of such board, notwithstanding
19any other provisions of such articles of incorporation or of any other provisions of law.
SB148,365
20Section
365. 234.01 (10) of the statutes is renumbered 235.40 (10) and
21amended to read:
SB148,115,822
235.40
(10) "Persons and families of low and moderate income" means persons
23and families who cannot afford to pay the amounts at which private enterprise,
24without
federally-aided federally aided mortgages or loans from the authority, can
25provide a substantial supply of decent, safe and sanitary housing and who fall within
1income limitations set by the authority in its
rules policies and procedures. In
2determining such income limitations the authority shall consider the amounts of the
3total income of such persons available for housing needs, the size of the family, the
4cost and condition of available housing facilities, standards established for various
5federal programs
, and any other factors determined by the authority to be
6appropriate in arriving at such limitations. Among low- or moderate-income
7persons and families, preference shall be given to those displaced by governmental
8action.
SB148,366
9Section
366. 234.02 of the statutes is repealed.
SB148,367
10Section
367. 234.03 of the statutes is repealed.
SB148,368
11Section
368. 234.032 of the statutes is repealed.
SB148,369
12Section
369. 234.034 of the statutes is renumbered 235.401.
SB148,370
13Section
370. 234.04 of the statutes is renumbered 235.406, and 235.406 (2),
14as renumbered, is amended to read:
SB148,116,515
235.406
(2) The authority may make or participate in the making and enter
16into commitments for the making of long-term mortgage loans to eligible sponsors
17of housing projects for occupancy by persons and families of low and moderate
18income, or for the making of homeownership mortgage loans or housing
19rehabilitation loans or loans for the refinancing of qualified subprime loans under
20s.
234.592 235.592 to persons and families of low and moderate income, an applicant
21under s.
234.59 or 234.592 235.59 to 235.592, or other eligible beneficiaries as defined
22in s.
234.49. The loans may be made only upon the determination by the authority
23that they are not otherwise available from private lenders upon reasonably
24equivalent terms and conditions 235.49. The authority may not make a loan to a
25person whose name appears on the statewide support lien docket under s. 49.854 (2)
1(b), unless the person provides to the authority a payment agreement that has been
2approved by the county child support agency under s. 59.53 (5) and that is consistent
3with rules promulgated under s. 49.858 (2) (a). The authority may employ, for such
4compensation as it determines, the services of any financial institution in connection
5with any loan.
SB148,371
6Section
371. 234.05 of the statutes is renumbered 235.407.
SB148,372
7Section
372. 234.06 of the statutes is renumbered 235.4075.
SB148,373
8Section
373. 234.07 of the statutes is renumbered 235.408, and 235.408 (1),
9as renumbered, is amended to read:
SB148,117,810
235.408
(1) Except as provided in sub. (2), a limited-profit entity
which that 11receives loans from the authority
under this subchapter may not make distributions,
12other than from funds contributed to the limited-profit entity by stockholders,
13partners, members
, or holders of beneficial interest in the limited-profit entity, in
14any one year with respect to a project financed by the authority in excess of 6% of its
15equity in such project on a cumulative basis. The equity in a project shall consist of
16the difference between the amount of the mortgage loan and the total project cost.
17Total project cost shall include construction or rehabilitation costs including job
18overhead and a builder's and sponsor's profit and risk fee, architectural, engineering,
19legal
, and accounting costs, organizational expenses, land value, interest
, and
20financing charges paid during construction, the cost of landscaping and off-site
21improvements, whether or not such costs have been paid in cash or in a form other
22than cash. With respect to every project the authority shall, pursuant to
rules 23policies and procedures adopted by it, establish the entity's equity at the time of
24making of the final mortgage advance and, for purposes of this section, that figure
25shall remain constant during the life of the authority's loan with respect to such
1project. Upon the dissolution of the limited-profit entity any surplus in excess of the
2distributions allowed by this section shall be paid to the authority. For this purpose
3surplus shall not be deemed to include any increase in net worth of any limited-profit
4entity by reason of a reduction of mortgage indebtedness, by amortization or similar
5payments or by reason of the sale or disposition of any assets of a limited-profit entity
6to the extent such surplus can be attributed to any increase in market value of any
7real or tangible personal property accruing during the period the assets were owned
8and held by the limited-profit entity.
SB148,374
9Section
374. 234.08 (title) of the statutes is renumbered 235.02 (title).
SB148,375
10Section
375. 234.08 (1) of the statutes is renumbered 235.02 (1) (intro.) and
11amended to read:
SB148,117,1512
235.02
(1) (intro.) The authority may issue its negotiable notes and bonds in
13such principal amount, as, in the opinion of the authority, is necessary to provide
14sufficient funds for achieving its corporate purposes
and funding its projects and
15programs, including
the purchase of to do any of the following:
SB148,117,21
16(a) Purchase certain mortgages and securities and
the making of make 17secured loans for
low- and moderate-income housing
for persons and families of
18low and moderate income, for the rehabilitation of existing structures
, and for the
19construction of facilities appurtenant
thereto as provided in this chapter; for the
20making of to existing structures consistent with the authority's housing-related
21purposes.
SB148,117,23
22(b) Make secured loans to assist eligible elderly homeowners in paying
23property taxes and special assessments
; for the payment of.
SB148,117,25
24(c) Pay interest on notes and bonds of the authority during construction
; for
25the establishment of.
SB148,118,1
1(d) Establish reserves to secure
such notes and bonds
; for the provision of.
SB148,118,4
2(e) Provide moneys for the housing development fund in order to make
3temporary loans to sponsors of housing projects
as provided in this chapter; and
4for.
SB148,118,7
5(f) Make all other expenditures of the authority incident to and necessary or
6convenient to carry out its corporate purposes and powers
, including funding all
7projects and programs.
SB148,376
8Section
376. 234.08 (2) of the statutes is renumbered 235.02 (2).
SB148,377
9Section
377. 234.08 (3) of the statutes is renumbered 235.02 (3).
SB148,378
10Section
378. 234.08 (4) of the statutes is renumbered 235.02 (4).
SB148,379
11Section
379. 234.08 (5) of the statutes is repealed.
SB148,380
12Section
380. 234.08 (6) of the statutes is repealed.
SB148,381
13Section
381. 234.08 (7) of the statutes is renumbered 235.02 (7).
SB148,382
14Section
382. 234.09 of the statutes is renumbered 235.021 and amended to
15read:
SB148,119,3
16235.021 Same Notes and bonds; authorization; terms. The
authority's 17notes and bonds shall be authorized by resolution of the
members of the authority 18board; shall bear such date or dates, and shall mature at such time or times,
in the
19case of any note, or any renewal thereof, not exceeding 5 years, from the date of issue
20of such original note, and in the case of any bond not exceeding 50 years from the date
21of issue, as the resolution provides. The notes and bonds shall bear interest at such
22rate or rates,
fixed or variable, be in such denominations
of $1,000 or more, be in such
23form,
either coupon or registered, carry such registration privileges, be executed in
24such manner, be payable in such medium of payment
,
and at such place
, and be
25subject to such terms of redemption
, as the resolution provides. The bonds may be
1issued as serial bonds payable in annual installments or as term bonds or as a
2combination thereof. The notes and bonds of the authority may be sold by the
3authority, at public or private sale, at the price determined by the authority.
SB148,383
4Section
383. 234.10 of the statutes is renumbered 235.0215, and 235.0215
5(title) and (9), as renumbered, are amended to read:
SB148,119,7
6235.0215 (title)
Same Notes and bonds; resolution authorizing
7issuance, contents.
SB148,119,13
8(9) Vesting in a trustee such property, rights, powers
, and duties in trust as the
9authority determines, which may include any or all of the rights, powers
, and duties
10of the trustee appointed by the noteholders or bondholders pursuant to s.
234.20 11235.0265 and limiting or abrogating the right of the noteholders or bondholders to
12appoint a trustee under s.
234.20 235.0265 or limiting the rights, powers
, and duties
13of such trustee, in which event s.
234.20 235.0265 shall not apply.
SB148,384
14Section
384. 234.11 of the statutes is renumbered 235.022 and amended to
15read:
SB148,119,23
16235.022 Same Notes and bonds; validity and effect of pledge. Any pledge
17made by the authority shall be valid and binding from the time when the pledge is
18made; the moneys or property so pledged and thereafter received by the authority
19shall immediately be subject to the lien of such pledge without any physical delivery
20thereof or further act; and the lien of any such pledge shall be valid and binding as
21against all parties having claims of any kind in tort, contract
. or otherwise against
22the authority, irrespective of whether such parties have notice thereof. Neither the
23resolution nor any other instrument by which a pledge is created need be recorded.
SB148,385
24Section
385. 234.12 of the statutes is renumbered 235.0225 and amended to
25read:
SB148,120,6
1235.0225 Same Notes and bonds; personal liability of board members
2of authority. Neither the members of the
authority board, nor the members of a
3committee established by the board, nor any authorized agent of the board, nor any
4person executing
the notes or bonds
of the authority shall be liable personally on the
5notes or bonds or be subject to any personal liability or accountability by reason of
6the issuance thereof.
SB148,386
7Section
386. 234.13 (intro.) of the statutes is renumbered 235.023 and
8amended to read:
SB148,120,12
9235.023 Same Notes and bonds; purchase for cancellation. The
10authority, subject to such agreements with noteholders or bondholders as may then
11exist, shall have power out of any funds available therefor to purchase notes or bonds
12of the authority
, which shall thereupon be canceled, at a price not exceeding:.
SB148,387
13Section
387. 234.13 (1) of the statutes is repealed.
SB148,388
14Section
388. 234.13 (2) of the statutes is repealed.
SB148,389
15Section
389. 234.14 of the statutes is renumbered 235.0235, and 235.0235
16(title), as renumbered, is amended to read:
SB148,120,17
17235.0235 (title)
Same Notes and bonds; liability of state.
SB148,390
18Section
390. 234.15 of the statutes is renumbered 235.403, and 235.403 (1g),
19(1r), (2), (3) (a) (intro.) and 3. and (b) and (4), as renumbered, are amended to read:
SB148,121,220
235.403
(1g) In this section, "capital reserve fund requirement" means, as of
21any particular date of computation, an amount of money, as provided in the
22resolutions of the
authority board authorizing the bonds with respect to which a
23capital reserve fund is established
under this section, which amount shall not exceed
24the maximum annual debt service on
the those bonds
of the authority for that fiscal
1year or any future fiscal year of the authority secured in whole or in part by the
2capital reserve fund.
SB148,121,9
3(1r) The authority
shall may establish one or more
special capital reserve funds
4to secure its bonds
, referred to in this chapter as capital reserve funds issued for
5housing-related purposes, and shall pay into each such capital reserve fund any
6moneys appropriated and made available by the state for the purposes of such fund,
7any proceeds of sale of notes or bonds, to the extent provided in the resolution of the
8authority board authorizing the issuance thereof
, and any other moneys
which are 9made available to the authority for the purpose of such fund from any other source.
SB148,121,23
10(2) All moneys held in any capital reserve fund
established under this section,
11except as otherwise specifically provided, shall be used, as required, solely for the
12payment of the principal of bonds of the authority secured in whole or in part by such
13fund or of the sinking fund payments mentioned in this section with respect to such
14bonds, the purchase or redemption of such bonds, the payment of interest on such
15bonds
, or the payment of any redemption premium required to be paid when such
16bonds are redeemed prior to maturity; but, if moneys in such fund at any time are
17less than the capital reserve fund requirement established for such fund as provided
18in this section, the authority shall not use such moneys for any optional purchase or
19optional redemption of such bonds. Any income or interest earned by, or increment
20to, any capital reserve fund
established under this section due to the investment
21thereof may be transferred by the authority to other funds or accounts of the
22authority to the extent such transfer does not reduce the amount of such capital
23reserve fund below the capital reserve fund requirement for such fund.
SB148,122,7
24(3) (a) (intro.) The authority shall not at any time issue bonds, secured in whole
25or in part by a capital reserve fund
established under this section if upon the issuance
1of the bonds, the amount in the capital reserve fund will be less than the capital
2reserve fund requirement of the capital reserve fund, unless the authority, at the
3time of issuance of the bonds, deposits in the capital reserve fund from the proceeds
4of the bonds to be issued, or from other sources, an amount which, together with the
5amount then in the capital reserve fund, will not be less than the capital reserve fund
6requirement for the capital reserve fund. The annual debt service for any fiscal year
7is the amount of money equal to the aggregate of all of the following:
SB148,122,108
3. All amounts specified in any resolution of the
authority board authorizing
9any of the bonds described in subd. 1. as payable during the fiscal year as a sinking
10fund payment with respect to any of the bonds which mature after the fiscal year.
SB148,122,1911
(b) The annual debt service calculation made under par. (a) shall be calculated
12on the assumption that the bonds will after the date of computation cease to be
13outstanding by reason, but only by reason, of the payment of bonds when due, and
14the payment when due and application in accordance with the resolution authorizing
15those bonds, of all of the sinking fund payments payable at or after the date of
16computation. However, in computing the annual debt service for any fiscal year,
17bonds considered to have been paid in accordance with the defeasance provisions of
18the resolution of the
authority board authorizing the issuance thereof shall not be
19included in bonds outstanding on the date of computation.
SB148,123,11
20(4) To assure the continued operation and solvency of the authority for the
21carrying out of the public purposes of this
chapter
subchapter, the authority shall
22accumulate in each capital reserve fund
established under this section an amount
23equal to the capital reserve fund requirement for such fund. If at any time the capital
24reserve fund requirement for any capital reserve fund
established under this section 25exceeds the amount of such capital reserve fund, the chairperson of the
authority
1board shall certify to the secretary of administration, the governor
, and the joint
2committee on finance the amount necessary to restore such capital reserve fund to
3an amount equal to the capital reserve fund requirement in respect thereto. If such
4certification is received by the secretary of administration in an even-numbered year
5prior to the completion of the budget compilation under s. 16.43, the secretary shall
6include the certified amount in the budget compilation. In any case, the joint
7committee on finance shall introduce in either house, in bill form, an appropriation
8of the amount so certified to the appropriate capital reserve fund of the authority.
9Recognizing its moral obligation to do so, the legislature hereby expresses its
10expectation and aspiration that, if ever called upon to do so, it shall make such
11appropriation.
SB148,391
12Section
391. 234.16 of the statutes is renumbered 235.404, and 235.404 (1)
13(intro.) and (c), as renumbered, are amended to read:
SB148,123,2014
235.404
(1) (intro.) The authority shall establish a
special fund, referred to in
15this chapter as general reserve fund, and shall pay into such fund all fees and charges
16collected by the authority
in connection with its housing-related purposes and any
17moneys
which that the authority transfers from
the a capital reserve fund
18established under s. 235.403. Such moneys and any other moneys paid into the
19general reserve fund, in the discretion of the authority but subject to agreements
20with bondholders and noteholders, may be used by the authority:
SB148,123,2121
(c) For transfers to
the a capital reserve fund
established under s. 235.403;
SB148,392
22Section
392. 234.165 of the statutes is renumbered 235.405, and 235.405 (2)
23(a), (b) 1. (intro.) and (dm), as renumbered, are amended to read:
SB148,124,424
235.405
(2) (a) In this subsection, "surplus" means assets of the authority
25which in the Wisconsin housing finance fund that are not required to pay the cost of
1issuance of bonds or notes of the authority
issued in connection with its
2housing-related purposes, to make financially feasible
economic development loans
3and expenditures for housing projects receiving proceeds from authority bond or note
4issues
, or to honor agreements with bondholders and noteholders.
SB148,124,95
(b) 1. (intro.) Annually before August 31 the chairperson of the
authority board 6shall certify and file with the secretary of administration a report of the actual
7surplus available on the preceding June 30 and the surplus projected by the
8authority to be available on the succeeding June 30. Together with this report, the
9chairperson of the
authority board shall report, as of the preceding June 30:
SB148,124,1210
(dm) The authority shall allocate a portion of its surplus in a plan prepared
11under par. (b) to the property tax deferral loan program under ss.
234.621 to 234.626 12235.621 to 235.626.
SB148,393
13Section
393. 234.17 of the statutes is repealed.
SB148,394
14Section
394. 234.18 of the statutes is renumbered 235.0255 (1) and amended
15to read:
SB148,124,2116
235.0255
(1) The authority may not issue notes and bonds that are secured by
17a capital reserve fund to which s.
234.15 235.403 (4) applies if, upon issuance, the
18total aggregate outstanding principal amount of notes and bonds that are secured
19by a capital reserve fund to which s.
234.15 235.403 (4) applies would exceed
20$600,000,000. This section does not apply to bonds and notes issued to refund
21outstanding notes and bonds.