SB148: Bill Text

SB148,363 Section 363. 234.01 (8) of the statutes is renumbered 235.40 (8), and 235.40 (8) (a) and (b), as renumbered, are amended to read:

SB148,113,16 235.40 (8) (a) As a condition of acceptance of a loan or advance under this chapter subchapter, 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.

SB148,114,3 (b) If the limited-profit entity receives a loan or advance under this chapter subchapter, the chairperson of the authority board, or his or her designee, acting with the prior approval of the majority of members of the authority board, 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 subchapter, 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.

SB148,364 Section 364. 234.01 (9) of the statutes is renumbered 235.40 (9), and 235.40 (9) (a) 5., as renumbered, is amended to read:

SB148,114,19 235.40 (9) (a) 5. That if the corporation receives a loan or advance under this chapter subchapter, the chairperson of the authority board, or his or her designee, acting with the prior approval of the majority of the members of the authority board, 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 subchapter, 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.

SB148,365 Section 365. 234.01 (10) of the statutes is renumbered 235.40 (10) and amended to read:

SB148,115,8 235.40 (10) "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 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 policies and procedures. 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.

SB148,366 Section 366. 234.02 of the statutes is repealed.

SB148,367 Section 367. 234.03 of the statutes is repealed.

SB148,368 Section 368. 234.032 of the statutes is repealed.

SB148,369 Section 369. 234.034 of the statutes is renumbered 235.401.

SB148,370 Section 370. 234.04 of the statutes is renumbered 235.406, and 235.406 (2), as renumbered, is amended to read:

SB148,116,5 235.406 (2) The authority may make or participate in the making and enter into commitments for the making of long-term mortgage loans to eligible sponsors of housing projects for occupancy by persons and families of low and moderate income, or for the making of homeownership mortgage loans or housing rehabilitation loans or loans for the refinancing of qualified subprime loans under s. 234.592   235.592 to persons and families of low and moderate income, an applicant under s. 234.59 or 234.592 235.59 to 235.592, or other eligible beneficiaries as defined in s. 234.49. The loans may be made only upon the determination by the authority that they are not otherwise available from private lenders upon reasonably equivalent terms and conditions 235.49. The authority may not make a loan to a person whose name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the person provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a). The authority may employ, for such compensation as it determines, the services of any financial institution in connection with any loan.

SB148,371 Section 371. 234.05 of the statutes is renumbered 235.407.

SB148,372 Section 372. 234.06 of the statutes is renumbered 235.4075.

SB148,373 Section 373. 234.07 of the statutes is renumbered 235.408, and 235.408 (1), as renumbered, is amended to read:

SB148,117,8 235.408 (1) Except as provided in sub. (2), a limited-profit entity which that receives loans from the authority under this subchapter may not make distributions, other than from funds contributed to the limited-profit entity by stockholders, partners, members, or holders of beneficial interest in the limited-profit entity, in any one year with respect to a project financed by the authority in excess of 6% of its equity in such project on a cumulative basis. The equity in a project shall consist of the difference between the amount of the mortgage loan and the total project cost. Total project cost shall include construction or rehabilitation costs including job overhead and a builder's and sponsor's profit and risk fee, architectural, engineering, legal, and accounting costs, organizational expenses, land value, interest, and financing charges paid during construction, the cost of landscaping and off-site improvements, whether or not such costs have been paid in cash or in a form other than cash. With respect to every project the authority shall, pursuant to rules policies and procedures adopted by it, establish the entity's equity at the time of making of the final mortgage advance and, for purposes of this section, that figure shall remain constant during the life of the authority's loan with respect to such project. Upon the dissolution of the limited-profit entity any surplus in excess of the distributions allowed by this section shall be paid to the authority. For this purpose surplus shall not be deemed to include any increase in net worth of any limited-profit entity by reason of a reduction of mortgage indebtedness, by amortization or similar payments or by reason of the sale or disposition of any assets of a limited-profit entity to the extent such surplus can be attributed to any increase in market value of any real or tangible personal property accruing during the period the assets were owned and held by the limited-profit entity.

SB148,374 Section 374. 234.08 (title) of the statutes is renumbered 235.02 (title).

SB148,375 Section 375. 234.08 (1) of the statutes is renumbered 235.02 (1) (intro.) and amended to read:

SB148,117,15 235.02 (1) (intro.) The authority may issue its negotiable notes and bonds in such principal amount, as, in the opinion of the authority, is necessary to provide sufficient funds for achieving its corporate purposes and funding its projects and programs, including the purchase of to do any of the following:

SB148,117,21 (a) Purchase certain mortgages and securities and the making of make secured loans for low- and moderate-income housing for persons and families of low and moderate income, for the rehabilitation of existing structures, and for the construction of facilities appurtenant thereto as provided in this chapter; for the making of to existing structures consistent with the authority's housing-related purposes.

SB148,117,23 (b) Make secured loans to assist eligible elderly homeowners in paying property taxes and special assessments; for the payment of.

SB148,117,25 (c) Pay interest on notes and bonds of the authority during construction; for the establishment of.

SB148,118,1 (d) Establish reserves to secure such notes and bonds; for the provision of.

SB148,118,4 (e) Provide moneys for the housing development fund in order to make temporary loans to sponsors of housing projects as provided in this chapter; and for.

SB148,118,7 (f) Make all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers, including funding all projects and programs.

SB148,376 Section 376. 234.08 (2) of the statutes is renumbered 235.02 (2).

SB148,377 Section 377. 234.08 (3) of the statutes is renumbered 235.02 (3).

SB148,378 Section 378. 234.08 (4) of the statutes is renumbered 235.02 (4).

SB148,379 Section 379. 234.08 (5) of the statutes is repealed.

SB148,380 Section 380. 234.08 (6) of the statutes is repealed.

SB148,381 Section 381. 234.08 (7) of the statutes is renumbered 235.02 (7).

SB148,382 Section 382. 234.09 of the statutes is renumbered 235.021 and amended to read:

SB148,119,3 235.021 Same Notes and bonds; authorization; terms. The authority's notes and bonds shall be authorized by resolution of the members of the authority board; shall bear such date or dates, and shall mature at such time or times, in the case of any note, or any renewal thereof, not exceeding 5 years, from the date of issue of such original note, and in the case of any bond not exceeding 50 years from the date of issue, as the resolution provides. The notes and bonds shall bear interest at such rate or rates, fixed or variable, be in such denominations of $1,000 or more, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, and at such place, and be subject to such terms of redemption, as the resolution provides. The bonds may be issued as serial bonds payable in annual installments or as term bonds or as a combination thereof. The notes and bonds of the authority may be sold by the authority, at public or private sale, at the price determined by the authority.

SB148,383 Section 383. 234.10 of the statutes is renumbered 235.0215, and 235.0215 (title) and (9), as renumbered, are amended to read:

SB148,119,7 235.0215 (title) Same Notes and bonds; resolution authorizing issuance, contents.

SB148,119,13 (9) Vesting in a trustee such property, rights, powers , and duties in trust as the authority determines, which may include any or all of the rights, powers, and duties of the trustee appointed by the noteholders or bondholders pursuant to s. 234.20 235.0265 and limiting or abrogating the right of the noteholders or bondholders to appoint a trustee under s. 234.20 235.0265 or limiting the rights, powers, and duties of such trustee, in which event s. 234.20 235.0265 shall not apply.

SB148,384 Section 384. 234.11 of the statutes is renumbered 235.022 and amended to read:

SB148,119,23 235.022 Same Notes and bonds; validity and effect of pledge. Any pledge made by the authority shall be valid and binding from the time when the pledge is made; the moneys or property so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract. or otherwise against the authority, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.

SB148,385 Section 385. 234.12 of the statutes is renumbered 235.0225 and amended to read:

SB148,120,6 235.0225 Same Notes and bonds; personal liability of board members of authority. Neither the members of the authority board, nor the members of a committee established by the board, nor any authorized agent of the board, nor any person executing the notes or bonds of the authority shall be liable personally on the notes or bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

SB148,386 Section 386. 234.13 (intro.) of the statutes is renumbered 235.023 and amended to read:

SB148,120,12 235.023 Same Notes and bonds; purchase for cancellation. The authority, subject to such agreements with noteholders or bondholders as may then exist, shall have power out of any funds available therefor to purchase notes or bonds of the authority, which shall thereupon be canceled, at a price not exceeding:.

SB148,387 Section 387. 234.13 (1) of the statutes is repealed.

SB148,388 Section 388. 234.13 (2) of the statutes is repealed.

SB148,389 Section 389. 234.14 of the statutes is renumbered 235.0235, and 235.0235 (title), as renumbered, is amended to read:

SB148,120,17 235.0235 (title) Same Notes and bonds; liability of state.

SB148,390 Section 390. 234.15 of the statutes is renumbered 235.403, and 235.403 (1g), (1r), (2), (3) (a) (intro.) and 3. and (b) and (4), as renumbered, are amended to read:

SB148,121,2 235.403 (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 board authorizing the bonds with respect to which a capital reserve fund is established under this section, which amount shall not exceed the maximum annual debt service on the those bonds of the authority for that fiscal year or any future fiscal year of the authority secured in whole or in part by the capital reserve fund.

SB148,121,9 (1r) The authority shall may establish one or more special capital reserve funds to secure its bonds, referred to in this chapter as capital reserve funds issued for housing-related purposes, and shall pay into each such capital reserve fund any moneys appropriated and made available by the state for the purposes of such fund, any proceeds of sale of notes or bonds, to the extent provided in the resolution of the authority board 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.

SB148,121,23 (2) All moneys held in any capital reserve fund established under this section, 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 the sinking fund payments mentioned in this section 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, any capital reserve fund established under this section due to the investment thereof may be transferred by the authority to other funds or accounts of the authority to the extent such transfer does not reduce the amount of such capital reserve fund below the capital reserve fund requirement for such fund.

SB148,122,7 (3) (a) (intro.) The authority shall not at any time issue bonds, secured in whole or in part by a capital reserve fund established under this section if upon the issuance of the 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, at the time of 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 capital reserve fund. The annual debt service for any fiscal year is the amount of money equal to the aggregate of all of the following:

SB148,122,10 3. All amounts specified in any resolution of the authority board authorizing any of the bonds described in subd. 1. as payable during the fiscal year as a sinking fund payment with respect to any of the bonds which mature after the fiscal year.

SB148,122,19 (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 fiscal year, bonds considered to have been paid in accordance with the defeasance provisions of the resolution of the authority board authorizing the issuance thereof shall not be included in bonds outstanding on the date of computation.

SB148,123,11 (4) To assure the continued operation and solvency of the authority for the carrying out of the public purposes of this chapter subchapter, the authority shall accumulate in each capital reserve fund established under this section an amount equal to the capital reserve fund requirement for such fund. If at any time the capital reserve fund requirement for any capital reserve fund established under this section exceeds the amount of such capital reserve fund, the chairperson of the authority board 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 appropriate capital reserve fund of the authority. 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.

SB148,391 Section 391. 234.16 of the statutes is renumbered 235.404, and 235.404 (1) (intro.) and (c), as renumbered, are amended to read:

SB148,123,20 235.404 (1) (intro.) The authority shall establish a special fund, referred to in this chapter as general reserve fund, and shall pay into such fund all fees and charges collected by the authority in connection with its housing-related purposes and any moneys which that the authority transfers from the a capital reserve fund established under s. 235.403. Such moneys and any other moneys paid into the general reserve fund, in the discretion of the authority but subject to agreements with bondholders and noteholders, may be used by the authority:

SB148,123,21 (c) For transfers to the a capital reserve fund established under s. 235.403;

SB148,392 Section 392. 234.165 of the statutes is renumbered 235.405, and 235.405 (2) (a), (b) 1. (intro.) and (dm), as renumbered, are amended to read:

SB148,124,4 235.405 (2) (a) In this subsection, "surplus" means assets of the authority which in the Wisconsin housing finance fund that are not required to pay the cost of issuance of bonds or notes of the authority issued in connection with its housing-related purposes, to make financially feasible economic development loans and expenditures for housing projects receiving proceeds from authority bond or note issues, or to honor agreements with bondholders and noteholders.

SB148,124,9 (b) 1. (intro.) Annually before August 31 the chairperson of the authority board shall certify and file with the secretary of administration a report of the actual surplus available on the preceding June 30 and the surplus projected by the authority to be available on the succeeding June 30. Together with this report, the chairperson of the authority board shall report, as of the preceding June 30:

SB148,124,12 (dm) The authority shall allocate a portion of its surplus in a plan prepared under par. (b) to the property tax deferral loan program under ss. 234.621 to 234.626 235.621 to 235.626.

SB148,393 Section 393. 234.17 of the statutes is repealed.

SB148,394 Section 394. 234.18 of the statutes is renumbered 235.0255 (1) and amended to read:

SB148,124,21 235.0255 (1) The authority may not issue notes and bonds that are secured by a capital reserve fund to which s. 234.15 235.403 (4) applies if, upon issuance, the total aggregate outstanding principal amount of notes and bonds that are secured by a capital reserve fund to which s. 234.15 235.403 (4) applies would exceed $600,000,000. This section does not apply to bonds and notes issued to refund outstanding notes and bonds.

SB148,395 Section 395. 234.19 of the statutes is renumbered 235.026.

SB148,396 Section 396. 234.20 of the statutes is renumbered 235.0265.

SB148,397 Section 397. 234.21 of the statutes is renumbered 235.027 and amended to read:

SB148,125,5 235.027 Trustee; additional powers. The trustee, in addition to the powers granted in s. 234.20 235.0265 shall have all of the powers necessary or appropriate for the exercise of any functions specifically set forth in this chapter or incident to the general representation of noteholders or bondholders in the enforcement and protection of their rights.

SB148,398 Section 398. 234.22 of the statutes is renumbered 235.0271 and amended to read:

SB148,125,10 235.0271 Venue. The venue of any action or proceeding by the trustee under ss. 234.19, 234.20 and 234.21 235.026, 235.0265, and 235.027 shall be in Dane County.

SB148,399 Section 399. 234.23 of the statutes is renumbered 235.0273.

SB148,400 Section 400. 234.24 of the statutes is renumbered 235.0275.

SB148,401 Section 401. 234.25 of the statutes is repealed.

SB148,402 Section 402. 234.255 of the statutes is repealed.

SB148,403 Section 403. 234.26 of the statutes is renumbered 235.0277.

SB148,404 Section 404. 234.265 of the statutes is renumbered 235.0279 and amended to read:

SB148,125,20 235.0279 Records of the authority. All records of the authority or any corporation established by the authority shall be open to the public as provided in s. 19.35 (1), except:

SB148,125,24 (1) Those records relating to pending grants, economic development loans, economic development projects, or housing projects which that, in the opinion of the authority, must remain confidential to protect the competitive nature of the grant, loan, or project.

SB148,126,9 (2) Records or portions of records consisting of personal or financial information provided by a person seeking a grant or, loan under s. 234.63, 2007 stats., or s. 234.04, 234.08, 234.49, 234.59, 234.592, 234.605, 234.61, 234.65, 234.67, 234.83, 234.84, 234.90, 234.905, 234.907, or 234.91, seeking a loan under ss. 234.621 to 234.626, seeking financial assistance under s. 234.66, 2005 stats., seeking mortgage loan refinancing from a lender under s. 234.605, seeking investment of funds under s. 234.03 (18m), or in which the authority has invested funds under s. 234.03 (18m), unless the person consents to disclosure of the information, tax credit, or other assistance from the authority.

SB148,405 Section 405. 234.28 of the statutes is renumbered 235.0281 and amended to read:

SB148,126,19 235.0281 Notes and bonds; exemption from taxation. The state covenants with the purchasers and all subsequent holders and transferees of notes and bonds issued by the authority or by the Wisconsin Housing and Economic Development Authority under ch. 234, 2013 stats., in consideration of the acceptance of any payment for the notes and bonds, that its fees, charges, gifts, grants, revenues, receipts, and other moneys received or to be received, pledged to pay or secure the payment of such notes or bonds shall at all times be free and exempt from all state, city, county, or other taxation provided by the laws of the state.

SB148,406 Section 406. 234.29 of the statutes is renumbered 235.0283.

SB148,407 Section 407. 234.30 of the statutes is renumbered 235.0285.

SB148,408 Section 408. 234.31 of the statutes is renumbered 235.0287.

SB148,409 Section 409. 234.32 of the statutes is renumbered 235.0289.

SB148,410 Section 410. 234.35 of the statutes is renumbered 235.0291.

SB148,411 Section 411. 234.36 of the statutes is renumbered 235.0293.

SB148,412 Section 412. 234.40 of the statutes is renumbered 235.409, and 235.409 (2), (3) and (4), as renumbered, are amended to read: