LRB-2422/1
CTS:jld:rs
2005 - 2006 LEGISLATURE
July 7, 2005 - Introduced by Representatives Wieckert, Nischke, Musser,
Townsend, Gronemus, Mursau, Hines, Ott, Loeffelholz and M. Williams.
Referred to Committee on Housing.
AB548,1,3
1An Act to repeal 234.59 (3) (b) 2.; and
to renumber and amend 234.59 (3) (b)
21. of the statutes;
relating to: income limits under the Wisconsin Housing and
3Economic Development Authority's Homeownership Mortgage Loan Program.
Analysis by the Legislative Reference Bureau
The Wisconsin Housing and Economic Development Authority (WHEDA)
administers a number of housing and economic development programs. 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. 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. The bill 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.
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:
AB548, s. 1
1Section
1. 234.59 (3) (b) 1. of the statutes is renumbered 234.59 (3) (bc), and
2234.59 (3) (bc) 1., as renumbered, is amended to read:
AB548,2,103
234.59
(3) (bc) 1. Except as provided in subd.
1. c. 3., a homeownership
4mortgage loan may not be made to an applicant if the applicant's income
combined,
5except as provided in subd. 1. b., with the income from all sources of all persons who
6intend to occupy the same dwelling unit as that applicant, exceeds 110% of the
7median income of the county where the eligible property is located if the eligible
8property is not a targeted area residence or exceeds 140% of the median income of
9the county where the eligible property is located if the eligible property is a targeted
10area residence exceeds the applicable level specified under 26 USC 143 (f).
AB548, s. 2
11Section
2. 234.59 (3) (b) 2. of the statutes is repealed.
AB548,2,1413
(1) This act first applies to homeownership mortgage loans for which
14application is made on the effective date of this subsection.
