Under the Small Business Development Loan Guarantee Program (small
business program), WHEDA guarantees loans to eligible businesses and tribal
governing bodies for business expansions and start-ups. Currently, under the small
business program WHEDA may not guarantee a loan for refinancing an existing
debt. Current law limits loan guarantees under the small business program to the

lesser of 80 percent of the principal of the loan or $200,000, and caps the total
principal amount of a business's WHEDA-guaranteed loans at $750,000. This bill
permits WHEDA to guarantee a refinancing loan if the borrower also expands an
existing business. The bill also eliminates the $750,000 limit on the total principal
amount of a business's WHEDA-guaranteed loans. As a result, a business is eligible
for a small business program loan guarantee up to the lesser of 80 percent of the
principal or $200,000 per loan, but there is no limit to the total principal amount of
a business's loans that WHEDA may guarantee.
Under current law, WHEDA may issue notes and bonds to finance loans to
eligible sponsors of housing projects that benefit persons and families of low and
moderate income. Currently, the total outstanding principal on these notes and
bonds may not exceed $325,000,000. This bill increases the $325,000,000 limit to
$600,000,000.
Currently, WHEDA may acquire real or personal property only if WHEDA finds
that low-income or moderate-income housing cannot be developed privately
without an acquisition by the authority, or if the authority acquires property by
reason of default. This bill eliminates these restrictions on WHEDA's authority to
acquire property.
Under current law, records consisting of personal or financial information
provided by persons seeking assistance under a number of WHEDA's programs are
confidential. This bill makes the technical correction of adding WHEDA's loan
program for housing projects for low-income and moderate-income persons and
families to the list of programs for which these records are confidential. In addition,
the bill removes the requirement in current law that WHEDA employ the Building
Commission as its financial consultant to assist and coordinate the issuance of
WHEDA's notes and bonds.
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.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB593, s. 1 1Section 1. 101.143 (4) (em) 2. of the statutes is amended to read:
AB593,4,82 101.143 (4) (em) 2. The department shall issue the award under this paragraph
3without regard to fault for each home oil tank system in an amount equal to 75% of
4the amount of the eligible costs, except that, if the home oil tank system is owned by
5a nonprofit organization that provides housing assistance to families with incomes

1below 80% of the median family income, as defined in s. 234.49 (1) (g) determined
2annually by the U.S. department of housing and urban development for each county
3in the state
, of the county in which the home oil tank system is located, then the
4award shall equal 100% of the amount of the eligible costs. The department shall
5recalculate any award made to such a nonprofit organization under this paragraph
6before May 7, 1994, based on 100% of eligible costs and shall issue an award for the
7difference between the award as recalculated and the award issued before May 7,
81994.
AB593, s. 2 9Section 2. 234.01 (7m) of the statutes is amended to read:
AB593,4,1110 234.01 (7m) "Housing rehabilitation loan" means a low interest housing
11rehabilitation loan as defined in s. 234.49 (1) (f) and (fm).
AB593, s. 3 12Section 3. 234.03 (15) of the statutes is amended to read:
AB593,4,2313 234.03 (15) To acquire or contract to acquire from any person by grant,
14purchase, or otherwise, leaseholds, real, or personal property or any interest therein,
15only when the authority finds that low- or moderate-income housing cannot be
16developed privately without an acquisition by the authority, or when the authority
17acquires property by reason of default by a sponsor of a residential facility, as defined
18in s. 46.28 (1) (d) and (e), or by an eligible sponsor;
; and to own, hold, clear, improve,
19and rehabilitate and to sell, assign, exchange, transfer, convey, lease, mortgage, or
20otherwise dispose of or encumber the same. Nothing in this chapter shall be deemed
21to impede the operation and effect of local zoning, building, and housing ordinances
22or ordinances relating to subdivision control, land development, fire prevention, or
23other ordinances having to do with housing or housing development.
AB593, s. 4 24Section 4. 234.18 (1) of the statutes is renumbered 234.18 and amended to
25read:
AB593,5,7
1234.18 Limit on amount of outstanding bonds and notes. The authority
2shall may not have outstanding at any one time issue notes and bonds for any of its
3corporate purposes in an
that are secured by a capital reserve fund to which s. 234.15
4(4) applies if, upon issuance, the total
aggregate outstanding principal amount
5exceeding $325,000,000, excluding of notes and bonds that are secured by a capital
6reserve fund to which s. 234.15 (4) applies would exceed $600,000,000. This section
7does not apply to
bonds and notes issued to refund outstanding notes and bonds.
AB593, s. 5 8Section 5. 234.18 (3) of the statutes is repealed.
AB593, s. 6 9Section 6. 234.265 (2) of the statutes is amended to read:
AB593,5,1610 234.265 (2) Records or portions of records consisting of personal or financial
11information provided by a person seeking a grant or loan under s. 234.04, 234.08,
12234.49, 234.59, 234.61, 234.65, 234.67, 234.83, 234.84, 234.90, 234.905, 234.907, or
13234.91, seeking a loan under ss. 234.621 to 234.626, seeking financial assistance
14under s. 234.66, seeking investment of funds under s. 234.03 (18m) , or in which the
15authority has invested funds under s. 234.03 (18m), unless the person consents to
16disclosure of the information.
AB593, s. 7 17Section 7. 234.40 (4) of the statutes is amended to read:
AB593,5,2218 234.40 (4) The limitations established in ss. 234.18 (1), 234.50, 234.60, 234.61,
19234.65, and 234.66 are not applicable to bonds issued under the authority of this
20section. The authority may not have outstanding at any one time bonds for veterans
21housing loans in an aggregate principal amount exceeding $61,945,000, excluding
22bonds being issued to refund outstanding bonds.
AB593, s. 8 23Section 8. 234.49 (1) (c) 2. of the statutes is amended to read:
AB593,5,2524 234.49 (1) (c) 2. A family who or which falls within the income limits specified
25in par. (f) (fm).
AB593, s. 9
1Section 9. 234.49 (1) (d) (intro.) of the statutes is renumbered 234.49 (1) (d)
2and amended to read:
AB593,6,113 234.49 (1) (d) "Eligible rehabilitation" means additions, alterations, or repairs
4of to housing to maintain it in a decent, safe, and sanitary condition or to restore it
5to that condition, to reduce the cost of owning or occupying dwelling units, to
6conserve energy, and to extend the economic or physical life of structures,. "Eligible
7rehabilitation" includes the purchase of home appliances that satisfy the energy
8efficiency criteria established by the federal environmental protection agency for the
9energy star designation, as determined by the authority,
but does not include any of
10the following:
construction of fireplaces, except for necessary repairs or the addition
11of permanently attached energy-efficient equipment to an existing fireplace.
AB593, s. 10 12Section 10. 234.49 (1) (d) 2. of the statutes is repealed.
AB593, s. 11 13Section 11. 234.49 (1) (d) 4. of the statutes is repealed.
AB593, s. 12 14Section 12. 234.49 (1) (d) 6. of the statutes is repealed.
AB593, s. 13 15Section 13. 234.49 (1) (e) (intro.) and 2. of the statutes are consolidated,
16renumbered 234.49 (1) (e) and amended to read:
AB593,6,2217 234.49 (1) (e) "Housing" means a residential structure having not more than
184 dwelling units in which at least one unit is occupied by the owner as a principal
19residence and: 2. The, if a housing rehabilitation loan is granted for the property
20to implement energy conservation improvements, the
structure is not subject to rules
21adopted under s. 101.63, 101.73, or 101.973, if a housing rehabilitation loan is
22granted for the property to implement energy conservation improvements
.
AB593, s. 14 23Section 14. 234.49 (1) (e) 1. of the statutes is repealed.
AB593, s. 15 24Section 15. 234.49 (1) (f) (intro.) of the statutes is renumbered 234.49 (1) (f)
25and amended to read:
AB593,7,7
1234.49 (1) (f) "Housing rehabilitation loan" means a loan to finance eligible
2rehabilitation or a property tax deferral loan. The maximum amount of a housing
3rehabilitation loan, except a property tax deferral loan, is $17,500. The term of any
4housing rehabilitation loan, except a property tax deferral loan, the repayment of
5which is made in monthly or other periodic installments, may not exceed 15 years.

6Housing rehabilitation loans, except property tax deferral loans, include: low
7interest loans.
AB593, s. 16 8Section 16. 234.49 (1) (f) 2. of the statutes is renumbered 234.49 (1) (fm) and
9amended to read:
AB593,7,2110 234.49 (1) (fm) "Low interest loans" which are means loans that meet or exceed
11the rate of interest required to pay the costs incurred by the authority for making and
12servicing such loans, but do not exceed the rate of interest specified in sub. (2) (a) 6.
13No low interest or other loan may be made to a person or family whose income exceeds
14120% of the median income for a family of 4 in the person's or family's county of
15residence
, except that in a designated reinvestment neighborhood or area as defined
16in s. 66.1107 no low interest loan at the highest rate of interest authorized by this
17subdivision paragraph may be made to a person or family whose income exceeds
18140% of the median income for a family of 4 in the person's or family's county of
19residence
, and except that the authority may increase or decrease the income limit
20for low interest loans by no more than 10% of the limit for each person more or less
21than 4.
AB593, s. 17 22Section 17. 234.49 (1) (g) of the statutes is amended to read:
AB593,8,223 234.49 (1) (g) "Median income" means the median family income as determined
24annually by the U.S. department of housing and urban development
for the area in

1which the residence is located or the median family income
for each county in the
2state, whichever is greater.
AB593, s. 18 3Section 18. 234.50 (4) of the statutes is amended to read:
AB593,8,104 234.50 (4) The limitations established in ss. 234.18 (1), 234.40, 234.60, 234.61,
5234.65, and 234.66 are not applicable to bonds issued under the authority of this
6section. The authority may not have outstanding at any one time bonds for housing
7rehabilitation loans in an aggregate principal amount exceeding $100,000,000,
8excluding bonds being issued to refund outstanding bonds. The authority shall
9consult with and coordinate the issuance of bonds with the building commission prior
10to the issuance of bonds.
AB593, s. 19 11Section 19. 234.59 (1) (d) 4. of the statutes is amended to read:
AB593,8,1412 234.59 (1) (d) 4. A residential structure having 2 dwelling units, if one of the
13units will be the principal residence of an applicant and if the structure is a new
14dwelling and a targeted area residence
.
AB593, s. 20 15Section 20. 234.59 (1) (g) of the statutes is repealed.
AB593, s. 21 16Section 21. 234.59 (3) (a) of the statutes is repealed.
AB593, s. 22 17Section 22. 234.59 (3) (b) 1. of the statutes is renumbered 234.59 (3) (bc), and
18234.59 (3) (bc) 1., as renumbered, is amended to read:
AB593,9,219 234.59 (3) (bc) 1. Except as provided in subd. 1. c. 3., a homeownership
20mortgage loan may not be made to an applicant if the applicant's income combined,
21except as provided in subd. 1. b., with the income from all sources of all persons who
22intend to occupy the same dwelling unit as that applicant, exceeds 110% of the
23median income of the county where the eligible property is located if the eligible
24property is not a targeted area residence or exceeds 140% of the median income of

1the county where the eligible property is located if the eligible property is a targeted
2area residence
exceeds the applicable level specified under 26 USC 143 (f).
AB593, s. 23 3Section 23. 234.59 (3) (b) 2. of the statutes is repealed.
AB593, s. 24 4Section 24. 234.59 (3) (e) of the statutes is renumbered 234.59 (3) (d).
AB593, s. 25 5Section 25. 234.60 (2) of the statutes is amended to read:
AB593,9,76 234.60 (2) The limitations in ss. 234.18 (1), 234.40, 234.50, 234.61, 234.65, and
7234.66 do not apply to bonds or notes issued under this section.
AB593, s. 26 8Section 26. 234.61 (1) of the statutes is amended to read:
AB593,9,169 234.61 (1) Upon the authorization of the department of health and family
10services, the authority may issue bonds or notes and make loans for the financing of
11housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the
12development costs of those housing projects, if the department of health and family
13services has approved the residential facilities for financing under s. 46.28 (2). The
14limitations in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.65, and 234.66 do not apply
15to bonds or notes issued under this section. The definition of "nonprofit corporation"
16in s. 234.01 (9) does not apply to this section.
AB593, s. 27 17Section 27. 234.65 (1) (b) of the statutes is amended to read:
AB593,9,1918 234.65 (1) (b) The limits in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.61, and
19234.66 do not apply to bonds or notes issued under this section.
AB593, s. 28 20Section 28. 234.66 (3) (b) of the statutes is amended to read:
AB593,9,2221 234.66 (3) (b) The limits in ss. 234.18 (1), 234.40, 234.50, 234.60, 234.61, and
22234.65 do not apply to bonds or notes issued under this section.
AB593, s. 29 23Section 29. 234.83 (3) (b) of the statutes is amended to read:
AB593,9,2524 234.83 (3) (b) Loan proceeds are not used to refinance existing debt or for
25entertainment expenses, expenses related to the production of an agricultural

1commodity, as defined in s. 94.67 (2), or expenses related to a community-based
2residential facility, except that loan proceeds may be used to refinance existing debt
3if the borrower also expands an existing business
.
AB593, s. 30 4Section 30. 234.83 (3) (e) of the statutes is repealed.
AB593, s. 31 5Section 31. 234.91 (5) (b) of the statutes is amended to read:
AB593,10,106 234.91 (5) (b) The term of a loan guarantee for a loan made to finance the
7acquisition of machinery, equipment or livestock, or the cost of improvements to
8facilities or land, may not exceed 5 years. The term of a loan guarantee for a loan
9made to finance the acquisition of facilities or land
under this section may not exceed
1010 years.
AB593, s. 32 11Section 32. Initial applicability.
AB593,10,1512 (1) Housing rehabilitation loans. The treatment of sections 234.01 (7m) and
13234.49 (1) (c) 2., (d) (intro.), 2., 4., and 6., (e) (intro.), 1., and 2., (f) (intro.) and 2., and
14(g) of the statutes first applies to housing rehabilitation loans for which application
15is made on the effective date of this subsection.
AB593,10,1816 (2) Bonding limit. The repeal of section 234.18 (3) of the statutes and the
17renumbering and amendment of section 234.18 (1) of the statutes first apply to notes
18and bonds issued on the effective date of this subsection.
AB593,10,2119 (3) Homeownership mortgage loans. The treatment of section 234.59 (1) (d)
204. and (3) (a) and (b) 1. and 2. of the statutes first applies to homeownership mortgage
21loans for which application is made on the effective date of this subsection.
AB593,10,2422 (4) Small business development loan guarantee program. The treatment of
23section 234.83 (3) (b) and (e) of the statutes first applies to loan guarantees for which
24application is made on the effective date of this subsection.
AB593,11,3
1(5) Farm assets reinvestment management loan guarantee program. The
2treatment of section 234.91 (5) (b) of the statutes first applies to loan guarantees for
3which application is made on the effective date of this act.
AB593,11,44 (End)
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