SB62: Bill Text

SB62,306,16 231.03 (14) Make loans to a health facility, educational facility, research facility, or, before May 1, 2000, child care center for which bonds may be issued under sub. (6) (b) or (d) or under s. 231.03 (6) (f), 1999 stats., to refinance the health facility's, educational facility's, research facility's, or child care center's outstanding debt. The authority may secure the loan or bond by a mortgage or other security arrangement on the health facility, educational facility, research facility, or child care center granted by the participating health institution, participating educational institution, participating research institution, or participating child care provider to the authority.

SB62, s. 740 Section 740. 231.03 (15) of the statutes is amended to read:

SB62,306,24 231.03 (15) Mortgage all or any portion of a project and other health facilities, educational facilities, research facilities, or child care centers and the site thereof, whether owned or thereafter acquired, for the benefit of the holders of bonds issued to finance the project, health facilities, educational facilities, research facilities, or child care centers or any portion thereof or issued to refund or refinance outstanding indebtedness of participating health institutions, educational institutions, research institutions, or child care providers as permitted by this chapter.

SB62, s. 741 Section 741. 231.03 (16) of the statutes is amended to read:

SB62,307,18 231.03 (16) Lease to a participating health institution, participating educational institution, participating research institution, or participating child care provider the project being financed or other health facilities, educational facilities, research facilities, or child care centers conveyed to the authority in connection with such financing, upon such terms and conditions as the authority deems proper, and charge and collect rents therefor, and terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof; and include in any such lease, if desired, provisions that the lessee thereof shall have options to renew the term of the lease for such periods and at such rent as the authority determines or to purchase all or any part of the health facilities, educational facilities, research facilities, or child care centers or that, upon payment of all of the indebtedness incurred by the authority for the financing of such project or health facilities, educational facilities, research facilities, or child care centers or for refunding outstanding indebtedness of a participating health institution, participating educational institution, participating research institution, or participating child care provider, the authority may convey all or any part of the project or such other health facilities, educational facilities, research facilities, or child care centers to the lessees thereof with or without consideration.

SB62, s. 742 Section 742. 231.03 (17) of the statutes is amended to read:

SB62,307,23 231.03 (17) Charge to and apportion among participating health institutions, participating educational institutions, participating research institutions, and participating child care providers its administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.

SB62, s. 743 Section 743. 231.03 (18) of the statutes is amended to read:

SB62,308,5 231.03 (18) Make studies of needed health facilities, educational facilities, research facilities, and child care centers that could not sustain a loan were it made under this chapter and recommend remedial action to the legislature; and do the same with regard to any laws or rules that prevent health facilities, educational facilities, research facilities, and child care centers from benefiting from this chapter.

SB62, s. 744 Section 744. 231.03 (19) of the statutes is amended to read:

SB62,308,17 231.03 (19) Obtain, or aid in obtaining, from any department or agency of the United States or of this state or any private company, any insurance or guaranty concerning the payment or repayment of, interest or principal, or both, or any part thereof, on any loan, lease, or obligation or any instrument evidencing or securing the same, made or entered into under the provisions of this chapter; and notwithstanding any other provisions of this chapter, to enter into any agreement, contract, or any other instrument with respect to that insurance or guaranty, to accept payment in the manner and form provided therein in the event of default by a participating health institution, participating educational institution, participating research institution, or participating child care provider, and to assign the insurance or guaranty as security for the authority's bonds.

SB62, s. 745 Section 745. 231.04 of the statutes is amended to read:

SB62,309,6 231.04 Expenses. All expenses of the authority incurred in carrying out this chapter shall be payable solely from funds provided under the authority of this chapter, and no liability may be incurred by the authority beyond the extent to which moneys have been provided under this chapter except that, for the purposes of meeting the necessary expenses of initial organization and operation of the authority for the period commencing on June 19, 1974 and continuing until such date as the authority derives moneys from funds provided to it under the authority of this chapter, the authority may borrow such moneys as it requires to supplement the funds provided under s. 20.440. Such moneys borrowed by the authority shall subsequently be charged to and apportioned among participating health institutions, participating educational institutions, participating research institutions, and participating child care providers in an equitable manner, and repaid with appropriate interest over a reasonable period of time.

SB62, s. 746 Section 746. 231.05 (1) of the statutes is amended to read:

SB62,309,14 231.05 (1) By means of this chapter, it is the intent of the legislature to provide assistance and alternative methods of financing to nonprofit health institutions to aid them in providing needed health services consistent with the state's health plan, to nonprofit educational institutions to aid them in providing needed educational services, to nonprofit research institutions to aid them in providing needed research facilities, and to nonprofit child care providers to aid them in providing needed child care services.

SB62, s. 747 Section 747. 231.06 of the statutes is amended to read:

SB62,310,2 231.06 Property acquisition. The authority may acquire, directly or by and through a participating health institution, participating educational institution, participating research institution, or participating child care provider as its agent, by purchase or by gift or devise, such lands, structures, property, rights, rights-of-way, franchises, easements, and other interests in lands, including lands lying under water and riparian rights, which are located within this state as it deems necessary or convenient for the construction or operation of a project, upon such terms and at such prices as it considers reasonable and can be agreed upon between it and the owner thereof, and take title thereto in the name of the authority or in the name of a health facility, educational facility, research facility, or child care center as its agent.

SB62, s. 748 Section 748. 231.07 (1) (b) of the statutes is amended to read:

SB62,310,9 231.07 (1) (b) Convey to the participating health institution, participating educational institution, participating research institution, or participating child care provider the authority's interest in the project and in any other health facility, educational facility, research facility, or child care center leased, mortgaged, or subject to a deed of trust or any other form of security arrangement to secure the bond.

SB62, s. 749 Section 749. 231.07 (2) (a) of the statutes is amended to read:

SB62,310,17 231.07 (2) (a) The principal of and interest on any bond issued by the authority to finance a project or to refinance or refund outstanding indebtedness of one or more participating health institutions, participating educational institutions, participating research institutions, or participating child care providers, including any refunding bonds issued to refund and refinance the bond, have been fully paid and the bonds retired or if the adequate provision has been made to pay fully and retire the bond; and

SB62, s. 750 Section 750. 231.08 (5) of the statutes is amended to read:

SB62,310,25 231.08 (5) In addition to the other authorizations under this section, bonds of the authority may be secured by a pooling of leases whereby the authority may assign its rights, as lessor, and pledge rents under 2 or more leases of health facilities, educational facilities, research facilities, or child care centers with 2 or more health institutions, educational institutions, research institutions, or child care providers, as lessees respectively, upon such terms as may be provided for in bond resolutions of the authority.

SB62, s. 751 Section 751. 231.10 (1) of the statutes is amended to read:

SB62,311,10 231.10 (1) The state is not liable on notes or bonds of the authority and the notes and bonds are not a debt of the state. All notes and bonds of the authority shall contain on the face thereof a statement to this effect. The issuance of bonds under this chapter shall not, directly or indirectly or contingently, obligate the state or any political subdivision thereof to levy any form of taxation therefor or to make any appropriation for their payment. Nothing in this section prevents the authority from pledging its full faith and credit or the full faith and credit of a health institution, educational institution, research institution, or child care provider to the payment of bonds authorized under this chapter.

SB62, s. 752 Section 752. 231.12 of the statutes is amended to read:

SB62,312,3 231.12 Studies and recommendations. It is the intent and purpose of this chapter that the exercise by the authority of the powers granted to it shall be in all respects for the benefit of the people of this state to assist them to provide needed health facilities, educational facilities, research facilities, and child care centers of the number, size, type, distribution, and operation that will assure admission and health care, education, research opportunities, or child care of high quality to all who need it. The authority shall identify and study all projects which are determined by health planning agencies to be needed, but which could not sustain a loan were such to be made to it under this chapter. The authority shall formulate and recommend to the legislature such amendments to this and other laws, and such other specific measures as grants, loan guarantees, interest subsidies, or other actions the state may provide which would render the construction and operation of needed health facilities, educational facilities, research facilities, and child care centers feasible and in the public interest. The authority also shall identify and study any laws or rules which it finds handicaps or bars a needed health facility, educational facility, research facility, or child care center from participating in the benefits of this chapter, and recommend to the legislature such actions as will remedy such situation.

SB62, s. 753 Section 753. 231.13 (1) (intro.) of the statutes is amended to read:

SB62,312,11 231.13 (1) (intro.) The authority shall collect rents for the use of, or other revenues relating to the financing of, each project. The authority shall contract with a participating health institution, participating educational institution, participating research institution, or participating child care provider for each issuance of bonds. The contract shall provide that the rents or other revenues payable by the health facility, educational facility, research facility, or child care center shall be sufficient at all times to:

SB62, s. 754 Section 754. 231.13 (2) of the statutes is amended to read:

SB62,313,3 231.13 (2) The authority shall pledge the revenues derived and to be derived from a project and other related health facilities, educational facilities, research facilities, or child care centers for the purposes specified in sub. (1), and additional bonds may be issued which may rank on a parity with other bonds relating to the project to the extent and on the terms and conditions provided in the bond resolution. Such pledge shall be valid and binding from the time when the pledge is made, the revenues so pledged 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 bond resolution nor any financing statement, continuation statement, or other instrument by which a pledge is created or by which the authority's interest in revenues is assigned need be filed or recorded in any public records in order to perfect the lien thereof as against 3rd parties, except that a copy thereof shall be filed in the records of the authority and with the department of financial institutions.

SB62, s. 755 Section 755. 231.16 (1) of the statutes is amended to read:

SB62,313,18 231.16 (1) The authority may issue bonds to refund any outstanding bond of the authority or indebtedness that a participating health institution, participating educational institution, participating research institution, or participating child care provider may have incurred for the construction or acquisition of a project prior to or after April 30, 1980, including the payment of any redemption premium on the outstanding bond or indebtedness and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase, or maturity, or to pay all or any part of the cost of constructing and acquiring additions, improvements, extensions, or enlargements of a project or any portion of a project. Except for bonds to refund bonds issued under s. 231.03 (6) (g), no bonds may be issued under this section unless the authority has first entered into a new or amended agreement with a participating health institution, participating educational institution, participating research institution, or participating child care provider to provide sufficient revenues to pay the costs and other items described in s. 231.13.

SB62, s. 756 Section 756. 231.20 of the statutes is amended to read:

SB62,314,4 231.20 Waiver of construction and bidding requirements. In exercising its powers under s. 101.12, the department of commerce or any city, village, town, or county may, within its discretion for proper cause shown, waive any particular requirements relating to public buildings, structures, grounds, works , and improvements imposed by law upon projects under this chapter; the requirements of s. 101.13 may not be waived, however. If, however, the prospective lessee so requests in writing, the authority shall, through the participating health institution, participating educational institution, participating research institution, or participating child care provider as its agent, call for construction bids in such manner as is determined by the authority with the approval of the lessee.

SB62, s. 757 Section 757. 231.23 of the statutes is amended to read:

SB62,314,13 231.23 Nonprofit institutions. It is intended that all nonprofit health and institutions, educational institutions, research institutions, and child care providers in this state be enabled to benefit from and participate in this chapter. To this end, all nonprofit health and institutions, educational institutions, research institutions, and child care providers operating, or authorized to be operated, under any law of this state may undertake projects and utilize the capital financing sources and methods of repayment provided by this chapter, the provisions of any other laws to the contrary notwithstanding.

SB62, s. 758 Section 758. 234.01 (4n) (a) 3m. e. of the statutes is amended to read:

SB62,314,18 234.01 (4n) (a) 3m. e. The facility is located in a targeted area, as determined by the authority after considering the factors set out in s. 560.605 (2m) (c), 2005 stats., s. 560.605 (2m) (d), 2005 stats., s. 560.605 (2m) (e), 2005 stats., s. 560.605 (2m) (g), 2007 stats., and s. 560.605 (2m) (a), (b), and (f) to, and (h).

SB62, s. 759 Section 759. 234.01 (5k) of the statutes is amended to read:

SB62,314,24 234.01 (5k) "Financial institution" means a bank, savings bank, savings and loan association, credit union, insurance company, finance company, mortgage banker registered licensed under s. 224.72, community development corporation, small business investment corporation, pension fund or other lender which provides commercial loans in this state.

SB62, s. 760 Section 760. 234.03 (2m) of the statutes is amended to read:

SB62,315,2 234.03 (2m) To issue notes and bonds in accordance with ss. 234.08, 234.40, 234.50, 234.60, 234.61, 234.626, 234.63, and 234.65.

SB62, s. 761 Section 761. 234.03 (11) of the statutes is amended to read:

SB62,315,7 234.03 (11) To collect fees and charges on mortgage loans and economic development loans and airport development loans under s. 234.63 (3) , 2007 stats., for the purpose of paying all or a portion of authority costs as the authority determines are reasonable and as approved by the authority.

SB62, s. 762 Section 762. 234.03 (13g) of the statutes is created to read:

SB62,315,14 234.03 (13g) To make or participate in the making and enter into commitments for the making of loans for the refinancing of mortgage loans under s. 234.605 and to enter into agreements with any banking institution, savings bank, savings and loan association, or credit union organized under the laws of this or any other state or of the United States having an office in this state regarding the refinancing of mortgage loans under s. 234.605.

SB62, s. 763 Section 763. 234.04 (2) of the statutes is amended to read:

SB62,316,5 234.04 (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 to persons and families of low and moderate income, an applicant under s. 234.59 or 234.592, 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. 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.

SB62, s. 764 Section 764. 234.08 (1) of the statutes is amended to read:

SB62,316,20 234.08 (1) 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, including the purchase of certain mortgages and securities and the making of secured loans for low- and moderate-income housing, for the rehabilitation of existing structures and for the construction of facilities appurtenant thereto as provided in this chapter; for the making of secured loans to assist eligible elderly homeowners in paying property taxes and special assessments; for the payment of interest on notes and bonds of the authority during construction; for the awarding of airport development loans under s. 234.63 (3); for the establishment of reserves to secure such notes and bonds; for the provision of moneys for the housing development fund in order to make temporary loans to sponsors of housing projects as provided in this chapter; and for all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers.

SB62, s. 765 Section 765. 234.265 (2) of the statutes is amended to read:

SB62,317,4 234.265 (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, 234.63, 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.

SB62, s. 766 Section 766. 234.40 (4) of the statutes is amended to read:

SB62,317,10 234.40 (4) The limitations established in ss. 234.18, 234.50, 234.60, 234.61, 234.63, and 234.65 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for veterans housing loans in an aggregate principal amount exceeding $61,945,000, excluding bonds being issued to refund outstanding bonds.

SB62, s. 767 Section 767. 234.49 (2) (a) 4. of the statutes is amended to read:

SB62,317,16 234.49 (2) (a) 4. To designate as an authorized lender the authority or any local government agency, housing authority under s. 59.53 (22), 61.73, 66.1201 or 66.1213, bank, savings bank, savings and loan institution, mortgage banker registered licensed under s. 224.72 or credit union, if the designee has a demonstrated history or potential of ability to adequately make and service housing rehabilitation loans.

SB62, s. 768 Section 768. 234.50 (4) of the statutes is amended to read:

SB62,317,24 234.50 (4) The limitations established in ss. 234.18, 234.40, 234.60, 234.61, 234.63, and 234.65 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.

SB62, s. 769 Section 769. 234.59 (1) (h) of the statutes is amended to read:

SB62,318,2 234.59 (1) (h) "Mortgage banker" means a mortgage banker registered licensed under s. 224.72, but does not include a person licensed under s. 138.09.

SB62, s. 770 Section 770. 234.59 (1) (j) of the statutes is amended to read:

SB62,318,6 234.59 (1) (j) "Principal residence" means an eligible residential real property in this state which that an applicant maintains as a full-time residence, but does not use as a vacation home or for trade or business purposes.

SB62, s. 771 Section 771. 234.59 (2) (intro.) of the statutes is amended to read:

SB62,318,11 234.59 (2) Powers and duties of the authority. (intro.) The authority shall establish and administer a homeownership mortgage loan program to encourage homeownership and to facilitate the acquisition or rehabilitation of eligible property by applicants. To implement the program, the authority:

SB62, s. 772 Section 772. 234.59 (3) (c) of the statutes is amended to read:

SB62,318,19 234.59 (3) (c) The authority shall notify an eligible authorized lender if a person's name appears on the statewide support lien docket under s. 49.854 (2) (b). An eligible authorized lender may not make a loan to an applicant if it receives notification under this paragraph concerning the applicant, unless the applicant provides to the lender 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).

SB62, s. 773 Section 773. 234.592 of the statutes is created to read:

SB62,318,22 234.592 Qualified subprime loan refinancing. (1) Definitions. In this section:

SB62,318,23 (a) "Authorized lender" has the meaning given in s. 234.59 (1) (a).

SB62,318,24 (b) "Eligible property" has the meaning given in s. 234.59 (1) (d) 1.

SB62,318,25 (c) "Principal residence" has the meaning given in. s. 234.59 (1) (j).

SB62,319,3 (d) "Qualified subprime loan" means an adjustable rate single-family residential mortgage loan made after December 31, 2001, and before January 1, 2008.

SB62,319,7 (2) Powers and duties of the authority. The authority shall establish and administer a qualified subprime loan refinancing program to encourage homeownership and to facilitate the retention of eligible property by applicants. To implement the program, the authority:

SB62,319,10 (a) May finance the acquisition or replacement of a qualified subprime loan and may enter into contracts permitting an authorized lender to finance the acquisition or replacement of a qualified subprime loan or both.

SB62,319,11 (b) Shall maintain a current list of authorized lenders.

SB62,319,13 (c) May enter into agreements to insure or provide additional security for loans or bonds or notes issued under s. 234.60.

SB62,319,18 (3) Loan conditions. (a) Except as provided in par. (b), the authority may finance the acquisition or replacement of or enter into contracts permitting an authorized lender to finance the acquisition or replacement of an existing mortgage given by an applicant on an eligible property only if all of the following conditions are satisfied:

SB62,319,20 1. The eligible property is and will remain the principal residence of the applicant.

SB62,319,22 2. The existing mortgage was originally financed through a qualified subprime loan and has not subsequently been refinanced.

SB62,319,25 3. The authority makes a determination that the mortgage described in subd. 2. will be reasonably likely to cause financial hardship to the applicant if not refinanced.

SB62,320,2 4. The term of any refinancing agreement entered into under this paragraph does not exceed 30 years.

SB62,320,6 5. The monthly payments to be made by an applicant under an agreement entered into under this paragraph include principal, interest, property taxes, and insurance. In this subdivision, "insurance" includes mortgage insurance, homeowner's insurance, and, if applicable, flood insurance.

SB62,320,8 6. The authority complies with special rules for subprime refinancing established under 26 USC 143 (k) (12).

SB62,320,13 (b) The authority may not enter into an agreement under this subsection if the applicant's name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the applicant 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).

SB62, s. 774 Section 774. 234.60 (title) of the statutes is amended to read:

SB62,320,16 234.60 (title) Bonds for homeownership mortgage loans and qualified subprime loan refinancing.

SB62, s. 775 Section 775. 234.60 (1) of the statutes is amended to read:

SB62,320,19 234.60 (1) The authority may issue its bonds or notes to fund homeownership mortgage loans or the refinancing of qualified subprime loans under s. 234.592.