SB148: Bill Text

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:

SB148,127,10 235.409 (2) Bonds issued under the authority of this section are payable out of revenues or moneys received from the repayment of veterans housing loans and related funds made available in ss. 234.42 235.42 and 234.43 235.43. All assets and liabilities created through the issuance of bonds to purchase mortgage loans representing veterans housing loans are to be separate from all other assets and liabilities of the authority. No funds of the veterans housing loan program may be commingled with any other funds of the authority, including the Wisconsin housing finance fund.

SB148,127,15 (3) It is the intent of the legislature that the authority be used to finance the veterans housing program. Nothing in this chapter subchapter shall be construed to supersede the powers vested by subch. III of ch. 45 in the department of veterans affairs for carrying out program responsibilities for which debt has been incurred by the authority.

SB148,127,20 (4) The limitations established in ss. 234.18, 234.50, 234.60, 234.61, and 234.65 235.0255, 235.50, 235.60, and 235.61 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.

SB148,413 Section 413. 234.41 of the statutes is renumbered 235.41, and 235.41 (3), as renumbered, is amended to read:

SB148,128,3 235.41 (3) Moneys of the veterans housing loan fund may be invested as provided in s. 234.03 (18) 235.012 (19). All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund, paid over to the department of veterans affairs and deposited in the veterans trust fund after payment or repayment of any deficits arising in the veterans capital reserve fund and after payment of expenses contained in sub. (4).

SB148,414 Section 414. 234.42 of the statutes is renumbered 235.42, and 235.42 (1g), (1s) and (4), as renumbered, are amended to read:

SB148,128,17 235.42 (1g) In this section "veterans capital reserve fund requirement" means an amount equal to the maximum amount, in any succeeding year, of principal and interest, other than principal and interest for which sinking fund payments are specified in any resolution of the authority board authorizing veterans housing bonds of the authority then outstanding, maturing, and becoming due in that succeeding year on all veterans housing bonds of the authority then outstanding, except veterans housing bonds due in that succeeding year issued to provide funds for mortgage loans through the purchase of mortgages or mortgage-backed securities guaranteed by the United States or an agency or instrumentality of the United States, plus all amounts specified in any resolution of the authority board authorizing veterans housing bonds of the authority then outstanding as payable as a sinking fund payment in such year.

SB148,128,24 (1s) The authority shall establish the veterans capital reserve fund to secure the veterans housing bonds sold pursuant to s. 234.40 235.409, and shall pay into the veterans capital reserve fund any moneys appropriated and made available by the state for the purposes of such fund, any proceeds of sale of 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.

SB148,129,16 (4) To assure the continued operation and solvency of the authority for the carrying out of the veterans housing loan program of this chapter subchapter, the authority shall accumulate in the veterans capital reserve fund an amount equal to the veterans capital reserve fund requirement. If at any time the veterans capital reserve fund requirement exceeds the amount of the veterans 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 the veterans capital reserve fund to an amount equal to the veterans capital reserve fund requirement. 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 veterans 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.

SB148,415 Section 415. 234.43 of the statutes is renumbered 235.43, and 235.43 (1), as renumbered, is amended to read:

SB148,129,24 235.43 (1) The authority shall establish the veterans housing bond redemption fund. All mortgages purchased with moneys from the veterans housing loan fund shall be the exclusive property of the bond redemption fund. All moneys received by the authority from the repayment of veterans housing loans shall be deposited into such fund to be used for the repayment of veterans housing bonds issued pursuant to s. 234.40 235.409.

SB148,416 Section 416. 234.44 of the statutes is renumbered 235.44 and amended to read:

SB148,130,18 235.44 Validation of certain obligations and proceedings. Notwithstanding any provision of this chapter or any other law, in the absence of fraud, all obligations issued prior to May 4, 1976 the effective date of this section .... [LRB inserts date], purportedly pursuant to this chapter ch. 234, 2013 stats., and all proceedings prior to such time taken purportedly pursuant to this chapter ch. 234, 2013 stats., for the authorization and issuance of such obligations or of obligations not yet issued, and the sale, execution, and delivery of such obligations issued prior to May 4, 1976 the effective date of this section .... [LRB inserts date], are hereby validated, ratified, approved, and confirmed, notwithstanding any lack of power, however patent, other than constitutional, of the issuing authority or the governing body or officer thereof, to authorize such obligations, or to sell, execute, or deliver the same, and notwithstanding any defects or irregularities, however patent, other than constitutional, in such proceeding or in such sale, execution, or delivery of such obligations. All such obligations issued prior to May 4, 1976 the effective date of this section .... [LRB inserts date], are binding, legal obligations in accordance with their terms.

SB148,417 Section 417. 234.49 of the statutes is renumbered 235.49, and 235.49 (1) (intro.) and (2) (a) (intro.), 6. and 8., as renumbered, are amended to read: