SB148: Bill Text

SB148,441 Section 441. 234.622 (4) of the statutes is renumbered 235.622 (4).

SB148,442 Section 442. 234.622 (5) of the statutes is renumbered 235.622 (5) and amended to read:

SB148,140,2 235.622 (5) "Permitted obligations" means the total amount of outstanding liens and judgments on the qualifying dwelling unit if that amount does not exceed 33% of the value of the unit as determined by the most recent assessment for property tax purposes. For purposes of ss. 234.621 235.621 to 234.626 235.626, housing and rehabilitation loans under s. 234.49 235.49 and liens arising under ss. 234.621 235.621 to 234.626 235.626 shall not be considered outstanding liens or judgments in computing the amount of permitted obligations.

SB148,443 Section 443. 234.622 (6) of the statutes is renumbered 235.622 (6) and amended to read:

SB148,140,6 235.622 (6) "Program" means the program under ss. 234.621 235.621 to 234.626 235.626.

SB148,444 Section 444. 234.622 (7) of the statutes is renumbered 235.622 (7) and amended to read:

SB148,140,18 235.622 (7) "Qualifying dwelling unit" means a dwelling unit, not including a mobile home as defined in s. 101.91 (10), located in this state, habitable as a permanent residence and to which property taxes or special assessments are, or may conveniently be, allocated and up to one acre of land appertaining to it held in the same ownership as the dwelling unit. For purposes of ss. 234.621 235.621 to 234.626 235.626, "qualifying dwelling unit" includes a unit in a condominium or in a cooperative or an unincorporated cooperative association or in a multiunit dwelling with 4 or fewer units, but in all of these 3 cases only the portion of taxes or special assessments allocable to the unit lived in by the participant may qualify for loans under ss. 234.621 235.621 to 234.626 235.626.

SB148,445 Section 445. 234.623 of the statutes is renumbered 235.623, and 235.623 (1) and (3), as renumbered, are amended to read:

SB148,140,24 235.623 (1) The participant applies on forms prescribed by the authority for a loan to pay property taxes or special assessments by June 30 of the year in which the taxes or special assessments are payable on a qualifying dwelling unit and, except as provided in s. 234.625 235.625 (5), specifies the names of all co-owners.

SB148,141,4 (3) The participant keeps continuously in effect during the period that a loan is outstanding under ss. 234.621 235.621 to 234.626 235.626 a fire and extended casualty insurance policy on the qualifying dwelling unit satisfactory to the authority and permits the authority to be named on the policy as a lienholder.

SB148,446 Section 446. 234.624 of the statutes is renumbered 235.624.

SB148,447 Section 447. 234.625 of the statutes is renumbered 235.625, and 235.625 (1), (2), (3), (4) (b) 1. and 6., (5), (9) and (10), as renumbered, are amended to read:

SB148,141,19 235.625 (1) The authority shall enter into agreements with participants and their co-owners to loan funds to pay property taxes and special assessments on their qualifying dwelling units. The maximum loan under ss. 234.621 235.621 to 234.626 235.626 in any one year is limited to the lesser of $3,525 or the amount obtained by adding the property taxes levied on the qualifying dwelling unit for the year for which the loan is sought, the special assessments levied on the dwelling unit, and the interest and penalties for delinquency attributable to the property taxes or special assessments. Loans shall bear interest at a rate equal to the prime lending rate at the time the rate is set, as reported by the federal reserve board in federal reserve statistical release H. 15, plus 1%. The executive director authority shall set the rate no later than October 15 of each year, and that rate shall apply to loans made in the following year.

SB148,141,25 (2) The authority shall have all powers under s. 234.03 that are necessary or convenient to the operation of a loan program, including, without limitation because of enumeration, the power to enter into contracts, to pay or be paid for the performance of services, to exercise all rights of a lienholder under subch. I of ch. 779, and to perform other administrative actions that are necessary in the conduct of its duties under ss. 234.621 235.621 to 234.626 235.626.

SB148,142,5 (3) The authority shall adopt rules policies and establish procedures under which applications for loans under this section may be submitted, reviewed, and approved; under which repayment of the loans are to be obtained; under which disputes and claims concerning the loans are to be settled; and under which records concerning are to be maintained.

SB148,142,8 (4) (b) 1. Transfer of the qualifying dwelling unit by any means except upon transfer to a co-owner who resides in the unit and who is permitted to assume the participant's account as provided in s. 234.624 235.624.

SB148,142,10 6. The participant ceases to meet the eligibility requirements of s. 234.623 235.623, except as provided in sub. (5).

SB148,142,18 (5) If a participant in the program ceases to meet the eligibility requirements of this section, the authority, rather than demanding repayment under sub. (4) (b), may allow the participant to continue in the program, may allow the participant to continue in the program but be ineligible for additional loans, or may require partial settlement. The authority may also allow co-owners to be added to the loan agreement if, in the judgment of the executive director, the authority determines that the addition of co-owners does not significantly increase the authority's exposure to risk under the loan agreement.

SB148,143,16 (9) Upon the making of the initial loan, a nonconsensual statutory lien in favor of the authority to secure payment of the principal, interest, fees and charges due on all loans, including loans made after the lien is filed, to the participant made under ss. 234.621 235.621 to 234.626 235.626 shall attach to the qualifying dwelling unit in respect to which the loan is made. The qualifying dwelling unit shall remain subject to the statutory lien until the payment in full of all loans and charges. If the authority funds such loans from the proceeds of notes or bonds under s. 234.626 235.626, its right under the lien shall automatically accrue to the benefit of the holders of those notes or bonds, without any action or assignment by the authority. When a loan becomes due and payable, the statutory lien hereby conferred may be enforced by the authority or the holders of the notes or bonds or their representative, as the case may be, in the same manner as a construction lien under ss. 779.09 to 779.12, except that neither the participant nor any co-owners or their personal representatives, successors or assigns shall be personally liable for any deficiency which may arise from the sale. At the time of disbursing the initial loan to a participant, the authority shall record with the register of deeds of the county in which the qualifying dwelling unit is located, on a form prescribed by the authority which shall contain a legal description of the qualifying dwelling unit, a notice of the loan made under ss. 234.621 235.621 to 234.626 235.626 and the existence of the statutory lien arising therefrom. The register of deeds shall record the notice in the land records and index it in the indexes maintained by the register of deeds. The statutory lien created by this section shall have priority over any lien that originates subsequent to the recording of the notice.

SB148,143,21 (10) If the property taxes or special assessments are paid, using a loan made under ss. 234.621 235.621 to 234.626 235.626, after the taxes or assessments are due, the participant shall be liable for interest and penalty charges for delinquency under ch. 74. Subject to sub. (1), the principal amount of loans made under this program may include delinquency charges.

SB148,448 Section 448. 234.626 of the statutes is renumbered 235.626, and 235.626 (1), (2), (2m), (4), (6) and (7), as renumbered, are amended to read:

SB148,144,2 235.626 (1) Loans made or authorized to be made under ss. 234.621 235.621 to 234.626 235.626 may be funded from the proceeds of notes and bonds issued subject to and in accordance with ss. 234.08 to 234.14 235.02 to 235.0235 and from the fund under s. 234.165 235.405.

SB148,144,12 (2) The authority may create a system of funds and accounts, separate and distinct from all other funds and accounts of the authority, consisting of moneys received from notes and bonds, issued to finance, and all revenues received in the repayment of, loans made under ss. 234.621 235.621 to 234.626 235.626, except as provided in sub. (2m), and any other revenues dedicated to it by the authority. The authority may pledge moneys and revenues received or to be received by this system of funds and accounts to secure bonds or notes issued for the program. The authority shall have all other powers necessary and convenient to distribute the proceeds of the bonds, notes, and loan repayments in accordance with its powers under this chapter.

SB148,144,14 (2m) Revenues received in the repayment of loans made under s. 234.165 235.405 shall be paid into the fund under s. 234.165 235.405.

SB148,144,19 (4) The authority may adopt rules policies and procedures that restrict eligibility in addition to the requirements of s. 234.623 235.623 or require the provision of additional security if, in the executive director's judgment, the authority determines that the rules or security are required for the satisfactory issuance of bonds or notes.

SB148,144,23 (6) Unless otherwise expressly provided in resolutions authorizing the issuance of bonds or notes or in other agreements with the holders of bonds or notes, each bond or note issued under this section shall be on a parity with every other bond or note issued for the funding of loans under ss. 234.621 235.621 to 234.626 235.626.

SB148,145,2 (7) Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called to do so, it shall make an appropriation to make the authority whole for defaults on loans issued under ss. 234.621 235.621 to 234.626 235.626.

SB148,449 Section 449. 234.65 of the statutes is repealed.

SB148,450 Section 450. Subchapter II (title) of chapter 234 [precedes 234.67] of the statutes is renumbered subchapter V of chapter 235 [precedes 235.67].

SB148,451 Section 451. 234.67 of the statutes is renumbered 235.67, and 235.67 (1) (e), (2) (intro.) and (3), as renumbered, are amended to read:

SB148,145,11 235.67 (1) (e) "Participating lender" means a bank, credit union, savings bank, savings and loan association or other person, who makes loans for working capital or to finance physical plant needs, equipment or machinery and who has entered into an agreement with the authority under s. 234.93 235.93 (2) (a).

SB148,145,14 (2) (intro.) A loan made by a participating lender before December 3, 1993, is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following apply:

SB148,145,21 (3) Guarantee of collection. The authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under sub. (2). The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed, using the procedures described in the guarantee agreement under s. 234.93 235.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

SB148,452 Section 452. 234.75 of the statutes is renumbered 235.75, and 235.75 (2) (c) and (5) (a) and (c) (intro.), as renumbered, are amended to read:

SB148,145,25 235.75 (2) (c) The lender is the authority or a financial institution that enters into an agreement under s. 234.93 235.93 (2) (a).

SB148,146,5 (5) (a) Subject to par. (b), the authority may guarantee collection of all or part of the unpaid principal of a loan eligible for guarantee under sub. (3). If the authority guarantees all or part of a loan under this subsection, the authority shall establish the amount of the unpaid principal of an eligible loan that will be guaranteed using the procedures described in the guarantee agreement under s. 234.93 235.93 (2) (a).

SB148,146,9 (c) (intro.) Notwithstanding s. 234.51 235.51 (2), the authority may transfer moneys from the housing rehabilitation loan program administration fund to the Wisconsin development reserve fund for a loan guarantee under this subsection if all of the following conditions are met:

SB148,453 Section 453. 234.83 of the statutes is renumbered 235.83, and 235.83 (1m) (c), (3) (intro.) and (4), as renumbered, are amended to read:

SB148,146,13 235.83 (1m) (c) The lender enters into an agreement under s. 234.93 235.93 (2) (a).

SB148,146,16 (3) Eligible loans. (intro.) A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following apply:

SB148,146,25 (4) Guarantee of repayment. The authority may guarantee repayment of a portion of the principal of any loan eligible for a guarantee under sub. (1m). That portion may not exceed 80% of the principal of the loan or $750,000, whichever is less. The authority shall establish the portion of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under s. 234.93 235.93 (2) (a). The authority may establish a single portion for all guaranteed loans that do not exceed $937,500 and a single portion for all guaranteed loans that exceed $937,500 or establish on an individual basis different portions for eligible loans that do not exceed $937,500 and different portions for eligible loans that exceed $937,500.

SB148,454 Section 454. 234.84 (title) of the statutes is renumbered 235.84 (title).

SB148,455 Section 455. 234.84 (1) of the statutes is repealed.

SB148,456 Section 456. 234.84 (2) of the statutes is renumbered 235.84 (2), and 235.84 (2) (c), as renumbered, is amended to read:

SB148,147,6 235.84 (2) (c) The lender is a financial institution that enters into an agreement under s. 234.932 235.932 (3) (a).

SB148,457 Section 457. 234.84 (3) of the statutes is renumbered 235.84 (3), and 235.84 (3) (intro.) and (c), as renumbered, are amended to read:

SB148,147,11 235.84 (3) Eligible loans. (intro.) A loan is eligible for guarantee of collection from the Wisconsin job training reserve fund under s. 234.932 235.932 if all of the following apply:

SB148,147,13 (c) The interest rate on the loan, including any origination fees or other charges, is approved by the corporation authority.

SB148,458 Section 458. 234.84 (4) of the statutes is renumbered 235.84 (4) and amended to read:

SB148,147,23 235.84 (4) Guarantee of collection. (a) Subject to par. (b), the authority shall guarantee collection of a percentage of the principal of, and all interest and any other amounts outstanding on, any loan eligible for a guarantee under sub. (2). The corporation authority shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under s. 234.932 235.932 (3) (a). The corporation authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

SB148,148,3 (b) Except as provided in s. 234.932 235.932 (4), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under par. (a) may not exceed $8,000,000.

SB148,459 Section 459. 234.84 (5) (a) of the statutes is repealed.

SB148,460 Section 460. 234.84 (5) (b) of the statutes is renumbered 235.84 (5) and amended to read:

SB148,148,9 235.84 (5) The corporation authority may charge a premium, fee, or other charge to a borrower of a guaranteed loan under this section for the administration of the loan guarantee.

SB148,461 Section 461. 234.86 of the statutes is renumbered 235.86, and 235.86 (2) (intro.) and (c) and (4) (a) and (b), as renumbered, are amended to read:

SB148,148,14 235.86 (2) Guarantee requirements. (intro.) The authority may use money from the Wisconsin drinking water reserve fund under s. 234.933 235.933 to guarantee a loan under this section if all of the following apply:

SB148,148,16 (c) The lender is a financial institution that enters into an agreement under s. 234.933 235.933 (3) (a).

SB148,148,23 (4) (a) Subject to par. (b), the authority may guarantee collection of a percentage, not exceeding 80%, of the principal of any loan eligible for a guarantee under this section. The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed using the procedures described in the guarantee agreement under s. 234.933 235.933 (3) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

SB148,148,25 (b) Except as provided in s. 234.933 235.933 (4), the total outstanding principal amount of all guaranteed loans under par. (a) may not exceed $3,000,000.

SB148,462 Section 462. 234.88 of the statutes is renumbered 235.88, and 235.88 (1) (c), (2) (intro.) and (6), as renumbered, are amended to read:

SB148,149,6 235.88 (1) (c) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association, or other person who makes emergency heating assistance loans and who has entered into an agreement with the authority under s. 234.93 235.93 (2) (a).

SB148,149,10 (2) Eligible loans. (intro.) An emergency heating assistance loan made by a participating lender is eligible for guarantee of collection under sub. (5) from the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following apply:

SB148,149,14 (6) Interest reduction. The authority shall pay, from the moneys in the Wisconsin development reserve fund under s. 234.93 235.93, to each participating lender an amount equal to 3.5 percent of the principal amount of any guaranteed loan to reduce interest payments on the guaranteed loan paid by an individual.

SB148,463 Section 463. 234.90 of the statutes is renumbered 235.90, and 235.90 (1) (d) and (2) (intro.), as renumbered, are amended to read:

SB148,149,20 235.90 (1) (d) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production loans and who has entered into an agreement with the authority under s. 234.93 235.93 (2) (a).

SB148,149,24 (2) Eligible loans. (intro.) Except as provided in sub. (3j), an agricultural production loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following apply:

SB148,464 Section 464. 234.905 of the statutes is renumbered 235.905, and 235.905 (1) (f), (2) (intro.) and (4) (b), as renumbered, are amended to read:

SB148,150,6 235.905 (1) (f) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production drought assistance loans and who has entered into an agreement with the authority under s. 234.93 235.93 (2) (a).

SB148,150,10 (2) Eligible loans. (intro.) An agricultural production drought assistance loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following apply:

SB148,150,13 (4) (b) Except as provided in s. 234.93 235.93 (3), the total principal amounts of all agricultural production drought assistance loans which the authority may guarantee under par. (a) may not exceed $30,000,000.

SB148,465 Section 465. 234.907 of the statutes is renumbered 235.907, and 235.907 (1) (e), (2) (intro.) and (3), as renumbered, are amended to read:

SB148,150,19 235.907 (1) (e) "Participating lender" means a bank, credit union, savings bank, savings and loan association or other person, who makes loans for working capital or to finance physical plant needs, equipment or machinery and who has entered into an agreement with the authority under s. 234.93 235.93 (2) (a).

SB148,150,22 (2) Eligible loans. (intro.) A loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following apply:

SB148,151,4 (3) Guarantee of collection. The authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under sub. (2). The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed, using the procedures described in the guarantee agreement under s. 234.93 235.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

SB148,466 Section 466. 234.91 of the statutes is renumbered 235.91, and 235.91 (1) (e) and (2) (intro.), as renumbered, are amended to read:

SB148,151,11 235.91 (1) (e) "Participating lender" means a bank, farm credit service, credit union, savings bank, savings and loan association or other person who makes loans for the acquisition or improvement of agricultural assets and who has entered into an agreement with the authority under s. 234.93 235.93 (2) (a). The term does not include a seller under a land contract.

SB148,151,14 (2) Eligible loans. (intro.) A loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following apply:

SB148,467 Section 467. 234.92 of the statutes is renumbered 235.92.

SB148,468 Section 468. 234.93 of the statutes is renumbered 235.93, and 235.93 (1) (a), (b), (cm) and (d) and (4) (a) 2. and 3. and (b) (intro.), as renumbered, are amended to read:

SB148,151,21 235.93 (1) (a) Moneys appropriated to the authority under s. 20.490 (5) (a), (q) 20.885 (3) (ap), (qm), (r), and (s) or received by the authority for the Wisconsin development reserve fund from any other source.

SB148,151,23 (b) Any income from investment of money in the Wisconsin development reserve fund by the authority under s. 234.03 (18) 235.012 (19).

SB148,152,3 (cm) Any moneys transferred under 1999 Wisconsin Act 9, section 9125 (1), or under s. 234.75 235.75 (5) (c), from the housing rehabilitation loan program administration fund.

SB148,152,5 (d) To be used for guaranteeing loans under s. 234.91 235.91, fees collected under s. 234.91 235.91 (4).

SB148,152,10 (4) (a) 2. To fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, except for the program under s. 234.935, 1997 stats., and the program under s. 234.75 235.75, at a ratio of $1 of reserve funding to $4.50 of total outstanding principal and outstanding guaranteed principal that the authority may guarantee under all of those programs.

SB148,152,14 3. To fund guarantees under the program under s. 234.935, 1997 stats., and the program under s. 234.75 235.75 at a ratio of $1 of reserve funding to $4 of total principal and outstanding guaranteed principal that the authority may guarantee under that program.

SB148,152,17 (b) (intro.) Annually on August 31, the executive director of the authority shall provide to the secretary of administration and to the joint committee on finance a signed statement that includes all of the following:

SB148,469 Section 469. 234.932 of the statutes is renumbered 235.932, and 235.932 (2) (intro.) and (b), as renumbered, are amended to read:

SB148,152,23 235.932 (2) Establishment of fund. (intro.) There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans under s. 234.84 235.84, a Wisconsin job training reserve fund, consisting of all of the following:

SB148,152,25 (b) Any income from investment of money in the Wisconsin job training reserve fund by the authority under s. 234.03 (18) 235.012 (19).