SB21: Bill Text

SB21,3815 Section 3815. 234.01 (2) of the statutes is repealed.

SB21,3816 Section 3816. 234.01 (3) of the statutes is repealed.

SB21,3817 Section 3817. 234.01 (3m) of the statutes is renumbered 235.40 (3m) and amended to read:

SB21,1421,3 235.40 (3m) "Collateral" means a 3rd-party note, mortgage, guaranty, insurance policy, bond, letter of credit, security agreement, or other instrument securing the repayment of an economic development loan or a mortgage loan.

SB21,3818 Section 3818. 234.01 (4) of the statutes is renumbered 235.40 (4).

SB21,3819 Section 3819. 234.01 (4m) of the statutes is repealed.

SB21,3820 Section 3820. 234.01 (4n) of the statutes is repealed.

SB21,3821 Section 3821. 234.01 (5) of the statutes is renumbered 235.40 (5).

SB21,3822 Section 3822. 234.01 (5k) of the statutes is renumbered 235.40 (5k).

SB21,3823 Section 3823. 234.01 (5m) of the statutes is renumbered 235.40 (5m) and amended to read:

SB21,1421,12 235.40 (5m) "Homeownership mortgage loan" has the meaning given under s. 234.59 235.59 (1) (f).

SB21,3824 Section 3824. 234.01 (6) of the statutes is renumbered 235.40 (6), and 235.40 (6) (a) and (b), as renumbered, are amended to read:

SB21,1421,18 235.40 (6) (a) If the corporation receives any loan or advance from the authority under this chapter subchapter, it may enter into an agreement with the authority providing for regulation with respect to rents, profits, dividends , and disposition of property or franchises; and.

SB21,1422,3 (b) If the corporation receives a loan or advance under this chapter subchapter, the chairperson of the board of the authority, or his or her designee, acting with the prior approval of the majority of the members of the authority board, may, if he or she determines that any such loan or advance is in jeopardy of not being repaid, that the proposed development for which such loan or advance was made is in jeopardy of not being constructed, or that the corporation is not carrying out the intent and purposes of this chapter subchapter, appoint to the board of directors of such corporation a number of new directors, which number shall be sufficient to constitute a majority of such that board of directors, notwithstanding any other provision of such articles of incorporation or of any other provision of law.

SB21,3825 Section 3825. 234.01 (7) of the statutes is renumbered 235.40 (7).

SB21,3826 Section 3826. 234.01 (7m) of the statutes is renumbered 235.40 (7m) and amended to read:

SB21,1422,8 235.40 (7m) "Housing rehabilitation loan" means a low interest housing rehabilitation loan as defined in s. 234.49 235.49 (1) (f) and (fm).

SB21,3827 Section 3827. 234.01 (8) of the statutes is renumbered 235.40 (8), and 235.40 (8) (a) and (b), as renumbered, are amended to read:

SB21,1422,14 235.40 (8) (a) As a condition of acceptance of a loan or advance under this chapter subchapter, the limited-profit entity shall enter into an agreement with the authority providing for limitations of rents, profits, dividends, and disposition of property or franchises; and.

SB21,1423,2 (b) If the limited-profit entity receives a loan or advance under this chapter subchapter, the chairperson of the board of directors of the authority, or his or her designee, acting with the prior approval of the majority of members of the authority board, may, if he or she determines that any such loan or advance is in jeopardy of not being repaid, that the proposed development for which such loan or advance was made is in jeopardy of not being constructed, or that the limited-profit entity is otherwise not carrying out the intent and purposes of this chapter subchapter, appoint to the board of directors or other comparable controlling body of such limited-profit entity a number of new directors or persons, which number shall be sufficient to constitute a voting majority of such board or controlling body, notwithstanding any other provisions of the limited-profit entity's articles of incorporation or other documents of organization, or of any other provisions of law.

SB21,3828 Section 3828. 234.01 (9) of the statutes is renumbered 235.40 (9), and 235.40 (9) (a) 5., as renumbered, is amended to read:

SB21,1423,19 235.40 (9) (a) 5. That if the corporation receives a loan or advance under this chapter subchapter, the chairperson of the board of directors of the authority, or his or her designee, acting with the prior approval of the majority of the members of the authority board, may, on determination that any such loan or advance is in jeopardy of not being repaid, that the proposed development for which such loan or advance was made is in jeopardy of not being constructed, that some part of the net income or net earnings of the corporation is inuring to the benefit of any private person, that the corporation is in some manner controlled or under the direction of or acting in the substantial interest of any private person seeking to derive benefit or gain therefrom or seeking to eliminate or minimize losses in any dealings or transactions therewith, or that the corporation is not carrying out the intent and purposes of this chapter subchapter, appoint to the board of directors of such corporation a number of new directors, which number shall be sufficient to constitute a majority of such board, notwithstanding any other provisions of such articles of incorporation or of any other provisions of law.

SB21,3829 Section 3829. 234.01 (10) of the statutes is renumbered 235.40 (10) and amended to read:

SB21,1424,8 235.40 (10) "Persons and families of low and moderate income" means persons and families who cannot afford to pay the amounts at which private enterprise, without federally-aided federally aided mortgages or loans from the authority, can provide a substantial supply of decent, safe and sanitary housing and who fall within income limitations set by the authority in its rules policies and procedures. In determining such income limitations the authority shall consider the amounts of the total income of such persons available for housing needs, the size of the family, the cost and condition of available housing facilities, standards established for various federal programs, and any other factors determined by the authority to be appropriate in arriving at such limitations. Among low- or moderate-income persons and families, preference shall be given to those displaced by governmental action.

SB21,3830 Section 3830. 234.02 of the statutes is repealed.

SB21,3831 Section 3831. 234.03 of the statutes is repealed.

SB21,3832 Section 3832. 234.032 of the statutes is repealed.

SB21,3833 Section 3833. 234.034 of the statutes is renumbered 235.401.

SB21,3834 Section 3834. 234.04 of the statutes is renumbered 235.402, and 235.402 (2), as renumbered, is amended to read:

SB21,1425,5 235.402 (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   235.592 to persons and families of low and moderate income, an applicant under s. 234.59 or 234.592 235.59 to 235.592, or other eligible beneficiaries as defined in s. 234.49 235.49. 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.

SB21,3835 Section 3835. 234.05 of the statutes is renumbered 235.403.

SB21,3836 Section 3836. 234.06 of the statutes is renumbered 235.404.

SB21,3837 Section 3837. 234.07 of the statutes is renumbered 235.405, and 235.405 (1), as renumbered, is amended to read:

SB21,1426,8 235.405 (1) Except as provided in sub. (2), a limited-profit entity which that receives loans from the authority 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.

SB21,3838 Section 3838. 234.08 (title) of the statutes is renumbered 235.02 (title).

SB21,3839 Section 3839. 234.08 (1) of the statutes is renumbered 235.02 (1) and amended to read:

SB21,1426,24 235.02 (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 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.

SB21,3840 Section 3840. 234.08 (2) of the statutes is renumbered 235.02 (2).

SB21,3841 Section 3841. 234.08 (3) of the statutes is renumbered 235.02 (3).

SB21,3842 Section 3842. 234.08 (4) of the statutes is renumbered 235.02 (4).

SB21,3843 Section 3843. 234.08 (5) of the statutes is repealed.

SB21,3844 Section 3844. 234.08 (6) of the statutes is repealed.

SB21,3845 Section 3845. 234.08 (7) of the statutes is renumbered 235.02 (7).

SB21,3846 Section 3846. 234.09 of the statutes is renumbered 235.021 and amended to read:

SB21,1427,20 235.021 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, 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, 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.

SB21,3847 Section 3847. 234.10 of the statutes is renumbered 235.0215, and 235.0215 (title) and (9), as renumbered, are amended to read:

SB21,1427,24 235.0215 (title) Same Notes and bonds; resolution authorizing issuance, contents.

SB21,1428,6 (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.

SB21,3848 Section 3848. 234.11 of the statutes is renumbered 235.022 and amended to read:

SB21,1428,16 235.022 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.

SB21,3849 Section 3849. 234.12 of the statutes is renumbered 235.0225 and amended to read:

SB21,1428,23 235.0225 Same Notes and bonds; personal liability of members of authority. Neither the members of the authority board, nor the members of a committee established by the board, nor any person executing the notes or bonds shall be liable personally on the notes or bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

SB21,3850 Section 3850. 234.13 of the statutes is renumbered 235.023, and 235.023 (title), as renumbered, is amended to read:

SB21,1429,1 235.023 (title) Same Notes and bonds; purchase for cancellation.

SB21,3851 Section 3851. 234.14 of the statutes is renumbered 235.0235, and 235.0235 (title), as renumbered, is amended to read:

SB21,1429,4 235.0235 (title) Same Notes and bonds; liability of state.

SB21,3852 Section 3852. 234.15 of the statutes is renumbered 235.024.

SB21,3853 Section 3853. 234.16 of the statutes is renumbered 235.0245.

SB21,3854 Section 3854. 234.165 of the statutes is renumbered 235.025, and 235.025 (2) (dm), as renumbered, is amended to read:

SB21,1429,11 235.025 (2) (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.

SB21,3855 Section 3855. 234.17 of the statutes is repealed.

SB21,3856 Section 3856. 234.18 of the statutes is renumbered 235.0255 and amended to read:

SB21,1429,21 235.0255 Limit on amount of outstanding bonds and notes. The authority may not issue notes and bonds that are secured by a capital reserve fund to which s. 234.15 235.024 (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. 234.15 235.024 (4) applies would exceed $600,000,000. This section does not apply to bonds and notes issued to refund outstanding notes and bonds.

SB21,3857 Section 3857. 234.19 of the statutes is renumbered 235.026.

SB21,3858 Section 3858. 234.20 of the statutes is renumbered 235.0265.

SB21,3859 Section 3859. 234.21 of the statutes is renumbered 235.027 and amended to read:

SB21,1430,5 235.027 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.

SB21,3860 Section 3860. 234.22 of the statutes is renumbered 235.0271 and amended to read:

SB21,1430,10 235.0271 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.

SB21,3861 Section 3861. 234.23 of the statutes is renumbered 235.0273.

SB21,3862 Section 3862. 234.24 of the statutes is renumbered 235.0275.

SB21,3863 Section 3863. 234.25 of the statutes is repealed.

SB21,3864 Section 3864. 234.255 of the statutes is repealed.

SB21,3865 Section 3865. 234.26 of the statutes is renumbered 235.0277.

SB21,3866 Section 3866. 234.265 of the statutes is renumbered 235.0279 and amended to read:

SB21,1430,20 235.0279 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:

SB21,1430,24 (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.

SB21,1431,9 (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.

SB21,3867 Section 3867. 234.28 of the statutes is renumbered 235.028.

SB21,3868 Section 3868. 234.29 of the statutes is renumbered 235.0283.

SB21,3869 Section 3869. 234.30 of the statutes is renumbered 235.0285.

SB21,3870 Section 3870. 234.31 of the statutes is renumbered 235.0287.

SB21,3871 Section 3871. 234.32 of the statutes is renumbered 235.0289.

SB21,3872 Section 3872 . 234.35 of the statutes is renumbered 235.0291, and 235.0291 (1), as renumbered, is amended to read:

SB21,1431,20 235.0291 (1) In this section, "minority business", "minority financial adviser" and "minority investment firm" mean a business, financial adviser and investment firm, respectively, certified by the department of administration under s. 16.287 203.07 (2).

SB21,3873 Section 3873 . 234.36 of the statutes is renumbered 235.0293, and 235.0293 (1), as renumbered, is amended to read:

SB21,1431,25 235.0293 (1) In this section, "business," "financial adviser," and "investment firm" mean a business, financial adviser, and investment firm certified by the department of administration under s. 16.283 203.03 (3).