SB21: Bill Text

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SB21,3830 Section 3830. 234.02 of the statutes is repealed.

SB21,3831 Section 3831. 234.03 of the statutes is repealed.

SB21,3832 Section 3832. 234.032 of the statutes is repealed.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

SB21,3874 Section 3874. 234.40 of the statutes is renumbered 235.409, and 235.409 (2), (3) and (4), as renumbered, are amended to read:

SB21,1432,9 235.409 (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.

SB21,1432,14 (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.

SB21,1432,19 (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.

SB21,3875 Section 3875. 234.41 of the statutes is renumbered 235.41, and 235.41 (3), as renumbered, is amended to read:

SB21,1433,3 235.41 (3) Moneys of the veterans housing loan fund may be invested as provided in s. 234.03 (18) policies and procedures established by the authority. 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).

SB21,3876 Section 3876. 234.42 of the statutes is renumbered 235.42, and 235.42 (1s) and (4), as renumbered, are amended to read:

SB21,1433,12 235.42 (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 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.

SB21,1434,3 (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 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.

SB21,3877 Section 3877. 234.43 of the statutes is renumbered 235.43, and 235.43 (1), as renumbered, is amended to read:

SB21,1434,11 235.43 (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.

SB21,3878 Section 3878. 234.44 of the statutes is renumbered 235.44 and amended to read:

SB21,1435,2 235.44 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 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, 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 are binding, legal obligations in accordance with their terms.

SB21,3879 Section 3879. 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:

SB21,1435,5 235.49 (1) Definitions. (intro.) In ss. 234.49 235.49 to 234.55 235.55:

SB21,1435,8 (2) (a) (intro.) The authority has the following powers for the purpose of implementing this section, in addition to all other powers granted by this chapter subchapter:

SB21,1435,15 6. To enter into contracts or agreements with authorized lenders and sponsors providing for the maximum and minimum acceptable rates of interest to be charged for various classifications of housing rehabilitation loans. In no event may the stated rate of interest on any housing rehabilitation loan under this section exceed the greater of 8% per year or 3% plus the rate necessary to fully repay interest and principal on housing rehabilitation loan program bonds issued pursuant to s. 234.50 235.50.

SB21,1435,17 8. To adopt procedures and forms necessary to effectuate the rehabilitation program or to facilitate the marketing of bonds issued under s. 234.50 235.50.

SB21,3880 Section 3880. 234.50 of the statutes is renumbered 235.50, and 235.50 (1), (2) and (4), as renumbered, are amended to read:

SB21,1436,5 235.50 (1) The authority may issue its negotiable bonds in such principal amount and of such length of maturity as, in the opinion of the authority, is necessary to provide sufficient funds for purchasing housing rehabilitation loans or for funding commitments for loans to lenders for housing rehabilitation loans; for purchasing property tax deferral loans under s. 234.49 235.49 (2) (a) 10.; for the establishment of reserves to secure such bonds; and for all other expenditures of the authority incident to or necessary and convenient in connection therewith. The authority may, whenever it deems refunding expedient, refund any bonds by the issuance of new bonds whether the bonds to be refunded have or have not matured, and issue bonds partly to refund bonds then outstanding and partly for the purpose authorized by this section.

SB21,1436,15 (2) Bonds issued under the authority of this section shall be special obligations of the authority payable solely out of revenues, moneys or other property received in connection with the housing rehabilitation loan program, including, without limitation, repayments of housing rehabilitation loans, federal insurance or guarantee payments, the proceeds of bonds issued under the authority of this section, and the amounts made available under ss. 234.54 235.54 and 234.55 235.55. All assets and liabilities created through the issuance of bonds to purchase housing rehabilitation loans shall be separate from all other assets and liabilities of the authority. No funds of the housing rehabilitation loan program may be commingled with any other funds of the authority.