SB21,1440,7 4(4) Moneys of the fund may be invested as provided in s. 234.03 (18) policies
5and procedures established by the authority
. All such investments shall be the
6exclusive property of the fund. All earnings on or income from such investments
7shall be credited to the fund.
SB21,3886 8Section 3886. 234.59 of the statutes is renumbered 235.59, and 235.59 (2) (e)
9and (3) (bc) 3., as renumbered, are amended to read:
SB21,1440,1210 235.59 (2) (e) May enter into agreements to insure or provide additional
11security for homeownership mortgage loans or bonds or notes issued under s. 234.60
12235.60.
SB21,1440,17 13(3) (bc) 3. If the authority sets aside at least 20% of the proceeds of a bond or
14note issuance under s. 234.60 235.60 to fund home ownership mortgage loans for
15eligible properties that are targeted area residences, the authority may apply up to
1633% of the proceeds that are set aside for that purpose without regard to the income
17of the applicant.
SB21,3887 18Section 3887. 234.592 of the statutes is renumbered 235.592, and 235.592 (1)
19(a), (b) and (c) and (2) (c), as renumbered, are amended to read:
SB21,1440,2120 235.592 (1) (a) "Authorized lender" has the meaning given in s. 234.59 235.59
21(1) (a).
SB21,1440,2222 (b) "Eligible property" has the meaning given in s. 234.59 235.59 (1) (d) 1.
SB21,1440,2323 (c) "Principal residence" has the meaning given in. s. 234.59 235.59 (1) (j).
SB21,1440,25 24(2) (c) May enter into agreements to insure or provide additional security for
25loans or bonds or notes issued under s. 234.60 235.60.
SB21,3888
1Section 3888. 234.60 of the statutes is renumbered 235.60, and 235.60 (1), (2),
2(5) (c) and (9), as renumbered, are amended to read:
SB21,1441,53 235.60 (1) The authority may issue its bonds or notes to fund homeownership
4mortgage loans or the refinancing of qualified subprime loans under s. 234.592
5235.592.
SB21,1441,7 6(2) The limitations in ss. 234.18, 234.40, 234.50, 234.61, and 234.65 235.0255,
7235.409, 235.50, and 235.61
do not apply to bonds or notes issued under this section.
SB21,1441,10 8(5) (c) The secretary of administration shall determine the date after which no
9bond or note may be issued under this section for the purpose of financing the
10acquisition or replacement of an existing mortgage under s. 234.592 235.592.
SB21,1441,13 11(9) The executive director of the authority shall make every effort to encourage
12participation in the homeownership mortgage loan program and the qualified
13subprime loan refinancing program by women and minorities.
SB21,3889 14Section 3889. 234.605 of the statutes is renumbered 235.605, and 235.605 (1)
15(a) and (2), as renumbered, are amended to read:
SB21,1441,1716 235.605 (1) (a) "Eligible property" has the meaning given in s. 234.59 235.59
17(1) (d) 1.
SB21,1441,21 18(2) Subject to the approval of all members of the board of directors of the
19authority, the authority may establish and administer a homeowner eviction and
20lien protection program to encourage the refinancing of mortgage loans by lenders
21in order to facilitate the retention of eligible property by persons and families.
SB21,3890 22Section 3890. 234.61 of the statutes is renumbered 235.61, and 235.61 (1), as
23renumbered, is amended to read:
SB21,1442,624 235.61 (1) Upon the authorization of the department of health services, the
25authority may issue bonds or notes and make loans for the financing of housing

1projects which are residential facilities as defined in s. 46.28 (1) (d) and the
2development costs of those housing projects, if the department of health services has
3approved the residential facilities for financing under s. 46.28 (2). The limitations
4in ss. 234.18, 234.40, 234.50, 234.60, and 234.65 235.0255, 235.409, 235.50, and
5235.60
do not apply to bonds or notes issued under this section. The definition of
6"nonprofit corporation" in s. 234.01 235.40 (9) does not apply to this section.
SB21,3891 7Section 3891. 234.621 of the statutes is renumbered 235.621.
SB21,3892 8Section 3892. 234.622 (intro.) of the statutes is renumbered 235.622 (intro.)
9and amended to read:
SB21,1442,10 10235.622 Definitions. (intro.) In ss. 234.621 to 234.626 235.621 to 235.626:
SB21,3893 11Section 3893. 234.622 (1) of the statutes is renumbered 235.622 (1).
SB21,3894 12Section 3894. 234.622 (2m) of the statutes is repealed.
SB21,3895 13Section 3895. 234.622 (3) of the statutes is renumbered 235.622 (3).
SB21,3896 14Section 3896. 234.622 (3m) of the statutes is renumbered 235.622 (3m).
SB21,3897 15Section 3897. 234.622 (4) of the statutes is renumbered 235.622 (4).
SB21,3898 16Section 3898. 234.622 (5) of the statutes is renumbered 235.622 (5) and
17amended to read:
SB21,1442,2418 235.622 (5) "Permitted obligations" means the total amount of outstanding
19liens and judgments on the qualifying dwelling unit if that amount does not exceed
2033% of the value of the unit as determined by the most recent assessment for property
21tax purposes. For purposes of ss. 234.621 235.621 to 234.626 235.626, housing and
22rehabilitation loans under s. 234.49 235.49 and liens arising under ss. 234.621
23235.621 to 234.626 235.626 shall not be considered outstanding liens or judgments
24in computing the amount of permitted obligations.
SB21,3899
1Section 3899. 234.622 (6) of the statutes is renumbered 235.622 (6) and
2amended to read:
SB21,1443,43 235.622 (6) "Program" means the program under ss. 234.621 235.621 to
4234.626 235.626.
SB21,3900 5Section 3900. 234.622 (7) of the statutes is renumbered 235.622 (7) and
6amended to read:
SB21,1443,167 235.622 (7) "Qualifying dwelling unit" means a dwelling unit, not including a
8mobile home as defined in s. 101.91 (10), located in this state, habitable as a
9permanent residence and to which property taxes or special assessments are, or may
10conveniently be, allocated and up to one acre of land appertaining to it held in the
11same ownership as the dwelling unit. For purposes of ss. 234.621 235.621 to 234.626
12235.626, "qualifying dwelling unit" includes a unit in a condominium or in a
13cooperative or an unincorporated cooperative association or in a multiunit dwelling
14with 4 or fewer units, but in all of these 3 cases only the portion of taxes or special
15assessments allocable to the unit lived in by the participant may qualify for loans
16under ss. 234.621 235.621 to 234.626 235.626.
SB21,3901 17Section 3901. 234.623 of the statutes is renumbered 235.623, and 235.623 (1)
18and (3), as renumbered, are amended to read:
SB21,1443,2219 235.623 (1) The participant applies on forms prescribed by the authority for a
20loan to pay property taxes or special assessments by June 30 of the year in which the
21taxes or special assessments are payable on a qualifying dwelling unit and, except
22as provided in s. 234.625 235.625 (5), specifies the names of all co-owners.
SB21,1444,2 23(3) The participant keeps continuously in effect during the period that a loan
24is outstanding under ss. 234.621 235.621 to 234.626 235.626 a fire and extended

1casualty insurance policy on the qualifying dwelling unit satisfactory to the
2authority and permits the authority to be named on the policy as a lienholder.
SB21,3902 3Section 3902. 234.624 of the statutes is renumbered 235.624.
SB21,3903 4Section 3903. 234.625 of the statutes is renumbered 235.625, and 235.625 (1),
5(2), (3), (4) (b) 1. and 6., (5), (9) and (10), as renumbered, are amended to read:
SB21,1444,176 235.625 (1) The authority shall enter into agreements with participants and
7their co-owners to loan funds to pay property taxes and special assessments on their
8qualifying dwelling units. The maximum loan under ss. 234.621 235.621 to 234.626
9235.626 in any one year is limited to the lesser of $3,525 or the amount obtained by
10adding the property taxes levied on the qualifying dwelling unit for the year for
11which the loan is sought, the special assessments levied on the dwelling unit, and the
12interest and penalties for delinquency attributable to the property taxes or special
13assessments. Loans shall bear interest at a rate equal to the prime lending rate at
14the time the rate is set, as reported by the federal reserve board in federal reserve
15statistical release H. 15, plus 1%. The executive director authority shall set the rate
16no later than October 15 of each year, and that rate shall apply to loans made in the
17following year.
SB21,1444,23 18(2) The authority shall have all powers under s. 234.03 that are necessary or
19convenient to the operation of a loan program, including, without limitation because
20of enumeration, the power to enter into contracts, to pay or be paid for the
21performance of services, to exercise all rights of a lienholder under subch. I of ch. 779,
22and to perform other administrative actions that are necessary in the conduct of its
23duties under ss. 234.621 235.621 to 234.626 235.626.
SB21,1445,3 24(3) The authority shall adopt rules policies and establish procedures under
25which applications for loans under this section may be submitted, reviewed, and

1approved; under which repayment of the loans are to be obtained; under which
2disputes and claims concerning the loans are to be settled; and under which records
3concerning are to be maintained.
SB21,1445,6 4(4) (b) 1. Transfer of the qualifying dwelling unit by any means except upon
5transfer to a co-owner who resides in the unit and who is permitted to assume the
6participant's account as provided in s. 234.624 235.624.
SB21,1445,87 6. The participant ceases to meet the eligibility requirements of s. 234.623
8235.623, except as provided in sub. (5).
SB21,1445,16 9(5) If a participant in the program ceases to meet the eligibility requirements
10of this section, the authority, rather than demanding repayment under sub. (4) (b),
11may allow the participant to continue in the program, may allow the participant to
12continue in the program but be ineligible for additional loans, or may require partial
13settlement. The authority may also allow co-owners to be added to the loan
14agreement if, in the judgment of the executive director, the authority determines that
15the addition of co-owners does not significantly increase the authority's exposure to
16risk under the loan agreement.
SB21,1446,14 17(9) Upon the making of the initial loan, a nonconsensual statutory lien in favor
18of the authority to secure payment of the principal, interest, fees and charges due on
19all loans, including loans made after the lien is filed, to the participant made under
20ss. 234.621 235.621 to 234.626 235.626 shall attach to the qualifying dwelling unit
21in respect to which the loan is made. The qualifying dwelling unit shall remain
22subject to the statutory lien until the payment in full of all loans and charges. If the
23authority funds such loans from the proceeds of notes or bonds under s. 234.626
24235.626, its right under the lien shall automatically accrue to the benefit of the
25holders of those notes or bonds, without any action or assignment by the authority.

1When a loan becomes due and payable, the statutory lien hereby conferred may be
2enforced by the authority or the holders of the notes or bonds or their representative,
3as the case may be, in the same manner as a construction lien under ss. 779.09 to
4779.12, except that neither the participant nor any co-owners or their personal
5representatives, successors or assigns shall be personally liable for any deficiency
6which may arise from the sale. At the time of disbursing the initial loan to a
7participant, the authority shall record with the register of deeds of the county in
8which the qualifying dwelling unit is located, on a form prescribed by the authority
9which shall contain a legal description of the qualifying dwelling unit, a notice of the
10loan made under ss. 234.621 235.621 to 234.626 235.626 and the existence of the
11statutory lien arising therefrom. The register of deeds shall record the notice in the
12land records and index it in the indexes maintained by the register of deeds. The
13statutory lien created by this section shall have priority over any lien that originates
14subsequent to the recording of the notice.
SB21,1446,19 15(10) If the property taxes or special assessments are paid, using a loan made
16under ss. 234.621 235.621 to 234.626 235.626, after the taxes or assessments are due,
17the participant shall be liable for interest and penalty charges for delinquency under
18ch. 74. Subject to sub. (1), the principal amount of loans made under this program
19may include delinquency charges.
SB21,3904 20Section 3904. 234.626 of the statutes is renumbered 235.626, and 235.626 (1),
21(2), (2m), (4), (6) and (7), as renumbered, are amended to read:
SB21,1446,2522 235.626 (1) Loans made or authorized to be made under ss. 234.621 235.621
23to 234.626 235.626 may be funded from the proceeds of notes and bonds issued
24subject to and in accordance with ss. 234.08 to 234.14 235.02 to 235.0235 and from
25the fund under s. 234.165 235.025.
SB21,1447,9
1(2) The authority may create a system of funds and accounts, separate and
2distinct from all other funds and accounts of the authority, consisting of moneys
3received from notes and bonds, all revenues received in the repayment of loans made
4under ss. 234.621 235.621 to 234.626 235.626, except as provided in sub. (2m), and
5any other revenues dedicated to it by the authority. The authority may pledge
6moneys and revenues received or to be received by this system of funds and accounts
7to secure bonds or notes issued for the program. The authority shall have all other
8powers necessary and convenient to distribute the proceeds of the bonds, notes, and
9loan repayments in accordance with its powers under this chapter subchapter.
SB21,1447,11 10(2m) Revenues received in the repayment of loans made under s. 234.165
11235.025 shall be paid into the fund under s. 234.165 235.025.
SB21,1447,16 12(4) The authority may adopt rules policies and procedures that restrict
13eligibility in addition to the requirements of s. 234.623 235.623 or require the
14provision of additional security if, in the executive director's judgment, the authority
15determines that
the rules or security are required for the satisfactory issuance of
16bonds or notes.
SB21,1447,20 17(6) Unless otherwise expressly provided in resolutions authorizing the
18issuance of bonds or notes or in other agreements with the holders of bonds or notes,
19each bond or note issued shall be on a parity with every other bond or note issued for
20the funding of loans under ss. 234.621 235.621 to 234.626 235.626.
SB21,1447,24 21(7) Recognizing its moral obligation to do so, the legislature expresses its
22expectation and aspiration that, if ever called to do so, it shall make an appropriation
23to make the authority whole for defaults on loans issued under ss. 234.621 235.621
24to 234.626 235.626.
SB21,3905 25Section 3905. 234.65 of the statutes is repealed.
SB21,3906
1Section 3906. Subchapter II (title) of chapter 234 [precedes 234.67] of the
2statutes is renumbered subchapter V of chapter 235 [precedes 235.67].
SB21,3907 3Section 3907. 234.67 of the statutes is renumbered 235.67, and 235.67 (1) (e),
4(2) (intro.) and (3), as renumbered, are amended to read:
SB21,1448,85 235.67 (1) (e) "Participating lender" means a bank, credit union, savings bank,
6savings and loan association or other person, who makes loans for working capital
7or to finance physical plant needs, equipment or machinery and who has entered into
8an agreement with the authority under s. 234.93 235.93 (2) (a).
SB21,1448,11 9(2) (intro.) A loan made by a participating lender before December 3, 1993, is
10eligible for guarantee of collection from the Wisconsin development reserve fund
11under s. 234.93 235.93 if all of the following apply:
SB21,1448,18 12(3) Guarantee of collection. The authority shall guarantee collection of a
13percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee
14under sub. (2). The authority shall establish the percentage of the unpaid principal
15of an eligible loan that will be guaranteed, using the procedures described in the
16guarantee agreement under s. 234.93 235.93 (2) (a). The authority may establish a
17single percentage for all guaranteed loans or establish different percentages for
18eligible loans on an individual basis.
SB21,3908 19Section 3908. 234.75 of the statutes is renumbered 235.75, and 235.75 (2) (c)
20and (5) (a) and (c) (intro.), as renumbered, are amended to read:
SB21,1448,2221 235.75 (2) (c) The lender is the authority or a financial institution that enters
22into an agreement under s. 234.93 235.93 (2) (a).
SB21,1449,2 23(5) (a) Subject to par. (b), the authority may guarantee collection of all or part
24of the unpaid principal of a loan eligible for guarantee under sub. (3). If the authority
25guarantees all or part of a loan under this subsection, the authority shall establish

1the amount of the unpaid principal of an eligible loan that will be guaranteed using
2the procedures described in the guarantee agreement under s. 234.93 235.93 (2) (a).
SB21,1449,63 (c) (intro.) Notwithstanding s. 234.51 235.51 (2), the authority may transfer
4moneys from the housing rehabilitation loan program administration fund to the
5Wisconsin development reserve fund for a loan guarantee under this subsection if all
6of the following conditions are met:
SB21,3909 7Section 3909. 234.83 of the statutes is renumbered 235.83, and 235.83 (1m)
8(c), (3) (intro.) and (4), as renumbered, are amended to read:
SB21,1449,109 235.83 (1m) (c) The lender enters into an agreement under s. 234.93 235.93 (2)
10(a).
SB21,1449,13 11(3) Eligible loans. (intro.) A loan is eligible for guarantee of collection from
12the Wisconsin development reserve fund under s. 234.93 235.93 if all of the following
13apply:
SB21,1449,22 14(4) Guarantee of repayment. The authority may guarantee repayment of a
15portion of the principal of any loan eligible for a guarantee under sub. (1m). That
16portion may not exceed 80% of the principal of the loan or $750,000, whichever is less.
17The authority shall establish the portion of the principal of an eligible loan that will
18be guaranteed, using the procedures described in the agreement under s. 234.93
19235.93 (2) (a). The authority may establish a single portion for all guaranteed loans
20that do not exceed $937,500 and a single portion for all guaranteed loans that exceed
21$937,500 or establish on an individual basis different portions for eligible loans that
22do not exceed $937,500 and different portions for eligible loans that exceed $937,500.
SB21,3910 23Section 3910. 234.84 (title) of the statutes is renumbered 235.84 (title).
SB21,3911 24Section 3911. 234.84 (1) of the statutes is repealed.
SB21,3912
1Section 3912. 234.84 (2) of the statutes is renumbered 235.84 (2), and 235.84
2(2) (c), as renumbered, is amended to read:
SB21,1450,43 235.84 (2) (c) The lender is a financial institution that enters into an agreement
4under s. 234.932 235.932 (3) (a).
SB21,3913 5Section 3913. 234.84 (3) of the statutes is renumbered 235.84 (3), and 235.84
6(3) (intro.) and (c), as renumbered, are amended to read:
SB21,1450,97 235.84 (3) Eligible loans. (intro.) A loan is eligible for guarantee of collection
8from the Wisconsin job training reserve fund under s. 234.932 235.932 if all of the
9following apply:
SB21,1450,1110 (c) The interest rate on the loan, including any origination fees or other charges,
11is approved by the corporation authority.
SB21,3914 12Section 3914. 234.84 (4) of the statutes is renumbered 235.84 (4) and amended
13to read:
SB21,1450,2114 235.84 (4) Guarantee of collection. (a) Subject to par. (b), the authority shall
15guarantee collection of a percentage of the principal of, and all interest and any other
16amounts outstanding on, any loan eligible for a guarantee under sub. (2). The
17corporation authority shall establish the percentage of the principal of an eligible
18loan that will be guaranteed, using the procedures described in the agreement under
19s. 234.932 235.932 (3) (a). The corporation authority may establish a single
20percentage for all guaranteed loans or establish different percentages for eligible
21loans on an individual basis.
SB21,1450,2422 (b) Except as provided in s. 234.932 235.932 (4), the total outstanding
23guaranteed principal amount of all loans that the authority may guarantee under
24par. (a) may not exceed $8,000,000.
SB21,3915 25Section 3915. 234.84 (5) (a) of the statutes is repealed.
SB21,3916
1Section 3916. 234.84 (5) (b) of the statutes is renumbered 235.84 (5) and
2amended to read:
SB21,1451,53 235.84 (5) The corporation authority may charge a premium, fee, or other
4charge to a borrower of a guaranteed loan under this section for the administration
5of the loan guarantee.
SB21,3917 6Section 3917. 234.86 of the statutes is renumbered 235.86, and 235.86 (2)
7(intro.) and (c) and (4) (a) and (b), as renumbered, are amended to read:
SB21,1451,108 235.86 (2) Guarantee requirements. (intro.) The authority may use money
9from the Wisconsin drinking water reserve fund under s. 234.932 235.932 to
10guarantee a loan under this section if all of the following apply:
SB21,1451,1211 (c) The lender is a financial institution that enters into an agreement under s.
12234.933 235.933 (3) (a).
SB21,1451,19 13(4) (a) Subject to par. (b), the authority may guarantee collection of a
14percentage, not exceeding 80%, of the principal of any loan eligible for a guarantee
15under this section. The authority shall establish the percentage of the unpaid
16principal of an eligible loan that will be guaranteed using the procedures described
17in the guarantee agreement under s. 234.933 235.933 (3) (a). The authority may
18establish a single percentage for all guaranteed loans or establish different
19percentages for eligible loans on an individual basis.
SB21,1451,2120 (b) Except as provided in s. 234.933 235.933 (4), the total outstanding principal
21amount of all guaranteed loans under par. (a) may not exceed $3,000,000.
SB21,3918 22Section 3918. 234.86 (1) (c) of the statutes is amended to read:
SB21,1451,2523 234.86 (1) (c) "Local governmental unit" has the meaning given in s. 281.61 (1)
24(a) (am), except that the term does not include a joint local water authority created
25under s. 66.0823.
SB21,3919
1Section 3919. 234.88 of the statutes is renumbered 235.88, and 235.88 (1) (c),
2(2) (intro.) and (6), as renumbered, are amended to read:
SB21,1452,63 235.88 (1) (c) "Participating lender" means a bank, production credit
4association, credit union, savings bank, savings and loan association, or other person
5who makes emergency heating assistance loans and who has entered into an
6agreement with the authority under s. 234.93 235.93 (2) (a).
Loading...
Loading...