66.40(15)(b)
(b) To covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired, or against permitting or suffering any lien thereon.
66.40(15)(c)
(c) To covenant with respect to limitations on its right to sell, lease or otherwise dispose of any housing project or any part thereof, or with respect to limitations on its right to undertake additional housing projects.
66.40(15)(d)
(d) To covenant against pledging all or any part of its rents, fees and revenues to which its right then exists or the right to which may thereafter come into existence or against permitting or suffering any lien thereon.
66.40(15)(e)
(e) To provide for the release of property, rents, fees and revenues from any pledge or mortgage, and to reserve rights and powers in, or the right to dispose of, property which is subject to a pledge or mortgage.
66.40(15)(f)
(f) To covenant as to the bonds to be issued pursuant to any resolution, trust indenture, mortgage or other instrument and as to the issuance of such bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof.
66.40(15)(g)
(g) To provide for the terms, form, registration, exchange, execution and authentication of bonds.
66.40(15)(h)
(h) To provide for the replacement of lost, destroyed or mutilated bonds.
66.40(15)(i)
(i) To covenant that the authority warrants the title to the premises.
66.40(15)(j)
(j) To covenant as to the rents and fees to be charged, the amount to be raised each year or other period of time by rents, fees and other revenues and as to the use and disposition to be made thereof.
66.40(15)(k)
(k) To covenant as to the use of any or all of its property, real or personal.
66.40(15)(L)
(L) To create or to authorize the creation of special funds in which there shall be segregated the following:
66.40(15)(L)2.
2. All of the rents, fees and revenues of any housing project or projects or parts thereof.
66.40(15)(L)3.
3. Any moneys held for the payment of the costs of operations and maintenance of any such housing projects or as a reserve for the meeting of contingencies in the operation and maintenance thereof.
66.40(15)(L)4.
4. Any moneys held for the payment of the principal and interest on its bonds or the sums due under its leases or as a reserve for such payments; and
66.40(15)(L)5.
5. Any moneys held for any other reserves or contingencies.
66.40(15)(Lm)
(Lm) To covenant as to the use and disposal of the moneys held in funds created under
par. (L).
66.40(15)(m)
(m) To redeem the bonds, and to covenant for their redemption and to provide the terms and conditions thereof.
66.40(15)(n)
(n) To covenant against extending the time for the payment of its bonds or interest thereon, directly or indirectly, by any means or in any manner.
66.40(15)(o)
(o) To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given.
66.40(15)(p)
(p) To covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys.
66.40(15)(q)
(q) To vest in an obligee of the authority the right, in the event of the failure of the authority to observe or perform any covenant on its part to be kept or performed, to cure any such default and to advance any moneys necessary for such purpose, and the moneys so advanced may be made an additional obligation of the authority with such interest, security and priority as may be provided in any trust indenture, mortgage, lease or contract of the authority with reference thereto.
66.40(15)(r)
(r) To covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.
66.40(15)(s)
(s) To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation.
66.40(15)(t)
(t) To covenant to surrender possession of all or any part of any housing project or projects upon the happening of an event of default, as defined in the contract, and to vest in an obligee the right to take possession and to use, operate, manage and control such housing projects or any part thereof, and to collect and receive all rents, fees and revenues arising therefrom in the same manner as the authority itself might do and to dispose of the moneys collected in accordance with the agreement of the authority with such obligee.
66.40(15)(u)
(u) To vest in a trust or trustees the right to enforce any covenant made to secure, to pay, or in relation to the bonds, to provide for the powers and duties of such trustee or trustees, to limit liabilities thereof and to provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant.
66.40(15)(v)
(v) To make covenants other than and in addition to the covenants herein expressly authorized, of like or different character.
66.40(15)(w)
(w) To execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified as the government or any purchaser of the bonds of the authority may reasonably require.
66.40(15)(x)
(x) To make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the authority tend to make the bonds more marketable; notwithstanding that such covenants, acts or things may not be enumerated herein; it being the intention hereof to give the authority power to do all things in the issuance of bonds, in the provisions for their security that are not inconsistent with the constitution of the state and no consent or approval of any judge or court shall be required thereof; provided, however, that the authority shall have no power to mortgage all or any part of its property, real or personal, except as provided in
sub. (16).
66.40(16)
(16) Power to mortgage when project financed with aid of government. 66.40(16)(a)(a) In this subsection, "government" includes the Wisconsin housing and economic development authority.
66.40(16)(b)
(b) In connection with any project financed in whole or in part, or otherwise aided by a government, whether through a donation of money or property, a loan, the insurance or guarantee of a loan, or otherwise, the authority shall also have power to do any of the following:
66.40(16)(b)1.
1. Mortgage all or any part of its property, real or personal, then owned or thereafter acquired.
66.40(16)(b)2.
2. Grant security interests in its property, real or personal, then owned or thereafter acquired.
66.40(16)(b)3.
3. Issue its note or other obligation as may be required by the government.
66.40(17)
(17) Remedies of an obligee of authority. An obligee of the authority shall have the right in addition to all other rights which may be conferred on such obligee subject only to any contractual restrictions binding upon such obligee:
66.40(17)(a)
(a) By mandamus, suit, action or proceeding in law or equity, all of which may be joined in one action, to compel the authority, and the commissioners, officers, agents or employes thereof to perform each and every term, provision and covenant contained in any contract of the authority, and to require the carrying out of any or all covenants and agreements of the authority and the fulfillment of all duties imposed upon the authority by
ss. 66.40 to
66.404.
66.40(17)(b)
(b) By suit, action or proceeding in equity to enjoin any acts or things which may be unlawful, or the violation of any of the rights of such obligee of the authority.
66.40(17)(c)
(c) By suit, action or proceeding in any court of competent jurisdiction to cause possession of any housing project or any part thereof to be surrendered to any obligee having the right to such possession pursuant to any contract of the authority.
66.40(18)
(18) Additional remedies conferrable by mortgage or trust indenture. Any authority shall have power by its trust indenture, mortgage, lease or other contract to confer upon any obligee holding or representing a specified amount in bonds, lease or other obligations, the right upon the happening of an "event of default" as defined in such instrument:
66.40(18)(a)
(a) By suit, action or proceeding in any court of competent jurisdiction to obtain the appointment of a receiver of any housing project of the authority or any part or parts thereof. Upon appointment, a receiver may enter and take possession of such housing project or any part or parts thereof and operate and maintain same, and collect and receive all fees, rents, revenues or other charges thereafter arising therefrom in the same manner as the authority itself might do and shall keep such moneys in a separate account or accounts and apply the same in accordance with the obligations of the authority as the court shall direct.
66.40(18)(b)
(b) By suit, action or proceeding in any court of competent jurisdiction to require the authority and the commissioners thereof to account as if it and they were the trustees of an express trust.
66.40(19)
(19) Remedies cumulative. All the rights and remedies hereinabove conferred shall be cumulative and in addition to all other rights and remedies that may be conferred upon such obligee of the authority by law or by any contract with the authority.
66.40(20)
(20) Subordination of mortgage to agreement with government. The authority may agree in any mortgage made by it that such mortgage shall be subordinate to a contract for the supervision by a government of the operation and maintenance of the mortgaged property and the construction of improvements thereon; in such event, any purchaser or purchasers at a sale of the property of an authority pursuant to a foreclosure of such mortgage or any other remedy in connection therewith shall obtain title subject to such contract.
66.40(21)
(21) Contracts with federal government. In addition to the powers conferred upon the authority by other provisions of
ss. 66.40 to
66.404, the authority is empowered to borrow money or accept grants from the federal government for or in aid of any housing project which such authority is authorized to undertake, to take over any land acquired by the federal government for the construction or operation of a housing project, to take over or lease or manage any housing project constructed or owned by the federal government, and to these ends, to enter into such contracts, mortgages, trust indentures, leases or other agreements as the federal government may require including agreements that the federal government shall have the right to supervise and approve the construction, maintenance and operation of such housing project. It is the purpose and intent of this section to authorize every council to do any and all things necessary to secure the financial aid and the cooperation of the federal government in the undertaking, construction, maintenance and operation of any housing project which the authority is empowered to undertake.
66.40(22)
(22) Tax exemption and payments in lieu of taxes. The property of an authority is declared to be public property used for essential public and governmental purposes and such property and an authority shall be exempt from all taxes of the state or any state public body; provided, however, that the city in which a project or projects are located may fix a sum to be paid annually in lieu of such taxes by the authority for the services, improvements or facilities furnished to such project or projects by such city, but in no event shall such sum exceed the amount that would be levied as the annual tax of such city upon such project or projects.
66.40(23)
(23) Reports. The authority shall at least once a year file with the mayor of the city a report of its activities for the preceding year.
66.40(24)(a)(a) When a housing authority has the approval of the council for any project authorized under
sub. (9) (a) or
(b), the authority shall complete and approve plans, specifications and conditions in connection therewith for carrying out such project, and shall then advertise by publishing a class 2 notice, under
ch. 985, for bids for all work which the authority must do by contract. The authority is not required to submit for bidding any contract in an amount of $25,000 or less, but if the estimated cost of the contract is between $10,000 and $25,000, the authority shall give a class 2 notice, under
ch. 985, of the proposed work before the contract is entered into. A contract subject to bidding shall be awarded to the lowest qualified and competent bidder.
Section 66.29 shall apply to such bidding.
66.40(24)(ag)
(ag) As an alternative to the advertising and bidding procedure under
par. (a), an authority may contract under any purchase procedure authorized for the authority by the federal government.
66.40(24)(b)
(b) An authority may contract for the acquisition of a housing project without submitting the contract for bids as required by
par. (a) if:
66.40(24)(b)1.
1. The contract provides for undertaking of the housing project on land not owned at the time of the contract by the authority except the contract may provide for undertaking of the housing project on land acquired and owned by a community development authority for the purpose of
ss. 66.405 to
66.425,
66.43,
66.431 or
66.46 if the community development authority is proceeding under this paragraph as provided by
s. 66.4325 (4);
66.40(24)(b)2.
2. The contract provides for conveyance or lease of the project to the authority after completion of the project; and
66.40(24)(b)3.
3. The authority invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design, the developer's experience and other criteria specified by the authority.
66.40(25)
(25) Liquidation and disposal of housing projects. 66.40(25)(a)(a) In any city or village the city council or village board by resolution or ordinance, or the electors by referendum under
s. 9.20, may provide that the authority shall liquidate and dispose of a particular project or projects held and operated under
ss. 66.40 to
66.404 or
66.43.
66.40(25)(b)
(b) Whenever liquidation and disposal of a project is provided for under
par. (a) the housing authority or other designated agency shall sell such project to the highest bidder after public advertisement, or transfer it to any state public body authorized by law to acquire such project. No such project shall be sold for less than its fair market value as determined by a board of 3 licensed appraisers appointed by the city council or village board.
66.40(25)(c)
(c) The arrangements for the liquidation and disposal of a project shall provide for the payment and retirement of all outstanding obligations in connection with the project, together with interest thereon and any premiums prescribed for the redemption of any bonds, notes or other obligations before maturity.
66.40(25)(d)
(d) Any proceeds remaining after payment of such obligations under
par. (c) shall be distributed in accordance with the federal law applicable at the time of the liquidation and disposal of the project. If no federal law is applicable to the liquidation and disposal of the project all of such remaining proceeds shall be paid to the city or village.
66.40(25)(e)
(e) If the highest bid received is insufficient for the payment of all obligations set forth in
par. (c) the project shall not be sold unless the city or village provides sufficient additional funds to discharge such obligations.
66.40(25)(f)
(f) In order to carry out this subsection an authority or other designated agency shall exercise any option available to it for the payment and redemption of outstanding obligations set forth in
par. (c) before maturity, if the city or village provides funds for such payment and redemption.
66.40(25)(g)
(g) No actions taken under this subsection shall affect or diminish the rights of any bondholders or other obligees of the authority.
66.40(25)(h)
(h) The term "outstanding obligations" or "obligations" as used herein includes bonds, notes or evidences of indebtedness, as well as aids, grants, contributions or loans made by or received from any federal, state or local political government or agency.
66.40(26)
(26) Dissolution of housing authority. Any housing authority may be dissolved upon adoption of an ordinance or resolution by the council or village board concerned declaring that the need therefor no longer exists, that all projects under such authority's jurisdiction have been disposed of, that there are no outstanding obligations or contracts and that no further business remains to be transacted by such authority.
66.40 History
History: 1973 c. 172;
1975 c. 94,
221,
350;
1977 c. 418;
1979 c. 89;
1979 c. 110 s.
60 (13);
1979 c. 221;
1981 c. 112,
190,
232;
1983 a. 24;
1983 a. 81 s.
11;
1983 a. 83 s.
20;
1983 a. 189,
444;
1987 a. 27,
163;
1991 a. 316;
1993 a. 172,
184,
268,
379;
1995 a. 27,
225.
66.40 Annotation
The office of county planning and zoning commission member is incompatible with the position of executive director of the county housing authority.
81 Atty. Gen. 90.
66.401
66.401
Housing authorities; operation not for profit. 66.401(1)(1) It is declared to be the policy of this state that each housing authority shall manage and operate its housing projects in an efficient manner so as to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations, and that no housing authority shall construct or operate any such project for profit, or as a source of revenue to the city.
66.401(2)
(2) To this end an authority shall fix the rentals for dwellings in its projects at no higher rates than it shall find to be necessary in order to produce revenues which (together with all other available moneys, revenues, income and receipts of the authority from whatever sources derived) will be sufficient:
66.401(2)(a)
(a) To pay, as the same become due, the principal and interest on the bonds of the authority;
66.401(2)(b)
(b) To meet the cost of, and to provide for, maintaining and operating the projects (including the cost of any insurance) and the administrative expenses of the authority;
66.401(2)(c)
(c) To create (during not less than the 6 years immediately succeeding its issuance of any bonds) a reserve sufficient to meet the largest principal and interest payments which will be due on such bonds in any one year thereafter and to maintain such reserve.
66.402
66.402
Housing authorities; rentals and tenant selection. 66.402(1)(1) In the operation or management of housing projects an authority shall at all times observe the following duties with respect to rentals and tenant selection:
66.402(1)(a)
(a) It may rent or lease the dwelling accommodations therein only to persons of low income and at rentals within the financial reach of such persons of low income.
66.402(1)(b)
(b) It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it considers necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding.
66.402(1)(c)
(c) It shall not accept any person as a tenant in any housing project if the person or persons who would occupy the dwelling accommodations have an aggregate annual income in excess of 5 times the annual rental of the quarters to be furnished the person or persons, except that in the case of families with minor dependents the aggregate annual income of the person or persons who would occupy the dwelling accommodations may exceed 5 times the annual rental of the quarters to be furnished by $100 for each minor dependent or by an amount equal to the annual income of the minor dependents. In computing the rental for the purpose of selecting tenants, the authority shall determine and include in the rental the average annual cost to the occupants, of heat, water, electricity, gas, cooking range and other necessary services or facilities, whether or not the charge for such services and facilities is in fact included in the rental.
66.402(2)
(2) Nothing contained in the housing authorities law, as hereby amended, shall be construed as limiting the power of an authority:
66.402(2)(a)
(a) To invest in an obligee the right, in the event of a default by the authority, to take possession of a housing project or cause the appointment of a receiver thereof, free from all the restrictions imposed by said law, as amended, with respect to rentals, tenant selection, manner of operation, or otherwise; or
66.402(2)(b)
(b) Pursuant to
s. 66.40 (16) to vest in obligees the right, in the event of a default by the authority, to acquire title to a housing project or the property mortgaged by the housing authority, free from all the restrictions imposed by
ss. 66.401 and
66.402.
66.402(3)
(3) Subsection (1) (a) and
(c) does not apply in the case of housing projects to the financing of which the Wisconsin housing and economic development authority is a party, as to which
ch. 234 shall be controlling.
66.4025
66.4025
Penalties; evidence. 66.4025(1)(a)(a) Any person who secures or assists in securing dwelling accommodations under
s. 66.402 by intentionally making false representations in order to receive more than $1,000 and less than $2,500 in financial assistance for which the person would not otherwise be entitled shall be fined not more than $10,000 or imprisoned for not more than 9 months or both.
66.4025(1)(b)
(b) Any person who secures or assists in securing dwelling accommodations under
s. 66.402 by intentionally making false representations in order to receive at least $2,500 but not more than $25,000 in financial assistance for which the person would not otherwise be entitled shall be fined not more than $10,000 or imprisoned for not more than 2 years or both.
66.4025(1)(c)
(c) Any person who secures or assists in securing dwelling accommodations under
s. 66.402 by intentionally making false representations in order to receive more than $25,000 in financial assistance for which the person would not otherwise be entitled shall be fined not more than $10,000 or imprisoned for not more than 5 years or both.
66.4025(2)
(2) Any administrator or employe of an authority under
s. 66.402 who receives or solicits any commission or derives or seeks to obtain any personal financial gain through any contract for the rental or lease of dwelling accommodations under
s. 66.402 shall be punished under
s. 946.13.
