234.621
234.621
Property tax deferral loans; purpose. The legislature finds that older individuals who have resided in their homes for a substantial period of time have found it difficult to remain in their own homes because their incomes are insufficient to cover property taxes, which have risen as the value of their homes has increased. The legislature finds that it is in the public interest and that it serves a statewide public purpose to create a program whereby lien-creating loans are made to low- and moderate-income elderly homeowners for the purpose, and only for the purpose, of enabling individuals to pay local, general property taxes and special assessments on their homes so that more of these individuals can remain in their homes.
234.621 History
History: 1981 c. 20,
317;
1991 a. 269 s.
510s; Stats. 1991 s. 16.993;
1993 a. 16 s.
130b; Stats. 1993 s. 234.621.
234.622(1)
(1) "Coowner" means a natural person who, at the time of the initial application has an ownership interest in the qualifying dwelling unit of a participant in the program and fulfills one of the following requirements:
234.622(1)(a)
(a) Is the participant's spouse and a physician certifies that the participant or the coowner is permanently disabled.
234.622(2m)
(2m) "Executive director" means the executive director of the authority.
234.622(3)
(3) "Free and clear" means that rights to transfer full title to the qualifying dwelling unit after satisfaction of permitted obligations are vested in the participant and coowners.
234.622(3m)
(3m) "Ownership interest" includes being a spouse of a participant.
234.622(4)
(4) "Participant" means a natural person 65 years of age or older who has been accepted into the program.
234.622(5)
(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 to
234.626, housing and rehabilitation loans under
s. 234.49 and liens arising under
ss. 234.621 to
234.626 shall not be considered outstanding liens or judgments in computing the amount of permitted obligations.
234.622(7)
(7) "Qualifying dwelling unit" means a dwelling unit, not including a mobile home as defined in
s. 66.0435, 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 to
234.626, "qualifying dwelling unit" includes a unit in a condominium or in a cooperative or in a multi-unit 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 to
234.626.
234.622 History
History: 1981 c. 20,
317;
1985 a. 29 s.
3202 (14) (c);
1987 a. 29;
1991 a. 269 ss.
510t to
510ue; Stats. 1991 s. 16.994;
1993 a. 16 ss.
130e,
3051k; Stats. 1993 s. 234.622;
1997 a. 27;
1999 a. 150 s.
672.
234.623
234.623
Eligibility. The authority shall make loans to a participant who meets all of the following requirements:
234.623(1)
(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 (5), specifies the names of all coowners.
234.623(2)
(2) The participant resides in the qualifying dwelling unit more than 6 months of the year preceding each year of participation, but temporary residency in a health care facility may be substituted for any portion of this 6-month residency.
234.623(3)
(3) The participant keeps continuously in effect during the period that a loan is outstanding under
ss. 234.621 to
234.626 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.
234.623(4)
(4) The participant either individually or with other coowners owns the qualifying dwelling unit free and clear. If the qualifying dwelling unit is owned with coowners, each of these persons must approve the application under
sub. (1).
234.623(5)
(5) The participant earned no more than $20,000 in income, as defined under
s. 71.52 (5), in the year prior to the year in which the property taxes or special assessments for which the loan is made are due.
234.624
234.624
Transfer of interest. If a participant ceases to reside in a qualifying dwelling unit, or if the participant's total ownership interest in the qualifying dwelling unit is transferred to one or more coowners in that unit, or if both of these events occur, a coowner may assume the participant's account by applying to the authority if the coowner resides in the qualified dwelling unit. Upon approval of the application, and if the coowner is 65 years of age or older, the coowner shall become a participant in the program and shall qualify for program loans. A coowner who has not attained the age of 65 at the time of application under this section may assume the account of a participant but shall not become a participant or qualify for program loans until the coowner attains the age of 65.
234.624 History
History: 1981 c. 20,
317;
1991 a. 269 s.
510ug; Stats. 1991 s. 16.9955;
1993 a. 16 s.
130j; Stats. 1993 s. 234.624.
234.625(1)(1) The authority shall enter into agreements with participants and their coowners to loan funds to pay property taxes and special assessments on their qualifying dwelling units. The maximum loan under
ss. 234.621 to
234.626 in any one year is limited to the lesser of $2,500 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 shall set the rate no later than October 15 of each year, and that rate shall apply to loans made in the following year.
234.625(2)
(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 to
234.626.
234.625(3)
(3) The authority shall adopt rules and establish procedures under which applications for loans may be submitted, reviewed and approved; under which repayment of loans are to be obtained; under which disputes and claims are to be settled; and under which records are to be maintained.
234.625(4)
(4) The authority shall enter into loan agreements with participants and coowners who agree to all of the following:
234.625(4)(b)
(b) That the loan shall be due and payable upon the occurrence of any of the following events: transfer of the qualifying dwelling unit by any means except upon transfer to a coowner who resides in the unit and who is permitted to assume the participant's account as provided in
s. 234.624, or the death of the participant if the participant is the sole owner, or the death of the last surviving coowner who owns the qualifying dwelling unit, or upon discovery by the authority that a participant or coowner has made a false statement on the application or otherwise in respect to the program, or upon condemnation or involuntary conversion of the qualifying dwelling unit, or if a participant ceases to meet the eligibility requirements of
s. 234.623 except as provided in
sub. (5) or fails to comply with the provisions of
par. (d) or, at the participant's or coowner's election, at any time before any of the events enumerated in this paragraph occurs.
234.625(4)(c)
(c) To pay, upon repayment of the loan, interest specified in the loan agreement.
234.625(4)(d)
(d) To limit the outstanding liens and judgments on the qualifying dwelling unit to no more than the permitted obligations.
234.625(5)
(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 coowners to be added to the loan agreement if, in the judgment of the executive director, the addition of coowners does not significantly increase the authority's exposure to risk under the loan agreement.
234.625(6)
(6) At any time after an application is filed, the authority may verify the correctness of the application and any other information regarding the eligibility of the participant. If the authority finds that at the time a participant received a loan the participant was not eligible under the program, the authority shall notify the participant and may require repayment of the loan as determined by the authority.
234.625(7)
(7) The authority, its agents or representatives may examine the books and records of an applicant under this subchapter or other sources of information bearing on the application to verify the information provided by an applicant, may require the production of books, records and memoranda and may require testimony and proof relevant to its investigation. If a person fails to furnish information requested by the authority to verify the correctness of the application, the authority may reject the application.
234.625(9)
(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 to
234.626 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, 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 coowners 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 to
234.626 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.
234.625(10)
(10) If the property taxes or special assessments are paid, using a loan made under
ss. 234.621 to
234.626, 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.
234.625 History
History: 1981 c. 20,
317;
1985 a. 29;
1987 a. 27;
1991 a. 269 s.
510uh; Stats 1991 s. 16.996;
1993 a. 16 ss.
130k to
130y; Stats. 1993 s. 234.625;
1993 a. 301 s.
1;
1993 a. 491 s.
11.
234.626(1)(1) Loans made or authorized to be made under
ss. 234.621 to
234.626 may be funded from the proceeds of notes and bonds issued subject to and in accordance with
ss. 234.08 to
234.14 and from the fund under
s. 234.165.
234.626(2)
(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, all revenues received in the repayment of loans made under
ss. 234.621 to
234.626, 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.
234.626(2m)
(2m) Revenues received in the repayment of loans made under
s. 234.165 shall be paid into the fund under
s. 234.165.
234.626(3)
(3) The authority may enter into agreements with the federal government, its agencies, agencies or political subdivisions of this state or private individuals or entities to insure or in other manner provide additional security for the loans or bonds or notes issued under this section.
234.626(4)
(4) The authority may adopt rules that restrict eligibility in addition to the requirements of
s. 234.623 or require the provision of additional security if, in the executive director's judgment, the rules or security are required for the satisfactory issuance of bonds or notes.
234.626(5)
(5) Bonds or notes issued for loans under this section shall not exceed $10,000,000 in principal amount, excluding obligations issued to refund outstanding bonds or notes.
234.626(6)
(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 shall be on a parity with every other bond or note issued for the funding of loans under
ss. 234.621 to
234.626.
234.626(7)
(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 to
234.626.
234.626 History
History: 1981 c. 20;
1983 a. 36 s.
96 (3);
1985 a. 29;
1991 a. 269 ss.
510ui to
510up; Stats. 1991 s. 16.997;
1993 a. 16 ss.
130z,
3051p; Stats. 1993 s. 234.626;
1993 a. 490.
234.65
234.65
Economic development. 234.65(1)(a)(a) With the consent of the department of commerce and subject to
par. (f), the authority may issue its negotiable bonds and notes to finance its economic development activities authorized or required under this chapter, including financing economic development loans.
234.65(1)(c)
(c) The authority may not issue more than $200,000,000 in aggregate principal amount of bonds and notes under this section, excluding bonds and notes issued to refund outstanding bonds or notes issued under this section.
234.65(1)(d)
(d) Section 234.15 does not apply to bonds or notes issued under this section, and any bond or note issued under this section shall contain on its face a statement to that effect.
234.65(1)(dm)
(dm) The authority has no moral or legal obligation or liability to any borrower under this section except as expressly provided by written contract.
234.65(1)(e)
(e) The authority shall employ the building commission as its financial consultant to assist and coordinate the issuance of bonds and notes under this section.
234.65(1)(f)
(f) The authority may not issue bonds or notes under
par. (a) unless it has contracted to reimburse the department of commerce a sum certain for the department's operating costs in carrying out its responsibilities to effectuate and promote the economic development programs created with the bonding authority in this chapter and its responsibilities under
s. 560.03 (17).
234.65(1)(g)
(g) In granting loans under this section the authority shall give preference to businesses which are more than 50% owned or controlled by women or minorities, to businesses that, together with all of their affiliates, subsidiaries and parent companies, have current gross annual sales of $5,000,000 or less or that employ 25 or fewer persons and to new businesses that have less than 50% of their ownership held or controlled by another business and have their principal business operations in this state.
234.65(1)(gm)
(gm) The authority may not grant a loan in an amount greater than 4% of the amount of bonds and notes authorized under
par. (c) for the benefit of a business that, together with all of its affiliates and subsidiaries and its parent company, has current gross annual sales in excess of $5,000,000.
234.65(1)(gp)
(gp) The authority may not refinance a loan to a business that has been a participant in a tax incremental financing district.
234.65(1m)
(1m) The department of commerce shall, in consultation with the authority, promulgate rules and adopt procedures, in accordance with the procedures under
ch. 227, to implement
sub. (3).
234.65(2)(a)(a) The authority may finance an economic development loan only after considering all of the following:
234.65(2)(a)1.
1. The extent to which an economic development project will maintain or increase employment in this state.
234.65(2)(a)2.
2. The extent to which an economic development project will make a significant contribution to this state's economic growth and the well-being of its residents.
234.65(2)(a)3.
3. Whether an economic development project will be located in an area of high unemployment or low average income.
234.65(2)(a)4.
4. The number of financial institutions participating in the economic development loan program.
234.65(2)(a)5.
5. The extent to which the activities constituting the economic development project otherwise would not occur.
234.65(2)(b)
(b) Paragraph (a) does not apply to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(2)(c)
(c) The authority shall give priority to an application for an economic development loan if the business applying for the loan certifies that it will use techniques or processes that reduce or eliminate the use of ozone-depleting substances that are listed as class I substances under
42 USC 7671a.
234.65(3)
(3) Except as provided in
sub. (3g), the authority may finance an economic development loan only if all of the following conditions are met:
234.65(3)(a)
(a) The business that will receive the loan, at least 30 days prior to signing of the loan contract, has given notice of intent to sign the contract, on a form prescribed under
s. 560.034 (1), to the department of commerce and to any collective bargaining agent in this state with whom the person has a collective bargaining agreement.
234.65(3)(am)
(am) The authority has received an estimate issued under
s. 560.034 (5) (b), and the department of commerce has estimated whether the project that the authority would finance under the loan is expected to eliminate, create or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created or maintained as a result of the project.
234.65(3)(b)
(b) Conventional financing is unavailable for the economic development project on reasonably equivalent terms and conditions.
234.65(3)(c)
(c) The economic development project is or will be located in this state.
234.65(3)(d)
(d) The business receiving the benefits of the loan proceeds, together with all of its affiliates and subsidiaries and its parent company, has current gross annual sales of $35,000,000 or less.
234.65(3)(dg)
(dg) The authority shall not assume primary risk for any economic development loan.
234.65(3)(e)
(e) The economic development loan will not be used to refinance existing debt, unless it is in conjunction with an expansion of the business or job creation. This paragraph does not apply to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(3)(f)
(f) The name of the person receiving the loan does not appear on the statewide support lien docket under
s. 49.854 (2) (b). The condition under this paragraph is met for a person whose name does appear if 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).
Effective date note
NOTE:
Par. (f) is shown as amended eff. the date stated in the notice published by the Department of Workforce Development in the Wisconsin Administrative Register under s. 49.854 (2) (e) by
1999 Wis. Act 9. Prior to the date stated in the notice published by the Department of Workforce Development in the Wisconsin Administrative Register under s. 49.854 (2) (e) it reads:
Effective date text
(f) The authority has not received a certification under s. 49.855 (7) that the person receiving the loan is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses.
234.65(3)(g)
(g) The business that will receive the loan certifies that it will not begin or expand operations that will increase emissions of any ozone-depleting substance that is listed as a class I substance under
42 USC 7671a.
234.65(3g)(b)
(b) Paragraph (a) and
sub. (3) (a) and
(am) do not apply to a person engaged in the business of operating a railroad or to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(3m)
(3m) An economic development loan may not be made unless the department of commerce complies with
sub. (1m) and certifies that each loan complies with
sub. (3).
234.65(3r)
(3r) Any economic development loan which a business receives from the authority under this section to finance a project shall require the business to submit to the department of commerce within 12 months after the project is completed or 2 years after a loan is issued to finance the project, whichever is sooner, on a form prescribed under
s. 560.034 (1), the net number of jobs eliminated, created or maintained on the project site and elsewhere in this state as a result of the project. This subsection does not apply to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(4)
(4) In respect to the loans issued under this section, the authority shall submit to the governor, the joint committee on finance and the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under
s. 13.172 (3), within 6 months after the close of its fiscal year an annual report including all of the following for the fiscal year:
234.65(4)(a)
(a) A statement of the authority's operations, accomplishments, goals and objectives.
