234.40
234.40
Bonds for veterans housing loans and other veterans assistance programs. 234.40(1)
(1) The authority shall issue its negotiable bonds in such principal amount and length of maturity as to provide sufficient funds for veterans housing loans to be made pursuant to
s. 45.37.
234.40(2)
(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 and
234.43. 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.
234.40(3)
(3) It is the intent of the legislature that the authority be used to finance the veterans housing program. Nothing in this chapter 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.
234.40(4)
(4) The limitations established in
ss. 234.18,
234.50,
234.60,
234.61, and
234.65 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.
234.41
234.41
Veterans housing loan fund; establishment and use. 234.41(1)(1) There is established under the jurisdiction of the authority a veterans housing loan fund. All moneys resulting from the sale of bonds for the purpose of veterans housing pursuant to
s. 45.37, unless credited to the veterans capital reserve fund, shall be credited to the fund.
234.41(2)
(2) The authority shall use moneys in the fund for the purpose of purchasing loans representing veterans housing loans pursuant to
s. 45.37. All disbursements of funds under this section for purchasing mortgage loans shall be made payable to authorized lenders as defined in
s. 45.31 (3) and eligible persons as defined in
s. 45.31 (5).
234.41(3)
(3) Moneys of the veterans housing loan fund may be invested as provided in
s. 234.03 (18). 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).
234.41(4)
(4) The authority may use moneys in the fund to cover actual and necessary expenses incurred in the sale and investment of bonds and bond revenues.
234.41(5)
(5) Any moneys remaining in the veterans housing loan fund and not needed for purposes of the veterans capital reserve fund shall be transferred to the veterans housing bond redemption fund.
234.42
234.42
Veterans capital reserve fund. 234.42(1g)
(1g) In this section "veterans capital reserve fund requirement" means an amount equal to the maximum amount, in any succeeding year, of principal and interest, other than principal and interest for which sinking fund payments are specified in any resolution of the authority authorizing veterans housing bonds of the authority then outstanding, maturing and becoming due in that succeeding year on all veterans housing bonds of the authority then outstanding, except veterans housing bonds due in that succeeding year issued to provide funds for mortgage loans through the purchase of mortgages or mortgage-backed securities guaranteed by the United States or an agency or instrumentality of the United States, plus all amounts specified in any resolution of the authority authorizing veterans housing bonds of the authority then outstanding as payable as a sinking fund payment in such year.
234.42(1s)
(1s) The authority shall establish the veterans capital reserve fund to secure the veterans housing bonds sold pursuant to
s. 234.40, 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.
234.42(2)(a)(a) All moneys held in the veterans capital reserve fund, except as otherwise specifically provided, shall be used solely for any of the following purposes:
234.42(2)(a)1.
1. The payment of the principal of veterans housing bonds of the authority as the same mature.
234.42(2)(a)2.
2. The making of sinking fund payments with respect to veterans housing bonds of the authority.
234.42(2)(a)3.
3. The purchase of veterans housing bonds of the authority.
234.42(2)(a)4.
4. The payment of interest on veterans housing bonds of the authority.
234.42(2)(a)5.
5. The payment of any redemption premium required to be paid when veterans housing bonds are redeemed prior to maturity.
234.42(2)(b)
(b) Except for the purpose of paying principal of and interest on veterans housing bonds of the authority maturing and becoming due and for the payment of which other moneys of the authority are not available, and except for making sinking fund payments with respect to veterans housing bonds of the authority and for the payment of which other moneys of the authority are not available, moneys in the veterans capital reserve fund shall not be withdrawn at any time in an amount that would reduce the fund to less than the veterans capital reserve fund requirement. Any income or interest earned by, or increment to, the veterans capital reserve fund due to the investment of the fund may be transferred by the authority to the veterans housing bond redemption fund to the extent it does not reduce the amount of the veterans capital reserve fund below the veterans capital reserve fund requirement.
234.42(3)
(3) The authority shall not issue bonds at any time, other than bonds issued to provide funds for mortgage loans through the purchase of mortgages or mortgage-backed securities guaranteed by the United States or an agency or instrumentality of the United States, if the veterans capital reserve fund requirement, after such issuance, will exceed the amount of the veterans capital reserve fund at the time of issuance unless the authority, at the time of issuance of such bonds, shall deposit in the capital reserve fund from the proceeds of the bonds so to be issued, or from another available source, an amount which, together with the amount then in the veterans capital reserve fund, will be not less than the veterans capital reserve fund requirement after such issuance.
234.42(4)
(4) To assure the continued operation and solvency of the authority for the carrying out of the veterans housing loan program of this chapter, 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.
234.42(5)
(5) In computing the amount of the veterans capital reserve fund for the purposes of this section, securities in which all or a portion of the veterans capital reserve fund is invested shall be valued at par, or if purchased at less than par, at their cost to the authority.
234.43
234.43
Veterans housing bond redemption fund. 234.43(1)(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.
234.43(2)
(2) Subject to agreements with bondholders, disbursements shall be made:
234.43(2)(a)
(a) For the payment of the principal of and interest on bonds issued by the authority when the same become due whether at maturity or on call for redemption and for the payment of any redemption premium required to be paid where such bonds are redeemed prior to their stated maturities, and to purchase bonds;
234.43(2)(b)
(b) To pay administrative costs, expenses and charges to service outstanding bonds including fees and expenses of trustees and paying agents;
234.43(2)(d)
(d) For transfer to the veterans capital reserve fund; and
234.43(2)(e)
(e) Any surplus remaining after satisfaction of all obligations of
pars. (a) to
(d) shall be paid over to the department of veterans affairs and deposited in the veterans trust fund.
234.44
234.44
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, and all proceedings prior to such time taken purportedly pursuant to this chapter 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, 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.
234.44 History
History: 1975 c. 221.
234.49
234.49
Housing rehabilitation. 234.49(1)(b)
(b) "Authorized lender" means any lender authorized under
sub. (2) (a) 4. to make or service housing rehabilitation loans but does not include a person licensed under
s. 138.09.
234.49(1)(c)
(c) "Eligible beneficiary" means any of the following:
234.49(1)(c)1.
1. A person whose name does not appear on the statewide support lien docket under
s. 49.854 (2) (b), except that a person whose name appears on the statewide support lien docket is an "eligible beneficiary" 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).
234.49(1)(c)2.
2. A family who or which falls within the income limits specified in
par. (fm).
234.49(1)(d)
(d) "Eligible rehabilitation" means additions, alterations, or repairs to housing to maintain it in a decent, safe, and sanitary condition or to restore it to that condition, to reduce the cost of owning or occupying dwelling units, to conserve energy, and to extend the economic or physical life of structures. "Eligible rehabilitation" includes the purchase of home appliances that satisfy the energy efficiency criteria established by the federal environmental protection agency for the energy star designation, as determined by the authority, but does not include construction of fireplaces, except for necessary repairs or the addition of permanently attached energy-efficient equipment to an existing fireplace.
234.49(1)(e)
(e) "Housing" means a residential structure having not more than 4 dwelling units in which at least one unit is occupied by the owner as a principal residence and, if a housing rehabilitation loan is granted for the property to implement energy conservation improvements, the structure is not subject to rules adopted under
s. 101.63,
101.73, or
101.973.
234.49(1)(f)
(f) "Housing rehabilitation loan" means a loan to finance eligible rehabilitation or a property tax deferral loan. Housing rehabilitation loans, except property tax deferral loans, include low interest loans.
234.49(1)(fm)
(fm) "Low interest loans" means loans that meet or exceed the rate of interest required to pay the costs incurred by the authority for making and servicing such loans, but do not exceed the rate of interest specified in
sub. (2) (a) 6. No low interest or other loan may be made to a person or family whose income exceeds 120% of the median income for a family of 4, except that in a designated reinvestment neighborhood or area as defined in
s. 66.1107 no low interest loan at the highest rate of interest authorized by this paragraph may be made to a person or family whose income exceeds 140% of the median income for a family of 4, and except that the authority may increase or decrease the income limit for low interest loans by no more than 10% of the limit for each person more or less than 4.
234.49(1)(g)
(g) "Median income" means the median family income for the area in which the residence is located or the median family income for the state, whichever is greater.
234.49(1)(h)
(h) "Owner" means the holder of the title or the vendee of a land contract of housing which is otherwise eligible for a housing rehabilitation loan.
234.49(1)(hm)
(hm) "Property tax deferral loan" means a loan that originated under the property tax deferral program under subch.
IV of ch. 77, 1989 stats., or under subch.
X of ch. 16, 1991 stats.
234.49(1)(i)
(i) "Sponsor" means any town, city, village or county in this state, or any community action agency or housing authority under
s. 59.53 (22),
61.73,
66.1201 or
66.1213. A community action agency or housing authority may be a sponsor for the unincorporated area of a county if the board of supervisors of that county adopts a resolution authorizing it to be a sponsor. A community action agency or housing authority may be a sponsor for an incorporated municipality if the governing body of the municipality adopts a resolution authorizing it to be a sponsor.
234.49(2)(a)(a) The authority has the following powers for the purpose of implementing this section, in addition to all other powers granted by this chapter:
234.49(2)(a)3.
3. To maintain a current list of authorized lenders. The authority shall establish standards governing the performance of authorized lenders in making and servicing housing rehabilitation loans and shall periodically monitor such performance.
234.49(2)(a)4.
4. To designate as an authorized lender the authority or any local government agency, housing authority under
s. 59.53 (22),
61.73,
66.1201 or
66.1213, bank, savings bank, savings and loan institution, mortgage banker licensed under
s. 224.72 or credit union, if the designee has a demonstrated history or potential of ability to adequately make and service housing rehabilitation loans.
234.49(2)(a)5.
5. To enter into contracts with authorized lenders authorizing them to process applications and service housing rehabilitation loans. The contracts may include the responsibilities of the authorized lenders with respect to credit evaluations, financial eligibility determinations, valuation of the housing for which the loan is to be made, collection procedures in the event of delinquent loan repayments and other functions which the authority may require. Such contracts may provide for the payment of a fee for originating such loans or for servicing such loans.
234.49(2)(a)6.
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.
234.49(2)(a)7.
7. To enter into contracts or agreements with authorized lenders and sponsors providing for the maximum acceptable amount, duration and other terms of housing rehabilitation loans in accordance with
sub. (1) (f).
234.49(2)(a)8.
8. To adopt procedures and forms necessary to effectuate the rehabilitation program or to facilitate the marketing of bonds issued under
s. 234.50.
234.49(2)(a)9.
9. To specify a rate of interest for a housing rehabilitation loan which is lower than the ordinary current rate for housing rehabilitation loans, if a substantial portion of the loan proceeds will be used for any of the following:
234.49(2)(a)9.b.
b. The repair or replacement of a heating system, electrical system, plumbing system, foundation or roof.
234.49(2)(a)9.d.
d. The authentic renovation of a listed property, as defined in
s. 44.31 (4), if the building is located on its original site.
234.49(2)(a)10.
10. To enter into contracts or agreements with the department of revenue or the department of administration to purchase property tax deferral loans under the housing rehabilitation loan program.
234.49(2)(c)
(c) In addition to the powers specified in
par. (a), the authority has all those powers necessary to implement this subsection.
234.49 History
History: 1977 c. 418;
1979 c. 110 s.
60 (13);
1979 c. 361 s.
59; Stats. 1979 s. 560.06;
1981 c. 21,
314;
1983 a. 81 s.
11;
1983 a. 83 s.
20;
1985 a. 29 ss.
2124d,
2244 to
2260,
3200 (14),
3202 (14);
1985 a. 120; Stats. 1985 s. 234.49;
1987 a. 27,
359,
395;
1987 a. 403 s.
256;
1989 a. 346;
1991 a. 39,
221,
269;
1993 a. 437;
1995 a. 27 ss.
6303,
9126 (19);
1995 a. 201,
404;
1997 a. 3;
1999 a. 9;
1999 a. 150 s.
672;
2005 a. 75;
2009 a. 2.
234.50
234.50
Bonds for housing rehabilitation loans; issuance; status. 234.50(1)(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 (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.
234.50(2)
(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 and
234.55. 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.
234.50(4)
(4) The limitations established in
ss. 234.18,
234.40,
234.60,
234.61, and
234.65 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for housing rehabilitation loans in an aggregate principal amount exceeding $100,000,000, excluding bonds being issued to refund outstanding bonds. The authority shall consult with and coordinate the issuance of bonds with the building commission prior to the issuance of bonds.
234.51
234.51
Housing rehabilitation loan program administration fund; establishment and use. 234.51(1)
(1) There is established under the jurisdiction of the authority a housing rehabilitation loan program administration fund. There shall be paid into such fund the amounts appropriated under
s. 20.490 (2) (a), the amounts provided in
s. 234.55, any amounts transferred by the authority to such fund from other funds or sources and any other moneys which may be available to the authority for the purpose of such fund from any other source.
234.51(2)
(2) Subject to agreements with bondholders, the authority shall use moneys in the fund solely for the following purposes:
234.51(2)(a)
(a) To pay all administrative costs, expenses and charges, including origination fees and servicing fees, incurred in conducting the housing rehabilitation loan program other than those described in
ss. 234.53 (4) and
234.55 (2) (b).
234.51(2)(b)
(b) To transfer annually to the general fund, beginning no later than October 1, 2000, all moneys in the housing rehabilitation loan program administration fund that are no longer required for the housing rehabilitation loan program.
234.51(3)
(3) Moneys of the fund may be invested as provided in
s. 234.03 (18). 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.
234.52
234.52
Housing rehabilitation loan program loan-loss reserve fund; establishment and use. 234.52(1)
(1) There is established under the jurisdiction of the authority a housing rehabilitation loan program loan-loss reserve fund. There shall be paid into such fund the amounts appropriated under
s. 20.490 (2) (q), the amounts provided under
s. 234.55, any amounts transferred by the authority to such fund from other funds or sources and any other moneys which may be available to the authority for the purposes of such fund from any other source.
234.52(2)
(2) Subject to agreements with bondholders, the authority shall use moneys in the fund solely for transfer to the housing rehabilitation loan program bond redemption fund in amounts equal to losses on housing rehabilitation loans owned by that fund which are not made good by federal insurance or guarantee payments, and solely for the purposes described in
s. 234.55 (2) (a). Any balance remaining after payment or due provision for payment of all outstanding bonds issued under the authority of
s. 234.50 shall be transferred to the housing rehabilitation loan program administration fund.
234.52(3)
(3) Moneys of the fund may be invested as provided in
s. 234.03 (18). 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.
234.53
234.53
Housing rehabilitation loan fund. 234.53(1)
(1) The authority shall establish the housing rehabilitation loan fund. All moneys resulting from the sale of bonds issued under the authority of
s. 234.50, not including bonds issued to refund outstanding bonds, and unless credited to the housing rehabilitation loan program capital reserve or bond redemption funds, shall be credited to such fund.
