234.61(3)
(3) The authority is not required to issue bonds or notes under this section to finance residential facilities for persons and families of low and moderate income.
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) "Co-owner" 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 co-owner 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 co-owners.
234.622(3m)
(3m) "Ownership interest" includes being a spouse of a participant.
234.622(4)
(4) "Participant" means any of the following:
234.622(4)(a)
(a) 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. 101.91 (10), 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 an unincorporated cooperative association or in a multiunit 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.
234.623
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 co-owners.
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 co-owners owns the qualifying dwelling unit free and clear. If the qualifying dwelling unit is owned with co-owners, 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 co-owners in that unit, or if both of these events occur, a co-owner may assume the participant's account by applying to the authority if the co-owner resides in the qualified dwelling unit. Upon approval of the application, and if the co-owner is 65 years of age or older, the co-owner shall become a participant in the program and shall qualify for program loans. A co-owner 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 co-owner 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 co-owners 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 $3,525 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 co-owners 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:
234.625(4)(b)1.
1. Transfer of the qualifying dwelling unit by any means except upon transfer to a co-owner who resides in the unit and who is permitted to assume the participant's account as provided in
s. 234.624.
234.625(4)(b)2.
2. The death of the participant if the participant is the sole owner.
234.625(4)(b)3.
3. The death of the last surviving co-owner who owns the qualifying dwelling unit.
234.625(4)(b)4.
4. The authority discovers that the participant or a co-owner has made a false statement on the application or otherwise in respect to the program.
234.625(4)(b)5.
5. The condemnation or involuntary conversion of the qualifying dwelling unit.
234.625(4)(b)6.
6. The participant ceases to meet the eligibility requirements of
s. 234.623, except as provided in
sub. (5).
234.625(4)(b)8.
8. At the participant's or co-owner's election, at any time before any of the events under
subds. 1. to
7. occurs.
234.625(4)(b)9.
9. If the participant is a veteran, as defined in
s. 45.01 (12) (a) to
(f), who is not 65 years of age or older, at a time before any of the events under
subds. 1. to
7. occurs, as determined under policies and procedures established by the authority.
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 co-owners to be added to the loan agreement if, in the judgment of the executive director, the addition of co-owners 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 co-owners 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.
234.626(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) 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)1.1. The authority may issue not more than $150,000,000 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, in each of the 3 consecutive fiscal years beginning after April 20, 2012, and, except as provided in
subd. 2., may not issue bonds and notes under this section after the last day of the 3rd fiscal year that begins after April 20, 2012.
234.65(1)(c)2.
2. If, after the last day of the 3rd fiscal year that begins after April 20, 2012, the authority determines that a continuation of the program under this section will promote significant economic development in this state, the authority may seek approval from the joint committee on finance to issue additional bonds and notes under this section by submitting to the committee a written request that states the reasons supporting the authority's determination that the issuance of additional bonds and notes will promote significant economic development in this state. If, within 14 working days after the date of that written request, the cochairpersons of the committee do not notify the authority that the committee has scheduled a meeting to review the authority's proposal to issue additional bonds and notes under this section, the authority may proceed to issue not more than $150,000,000 in aggregate principal bonds and notes under this section, excluding bonds and notes issued to refund outstanding bonds or notes issued under this section, in each of the 3 consecutive fiscal years beginning with the fiscal year in which approval is obtained under this subdivision. If, within 14 working days after the date of that written request, the cochairpersons of the committee notify the authority that the committee has scheduled a meeting to review the authority's proposal to issue additional bonds and notes under this section, the authority may issue bonds and notes under this section only upon approval of the committee.
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)(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 250 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(1m)
(1m) The authority shall adopt procedures 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)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 project.
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(3)
(3) The authority may finance an economic development loan only if all of the following conditions are met:
234.65(3)(am)
(am) The authority 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)(bm)
(bm) One or more other financial institutions participate in the economic development project.
234.65(3)(c)
(c) The economic development project is or will be located in this state.
234.65(3)(dg)
(dg) The authority shall not assume unsecured or uncollateralized 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) or, if the person's name appears on that docket, 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).
234.65(3g)(a)(a) Nothing in
sub. (3) (am) may be considered to require a business signing a loan contract to satisfy an estimate under
sub. (3) (am).
234.65(3g)(b)
(b) Paragraph (a) and
sub. (3) (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 authority complies with
sub. (1m) and certifies that each loan complies with
sub. (3).
