“Authority cost" means any costs incurred by the authority in carrying out and administering any of its powers, duties and functions including, but not limited to, costs of financing by the authority, service charges, insurance premiums and administrative and operating costs of the authority.
“Business incubator" means a facility designed to encourage the growth of new businesses, if at least 2 of the following apply:
Space in the facility is rented at a rate lower than the market rate in the community.
Shared business services are provided in the facility.
Management and technical assistance are available at the facility.
Businesses using the facility may obtain financial capital through a direct relationship with at least one financial institution.
“Collateral" means a 3rd-party note, mortgage, guaranty, insurance policy, bond, letter of credit, security agreement or other instrument securing the repayment of an economic development loan or a mortgage loan.
“Development costs" mean the costs which have been approved by the authority as appropriate expenditures including but not limited to:
Payments for options to purchase properties on the proposed housing project site, deposits on contracts of purchase, or with the prior approval of the authority, payments for the purchase of such properties;
Legal, organizational and marketing expenses, including payment of attorney fees, project manager and clerical staff salaries, office rent, and other incidental expenses;
Payment of fees and preliminary feasibility studies and advances for planning, engineering and architectural work;
Expenses for surveys as to need and market analyses;
Necessary application and other fees to federal and other government agencies; and
Such other expenses incurred by the eligible sponsor as the authority deems appropriate to effectuate the purposes of this chapter.
“Economic development loan" means an advance of moneys, supported by a written promise of repayment, to finance an economic development project.
“Economic development project" means any of the following:
Land, plant or equipment for any of the following:
Facilities for manufacturing or commercial real estate activities.
Facilities for the storage or distribution of products of manufacturing activities, materials, components, or equipment.
Recreational and tourism facilities serving to attract visitors to this state.
Facilities for the production, packaging, processing or distribution of raw agricultural commodities.
Facilities for engaging in the business of operating a railroad.
Activities of a long-term nature, such as research and development or long-term working capital.
Equipment, materials or labor used to make an energy-conserving improvement to a commercial or industrial facility.
“Eligible sponsor" means any housing corporation, limited-profit entity or nonprofit corporation or any other entity meeting criteria established by the authority and which is organized to provide housing for persons and families of low and moderate income.
“Financial institution" means a bank, savings bank, savings and loan association, credit union, insurance company, finance company, mortgage banker licensed under s. 224.72
, community development corporation, small business investment corporation, pension fund or other lender which provides commercial loans in this state.
“Housing corporation" means a corporation organized under s. 182.004
and whose articles of incorporation, in addition to other requirements of law, provide that, if the corporation receives any loan or advance from the authority under this chapter, it may enter into an agreement with the authority providing for regulation with respect to rents, profits, dividends, and disposition of property or franchises.
“Housing project" means a specific work or improvement within this state undertaken primarily to provide dwelling accommodations, including land development and the acquisition, construction or rehabilitation of buildings and improvements thereto, for residential housing, and such other nonhousing facilities as may be determined by the authority to be either necessary for the economic viability thereof, required by law or by a master plan, or incidental or appurtenant thereto.
“Limited-profit entity" means any person or trust whose articles of incorporation or comparable documents of organization or whose written agreement with the authority provides that, as a condition of acceptance of a loan or advance under this chapter, the limited-profit entity shall enter into an agreement with the authority providing for limitations of rents, profits, dividends, and disposition of property or franchises.
A nonprofit corporation incorporated under ch. 181
whose articles of incorporation, in addition to other requirements of law, provide all of the following:
The corporation has as its major purpose the providing of housing facilities for persons and families of low and moderate income.
All income and earnings of the corporation shall be used exclusively for corporation purposes and no part of the net income or net earnings of the corporation shall inure to the benefit or profit of any private person.
The corporation is in no manner controlled or under the direction or acting in the substantial interest of private persons seeking to derive profit or gain therefrom or seeking to eliminate or minimize losses in any dealing or transactions therewith.
If the corporation receives any loan or advance from the authority, it shall enter into an agreement with the authority providing for limitations on rents, profits, dividends, and disposition of property or franchises.
“Persons and families of low and moderate income" means persons and families who cannot afford to pay the amounts at which private enterprise, without federally-aided mortgages or loans from the authority, can provide a substantial supply of decent, safe and sanitary housing and who fall within income limitations set by the authority in its rules. In determining such income limitations the authority shall consider the amounts of the total income of such persons available for housing needs, the size of the family, the cost and condition of available housing facilities, standards established for various federal programs and any other factors determined by the authority to be appropriate in arriving at such limitations. Among low- or moderate-income persons and families, preference shall be given to those displaced by governmental action.
History: 1971 c. 287
; 1975 c. 221
; 1977 c. 418
; 1979 c. 361
; 1981 c. 349
; 1983 a. 81
; 1983 a. 83
; 1985 a. 29
, 3202 (14)
; 1985 a. 334
; 1987 a. 27
; 1987 a. 403
; 1989 a. 281
; 1989 a. 335
; 1991 a. 37
; 1995 a. 27
; 1997 a. 27
; 1999 a. 150
; 2001 a. 104
; 2005 a. 75
; 2007 a. 20
; 2009 a. 2
; 2011 a. 32
; 2017 a. 277
; s. 35.17 correction in (6), (9) (a) 4.
“Limited-profit entity" has meaning only with reference to WHEDA's loan to the entity. The entity terminates when the loan is satisfied and nothing remains to be done except to dispose of what remains in the hands of the entity. WHEDA v. Bay Shore Apartments, 200 Wis. 2d 129
, 546 N.W.2d 480
(Ct. App. 1996), 93-1825
Wisconsin Housing and Economic Development Authority: creation; membership; appointment and tenure; meetings; officers. 234.02(1)(1)
There is created a public body corporate and politic to be known as the “Wisconsin Housing and Economic Development Authority." The members of the authority shall be the chief executive officer of the Wisconsin Economic Development Corporation or his or her designee and the secretary of administration or his or her designee, and 6 public members nominated by the governor, and with the advice and consent of the senate appointed, for staggered 4-year terms commencing on the dates their predecessors' terms expire. In addition, one senator of each party and one representative to the assembly of each party appointed as are the members of standing committees in their respective houses shall serve as members of the authority. A member of the authority shall receive no compensation for services but shall be reimbursed for necessary expenses, including travel expenses, incurred in the discharge of duties. Subject to the bylaws of the authority respecting resignations, each member shall hold office until a successor has been appointed and has qualified. A certificate of appointment or reappointment of any member shall be filed with the authority and the certificate shall be conclusive evidence of the due and proper appointment.
The powers of the authority shall be vested in the members thereof in office. A majority of the members of the authority constitutes a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, notwithstanding the existence of any vacancies. Action may be taken by the authority upon a vote of a majority of the members present, unless the bylaws of the authority require a larger number. Meetings of the members of the authority may be held anywhere within or without the state.
The governor shall appoint a public member as the chairperson of the authority for a one-year term beginning on the expiration of the term of the chairperson's predecessor. The authority shall elect a vice chairperson. The governor shall nominate, and with the advice and consent of the senate appoint, the executive director of the authority, to serve a 2-year term. The authority shall employ the executive director so appointed, legal and technical experts and such other officers, agents and employees, permanent and temporary, as it may require, and shall determine their qualifications, duties and compensation, all notwithstanding subch. II of ch. 230
, except that s. 230.40
shall apply, and except that the compensation of any employee of the authority shall not exceed the maximum of the executive salary group range established under s. 20.923 (1)
for positions assigned to executive salary group 6. The authority may delegate any of its powers or duties to its employees with the consent of the executive director or to its agents.
The authority shall adhere to specifications prepared under s. 16.72 (2)
, if applicable to the product or service to be purchased.
Members and employees of the authority are subject to uniform travel schedule amounts approved under s. 20.916 (8)
The authority shall, with the advice of the ethics commission, adopt and enforce ethics guidelines applicable to its paid consultants which are similar to subch. III of ch. 19
, except that the authority may not require its paid consultants to file financial disclosure statements.
The authority shall continue in existence until terminated by law, but no such law shall take effect while the authority has obligations outstanding.
No cause of action of any nature may arise against and no civil liability may be imposed upon a member of the authority, or other officer or employee of the authority appointed by the governor, for any act or omission in the performance of his or her powers and duties under this chapter, unless the person asserting liability proves that the act or omission constitutes willful misconduct.
This chapter, except for s. 234.15 (4), 1971 Stats., is constitutional. State ex rel. Warren v. Nusbaum, 59 Wis. 2d 391
, 208 N.W.2d 780
Powers of authority.
The authority shall have all the powers necessary or convenient to implement this chapter, including the following powers in connection with its projects or programs, in addition to all other powers granted by this chapter:
To sue and be sued; to have a seal and to alter the same at pleasure; to have perpetual existence; to make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority; and to make, amend and repeal bylaws and rules.
To accept gifts, loans or other aid.
To agree and comply with any conditions attached to federal financial assistance.
To employ such agents, employees and special advisers as it finds necessary and to fix their compensation.
To study and analyze housing needs within the state and ways of meeting such needs, including data with respect to population and family groups and the distribution thereof according to income groups, the amount and quality of available housing and its distribution according to rentals and sales prices, employment, wages and other factors affecting housing needs and the meeting thereof; to make the results of such studies and analyses available to the public and the housing and supply industries; and to engage in research and disseminate information on housing.
To survey and investigate the housing conditions and needs, both rural and urban, throughout the state and make recommendations to the governor and the legislature as to legislation and other measures necessary or advisable to alleviate any existing housing shortage in the state.
To encourage research in, and demonstration projects to develop, new and better techniques and methods for increasing the supply of housing for families and persons of low and moderate income.
To cooperate with and encourage cooperation among all federal, state and municipal agencies, sponsors and local authorities in the planning for and financing and construction of housing for persons and families of low and moderate income.
To encourage community organizations to assist in initiating housing projects for persons and families of low and moderate income as provided in this chapter.
To provide technical assistance in the development of housing projects for persons and families of low and moderate income, and for programs to improve the quality of rural and urban life for all the people of the state.
To collect fees and charges on mortgage loans and economic development loans and airport development loans under s. 234.63 (3)
, 2007 stats., for the purpose of paying all or a portion of authority costs as the authority determines are reasonable and as approved by the authority.
To set standards for housing projects which receive loans under this chapter and to provide for inspections to determine compliance with such standards.
To purchase and enter into commitments for the purchase of mortgages and securities if the authority shall first determine that the proceeds of the sale of such mortgages and securities to the authority will be utilized for the purpose of residential housing for occupancy by persons or families of low and moderate income and to enter into agreements with sponsors of residential facilities, as defined in s. 46.28 (1) (d)
, and with eligible sponsors, mortgagors or issuers of securities for the purpose of regulating the planning, development and management of housing projects financed in whole or in part by the proceeds of the mortgages or securities purchased by the authority.
To make or participate in the making and enter into commitments for the making of loans for the refinancing of mortgage loans under s. 234.605
and to enter into agreements with any banking institution, savings bank, savings and loan association, or credit union organized under the laws of this or any other state or of the United States having an office in this state regarding the refinancing of mortgage loans under s. 234.605
To purchase and enter into commitments for the purchase of veterans housing loans made pursuant to s. 45.37
, 2017 stats.
To purchase and enter into commitments for the purchase of housing rehabilitation loans.
To sell collateral, mortgages and security interests at public or private sale, to modify or alter collateral, mortgages and security interests, to foreclose on any such collateral, mortgage or security interest or commence any action to protect or enforce any right conferred upon it by any law, mortgage, security agreement, contract or other agreement, and to bid for and purchase property which was the subject of such collateral, mortgage or security interest, at any foreclosure or at any other sale, to acquire and to take possession of any such property; and in such event the authority may complete, administer, pay the principal and interest on any obligations incurred in connection with such property, and dispose of and otherwise deal with such property in such manner as may be necessary or desirable to protect the interests of the authority therein.
To acquire or contract to acquire from any person by grant, purchase, or otherwise, leaseholds, real, or personal property or any interest therein; and to own, hold, clear, improve, and rehabilitate and to sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber the same. Nothing in this chapter shall be deemed to impede the operation and effect of local zoning, building, and housing ordinances or ordinances relating to subdivision control, land development, fire prevention, or other ordinances having to do with housing or housing development.
To establish and administer programs of grants to counties, municipalities and eligible sponsors of housing projects for persons of low and moderate income, to pay organizational expenses, administrative costs, social services, technical services, training expenses or costs incurred or expected to be incurred by counties, municipalities or sponsors for land and building acquisition, construction, improvements, renewal, rehabilitation, relocation or conservation under a plan to provide housing or related facilities, if the costs are not reimbursable from other private or public loan, grant or mortgage sources.
To lease real or personal property and to accept federal funds for and participate in such federal housing programs as are enacted on May 4, 1976 or at any future time, except that the authority may not accept without the consent of the governor federal funds under federal housing programs enacted after May 8, 1982 if issuance of the authority's bonds or notes is not required to participate in the programs.
To procure insurance against any loss in connection with its property and other assets and to procure insurance on its debt obligations.
Except as provided in sub. (18m)
, to invest any funds held in reserve or sinking funds or any moneys not required for immediate use or disbursement at the discretion of the authority in such investments as may be lawful for fiduciaries in the state, if at least 50 percent of any funds held in any reserve or sinking fund be invested in obligations of the state or of the United States or agencies or instrumentalities of the United States or obligations, the principal and interest of which are guaranteed by the United States or agencies or instrumentalities of the United States.
From the funds described under sub. (18)
, to invest directly or through a financial intermediary a total of not more than $1,000,000 of its general funds in business entities having their principal places of business in this state, including their affiliates, which are independently owned and operated and which employ fewer than 25 full-time employees or have gross annual sales of less than $2,500,000, to enable those business entities to do any of the following:
Any other activity, relating to research or development or both, to help the business entity develop new products.
To enter into an agreement with a business in which funds are invested under par. (a)
. Under that agreement, if the business earns a profit as a result of the investment it shall repay the authority, in the form of a royalty or otherwise, all or part of the amount invested plus interest.
To give a preference, when investing in a business entity under par. (a)
, to a business entity engaging in the sale of a product with a demonstrated potential to be marketed outside this state.