234.60 Bonds for homeownership mortgage loans and qualified subprime loan refinancing. (1) The authority may issue its bonds or notes to fund homeownership mortgage loans or the refinancing of qualified subprime loans under s. 234.592. (2) The limitations in ss. 234.18, 234.40, 234.50, 234.61, and 234.65 do not apply to bonds or notes issued under this section. (4) Before issuing bonds or notes under this section, the authority shall consult and coordinate the bond or note issue with the building commission. (5) (a) The secretary of administration shall determine the date after which no bond or note issued may be treated as a qualified mortgage bond under 26 USC 143 (a) (1). (b) No bonds or notes may be issued under this section after the date determined under par. (a), except bonds or notes issued to refund outstanding bonds or notes issued under this section. (c) The secretary of administration shall determine the date after which no bond or note may be issued under this section for the purpose of financing the acquisition or replacement of an existing mortgage under s. 234.592. (9) The executive director of the authority shall make every effort to encourage participation in the homeownership mortgage loan program and the qualified subprime loan refinancing program by women and minorities. History: 1981 c. 349; 1983 a. 27 s. 2202 (20); 1983 a. 36 s. 96 (4); 1983 a. 81 s. 13; 1983 a. 82; 1983 a. 83 s. 22; 1983 a. 192; 1985 a. 29 ss. 2128 to 2131, 3202 (28); 1985 a. 78, 334; 1987 a. 27, 69; 1989 a. 31; 1993 a. 437; 1997 a. 27; 2005 a. 22, 75, 487; 2007 a. 125; 2009 a. 2; 2017 a. 277. NOTE: Chapter 349, laws of 1981 contains a “legislative declaration” in section 1.
234.605 Homeowner eviction and lien protection program. (1) In this section: (a) “Eligible property” has the meaning given in s. 234.59 (1) (d) 1. (b) “Lender” means 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. (c) “Mortgage loan” means a loan secured by a first lien real estate mortgage on the eligible property of an applicant. (2) Subject to the approval of all members of the authority, the authority may establish and administer a homeowner eviction
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and lien protection program to encourage the refinancing of mortgage loans by lenders in order to facilitate the retention of eligible property by persons and families. (3) (a) Except as provided in par. (b), to implement the program, the authority may enter into agreements with lenders regarding the refinancing of a mortgage loan and may make or participate in the making and enter into commitments for the making of loans to refinance a mortgage loan if the authority first determines all of the following: 1. The applicant has made a reasonable effort to refinance the mortgage loan with the existing lender or loan servicer or with an organization approved by the authority, but the applicant has been unsuccessful in his or her effort. The authority shall designate and maintain a current list of organizations approved under this subdivision. 2. The lender will not refinance the mortgage loan in the absence of an agreement with the authority. (b) The authority may not enter into an agreement with a lender under this section if the applicant’s name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the applicant 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). (4) The authority shall submit a quarterly report to the joint committee on finance. The report shall summarize the progress and performance of the program established under this section. The cochairpersons of the joint committee on finance may convene a meeting of the committee at any time to review or dissolve the program established under this section. History: 2009 a. 2.
234.61 Bonds for residential facilities for the elderly or chronically disabled. (1) Upon the authorization of the department of health services, the authority may issue bonds or notes and make loans for the financing of housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the development costs of those housing projects, if the department of health services has approved the residential facilities for financing under s. 46.28 (2). The limitations in ss. 234.18, 234.40, 234.50, 234.60, and 234.65 do not apply to bonds or notes issued under this section. The definition of “nonprofit corporation” in s. 234.01 (9) does not apply to this section. (2) (a) The aggregate amount of outstanding bonds or notes issued under this subsection may not exceed $99,400,000. (b) Of the amount specified in par. (a), $30,000,000 may only be used to finance residential facilities serving 15 or fewer persons who are chronically disabled, as defined in s. 46.28 (1) (b). (c) 1. Of the amount specified in par. (a), $48,580,000 may only be used to finance residential facilities with 100 or fewer units for elderly persons, as defined in s. 46.28 (1) (c) or to finance additional residential facilities serving 15 or fewer persons who are chronically disabled. 2. The remainder of the amount specified in par. (a) may only be used to finance residential facilities with 50 or fewer units for elderly persons, as defined in s. 46.28 (1) (c), or to finance additional residential facilities serving 15 or fewer persons who are chronically disabled. 3. At least 20 percent of the units in any residential facility serving elderly persons for which bonds or notes are issued under this paragraph shall be reserved for low-income elderly persons. (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. History: 1983 a. 27; 1983 a. 81 s. 13; 1983 a. 83 s. 22; 1983 a. 192; 1985 a. 29,
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334; 1993 a. 437; 1995 a. 27 s. 9126 (19); 1997 a. 27 s. 3355c; Stats. 1997 s. 234.61; 2005 a. 75, 487; 2007 a. 20 s. 9121 (6) (a); 2007 a. 125; 2009 a. 2.
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. 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 Definitions. In ss. 234.621 to 234.626: (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: (a) Is the participant’s spouse and a physician certifies that the participant or the co-owner is permanently disabled. (b) Is at least 60 years of age. (2m) “Executive director” means the executive director of the authority. (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. (3m) “Ownership interest” includes being a spouse of a participant. (4) “Participant” means any of the following: (a) A natural person 65 years of age or older who has been accepted into the program. (b) A veteran, as defined in s. 45.01 (12) (a) to (f), who has been accepted into the program. (5) “Permitted obligations” means the total amount of outstanding liens and judgments on the qualifying dwelling unit if that amount does not exceed 33 percent 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. (6) “Program” means the program under ss. 234.621 to 234.626. (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. 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; 2005 a. 441; 2007 a. 11; 2011 a. 32; 2013 a. 20.
234.623 Eligibility. The authority shall make loans to a participant who meets all of the following requirements:
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(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. (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. (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. (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). (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. History: 1981 c. 20; 1983 a. 189 s. 329 (10); 1983 a. 544 s. 47 (1); 1985 a. 29 s. 3202 (46) (a); 1987 a. 27, 29; 1987 a. 312 s. 17; 1991 a. 269 s. 510uf; Stats. 1991 s. 16.995; 1993 a. 16 s. 130h; Stats. 1993 s. 234.623; 1999 a. 85.
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 coowner attains the age of 65. 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 Program operation. (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 percent. 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. (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. (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 ob-
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tained; under which disputes and claims are to be settled; and under which records are to be maintained. (4) The authority shall enter into loan agreements with participants and co-owners who agree to all of the following: (b) That the loan shall be due and payable upon the occurrence of any of the following events: 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. 2. The death of the participant if the participant is the sole owner. 3. The death of the last surviving co-owner who owns the qualifying dwelling unit. 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. 5. The condemnation or involuntary conversion of the qualifying dwelling unit. 6. The participant ceases to meet the eligibility requirements of s. 234.623, except as provided in sub. (5). 7. The participant fails to comply with par. (d). 8. At the participant’s or co-owner’s election, at any time before any of the events under subds. 1. to 7. occurs. 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. (c) To pay, upon repayment of the loan, interest specified in the loan agreement. (d) To limit the outstanding liens and judgments on the qualifying dwelling unit to no more than the permitted obligations. (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. (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. (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. (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
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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. (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. 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; 2009 a. 199; 2013 a. 20.
234.626 Loan funding. (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. (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. (2m) Revenues received in the repayment of loans made under s. 234.165 shall be paid into the fund under s. 234.165. (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. (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. (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. (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
234.65
on a parity with every other bond or note issued for the funding of loans under ss. 234.621 to 234.626. (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. 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 Economic development. (1) (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. (b) The limits in ss. 234.18, 234.40, 234.50, 234.60, and 234.61 do not apply to bonds or notes issued under this section. (c) 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. 2. If, before July 1, 2018, and before every 4th July 1 thereafter, 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 specifies an aggregate principal amount of requested issuance authority and states the reasons supporting the authority’s determination that the issuance of additional bonds and notes will promote significant economic development in this state. The written request may be made up to 60 days in advance of the applicable July 1. 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 bonds and notes under this section as proposed in the authority’s written request, excluding bonds and notes issued to refund outstanding bonds or notes issued under this section. 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. (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. (dm) The authority has no moral or legal obligation or liability to any borrower under this section except as expressly provided by written contract. (g) In granting loans under this section the authority shall give preference to businesses which are more than 50 percent 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 percent of their ownership held or controlled by another business and have their principal business operations in this state. (1m) The authority shall adopt procedures to implement sub. (3). (2) (a) The authority may finance an economic development loan only after considering all of the following:
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1. The extent to which an economic development project will maintain or increase employment in this state. 3. Whether an economic development project will be located in an area of high unemployment or low average income. 4. The number of financial institutions participating in the economic development project. 5. The extent to which the activities constituting the economic development project otherwise would not occur. (b) Paragraph (a) does not apply to an economic development loan to finance an economic development project described under s. 234.01 (4n) (c). (3) The authority may finance an economic development loan only if all of the following conditions are met: (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. (bm) One or more other financial institutions participate in the economic development project. (c) The economic development project is or will be located in this state. (dg) The authority shall not assume unsecured or uncollateralized risk for any economic development loan. (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). (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). (3g) (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). (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). (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). (3r) Any economic development loan that a business receives from the authority under this section to finance a project shall require the business to submit to the authority within 12 months after the project is completed or 2 years after a loan is issued to finance the project, whichever is sooner 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). (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: (a) A statement of the authority’s operations, accomplishments, goals and objectives. (b) A financial statement showing income and expenses, as-
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sets and liabilities and a schedule of its bonds and notes outstanding and the amounts redeemed and issued. (c) The effects of lending under this section in the following areas: 1. Maintaining or increasing employment in this state. 2. Locating economic development projects in areas of high unemployment or low average income. 3. Obtaining the participation of a large number of financial institutions in the lending. 4. The geographical distribution of lending in this state. History: 1983 a. 83, 192; 1985 a. 29 s. 3202 (28); 1985 a. 299, 334; 1987 a. 27, 186; 1989 a. 31, 78, 281; 1991 a. 37; 1993 a. 112, 243, 437; 1995 a. 27 s. 9116 (5); 1995 a. 56, 404; 1997 a. 27; 1999 a. 9, 85; 2001 a. 16; 2005 a. 75; 2007 a. 125; 2011 a. 32, 214; 2017 a. 277. NOTE: This section was created by 1983 Wisconsin Act 83. Section 1 of that act is entitled “Legislative Declaration.”
234.66 Residential housing infrastructure revolving loan fund and program. (1) DEFINITIONS. In this section: (a) “Area median income” means the area median family income in the county in which the housing is located, adjusted for family size, as published annually by the federal department of housing and urban development. (b) “Developer” means a person other than a governmental unit that constructs or creates residential housing. (c) “Eligible governmental unit” means the governmental unit having jurisdiction over an eligible project, as determined by the authority. (d) “Eligible project” means a project for housing infrastructure for workforce housing or senior housing. (dd) “Governmental unit” means a city, village, town, county, or federally recognized American Indian tribe or band in this state. (e) “Housing infrastructure” means that portion of the installation, replacement, upgrade, or improvement of public infrastructure, or private infrastructure in rural areas if transferred to public use, as determined by the authority, that relates to an eligible project. (f) “Public infrastructure” means any of the following that is or will be owned, maintained, or provided to or by a governmental unit: 1. A water distribution system. 2. A water treatment plant. 3. A wastewater treatment plant. 4. A sanitary sewer system. 5. A storm sewer system. 6. A stormwater retention pond. 7. A lift or pump station. 8. A street, road, alley, or bridge. 9. A curb, gutter, or sidewalk. 10. A traffic device. 11. A street light. 12. An electric or gas distribution line. (g) “Residential housing” means new single-family or multifamily housing for rent or sale that satisfies all of the following: 1. Is subject to taxation under ch. 70. 2. Has not been the subject of a claim for a state or federal historic rehabilitation tax credit, as determined by the authority. 3. Has not received financial assistance from tax increments generated by an active tax incremental district. (h) “Senior housing” means residential housing that satisfies par. (i) 1. to 4. and that is intended and operated primarily for occupancy by at least one person 55 years of age or older per dwelling unit, as determined by the authority.
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(i) “Workforce housing” means residential housing that satisfies all of the following, as determined by the authority: 1. For housing intended to be rented, the estimated annual housing costs, as defined under s. 16.301 (3), do not exceed, or are not expected to exceed, 30 percent of 100 percent of the area median income, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C), and the utility-related costs if not included in the rent equal the utility allowance determined by the federal department of housing and urban development. 2. For housing intended to be occupied by the owner, the estimated annual housing costs, as defined under s. 16.301 (3), do not exceed, or are not expected to exceed, 30 percent of 140 percent of the area median income, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C). 3. For housing intended to be rented, the housing is for occupancy by individuals whose annual household income does not exceed 100 percent of the area median income. 4. For housing intended to be occupied by the owner, the housing is for purchase by individuals whose annual household income is not more than 140 percent of the area median income. (2) ESTABLISHMENT OF FUND. (a) There is established under the jurisdiction and control of the authority a residential housing infrastructure revolving loan fund, for the purpose of providing loans under sub. (3). The authority may use moneys in the fund to cover actual and necessary expenses incurred to accomplish the purposes of this section, including marketing expenses under sub. (6), and administer the fund. The fund shall consist of all of the following: 1. All moneys appropriated to the authority for the fund. 2. All moneys received from the repayment of loans under sub. (3). (am) In its discretion, the authority may invest fund moneys that are not required for immediate use or disbursement in all of the following to the extent lawful for fiduciaries in this state: 1. An obligation of the United States or one of its agencies or instrumentalities, or an obligation the principal and interest of which are guaranteed by the United States or one of its agencies or instrumentalities. 2. An obligation of any state, or of any county, city, or other political subdivision of a state, having long-term ratings in the AA category or higher. 3. A certificate of deposit. 4. The state investment fund. 5. A money market mutual fund restricted to one or more investments as provided in subd. 1., 2., 3., or 4. (an) All investments under par. (am) shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund. (b) Of the amounts deposited in the fund under par. (a) 1. in the 2023-25 fiscal biennium, the authority shall return to the secretary of administration for deposit in the general fund all such amounts not encumbered or expended for an eligible project as of January 1, 2031. (c) No moneys in the fund may be invested under s. 234.03 (18). (3) ESTABLISHMENT OF REVOLVING LOAN PROGRAM. The authority shall establish and administer a residential housing infrastructure revolving loan program for the purpose of awarding loans under this section. (4) LOANS TO RESIDENTIAL HOUSING DEVELOPERS. (a) From the residential housing infrastructure revolving loan fund, the authority may award loans to developers to cover housing infra-
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structure costs for an eligible project. Any developer may apply to the authority for a loan under this subsection in accordance with the application process established by the authority under par. (b), but the authority may not award the loan unless the developer and the eligible governmental unit demonstrate to the satisfaction of the authority in one or more forms prescribed by the authority that all of the following apply: 1. The developer has secured the necessary financial resources for the total cost of development of the residential housing supported by the eligible project. 2. The developer has secured all applicable federal, state, and local government permits or other approvals for the eligible project and the residential housing supported by the eligible project. 4. Any applicable sewer or water service area plan has been amended if necessary. 5. The eligible governmental unit has reduced the cost of residential housing in connection with the eligible project by voluntarily revising zoning ordinances, subdivision regulations, or other land development regulations to increase development density, expedite approvals, reduce impact, water connection, and inspection fees, or reduce parking, building, or other development costs with respect to the development of residential housing supported by the project. For purposes of this subdivision, the governmental unit in cooperation with the developer shall submit to the authority a cost reduction analysis in a form prescribed by the authority and signed by the developer and the head of the governmental unit’s governing body that shows the cost reduction measures, including time saving measures, undertaken by the governmental unit on or after January 1, 2023, that have reduced the cost of residential housing in connection with the eligible project. The signed analysis shall clearly show for each time saving or cost reduction measure the estimated time or dollar amount saved by the developer and the estimated percentage reduction in housing costs. 6. The eligible governmental unit is in compliance with the requirements under ss. 66.1001, 66.10013, and 66.10014, to the extent those requirements apply to the governmental unit. 7. If applicable, the eligible governmental unit has updated the housing element of its comprehensive plan under s. 66.1001 (2) (b) within the 5 years immediately preceding the date of the loan application. (b) The authority shall establish and provide a semiannual application process, including underwriting guidelines, for the award of loans under this subsection. If in any application cycle there are insufficient moneys available in the residential housing infrastructure revolving loan fund to fund all applications that meet the requirements under par. (a) and are otherwise acceptable to the authority, the authority shall prioritize funding loans for eligible projects in eligible governmental units that have reduced the cost of residential housing as described in par. (a) 5. but with respect to the governmental unit as a whole. (c) 1. The authority may establish an interest rate for any loan awarded under this subsection at or below the market interest rate or may charge no interest. 2. No loan awarded under this subsection may exceed 20 percent of the total cost of development, including land purchase, of the residential housing supported by the eligible project. (d) The authority shall set aside 25 percent of all moneys deposited in the fund under sub. (2) (a) 1. in the 2023-25 fiscal biennium for a period of not less than 4 years following June 24, 2023, for loans awarded under this subsection and sub. (5) for eligible projects supporting senior housing. For purposes of this paragraph, if a loan supports both workforce housing and senior housing, the amount of such loan supporting senior housing shall
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY
be calculated by prorating the loan amount between the 2 uses based on the number of residential housing units supported by the loan. (e) The authority shall set aside 30 percent of all moneys deposited in the fund under sub. (2) (a) 1. in the 2023-25 fiscal biennium, including 30 percent of all moneys set aside under par. (d), for a period of not less than 4 years following June 24, 2023, for loans awarded under this subsection and sub. (5) for eligible projects in cities, villages, and towns with a population of 10,000 or less. For purposes of this paragraph, if a single loan supports eligible projects for more than one city, village, or town, the amount of such loan attributable to any one city, village, or town shall be calculated by prorating the loan amount between the cities, villages, and towns based on the number of residential housing units supported by the loan. (f) The authority shall divide the state into regions based on the service jurisdiction as of June 24, 2023, of each regional planning commission constituted under s. 66.0309, with the counties not served by a regional planning commission as of that date constituting collectively one region. Of all moneys deposited in the fund under sub. (2) (a) 1. in the 2023-25 fiscal biennium, no region may receive more than 12.5 percent of those moneys in loans awarded under this subsection and sub. (5). (g) 1. The authority and each developer receiving a loan under this subsection shall enter into an agreement establishing the term and other conditions of the loan. The agreement shall include, and give the authority the power to enforce, all of the following requirements: a. That the full amount of the loan shall become due upon the developer’s sale or transfer of all residential housing constructed in connection with the loan. b. That all residential housing constructed in connection with the loan shall remain workforce housing or senior housing, as applicable, for a period commencing on the date of the loan and concluding 10 years following initial occupancy of the residential housing constructed in connection with the loan. This restriction shall be recorded against the residential property with the applicable register of deeds and shall run with the land. c. With respect to each loan under this subsection for workforce housing or senior housing intended for rent, that the owner of the rental housing, for a period commencing on the date of the loan and concluding 10 years following initial occupancy of all of the rental units constructed in connection with the loan, shall annually submit to the authority a certified rent roll for the housing that sets forth for each rental unit the monthly rent required under the lease, the actual monthly rent received for the preceding year, and an identification of the utilities and their amounts included in the rent. This restriction shall be recorded against the residential property with the applicable register of deeds and shall run with the land. The authority shall use the information provided under this subd. 1. c. to confirm that the rental housing continues to meet the housing costs limitation for purposes of sub. (1) (h) and (i) 1. The authority shall calculate the applicable monthly limitation on housing costs for each year by dividing the area median income for the year by 12, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C). If in any year the area median income has decreased compared to the prior year, the applicable housing cost limitation shall be calculated based on the most recent area median income information prior to such decrease. The authority shall keep confidential all information an owner of rental housing submits to the authority under this subd. 1. c. d. With respect to each loan under this subsection for workforce housing or senior housing intended to be owner-occupied, that for the 10-year period commencing immediately after the de-
Updated 23-24 Wis. Stats.
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veloper closes on the sale of the housing to the initial owner-occupier, the housing shall remain owner-occupied and may not be sold for a price that exceeds the price charged by the developer to the initial owner-occupier, adjusted annually by the average compounded annual percentage increase in the sale price of all residential housing in the county in which the housing is located, as determined by the authority. These restrictions shall be recorded against the residential property with the applicable register of deeds and shall run with the land. For the 10-year period, the authority shall publish on its website the acceptable sales price range for the residential property. 2. Any restriction recorded against the property under subd. 1. shall terminate on the date the property is acquired by foreclosure, or by an instrument in lieu of foreclosure, unless the authority determines that the acquisition is part of an arrangement a purpose of which is to terminate the restriction. (h) In addition to other criteria explicitly provided for under this subsection, in awarding each loan under this subsection, the authority shall take into account only the following in descending order of priority: 1. Credit risk, collateral, and the need for a loan guarantee. 2. The estimated reduction in housing costs. 3. The need for workforce housing or senior housing in the area. (5) LOANS TO GOVERNMENTAL UNITS. (a) If the authority awards a loan to a developer for an eligible project under sub. (4), the authority may award a loan from the residential housing infrastructure revolving loan fund to the eligible governmental unit having jurisdiction over the eligible project. The authority and each governmental unit receiving a loan under this subsection shall enter into an agreement establishing the term and other conditions of the loan. The eligible governmental unit may use proceeds of a loan awarded under this subsection to cover public infrastructure costs incurred by the governmental unit in connection with the eligible project that are not directly related to the eligible project itself. (b) The authority may establish an interest rate for any loan awarded under this subsection at or below the market interest rate or may charge no interest. (c) No loan awarded under this subsection may exceed 10 percent of the amount of the total cost of development of the residential housing supported by the eligible project. (5m) POLICIES AND PROCEDURES. The authority shall establish policies and procedures to administer the residential housing infrastructure revolving loan fund and program under this section. The policies and procedures shall, to the extent practicable, do all of the following: (a) Incorporate the authority’s policies and procedures for establishing credit underwriting guidelines. (b) Require that the full amount of each loan awarded under sub. (4) is secured by one or more unlimited personal guarantees, unless the developer provides no personal guarantee on any first mortgage for the eligible project and the developer’s total debt associated with the project does not exceed 75 percent of the total collateral value of the project, as determined by the authority. (c) Establish loan repayment requirements. (6) MARKETING. The authority shall establish and administer a marketing program to advertise the loans available under this section. (7) ANNUAL REPORTS. Beginning in 2024, no later than August 1 of each year, the authority shall submit to the joint committee on finance and under s. 13.172 (3) to the standing committees of the legislature having jurisdiction over matters related to housing a report that includes all of the following:
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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(a) A statement of the condition and balance of the residential housing infrastructure revolving loan fund. (b) Information concerning each loan awarded under sub. (4) or (5), including all of the following: 1. The date, amount, amortization period, and current status of the loan. 2. An identification of the loan recipient. 3. A description of the eligible project funded with the loan, including whether the project is for workforce housing or senior housing. 4. An identification of the eligible governmental unit with respect to which the loan was awarded. (c) The number of dwelling units created to date as a result of the loan program, the locations and sale or rental prices of the dwelling units, and whether the dwelling units constitute workforce housing or senior housing. History: 2023 a. 14, 209; 2025 a. 129.
234.661 Main street housing rehabilitation revolving loan fund and loan program. (1) DEFINITIONS. In this section: (a) “Area median income” means the area median family income in the county in which the housing is located, adjusted for family size, as published annually by the federal department of housing and urban development. (b) “Eligible political subdivision” means the city, village, town, or county having jurisdiction over an eligible project, as determined by the authority. (c) “Eligible project” means a project for housing rehabilitation of existing workforce housing that satisfies all of the following conditions: 1. Is located on the 2nd or 3rd floor of an existing 2-story or 3-story building with a commercial use on the main floor, if the space in the building that is devoted to a commercial use constitutes no more than two-thirds of the building’s gross square footage. 2. Is located in a building that was constructed at least 40 years prior to the date of application under sub. (3) (b). 3. Has not been significantly improved for at least 20 years prior to the date of application under sub. (3) (b), as determined by the authority. 4. Is vacant or has been underutilized, as determined by the authority. 5. Has not been the subject of a claim for a state or federal historic rehabilitation tax credit, as determined by the authority. 6. Has not received financial assistance from tax increments generated by an active tax incremental district. (d) “Housing rehabilitation” means that portion of an improvement to rental housing that relates to an eligible project if the improvement is to maintain the housing in a decent, safe, and sanitary condition or to restore it to that condition, including any of the following: 1. Repairing or replacing a heating system, electrical system, internal plumbing system, interior wall or ceiling, roof, window, exterior door, or flooring. 2. Repairing or replacing insulation or siding. 3. Remediating lead paint, asbestos, or mold in accordance with applicable local, state, and federal laws and regulations. (e) “Rental housing” means single-family or multifamily housing offered or intended to be offered for rent that is subject to taxation under ch. 70. (f) “Workforce housing” means rental housing to which all of the following apply: 1. The estimated annual housing costs, as defined under s.
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16.301 (3), do not exceed, or are not expected to exceed, 30 percent of 100 percent of the area median income, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C), and the utility-related costs if not included in the rent equal the utility allowance determined by the federal department of housing and urban development. 2. The housing is for occupancy by individuals whose annual household income does not exceed 100 percent of the area median income. (2) ESTABLISHMENT OF FUND. (a) There is established under the jurisdiction and control of the authority a main street housing rehabilitation revolving loan fund, for the purpose of providing loans under sub. (3). The authority may use moneys in the fund to cover actual and necessary expenses, including marketing expenses under sub. (4), incurred to accomplish the purposes of this section and administer the fund. The fund shall consist of all of the following: 1. All moneys appropriated to the authority for the fund. 2. All moneys received from the repayment of loans under sub. (3). (am) In its discretion, the authority may invest fund moneys that are not required for immediate use or disbursement in all of the following to the extent lawful for fiduciaries in this state: 1. An obligation of the United States or one of its agencies or instrumentalities, or an obligation the principal and interest of which are guaranteed by the United States or one of its agencies or instrumentalities. 2. An obligation of any state, or of any county, city, or other political subdivision of a state, having long-term ratings in the AA category or higher. 3. A certificate of deposit. 4. The state investment fund. 5. A money market mutual fund restricted to one or more investments as provided in subd. 1., 2., 3., or 4. (an) All investments under par. (am) shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund. (b) Of the amounts deposited in the fund under par. (a) 1. in the 2023-25 fiscal biennium, the authority shall return to the secretary of administration for deposit in the general fund all such amounts not encumbered or expended for an eligible project as of January 1, 2031. (c) No moneys in the fund may be invested under s. 234.03 (18). (3) ESTABLISHMENT AND ADMINISTRATION OF REVOLVING LOAN PROGRAM. (a) The authority shall establish and administer a main street housing rehabilitation revolving loan program for the purpose of awarding loans under this subsection. (b) From the main street housing rehabilitation revolving loan fund, the authority may award loans to owners of rental housing to cover housing rehabilitation costs for an eligible project. Any owner of rental housing, other than a city, village, town, or county, may apply to the authority for a loan in accordance with the application process established by the authority under par. (c), but the authority may not award the loan unless the owner of the rental housing and eligible political subdivision demonstrate to the satisfaction of the authority in one or more forms prescribed by the authority that all of the following apply: 1. The owner has secured the necessary financial resources for the total cost of the housing rehabilitation project not to be covered by a loan from the authority under this subsection. 2. The owner has secured all applicable federal, state, and local government permits or other approvals for the eligible project. 3. The eligible political subdivision has reduced the cost of
May 22, 2026, are designated by NOTES. (Published 5-22-26)
234.661
HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY
rental housing in connection with the eligible project by voluntarily revising zoning ordinances, subdivision regulations, or other land development regulations to increase development density, expedite approvals, reduce impact fees, or reduce parking, building, or other development costs with respect to the eligible project. For purposes of this subdivision, the political subdivision in cooperation with the owner shall submit to the authority a cost reduction analysis in a form prescribed by the authority and signed by the owner and the head of the political subdivision’s governing body that shows the cost reduction measures, including time saving measures, undertaken by the political subdivision on or after January 1, 2023, that have reduced the cost of rental housing in connection with the eligible project. The signed analysis shall clearly show for each time saving or cost reduction measure the estimated time or dollar amount saved by the owner and the estimated percentage reduction in rental housing costs. 4. The eligible political subdivision is in compliance with the requirements under ss. 66.1001, 66.10013, and 66.10014, to the extent those requirements apply to the political subdivision. 5. The eligible political subdivision has updated the housing element of its comprehensive plan under s. 66.1001 (2) (b) within the 5 years immediately preceding the date of the loan application. (c) The authority shall establish a semiannual application process for the award of loans under this subsection. If in any application cycle there are insufficient moneys available in the main street housing rehabilitation revolving loan fund to fund all applications that meet the requirements under par. (b) and are otherwise acceptable to the authority, the authority shall prioritize funding loans for eligible projects in eligible political subdivisions that have reduced the cost of rental housing as described in par. (b) 3. but with respect to the political subdivision as a whole. (d) No loan awarded under this subsection may exceed $20,000 per dwelling unit or 25 percent of the total housing rehabilitation project costs, whichever is less, and the authority may establish an interest rate for any loan awarded under this subsection at or below the market interest rate or may charge no interest. (e) The authority shall set aside 30 percent of all moneys deposited in the fund under sub. (2) (a) 1. in the 2023-25 fiscal biennium for a period of not less than 4 years following June 24, 2023, for loans under this subsection to owners of rental housing for eligible projects in cities, villages, and towns with a population of 10,000 or less. For purposes of this paragraph, if a single loan supports eligible projects in more than one city, village, or town, the amount of such loan attributable to any one city, village, or town shall be calculated by prorating the loan amount between the cities, villages, and towns based on the number of rental housing units supported by the loan. (f) 1. The authority and each owner receiving a loan under this subsection shall enter into an agreement establishing the term and other conditions of the loan. The agreement shall include, and give the authority the power to enforce, all of the following requirements: a. That the full amount of the loan shall become due upon the owner’s sale of the rental housing rehabilitated with loan proceeds. b. That all rental housing rehabilitated with loan proceeds shall remain workforce housing for a period commencing on the date of the loan and concluding 10 years following initial occupancy of all of the rental units of the housing rehabilitated with loan proceeds. This restriction shall be recorded against the rental property with the applicable register of deeds and shall run with the land. c. That the owner of the rental housing, for a period com-
Updated 23-24 Wis. Stats.
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mencing on the date of the loan and concluding 10 years following initial occupancy of all of the rental units rehabilitated using loan proceeds, shall annually submit to the authority a certified rent roll for the housing that sets forth for each rental unit the monthly rent required under the lease, the actual monthly rent received for the preceding year, and an identification of the utilities and their amounts included in the rent. This restriction shall be recorded against the residential property with the applicable register of deeds and shall run with the land. The authority shall use the information provided under this subd. 1. c. to confirm that the rental housing continues to meet the housing costs limitation for purposes of sub. (1) (f) 1. The authority shall calculate the applicable monthly limitation on housing costs for each year by dividing the area median income for the year by 12, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C). If in any year the area median income has decreased compared to the prior year, the applicable housing cost limitation shall be calculated based on the most recent area median income information prior to such decrease. The authority shall keep confidential all information an owner of rental housing submits to the authority under this subd. 1. c. d. If the rental housing to be rehabilitated with loan proceeds contains lead paint, asbestos, or mold, the authority’s loan agreement with the owner shall require the owner to remediate the hazardous material or condition as required by and in accordance with local, state, and federal laws or regulations. 2. Any restriction recorded against the property under subd. 1. shall terminate on the date the property is acquired by foreclosure, or by an instrument in lieu of foreclosure, unless the authority determines that the acquisition is part of an arrangement a purpose of which is to terminate the restriction. (g) In addition to other criteria explicitly provided for under this subsection, in awarding each loan under this subsection, the authority shall take into account only the following in descending order of priority: 1. Credit risk, collateral, and the need for a loan guarantee. 2. The estimated reduction in housing costs. 3. The need for workforce housing in the area. (3m) POLICIES AND PROCEDURES. The authority shall establish policies and procedures to administer the main street housing rehabilitation revolving loan fund and program under this section. The policies and procedures shall, to the extent practicable, do all of the following: (a) Incorporate the authority’s policies and procedures for establishing credit underwriting guidelines. (b) Require that the full amount of each loan under sub. (3) is secured by one or more unlimited personal guarantees, unless the developer provides no personal guarantee on any first mortgage for the eligible project and the developer’s total debt associated with project does not exceed 75 percent of the total collateral value of the project, as determined by the authority. (c) Establish loan repayment requirements. (4) MARKETING. The authority shall establish and administer a marketing program to advertise the loans available under this section. (5) ANNUAL REPORTS. Beginning in 2024, no later than August 1 of each year, the authority shall submit to the joint committee on finance and under s. 13.172 (3) to the standing committees of the legislature having jurisdiction over matters related to housing a report that includes all of the following: (a) A statement of the condition and balance of the main street housing rehabilitation revolving loan fund. (b) Information concerning each loan awarded under sub. (3), including all of the following:
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY
1. The date, amount, amortization period, and current status of the loan. 2. An identification of the owner of rental housing receiving the loan. 3. A description of the eligible project funded with the loan. 4. An identification of the eligible political subdivision with respect to which the loan was awarded. (c) The number of dwelling units rehabilitated to date as a result of the loan program and the locations and sale or estimated sale or rental prices of the dwelling units. History: 2023 a. 15; 2025 a. 129.
234.662 Commercial-to-housing conversion revolving loan fund and loan program. (1) DEFINITIONS. In this section: (a) “Area median income” means the area median family income in the county in which the housing is located, adjusted for family size, as published annually by the federal department of housing and urban development. (b) “Commercial” means nonresidential. (c) “Developer” means a person other than a city, village, town, or county, that converts a vacant commercial building to residential use. (d) “Eligible political subdivision” means the city, village, town, or county having jurisdiction over an eligible project, as determined by the authority. (e) “Eligible project” means a construction project for the conversion of a vacant commercial building to a new residential housing development that consists of workforce housing or senior housing if all of the following apply: 1. The building has been vacant for at least one year or has been underutilized, as determined by the authority. 2. The building’s current zoning permits a residential use. 3. The building has not been the subject of a claim for a state or federal historic rehabilitation tax credit, as determined by the authority. 4. The building has not received financial assistance from tax increments generated by an active tax incremental district. (f) “Residential housing” means single-family or multifamily housing for rent or sale that is subject to taxation under ch. 70. (g) “Residential housing development” means residential housing that consists of 16 or more dwelling units. (h) “Senior housing” means residential housing that satisfies par. (i) 1. to 4. that is intended and operated primarily for occupancy by at least one person 55 years of age or older per dwelling unit, as determined by the authority. (i) “Workforce housing” means residential housing that satisfies all of the following, as determined by the authority: 1. For housing intended to be rented, the estimated annual housing costs, as defined under s. 16.301 (3), do not exceed, or are not expected to exceed, 30 percent of 100 percent of the area median income, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C), and the utility-related costs if not included in the rent equal the utility allowance determined by the federal department of housing and urban development. 2. For housing intended to be occupied by the owner, the estimated annual housing costs, as defined under s. 16.301 (3), do not exceed, or are not expected to exceed, 30 percent of 140 percent of the area median income, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C). 3. For housing intended to be rented, the housing is for occu-
234.662
pancy by individuals whose annual household income does not exceed 100 percent of the area median income. 4. For housing intended to be occupied by the owner, the housing is for purchase by individuals whose annual household income is not more than 140 percent of the area median income. (2) ESTABLISHMENT OF FUND. (a) There is established under the jurisdiction and control of the authority a commercial-tohousing conversion revolving loan fund, for the purpose of providing loans under sub. (3). The authority may use moneys in the fund to cover actual and necessary expenses incurred to accomplish the purposes of this section, including marketing expenses under sub. (4), and administer the fund. The fund shall consist of all of the following: 1. All moneys appropriated to the authority for the fund. 2. All moneys received from the repayment of loans under sub. (3). (am) In its discretion, the authority may invest fund moneys that are not required for immediate use or disbursement in all of the following to the extent lawful for fiduciaries in this state: 1. An obligation of the United States or one of its agencies or instrumentalities, or an obligation the principal and interest of which are guaranteed by the United States or one of its agencies or instrumentalities. 2. An obligation of any state, or of any county, city, or other political subdivision of a state, having long-term ratings in the AA category or higher. 3. A certificate of deposit. 4. The state investment fund. 5. A money market mutual fund restricted to one or more investments as provided in subd. 1., 2., 3., or 4. (an) All investments under par. (am) shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund. (b) Of the amounts deposited in the fund under par. (a) 1. in the 2023-25 fiscal biennium, the authority shall return to the secretary of administration for deposit in the general fund all such amounts not encumbered or expended for an eligible project as of January 1, 2031. (c) No moneys in the fund may be invested under s. 234.03 (18). (3) ESTABLISHMENT AND ADMINISTRATION OF REVOLVING LOAN PROGRAM. (a) The authority shall establish and administer a commercial-to-housing conversion revolving loan program for the purpose of awarding loans under this subsection. (b) From the commercial-to-housing conversion revolving loan fund, the authority may award loans to developers to cover construction costs for an eligible project, including demolition. Any developer may apply to the authority for a loan in accordance with the application process established by the authority under par. (c), but the authority may not award the loan unless the developer and the eligible political subdivision demonstrate to the satisfaction of the authority in one or more forms prescribed by the authority that all of the following apply: 1. The developer has secured the necessary financial resources for the total cost of the eligible project not to be covered by a loan from the authority under this subsection. 2. The developer has secured all applicable federal, state, and local government permits or other approvals for the eligible project. 3. The eligible political subdivision has reduced the cost of residential housing in connection with the eligible project by voluntarily revising zoning ordinances, subdivision regulations, or other land development regulations to increase development density, expedite approvals, reduce impact, water connection, and in-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
234.662
HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY
spection fees, or reduce parking, building, or other development costs with respect to the development of residential housing supported by the project. For purposes of this subdivision, the political subdivision in cooperation with the developer shall submit to the authority a cost reduction analysis in a form prescribed by the authority and signed by the developer and the head of the political subdivision’s governing body that shows the cost reduction measures, including time saving measures, undertaken by the political subdivision on or after January 1, 2023, that have reduced the cost of residential housing in connection with the eligible project. The signed analysis shall clearly show for each time saving or cost reduction measure the estimated time or dollar amount saved by the developer and the estimated percentage reduction in housing costs. 4. The eligible political subdivision is in compliance with the requirements under ss. 66.1001, 66.10013, and 66.10014, to the extent those requirements apply to the political subdivision. 5. The eligible political subdivision has updated the housing element of its comprehensive plan under s. 66.1001 (2) (b) within the 5 years immediately preceding the date of the loan application. (c) The authority shall establish a semiannual application process for the award of loans under this subsection. If in any application cycle there are insufficient moneys available in the commercial-to-housing conversion revolving loan fund to fund all applications that meet the requirements under par. (b) and are otherwise acceptable to the authority, the authority shall prioritize funding loans for eligible projects in eligible political subdivisions that have reduced the cost of residential housing as described in par. (b) 3. but with respect to the political subdivision as a whole. (d) 1. The authority may establish an interest rate for any loan awarded under this subsection at or below the market interest rate or may charge no interest. 2. No loan awarded under this subsection may exceed $1,000,000 per eligible project or 20 percent of the total project costs, including any land purchase, whichever is less. (e) The authority shall set aside 25 percent of all moneys deposited in the fund under sub. (2) (a) 1. in the 2023-25 fiscal biennium for a period of not less than 4 years following June 24, 2023, for loans under this subsection for eligible projects for senior housing. For purposes of this paragraph, if a loan supports both workforce housing and senior housing, the amount of such loan supporting senior housing shall be calculated by prorating the loan amount between the 2 uses based on the number of residential housing units supported by the loan. (f) The authority shall set aside 30 percent of all moneys deposited in the fund under sub. (2) (a) 1. in the 2023-25 fiscal biennium, including 30 percent of all moneys set aside under par. (e), for a period of not less than 4 years following June 24, 2023, for loans under this subsection to developers for eligible projects in cities, villages, and towns with a population of 10,000 or less. For purposes of this paragraph, if a single loan supports eligible projects in more than one city, village, or town, the amount of such loan attributable to any one city, village, or town shall be calculated by prorating the loan amount between the cities, villages, and towns based on the number of residential housing units supported by the loan. (g) 1. The authority and each developer receiving a loan under this subsection shall enter into an agreement establishing the term and other conditions of the loan. The agreement shall include, and give the authority the power to enforce, all of the following requirements: a. That the full amount of the loan shall become due upon
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the developer’s sale or transfer of all residential housing constructed in connection with the loan. b. That all residential housing constructed in connection with the loan shall remain workforce housing or senior housing, as applicable, for a period commencing on the date of the loan and concluding 10 years following initial occupancy of the residential housing constructed in connection with the loan. This restriction shall be recorded against the residential property with the applicable register of deeds and shall run with the land. c. With respect to each loan under this subsection for workforce housing or senior housing intended for rent, that the owner of the rental housing, for a period commencing on the date of the loan and concluding 10 years following initial occupancy of all of the rental units constructed in connection with the loan, shall annually submit to the authority a certified rent roll for the housing that sets forth for each rental unit the monthly rent required under the lease, the actual monthly rent received for the preceding year, and an identification of the utilities and their amounts included in the rent. This restriction shall be recorded against the residential property with the applicable register of deeds and shall run with the land. The authority shall use the information provided under this subd. 1. c. to confirm that the rental housing continues to meet the housing costs limitation for purposes of sub. (1) (h) and (i) 1. The authority shall calculate the applicable monthly limitation on housing costs for each year by dividing the area median income for the year by 12, with family size determined using the federal imputed income limitation, as defined in 26 USC 42 (g) (2) (C). If in any year the area median income has decreased compared to the prior year, the applicable housing cost limitation shall be calculated based on the most recent area median income information prior to such decrease. The authority shall keep confidential all information an owner of rental housing submits to the authority under this subd. 1. c. d. With respect to each loan under this subsection for workforce housing or senior housing intended to be owner-occupied, that for the 10-year period commencing immediately after the developer closes on the sale of the housing to the initial owner-occupier, the housing shall remain owner-occupied and may not be sold for a price that exceeds the price charged by the developer to the initial owner-occupier, adjusted annually by the average compounded annual percentage increase in the sale price of all residential housing in the county in which the housing is located, as determined by the authority. These restrictions shall be recorded against the residential property with the applicable register of deeds and shall run with the land. For the 10-year period, the authority shall publish on its website the acceptable sales price range for the residential property. e. If a vacant commercial building contains lead paint, asbestos, or mold, the authority’s loan agreement with the developer shall require the developer to remediate the hazardous material or condition as required by and in accordance with local, state, and federal laws or regulations. 2. Any restriction recorded against the property under subd. 1. shall terminate on the date the property is acquired by foreclosure, or by an instrument in lieu of foreclosure, unless the authority determines that the acquisition is part of an arrangement a purpose of which is to terminate the restriction. (h) In addition to other criteria explicitly provided for under this subsection, in awarding each loan under this subsection, the authority shall take into account only the following in descending order of priority: 1. Credit risk, collateral, and the need for a loan guarantee. 2. The estimated reduction in housing costs. 3. The need for workforce housing or senior housing in the area.
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234.75
LOAN GUARANTEE PROGRAMS
before December 3, 1993, is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 if all of the following apply: (a) The loan is made to do one of the following: 1. Expand or improve an existing diaper service or to start a new diaper service. 2. To provide working capital or to finance any of the following items, if the working capital or item is necessary to, or used to, produce in this state a product from products recovered from postconsumer waste: a. Physical plant. b. Machinery or equipment. (b) The rate of interest on the loan, including any origination fees or other charges, is fixed at a rate determined by the participating lender and approved by the authority. (c) The total principal amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000. (e) The participating lender obtains a security interest in physical plant, equipment, machinery or other assets. (f) The loan term does not extend beyond 15 years after the date that the participating lender disburses the loan unless the loan is extended by the authority. (g) The proceeds of the loan are not applied to the outstanding balance of any other loan. (i) The borrower does not meet the participating lender’s minimum standards of creditworthiness to receive a loan for the purposes described in par. (a) in the normal course of the participating lender’s business. (j) The participating lender considers the borrower’s assets, cash flow and managerial ability sufficient to preclude voluntary or involuntary liquidation for the loan term granted by the participating lender. (k) The participating lender agrees to the percentage of guarantee established for the loan by the authority. (3) GUARANTEE OF COLLECTION. The authority shall guarantee collection of a percentage, not exceeding 90 percent, of the principal of any loan eligible for a guarantee under sub. (2). The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed, using the procedures described in the guarantee agreement under s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.67 Recycling loan guarantees. (1) DEFINITIONS. In this section: (am) “Diaper service” means a business that supplies and launders cloth diapers. (c) “Guaranteed loan” means a loan on which the authority guarantees collection under sub. (3). (e) “Participating lender” means a bank, credit union, savings bank, savings and loan association or other person, who makes loans for working capital or to finance physical plant needs, equipment or machinery and who has entered into an agreement with the authority under s. 234.93 (2) (a). (f) “Percentage of guarantee” means the percentage established by the authority under sub. (3). (g) “Postconsumer waste” has the meaning given in s. 287.01 (7). (h) “Security interest” means an interest in property or other assets that secures payment or other performance of a guaranteed loan. (2) ELIGIBLE LOANS. A loan made by a participating lender
234.75 Public affairs network loan guarantee program. (1) DEFINITION. In this section, “public affairs network” means a nonprofit corporation organized under the laws of this state that has as its primary purpose the broadcast of proceedings of the legislature, including legislative committee meetings, and the reporting of events and activities related to politics in this state, through television, radio, the Internet, or similar communications media. (2) GUARANTEE REQUIREMENTS. The authority may use money from the Wisconsin development reserve fund to guarantee the unpaid principal of a loan under sub. (5) if all of the following apply: (a) The borrower applies for a loan guarantee on a form provided by the authority. (b) The loan is eligible for a guarantee under sub. (3), and any applicable requirements under sub. (5) are met. (c) The lender is the authority or a financial institution that enters into an agreement under s. 234.93 (2) (a). (3) ELIGIBLE LOANS. A loan is eligible for guarantee of col-
(3m) POLICIES AND PROCEDURES. The authority shall establish policies and procedures to administer the commercial-tohousing conversion revolving loan fund and program under this section. The policies and procedures shall, to the extent practicable, do all of the following: (a) Incorporate the authority’s policies and procedures for establishing credit underwriting guidelines. (b) Require that the full amount of each loan awarded under sub. (3) is secured by one or more unlimited personal guarantees, unless the developer provides no personal guarantee on any first mortgage for the eligible project and the developer’s total debt associated with the project does not exceed 75 percent of the total collateral value of the project, as determined by the authority. (c) Establish loan repayment requirements. (4) MARKETING. The authority shall establish and administer a marketing program to advertise the loans available under this section. (5) ANNUAL REPORTS. Beginning in 2024, no later than August 1 of each year, the authority shall submit to the joint committee on finance and under s. 13.172 (3) to the standing committees of the legislature having jurisdiction over matters related to housing a report that includes all of the following: (a) A statement of the condition and balance of the commercial-to-housing conversion revolving loan fund. (b) Information concerning each loan awarded under sub. (3), including all of the following: 1. The date, amount, amortization period, and current status of the loan. 2. An identification of the developer receiving the loan. 3. A description of the eligible project funded with the loan, including whether the project is for workforce housing or senior housing. 4. An identification of the eligible political subdivision with respect to which the loan was awarded. (c) The number of dwelling units created to date as a result of the loan program, the locations and sale or rental prices of the dwelling units, and whether the dwelling units constitute workforce housing or senior housing. History: 2023 a. 18; 2025 a. 129.
SUBCHAPTER II
History: 1989 a. 335; 1991 a. 39, 221; 1993 a. 75; 1995 a. 227; 2001 a. 16.
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY
lection under sub. (5) from the Wisconsin development reserve fund if all of the following apply: (a) The loan principal equals $5,000,000 or less. (b) The authority determines that the borrower is a public affairs network. (c) The borrower certifies that loan proceeds will be used for the borrower’s operating expenses or expenses related to a capital project. (d) The borrower certifies that loan proceeds will not be used to refinance existing debt or for entertainment expenses. (e) The loan term is not less that 13 years, and the borrower is not required to pay any principal or interest on the loan within the first 3 years after the loan is made. (f) The terms of the loan authorize the lender to obtain a security interest in the real or personal property of the borrower to secure repayment of the loan. (4) AUTHORITY LOAN. The authority may make a loan to a public affairs network if the loan meets the eligibility requirements under sub. (3), except that the total principal amount of all loans that the authority makes under this subsection may not exceed $5,000,000. Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called upon to do so, it shall make an appropriation to make the authority whole for defaults on loans issued under this subsection. (5) GUARANTEE OF REPAYMENT. (a) Subject to par. (b), the authority may guarantee collection of all or part of the unpaid principal of a loan eligible for guarantee under sub. (3). If the authority guarantees all or part of a loan under this subsection, the authority shall establish the amount of the unpaid principal of an eligible loan that will be guaranteed using the procedures described in the guarantee agreement under s. 234.93 (2) (a). (b) A loan guarantee under this subsection is subject to all of the following: 1. The total principal amount of all loans guaranteed under this subsection may not exceed $5,000,000. 2. Before the authority guarantees a loan under this subsection, the authority shall demonstrate to the satisfaction of the secretary of administration that there are sufficient moneys in the Wisconsin development reserve fund to guarantee the loan, or that there are sufficient moneys in the housing rehabilitation loan program administration fund that may be transferred under par. (c) to guarantee the loan. (c) Notwithstanding s. 234.51 (2), the authority may transfer moneys from the housing rehabilitation loan program administration fund to the Wisconsin development reserve fund for a loan guarantee under this subsection if all of the following conditions are met: 1. The authority determines that the transfer is necessary to secure the loan guarantee. 2. The transfer of moneys does not exceed $5,000,000. 3. Within 14 days after the transfer, the authority submits a report to the joint committee on finance that includes the amount of the transfer and a description of the circumstances surrounding the transfer. History: 2011 a. 32; 2013 a. 173 s. 33.
234.83 Small business development loan guarantee program. (1c) DEFINITION. In this section, “small business” means a business, as defined in s. 84.185 (1) (a), that employs 250 or fewer employees on a full-time basis. (1m) GUARANTEE REQUIREMENTS. The authority may use money from the Wisconsin development reserve fund to guarantee a loan under this section if all of the following apply:
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(a) The borrower qualifies as an eligible borrower under sub. (2). (b) The loan qualifies as an eligible loan under sub. (3). (c) The lender enters into an agreement under s. 234.93 (2) (a). (2) ELIGIBLE BORROWER. Any of the following qualifies as an eligible borrower if unable to obtain adequate business financing on reasonable terms: (a) A small business, provided that the name of the owner of the small business does not appear on the statewide support lien docket under s. 49.854 (2) (b) or, if the name of the owner of the small business appears on that docket, the owner of the small business 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). (b) The elected governing body of a federally recognized American Indian tribe or band in this state. (3) ELIGIBLE LOANS. A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 if all of the following apply: (a) The borrower uses the loan proceeds for a business development project. Loan proceeds may be used for direct or related expenses associated with any of the following: 1. The expansion or acquisition of a business, including the purchase or improvement of land, buildings, machinery, equipment or inventory. 2. The start-up of a child care business, including the purchase or improvement of land, buildings, machinery, equipment, or inventory. 3. The start-up of a small business in a vacant storefront in the downtown area of a city, town, or village in this state, including the purchase or improvement of land, buildings, machinery, equipment, or inventory. (b) Loan proceeds are not used to refinance existing debt or for entertainment expenses, expenses related to the production of an agricultural commodity, as defined in s. 94.67 (2), or expenses related to a community-based residential facility, except that loan proceeds may be used to refinance existing debt if the borrower also expands an existing business. (c) The interest rate on the loan, including any origination fees or other charges, is approved by the authority. (d) The loan term does not extend beyond 15 years after the date on which the lender disburses the loan unless the authority agrees to an extension of the loan term. (f) The lender obtains a security interest in the physical plant, equipment, machinery or other assets. (g) The lender believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest. (h) The lender agrees to the percentage of guarantee established for the loan by the authority. (i) The authority believes that the loan will have a positive impact in terms of job creation or retention. (4) GUARANTEE OF REPAYMENT. The authority may guarantee repayment of a portion of the principal of any loan eligible for a guarantee under sub. (1m). That portion may not exceed 80 percent of the principal of the loan or $750,000, whichever is less. The authority shall establish the portion of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under s. 234.93 (2) (a). The authority may establish a single portion for all guaranteed loans that do not exceed $937,500 and a single portion for all guaranteed loans that exceed $937,500 or establish on an individual basis different por-
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tions for eligible loans that do not exceed $937,500 and different portions for eligible loans that exceed $937,500. History: 1991 a. 39; 1993 a. 394; 1997 a. 27; 1999 a. 9; 2001 a. 16; 2005 a. 75; 2009 a. 185; 2011 a. 32, 79.
234.84 Job training loan guarantee program. (1) DEFINITION. In this section, “corporation” means the Wisconsin Economic Development Corporation. (2) GUARANTEE REQUIREMENTS. The authority may use money from the Wisconsin job training reserve fund to guarantee a loan under this section if, at the time application is made for the loan, all of the following apply: (a) The borrower is an employer in this state, regardless of the number of employees. (b) The loan qualifies as an eligible loan under sub. (3). (c) The lender is a financial institution that enters into an agreement under s. 234.932 (3) (a). (3) ELIGIBLE LOANS. A loan is eligible for guarantee of collection from the Wisconsin job training reserve fund under s. 234.932 if all of the following apply: (a) The borrower certifies that it will use the loan proceeds for expenses related to employee training or retraining or for purchasing equipment or upgrading facilities for purposes related to employee training or retraining. (b) The borrower certifies that loan proceeds will not be used to refinance existing debt or for operating or entertainment expenses. (c) The interest rate on the loan, including any origination fees or other charges, is approved by the corporation. (d) The original loan term does not extend beyond 3 years if the loan proceeds are used exclusively for expenses related to instruction or training, or beyond 5 years if the loan proceeds are used for purchasing equipment or upgrading facilities that will be used for instructing or training employees. (e) The total outstanding principal amount of all loans to the borrower that are guaranteed under this section does not exceed $250,000. (f) The lender obtains a security interest in the physical plant, equipment or other assets if the loan proceeds are to be used for purchasing equipment or upgrading facilities that will be used for instructing or training employees. (g) The lender confirms that the borrower satisfies all applicable loan underwriting criteria. (4) GUARANTEE OF COLLECTION. (a) Subject to par. (b), the authority shall guarantee collection of a percentage of the principal of, and all interest and any other amounts outstanding on, any loan eligible for a guarantee under sub. (2). The corporation shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under s. 234.932 (3) (a). The corporation may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis. (b) Except as provided in s. 234.932 (4), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under par. (a) may not exceed $8,000,000. (5) ADMINISTRATION. (a) The program under this section shall be administered by the corporation with the cooperation of the authority. The corporation shall enter into a memorandum of understanding with the authority setting forth the respective responsibilities of the corporation and the authority with regard to the administration of the program, including the functions and responsibilities specified in s. 234.932. The memorandum of understanding shall provide for reimbursement to the corporation by the authority for costs incurred by the corporation in the administration of the program.
234.88
(b) The corporation may charge a premium, fee, or other charge to a borrower of a guaranteed loan under this section for the administration of the loan guarantee. History: 1995 a. 27 s. 9116 (5); 1995 a. 116; 2011 a. 32.
234.86 Drinking water loan guarantee program. (1) DEFINITIONS. In this section: (a) “Community water system” means a public water system that serves at least 15 service connections used by year-round residents or that regularly serves at least 25 year-round residents. (b) “Department” means the department of natural resources. (c) “Local governmental unit” has the meaning given in s. 281.61 (1) (am), except that the term does not include a joint local water authority created under s. 66.0823. (d) “Noncommunity water system” means a public water system that is not a community water system. (e) “Public water system” has the meaning given in s. 281.61 (1) (c). (2) GUARANTEE REQUIREMENTS. The authority may use money from the Wisconsin drinking water reserve fund under s. 234.933 to guarantee a loan under this section if all of the following apply: (a) The borrower is not a local governmental unit and is one of the following: 1. The owner of a community water system. 2. The owner of a noncommunity water system and is not operated for profit. (b) The loan qualifies as an eligible loan under sub. (3). (c) The lender is a financial institution that enters into an agreement under s. 234.933 (3) (a). (3) ELIGIBLE LOANS. A loan is an eligible loan if all of the following apply: (a) The department determines that the loan will facilitate compliance with national primary drinking water regulations under 42 USC 300g-1 or otherwise significantly further the health protection objectives of the Safe Drinking Water Act, 42 USC 300f to 300j-26. (b) The department determines that the loan satisfies the requirements under s. 281.625 (2). (4) GUARANTEE OF COLLECTION. (a) Subject to par. (b), the authority may guarantee collection of a percentage, not exceeding 80 percent, of the principal of any loan eligible for a guarantee under this section. The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed using the procedures described in the guarantee agreement under s. 234.933 (3) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis. (b) Except as provided in s. 234.933 (4), the total outstanding principal amount of all guaranteed loans under par. (a) may not exceed $3,000,000. History: 1997 a. 27; 2013 a. 12; 2015 a. 55.
234.88 Emergency heating assistance loan guarantees. (1) DEFINITIONS. In this section: (a) “Emergency heating assistance loan” means a loan to an individual to finance extraordinary costs related to heating during a state of emergency declared by the governor under s. 323.10. (b) “Guaranteed loan” means an emergency heating assistance loan on which the authority guarantees collection under sub. (5). (c) “Participating lender” means a bank, production credit association, credit union, savings bank, savings and loan association, or other person who makes emergency heating assistance
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY
loans and who has entered into an agreement with the authority under s. 234.93 (2) (a). (2) ELIGIBLE LOANS. An emergency heating assistance loan made by a participating lender is eligible for guarantee of collection under sub. (5) from the Wisconsin development reserve fund under s. 234.93 if all of the following apply: (a) The total of the principal amounts of all guaranteed loans extended to the individual under this section will not exceed $2,500, unless a different maximum amount is approved under sub. (5). (b) The rate of interest on the emergency heating assistance loan, including any origination fees or other charges relating to the emergency heating assistance loan, does not exceed a rate determined by the authority after considering the conditions of the financial market. (c) If the individual obtains the emergency heating assistance loan to pay a supplier, the participating lender pays the supplier directly. (d) The participating lender follows procedures required by the authority to secure repayment of the emergency heating assistance loan. (e) The initial term of the emergency heating assistance loan is not longer than 2 years. (f) In the judgment of the participating lender, the emergency heating assistance loan is necessary for the individual to pay heating costs related to the declared state of emergency. (g) The proceeds of the emergency heating assistance loan may not be used to refinance a loan made under this section. (3) ELIGIBLE INDIVIDUALS. An individual is eligible for a guaranteed loan if all of the following apply: (a) The individual’s household annual income does not exceed 200 percent of the median family income for the county in which the individual resides. (b) In the judgment of the participating lender, all of the following are true: 1. It is reasonably likely that the individual will be able to repay the emergency heating assistance loan in full with interest. 2. The individual is not eligible for conventional financing on reasonably equivalent terms and conditions. 3. Under normal market conditions affecting the cost of heating, the individual’s income and assets would be sufficient for the individual to pay his or her heating costs. (c) The individual’s name does not appear on the statewide support lien docket under s. 49.854 (2) (b). The condition under this paragraph is met for an individual whose name does appear if the individual 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). (4) EXTENSION. A participating lender may extend the term of an emergency heating assistance loan until no later than 3 years after the lender made the loan. (5) GUARANTEE OF COLLECTION. (a) Subject to par. (c), if the governor issues an executive order under s. 323.10 declaring a state of emergency related to heating costs or the availability of heating fuels and the joint committee on finance approves the authority’s plan under par. (b), the authority shall guarantee collection of not less than 50 percent or more than 80 percent of the principal of any emergency heating assistance loan eligible for guarantee under sub. (2) made to an individual eligible for a guaranteed loan under sub. (3). (b) If the governor declares a state of emergency related to heating costs or the availability of heating fuels, no later than 14
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days after the governor’s declaration the authority shall submit the authority’s plan for guaranteeing collection of emergency heating loans under this section related to the declared state of emergency to the joint committee on finance for approval. The authority may include in its plan a request to modify the maximum total principal amount under sub. (2) (a). (c) The authority may guarantee emergency heating assistance loans under par. (a) only for 120 days following the joint committee on finance’s approval of the plan submitted under par. (b) unless the authority requests the joint committee on finance to permit the authority to guarantee emergency heating assistance loans for an additional 120 days. (6) INTEREST REDUCTION. The authority shall pay, from the moneys in the Wisconsin development reserve fund under s. 234.93, to each participating lender an amount equal to 3.5 percent of the principal amount of any guaranteed loan to reduce interest payments on the guaranteed loan paid by an individual. History: 2013 a. 175.
234.90 Agricultural production loan guarantees. (1) DEFINITIONS. In this section: (a) “Agricultural commodity” has the meaning given under s. 94.67 (2). (ad) “Agricultural production loan” means a loan to a farmer to finance the purchase of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed or any other service or consumable good necessary to produce an agricultural commodity. (ag) “Dairy plant” has the meaning given in s. 97.20 (1) (a). (b) “Farmer” has the meaning given under s. 102.04 (3). (c) “Guaranteed loan” means an agricultural production loan which is guaranteed by the authority. (cp) “Milk” has the meaning given in s. 97.01 (10) (a). (d) “Participating lender” means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production loans and who has entered into an agreement with the authority under s. 234.93 (2) (a). (2) ELIGIBLE LOANS. Except as provided in sub. (3j), an agricultural production loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 if all of the following apply: (a) The loan is to finance production of an agricultural commodity. (b) The total guarantee of all loans to the borrower under this section will not exceed $250,000. (bm) If the loan is one for which the borrower is eligible under sub. (3g), the amount of that loan does not exceed the amount of the payment, excluding interest or penalties if any, owed to the borrower by the insolvent or bankrupt dairy plant, subject to par. (b). (c) The rate of interest on the loan, including any origination fees or other charges relating to the loan, does not exceed a rate determined by the authority after considering the conditions of the financial market. (d) If the loan is one to which sub. (5) applies, the rate of interest on the loan for which the borrower is obligated, including any origination fees or other charges relating to the loan, does not exceed the rate determined under par. (c), minus 2 percent. (e) The participating lender shall pay directly any supplier of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed or other service or consumable good necessary to produce an agricultural commodity, if the borrower obtains the loan to pay that supplier. (f) The participating lender obtains a security interest for re-
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payment of the loan in the agricultural commodity resulting from use of the loan proceeds. (g) Unless waived by the authority, the borrower procures an insurance policy which protects the agricultural commodity to be financed with the proceeds of the loan against risk of loss, and the proceeds of which are payable to the participating lender. (h) The term of the loan does not extend beyond 12 months after the date on which the participating lender granted the loan. (i) The proceeds of the loan may not be applied to the outstanding balance of any other loan, except that the proceeds may be used to refinance a loan under this section, subject to sub. (3n). (j) If the loan is one for which the borrower is eligible under sub. (3g), the terms of the loan require the borrower to pay to the authorized lender, in repayment of the loan, money received from or on behalf of the bankrupt or insolvent dairy plant, immediately upon receipt of the money. (3) ELIGIBLE FARMERS. Except as provided under subs. (3g) and (3j), a farmer is eligible for a guaranteed loan if all of the following apply: (a) The farmer does not meet the participating lender’s minimum standards of creditworthiness to receive an agricultural production loan in the normal course of the participating lender’s business. (b) The amount of the farmer’s debts related to the production of the agricultural commodity that is the subject of the guaranteed loan totals at least 40 percent of the amount of the farmer’s assets related to the production of the agricultural commodity that is the subject of the guaranteed loan. (c) In the judgment of the participating lender, it is reasonably likely that if the farmer receives a guaranteed loan the farmer’s assets, cash flow, and managerial ability are sufficient to preclude voluntary or involuntary liquidation before the end of the loan term. (d) The farmer’s name does not appear on the statewide support lien docket under s. 49.854 (2) (b) or, if the farmer’s name appears on that docket, the farmer 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). (3g) ELIGIBLE DAIRY FARMER. Except as provided in sub. (3j), a farmer is eligible for a guaranteed loan under this subsection if all of the following apply: (a) The farmer has not been paid for milk provided to a dairy plant because of the bankruptcy or insolvency of the dairy plant. (b) In the judgment of the participating lender, it is reasonably likely that if the farmer receives a guaranteed loan the farmer’s assets, cash flow, and managerial ability are sufficient to preclude voluntary or involuntary liquidation before the end of the loan term. (c) The farmer’s name does not appear on the statewide support lien docket under s. 49.854 (2) (b) or, if the farmer’s name appears on that docket, the farmer 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). (3j) EMERGENCY ELIGIBILITY CRITERIA. The authority may guarantee a loan to a farmer using eligibility criteria determined by the authority that differ from the criteria under subs. (2) to (3g) if all of the following apply: (a) The governor has determined that an emergency situation exists and that the criteria under subs. (2) to (3g) prevent the authority from making an adequate response to the emergency situation. (b) The authority has submitted to the joint committee on fi-
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nance for review under s. 13.10 the emergency eligibility criteria that it proposes to use, and the joint committee on finance has approved the use of the criteria for the emergency situation. (3n) REFINANCING. (a) Except as provided in par. (b), proceeds of a guaranteed loan may be used to refinance a guaranteed loan no more than one time. (b) The proceeds of a guaranteed loan may be used to refinance a guaranteed loan that has been refinanced one time if at least 60 percent of the principal amount of the refinanced guaranteed loan has been repaid and the total guarantee amount to the borrower under this section after the refinancing is no more than the amount permitted under sub. (2) (b). (3p) INSTALLMENT PAYMENT OF CERTAIN LOANS. An authorized lender may require a borrower to repay a loan described in sub. (3g) in installments. (4) GUARANTEE. (a) The authority may guarantee collection of a percentage, not exceeding 90 percent, of the principal of any agricultural production loan eligible for guarantee under sub. (2) made to a farmer eligible for a guaranteed loan under sub. (3) or (3g). (b) The authority may extend a guarantee under this section beyond the original term of the guaranteed loan if the guaranteed loan is part of a loan workout agreement. (5) INTEREST REDUCTION. If at the time of origination or extension the interest rate on a guaranteed loan and the prime lending rate as reported by the federal reserve board in federal reserve statistical release H. 15 each equals or exceeds 10 percent, the authority may pay, from the moneys in the Wisconsin development reserve fund, to the participating lender making the loan, an amount that is no more than 2 percent of the principal amount of the loan. (6) REVIEW. The authority shall annually review the program under this section for the purpose of maximizing the benefits of the program. History: 1985 a. 9, 29, 153, 332, 334; 1987 a. 7, 27, 178, 421; 1989 a. 1, 10, 31, 336; 1991 a. 4, 39, 221; 1993 a. 1; 1995 a. 5, 150, 404; 1999 a. 9; 2001 a. 16; 2003 a. 236; 2011 a. 80; 2015 a. 242, 316.
234.905 Agricultural production disaster assistance loan guarantees. (1) DEFINITIONS. In this section: (a) “Agricultural commodity” has the meaning given under s. 94.67 (2). (b) “Agricultural production disaster assistance loan” means a loan to a farmer to finance extraordinary disaster-related costs, including the cost of any of the following: 1. Fertilizer, seed, fuel, pesticides, tillage services, crop insurance, or any other service or consumable good necessary to produce an agricultural commodity to replace or supplement an agricultural commodity adversely affected by disaster conditions. 2. Water delivery in connection with agricultural commodities adversely affected by disaster conditions. 3. Feed and associated expenses for animals to supplement feed supplies adversely affected by disaster conditions. (cm) “Disaster” means an act of nature for which the governor issues an executive order declaring a state of emergency for the state or any portion of the state under s. 323.10. (d) “Farmer” has the meaning given under s. 102.04 (3). (e) “Guaranteed loan” means an agricultural production disaster assistance loan on which the authority guarantees collection. (f) “Participating lender” means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production disaster assistance loans and who has entered into an agreement with the authority under s. 234.93 (2) (a).
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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(2) ELIGIBLE LOANS. An agricultural production disaster assistance loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 if all of the following apply: (a) The total guarantee amount of all loans to the borrower that are guaranteed under this section will not exceed $25,000. (b) The rate of interest on the agricultural production disaster assistance loan, including any origination fees or other charges relating to the agricultural production disaster assistance loan, does not exceed a rate determined by the authority after considering the conditions of the financial market. (c) The participating lender shall pay directly any supplier of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed, water or other service or consumable good necessary to produce an agricultural commodity, if the borrower obtains the agricultural production disaster assistance loan to pay that supplier. (d) The participating lender obtains security for repayment of the agricultural production disaster assistance loan or follows other procedures required by the authority to secure repayment of the agricultural production disaster assistance loan. (f) The proceeds of the agricultural production disaster assistance loan may not be applied to the outstanding balance of any other loan. (g) The proceeds of the agricultural production disaster assistance loan may not be used to refinance a loan made under this section. (3) ELIGIBLE FARMERS. A farmer is eligible for a guaranteed loan if all of the following apply: (a) The farmer does not meet the participating lender’s minimum standards of creditworthiness to receive an agricultural production disaster assistance loan in the normal course of the participating lender’s business. (b) The participating lender projects the amount of the farmer’s debts related to the agricultural production that is the subject of the loan totals at least 40 percent of the amount of the farmer’s assets related to the agricultural production that is the subject of the loan. (c) In the judgment of the participating lender, it is reasonably likely that if the farmer receives a guaranteed loan the farmer’s assets, cash flow and managerial ability are sufficient to preclude voluntary or involuntary liquidation before the end of the loan term. (d) The farmer’s name does not appear on the statewide support lien docket under s. 49.854 (2) (b). The condition under this paragraph is met for a farmer whose name does appear if the farmer 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). (e) The participating lender projects that the farmer will lose approximately 40 percent or more of the farmer’s agricultural commodities because of a disaster. (4) GUARANTEE OF COLLECTION. (a) The authority may guarantee collection of up to 90 percent of the principal of any agricultural production disaster assistance loan eligible for guarantee under sub. (2) made to a farmer eligible for a guaranteed loan under sub. (3). (bn) The term of the authority’s loan guarantee under this section may not exceed 3 years, unless the guaranteed loan is included in a loan workout agreement. (5) INTEREST REDUCTION. The authority may pay, from the moneys in the Wisconsin development reserve fund, to each participating lender an amount that is no more than 3.5 percent of the
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principal amount of any guaranteed loan to reduce interest payments on the guaranteed loan paid by a farmer. History: 1987 a. 421; 1989 a. 2, 10, 31, 336; 1991 a. 4, 39, 221; 1995 a. 404; 1999 a. 9; 2015 a. 316.
234.907 Agricultural development loan guarantee program. (1) DEFINITIONS. In this section: (d) “Guaranteed loan” means a loan on which the authority guarantees collection under sub. (3) or (4). (e) “Participating lender” means a bank, credit union, savings bank, savings and loan association or other person, who makes loans for working capital or to finance physical plant needs, equipment or machinery and who has entered into an agreement with the authority under s. 234.93 (2) (a). (f) “Percentage of guarantee” means the percentage established by the authority under sub. (3) or (4). (g) “Raw agricultural commodity” means any agricultural, aquacultural, horticultural, viticultural, vegetable, poultry, and livestock products produced in this state, including milk and milk products, bees and honey products, timber and wood products, or any class, variety or utilization of the products, in their natural state. (h) “Security interest” means an interest in property or other assets which secures payment or other performance of a guaranteed loan. (2) ELIGIBLE LOANS. A loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 if all of the following apply: (a) The loan is made for working capital or to finance any of the following items, if the working capital or item is necessary to, or used to, process or market a product from a raw agricultural commodity produced in this state or to commercially harvest whitefish from Lake Superior: 1. Physical plant. 2. Machinery or equipment. 3. Marketing expenses. (b) The rate of interest on the loan, including any origination fees or other charges, is fixed at a rate determined by the participating lender and approved by the authority. (c) Subject to par. (cm), the total guarantee amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000. (cm) The total guarantee amount of all loans to the borrower that are guaranteed under this section and that are made for working capital or an item necessary to, or used to, commercially harvest whitefish from Lake Superior will not exceed $100,000. This paragraph does not apply to a loan guaranteed under sub. (4). (d) The borrower’s principal place of operations for processing or marketing a product from a raw agricultural commodity is located in a town, village or city in this state with a population of less than 50,000. This paragraph does not apply to a borrower that harvests whitefish from Lake Superior. (e) The participating lender obtains a security interest in physical plant, equipment, machinery or other assets. (f) The term of the authority’s guarantee under this section is not longer than 10 years for land and buildings, 5 years for inventory, equipment, and machinery, and 2 years for working capital and marketing expenses. This paragraph does not apply to a loan that is part of a loan workout agreement. (g) The proceeds of the loan are not applied to the outstanding balance of any other loan. (h) The loan results in new or more viable methods for the processing or marketing of a product from a raw agricultural commodity or enables the borrower to comply with the rules pro-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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mulgated by the department of natural resources for the commercial fishing of whitefish in Lake Superior. (i) The borrower does not meet the participating lender’s minimum standards of creditworthiness to receive a loan for the purposes described in par. (a) in the normal course of the participating lender’s business. (j) The participating lender considers the borrower’s assets, cash flow and managerial ability sufficient to preclude voluntary or involuntary liquidation for the loan term granted by the participating lender. (k) The participating lender agrees to the percentage of guarantee established for the loan by the authority. (2m) ORIGINATION FEES. The authority may charge a guarantee origination fee on every loan guaranteed under this section. The amount of the fee may not exceed 1.5 percent of a loan’s guaranteed principal. The participating lender shall collect the fee and remit it to the authority. The authority shall deposit all fees received under this subsection in the Wisconsin development reserve fund. (3) GUARANTEE OF COLLECTION. The authority may guarantee collection of up to 90 percent of the disbursed principal of any loan eligible for a guarantee under sub. (2). The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed, using the procedures described in the guarantee agreement under s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis. (4) ALTERNATIVE GUARANTEE OF COLLECTION PILOT PROGRAM. (a) Notwithstanding sub. (3), the authority shall implement a pilot program under which it may guarantee collection of 25 percent of the disbursed principal of any loan eligible for a guarantee under sub. (2) or $750,000, whichever is less. (b) In the event of default, the amount guaranteed under par. (a) shall be payable in full to the authorized lender regardless of the amount due after all available collateral securing the loan has been liquidated and applied to the loan, except that if that amount due is less than the amount guaranteed under par. (a), the amount due shall be payable to the authorized lender. (c) The authority shall allocate at least $3,000,000 for loan guarantees under par. (a). (d) The authority may not guarantee a loan under par. (a) after June 30, 2024. History: 1989 a. 31, 336; 1991 a. 39, 221; 1993 a. 394; 2001 a. 16; 2015 a. 316; 2019 a. 62; 2021 a. 239.
234.91 Farm assets reinvestment management loan guarantee program. (1) DEFINITIONS. In this section: (a) “Agricultural assets” means machinery, equipment, facilities, land or livestock used in agriculture or aquaculture. (b) “Farm credit service” includes a production credit association, federal land credit association and agricultural credit association. (c) “Farmer” means a person engaged in, or who intends to engage in, farming, as defined in s. 102.04 (3). (d) “Farm premises” has the meaning given in s. 102.04 (3). (e) “Participating lender” means a bank, farm credit service, credit union, savings bank, savings and loan association or other person who makes loans for the acquisition or improvement of agricultural assets and who has entered into an agreement with the authority under s. 234.93 (2) (a). The term does not include a seller under a land contract. (2) ELIGIBLE LOANS. A loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 if all of the following apply:
234.92
(a) The borrower is a farmer who is eligible for a guarantee under sub. (3). (b) The loan is made to finance the acquisition of agricultural assets or the cost of improvements to facilities or land. The agricultural assets must be acquired, and the improvements must be made, for agricultural or aquacultural purposes. (c) The total guarantee amount of all loans made to the borrower that are guaranteed under this section will not exceed $200,000, or $100,000 if any of the loans is affected by any other state or federal credit assistance program. (d) The rate of interest and the loan terms, including any associated fees or charges, are approved by the authority. (e) The participating lender obtains a security interest in assets of the borrower sufficient to secure repayment of the loan. (g) Loan proceeds are not used to refinance existing debt, for entertainment expenses, or for expenses related to a communitybased residential facility, except that loan proceeds may be used to refinance existing debt if the borrower also expands an existing business. (3) ELIGIBLE FARMERS. A farmer is eligible for a guarantee of a loan under this section if all of the following apply at the time the loan is made: (a) The farmer is any of the following: 1. A person who currently operates farm premises. 2. A person who intends to operate farm premises and who has not less than 3 years of farming experience including managing the day to day operations of a farm. 3. A person who intends to operate farm premises and maintain the family farmstead on the farm premises and who has previous experience with the operation of the specific farm premises. (b) The amount of the farmer’s debts related to the agricultural assets, including the loan, is at least 40 percent and does not exceed 85 percent of the farmer’s assets, including the value of the agricultural assets to be acquired, or the improvements to be made, with the proceeds of the loan. The authority shall consider only the farmer’s debts and assets that are related to the agricultural assets that are the subject of the loan. (c) The participating lender considers the farmer’s assets, cash flow and managerial ability sufficient to preclude voluntary or involuntary liquidation during the term of the loan. (4) ORIGINATION FEES. The authority may charge a guarantee origination fee on every loan guaranteed under this section. The amount of the fee may not exceed 1.5 percent of a loan’s guaranteed principal. The participating lender shall collect the fee and remit it to the authority. The authority shall deposit all fees received under this subsection in the Wisconsin development reserve fund. (5) GUARANTEE OF COLLECTION. (a) The authority may guarantee collection of a percentage of the principal of a loan eligible for a guarantee under sub. (2). The total guarantee amount of all loans to the farmer that are guaranteed under this section may not exceed the borrower’s net worth or 25 percent of the total loan amount, whichever is less, calculated at the time the loan is made. (b) The term of the authority’s loan guarantee under this section is not longer than 10 years. This paragraph does not apply to a guarantee of a loan that is part of a loan workout agreement. History: 1995 a. 150; 1999 a. 9; 2001 a. 16; 2005 a. 75, 480; 2015 a. 316; 2017 a. 21.
234.92 Financial assistance; fees. The authority may establish premiums, fees or other charges for providing financial as-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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sistance under programs guaranteed by the Wisconsin development reserve fund. History: 1989 a. 31, 359; 1993 a. 394; 1997 a. 27 s. 3360; Stats. 1997 s. 234.92.
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Wisconsin development reserve fund. (1) ESTABLISHMENT OF FUND. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans, a Wisconsin development reserve fund, consisting of all of the following: (a) Moneys appropriated to the authority under s. 20.490 (5) (a), (q), (r) and (s) or received by the authority for the Wisconsin development reserve fund from any other source. (b) Any income from investment of money in the Wisconsin development reserve fund by the authority under s. 234.03 (18). (c) Any moneys transferred from the recycling loan fund, agricultural production loan fund or drought assistance and development loan fund. (cm) Any moneys transferred under 1999 Wisconsin Act 9, section 9125 (1), or under s. 234.75 (5) (c), from the housing rehabilitation loan program administration fund. (d) Fees collected under s. 234.91 (4). (2) PROGRAM ADMINISTRATION. (a) The authority may enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in a loan program guaranteed by the Wisconsin development reserve fund. The authority may determine all of the following, consistent with the terms of the specific loan guarantee program: 1. The form of the agreement. 2. Any conditions upon which the authority may refuse to enter into such an agreement. 3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan. (b) A guarantee agreement between the authority and a bank, production credit association, credit union, savings and loan association or other person under s. 234.67 (5), 1989 stats., s. 234.82 (5), 1989 stats., s. 234.90 (7), 1989 stats., s. 234.905 (7), 1989 stats., or s. 234.907 (5), 1989 stats., in effect immediately before August 15, 1991, shall continue in full force and effect, as if entered into under par. (a). (bm) A guarantee agreement between the authority and a bank, production credit association, credit union, savings and loan association or other person under par. (a) with respect to a loan guaranteed under s. 234.68, 1995 stats., s. 234.69, 1995 stats., s. 234.765, 1995 stats., s. 234.82, 1995 stats., s. 234.83, 1995 stats., or s. 234.87, 1995 stats., that is in effect immediately before October 14, 1997, shall continue in full force and effect until the termination or expiration of the agreement according to its terms. (c) The authority may not use any moneys other than those in the Wisconsin development reserve fund for programs guaranteed by the Wisconsin development reserve fund. (d) The authority may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the loan guarantee program, to advise the authority about lending requirements and issues related to a loan guarantee program. (3) LOAN GUARANTEES; INCREASES OR DECREASES. (a) Except as provided in par. (b), the total principal amount or total outstanding guaranteed principal amount of all loans that the authority may guarantee under the aggregate of the programs guaranteed by funds from the Wisconsin development reserve fund, excluding the program under s. 234.935, 1997 stats., may not exceed $49,500,000. (b) The authority may request the joint committee on finance
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to take action under s. 13.10 to permit the authority to increase or decrease the total principal amount or total outstanding guaranteed principal amount of loans that it may guarantee under the aggregate of the programs guaranteed by the Wisconsin development reserve fund. Included with its request, the authority shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under the aggregate of the programs guaranteed by funds from the Wisconsin development reserve fund, and the balance remaining in the Wisconsin development reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved. (3m) EXTENSION OF LOAN GUARANTEE PROGRAM. When the authority prepares a fiscal estimate under s. 13.093 (2) (a) with respect to any bill that extends a program that is guaranteed by funds from the Wisconsin development reserve fund, the authority shall include in its fiscal estimate a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, and the balance remaining in the Wisconsin development reserve fund on that date after deducting such amounts, if the program is extended, with such amounts and the balance remaining if the program is not extended. (4) BALANCE TRANSFER. (a) Annually on June 30, until no balance remains, the authority shall transfer to the general fund any balance remaining in the Wisconsin development reserve fund on that date, after deducting an amount sufficient for all of the following: 1. To pay all outstanding claims under the programs guaranteed by funds from the Wisconsin development reserve fund. 2. To fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, except for the program under s. 234.935, 1997 stats., and the program under s. 234.75, at a ratio of $1 of reserve funding to $4.50 of total outstanding principal and outstanding guaranteed principal that the authority may guarantee under all of those programs. 3. To fund guarantees under the program under s. 234.935, 1997 stats., and the program under s. 234.75 at a ratio of $1 of reserve funding to $4 of total principal and outstanding guaranteed principal that the authority may guarantee under that program. (b) Annually on August 31, the executive director of the authority shall provide to the secretary of administration and to the joint committee on finance a signed statement that includes all of the following: 1. The amounts required to pay outstanding claims and to fund guarantees under each of the programs guaranteed by funds from the Wisconsin development reserve fund on that date. 2. An explanation of how each amount under subd. 1. was calculated or otherwise determined. 3. The amount of the balance, if any, that remains in the Wisconsin development reserve fund after deducting the amounts under subd. 1. and that will be transferred to the general fund under par. (a). 4. A projection of what the amounts under subds. 1. and 3. will be on June 30 in each of the next 2 years. (4m) LIMITATION ON LOAN GUARANTEES. The authority shall regularly monitor the cash balance in the Wisconsin development reserve fund. The authority shall ensure that the cash balance in the fund is sufficient for the purposes specified in sub. (4) (a) 1., 2., and 3. (5) ANNUAL REPORT. On or before November 1 annually, the authority shall submit to the chief clerk of each house of the legislature for distribution under s. 13.172 (2) and to the joint com-
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mittee on finance an annual report on the number and total dollar amount of guaranteed loans under each of the programs guaranteed by the Wisconsin development reserve fund, the default rate on the loans and any other information on a program guaranteed by the Wisconsin development reserve fund that the authority determines is significant. (6) MORAL OBLIGATION. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it shall make an appropriation to meet all demands for funds guaranteed by the Wisconsin development reserve fund. History: 1991 a. 39, 221; 1993 a. 16, 394; 1995 a. 5, 150; 1997 a. 27; 1999 a. 9; 2001 a. 16; 2011 a. 32; 2015 a. 316.
234.932 Wisconsin job training reserve fund. (2) ESTABLISHMENT OF FUND. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans under s. 234.84, a Wisconsin job training reserve fund, consisting of all of the following: (a) Moneys received by the authority for the Wisconsin job training reserve fund from any other source. (b) Any income from investment of money in the Wisconsin job training reserve fund by the authority under s. 234.03 (18). (3) PROGRAM ADMINISTRATION. (a) The authority shall enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association, or other person who wishes to participate in the loan program guaranteed by the Wisconsin job training reserve fund. The authority may determine all of the following, consistent with the terms of the loan guarantee program: 1. The form of the agreement. 2. Any conditions upon which the authority may refuse to enter into such an agreement. 3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan. (b) The authority may not use any moneys other than those in the Wisconsin job training reserve fund for the job training loan guarantee program, and may not use moneys in the Wisconsin job training reserve fund for any programs other than the job training loan guarantee program. (c) The Wisconsin Economic Development Corporation may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the job training loan guarantee program, to provide advice about lending requirements and issues related to the job training loan guarantee program. (d) The authority shall ensure that the cash balance in the Wisconsin job training reserve fund is sufficient to pay all outstanding claims under the job training loan guarantee program. The authority shall regularly monitor the cash balance in the Wisconsin job training reserve fund to ensure that the cash balance is sufficient for the purposes specified in this paragraph. (4) INCREASES OR DECREASES IN LOAN GUARANTEES. The authority may request the joint committee on finance to take action under s. 13.10 to permit the authority to increase or decrease the total outstanding guaranteed principal amount of loans that it may guarantee under the job training loan guarantee program. Included with its request, the authority shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under the job training loan guarantee program, and the balance remaining in the Wisconsin job training reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved. (4m) BALANCE TRANSFER. On October 14, 1997, and annu-
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ally thereafter on August 31, until no balance remains, the authority shall transfer to the general fund any balance remaining in the Wisconsin job training reserve fund on that date, after deducting an amount sufficient to pay all outstanding claims under the job training loan guarantee program. (5) ANNUAL REPORT. Annually, the authority shall report on the number and total dollar amount of guaranteed loans under the job training loan guarantee program, the default rate on the loans and any other information on the program that the authority determines is significant. (6) MORAL OBLIGATION. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it shall make an appropriation to meet all demands for funds guaranteed by the Wisconsin job training reserve fund. History: 1995 a. 27 s. 9116 (5); 1995 a. 116; 1997 a. 27; 2011 a. 32.
234.933 Wisconsin drinking water reserve fund. (1) DEFINITION. In this section, “drinking water loan guarantee program” means the program under s. 234.86. (2) ESTABLISHMENT OF FUND. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans under s. 234.86, a Wisconsin drinking water reserve fund, consisting of all of the following: (a) Moneys transferred to the authority from the appropriation accounts under s. 20.320 (2) (s) and (x) or received by the authority for the Wisconsin drinking water reserve fund from any other source. (b) Any income from investment of money in the Wisconsin drinking water reserve fund by the authority under s. 234.03 (18). (3) PROGRAM ADMINISTRATION. (a) The authority shall enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in the drinking water loan guarantee program. The authority may determine all of the following, consistent with the terms of the loan guarantee program: 1. The form of the agreement. 2. Any conditions upon which the authority may refuse to enter into such an agreement. 3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan. (b) The authority may not use any moneys other than those in the Wisconsin drinking water reserve fund for the drinking water loan guarantee program, and may not use moneys in the Wisconsin drinking water reserve fund for any programs other than the drinking water loan guarantee program. (c) The authority may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the drinking water loan guarantee program, to provide advice about lending requirements and issues related to the drinking water loan guarantee program. (d) The authority shall ensure that the cash balance in the Wisconsin drinking water reserve fund is sufficient to fund guarantees under the drinking water loan guarantee program at a ratio of $1 of reserve funding to $4.50 of total outstanding guaranteed principal that the authority may guarantee under the program and to pay all outstanding claims under the program. The authority shall regularly monitor the cash balance in the Wisconsin drinking water reserve fund to ensure that the cash balance is sufficient for the purposes specified in this paragraph. (4) INCREASES OR DECREASES IN LOAN GUARANTEES. The authority may request the joint committee on finance to take action under s. 13.10 to permit the authority to increase or decrease the total outstanding guaranteed principal amount of loans that it
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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may guarantee under the drinking water loan guarantee program. Included with its request, the authority shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under the drinking water loan guarantee program, and the balance remaining in the Wisconsin drinking water reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved. (5) ANNUAL REPORT. Annually, the authority shall report on the number and total dollar amount of guaranteed loans under the drinking water loan guarantee program, the default rate on the loans and any other information on the program that the authority determines is significant. (6) MORAL OBLIGATION. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it shall make an appropriation to meet all demands for funds guaranteed by the Wisconsin drinking water reserve fund. History: 1997 a. 27.
SUBCHAPTER III COMMUNITY DEVELOPMENT FINANCE COMPANY 234.94 Definitions. In this subchapter: (1) “Capital participation instrument” means: (a) Any of the following or an option or other right to acquire any of the following: 1. Common or preferred capital stock. 2. Convertible securities. 3. Evidences of long-term or short-term indebtedness. 4. Warrants. 5. Subscriptions. (b) Royalties or other lawful derivations of a capital participation instrument listed under par. (a). (2) “Community development corporation” means any of the following: (a) Any Native American tribal governing body or any business created by the governing body. (b) A corporation organized under ch. 181 that satisfies all of the following requirements: 1. The corporation is organized to operate within specific geographic boundaries. 2. The corporation permits all adults residing in the area of operation to become members of the corporation and limits voting membership of persons not residing in the area to not more than 10 percent of the total membership. 2m. The corporation is a nonprofit corporation, as defined in s. 181.0103 (17). 3. The corporation has a board of directors, a majority of whom reside in a target area or are members of a target group. 4. The corporation makes a demonstrable effort to hire lowincome or underemployed residents of the operating area. 5. The corporation’s purpose is to promote the employment of members of a target group through projects that meet the conditions specified in s. 234.96 (1) (a) to (d). 6. The corporation demonstrates a commitment to involving residents of target areas or members of target groups in projects. 7. The corporation petitions the authority for designation as a community development corporation. (3) “Community development finance company” means a corporation or a limited partnership organized for profit under s. 234.95.
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(4) “Cost of a project” means costs associated with the design, planning and implementation of a project that, in accordance with sound business and financial practices, are appropriate charges to the project. The costs may include, but are not limited to, the costs of planning and design, options to buy land, feasibility or other studies, seed money, construction, working capital and any other costs determined by the company to be necessary to the purposes of this chapter. (5) “Primary employment” means work that pays at least the minimum wage as established under s. 104.035 (1) or under federal law, whichever is greater, offers adequate fringe benefits, including health insurance, and is not seasonal or part time. (6) “Project” means a commercial, industrial or real estate business or other economic activity that is located in a target area or directed toward a target group and that has the purpose to create or preserve jobs for low-income people. (7) “Target area” means a contiguous geographic area in which 50 percent or more of the households have income that is less than 80 percent of the statewide median household income. (8) “Target group” means a population group for which the unemployment level is at least 25 percent higher than the statewide unemployment level, or a population group for which the average wage received is less than 1.2 times the minimum wage as established under s. 104.035 (1) or under federal law, whichever is greater. No population group is required to be located within a contiguous geographic area to be considered a target group. History: 1981 c. 371; 1983 a. 106, 538; 1987 a. 399 ss. 419, 420g, 421, 422, 441, 441m; Stats. 1987 s. 234.94; 1997 a. 27, 79; 1999 a. 85; 2015 a. 55.
234.95 Community development finance company. (1) The community development finance company is the corporation organized for profit under ch. 180, or limited partnership organized under ch. 179, which was created under s. 233.05 (1), 1985 stats. The chairperson of the authority, or his or her designee, is a director of the community development finance company. The shareholders of the community development finance company shall elect 4 other people to the company’s board of directors. To the extent practicable, 3 people elected to the board of directors shall have substantial business and financial experience and one person shall represent a community development corporation. If the community development finance company is organized as a limited partnership its general partner shall, to the extent practicable, have substantial business and financial experience. (2) The community development finance company shall issue stock or partnership interests. The community development finance company shall invest funds it receives from the sale of stock or partnership interests by purchasing capital participation instruments under s. 234.96. History: 1981 c. 371; 1983 a. 106; 1987 a. 399 s. 430; Stats. 1987 s. 234.95.
234.96 Community development project participation. (1) The community development finance company may purchase a capital participation instrument of a project. The community development finance company may require that the project meet any of the following conditions: (a) The project shall be located in a target area and be reasonably expected to contribute to the redevelopment and economic well-being of a target area or target group, other than by increasing or maintaining employment that is not primary employment, or be reasonably expected to increase or maintain threatened primary employment. (b) The project plans conform to all applicable environmental, zoning, building, planning or sanitation laws. (c) The project will be of public benefit and for a public pur-
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pose and, if the purpose is other than to maintain primary employment, the benefit of the project, including increasing primary employment and the provision of capital, will primarily accrue to a target area or target group. (d) There is a reasonable expectation that the project will be successful. (e) Private industry has not provided sufficient capital required for the project or sufficient employment opportunities in the project’s area. (f) The purchase is necessary to the successful completion of the proposed project because funding for the project is unavailable in the traditional capital markets, or because credit has been offered on terms that would preclude the success of the project. (g) Provision has been made by contract for adequate reporting of financial data by the project to the community development finance company. Those provisions may include a requirement for an annual or other periodic audit of the project’s financial records. (h) The community development finance company will not own more than 49 percent of the voting stock in any enterprise as a result of the purchase. (i) The proceeds of the purchase will be used solely in connection with the costs of the project. (j) The community development corporation will maintain sufficient control over the project to ensure that public benefit and public purposes are maintained. Control over the project is sufficient if: 1. The project is conducted by a subsidiary which is completely owned by the community development corporation; 2. The community development corporation owns a majority of the voting stock of the corporation conducting the project; or 3. Binding commitments have been made for reporting to the community development corporation so that the community development corporation retains sufficient control to ensure that benefits under par. (c) will accrue to the intended beneficiaries. (k) Provision has been made by contract to provide that if the community development finance company desires to dispose of the capital participation instrument, other than through a public offering made in compliance with applicable federal securities law, the community development corporation or its nominee may, within 90 days after receiving notice of the proposed disposition, purchase the capital participation instrument at the price and on the terms specified in the notice. The contract shall provide that the community development finance company may dispose of the capital participation instrument only for terms not more favorable than specified in the notice and only after the community development corporation notifies the authority that it will not purchase on or after the expiration of the 90-day period. The community development finance company may include a provision permit-
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ting it to extend the period during which the community development corporation may exercise its option by not more than 90 days. (L) The community development corporation is able to manage its project responsibilities. (m) The total investment by the community development finance company in any one community development corporation will not exceed 20 percent of the total amount of its investable funds in community development corporations. (p) The project will not result in a substantial increase in unemployment in the area of original location of any business or establishment relocated as part of the project. (2) The findings made by the community development finance company under this section are conclusive. (3) If 25 percent of the membership of the community development corporation or an equal number of adult members of the target group or adults residing in the target area of the project, if any, sign a petition requesting a public hearing and file the petition with the community development corporation, the community development finance company may only purchase capital participation instruments through the community development corporation after the community development corporation holds a public hearing on the desirability of the project. The public hearing shall be held as close as practical to the proposed project site, prior to commencing the project. The community development corporation shall record the names and addresses of all persons appearing for or against the project. History: 1981 c. 371; 1983 a. 106; 1987 a. 399 s. 431; Stats. 1987 s. 234.96.
234.97 Sale or purchase of stock or interest. Subject to s. 234.96 (1) (h), the authority shall do all of the following: (1) Use any funds received from the sale of community development finance company stock or partnership interest to purchase additional stock or partnership interests. (2) Use funds received from contributions, gifts or grants under s. 234.03 (32) to purchase community development finance company stock or partnership interests or make grants or loans to community development corporations. History: 1987 a. 399.
234.98 Transferred assets. The assets and liabilities transferred from the Community Development Finance Authority under 1987 Wisconsin Act 399, section 3011 (2) (a) shall be separate from all other assets and liabilities of the Wisconsin Housing and Economic Development Authority. The outstanding obligations or liabilities of the Community Development Finance Authority shall be paid only from the assets transferred to the Wisconsin Housing and Economic Development Authority from the Community Development Finance Authority under 1987 Wisconsin Act 399, section 3011 (2) (a). History: 1987 a. 399; 2001 a. 104.
May 22, 2026, are designated by NOTES. (Published 5-22-26)