chapter. 234(5) to study and analyze housing needs within thee statee and ways of meeting suchh...

234 .01 HOUSING FINANCE AUTHORITY 3668

CHAPTER. 234

WISCONSIN HOUSING FINANCE AUTHORITY

DefinitionsWisconsin housing financee authority: creation;

membership; appointment and tenu r e; meet-ings; officers

Powers of authority.'Loans to eligible sponsors of '.housing projects and to

or for per sons and families of low and moderateincome.;

Housing development fund ; establishment; pay-ments into fund .

Use of moneys held in housing development fund ;temporary loans ; grants . .

Limited-profit entity; distributionsNotes and bonds; issuance ; status ..Same; authorization; termsSame ; resolution authorizing issuance, contents .Same; val idity and effect, of pledgeSame ; personal liability of mem*[s of authority,Same ; purchase for cancellation:Same ; liability of' state ;Capital reserve funds :General reserve fund ''Repayment to general fundLimit on amount of outstanding bonds and notes `Notes and bonds ; pledge and agreement of stateDefault; trusteeTrustee; additional powers .Venue ,

2 .34. 2.3 Notice before declara tion that notes or bonds aredue and payable .

23424; System of accounts,23425 Annual report23426 Notes and bonds as legal investments ..234 . 265 Records of the author ity.234 . 28 : Notes and bonds ; exemption from taxation .234 29 Equality of occupancy and employment :234 30 Cooperation234 31 Construction of chapter234 32 Laws not applicable to authority234 . 40 Bonds for veterans housing loans and other veter-

ans assistance programs .234 41 Veterans housing loan fund ; establishment and use234 . 42 Veterans capital reserve fund .234 43 Veterans housing bond redemption fund .234 . 44 Validation of certain obligations and proceedings234 . 50 Bonds for housing rehabilitation loans; issuance;

status23451 Housing rehabilitation loan program administra-

tion fhnd; establishment and use234,52 Housing rehabilitation loan program loan-loss re-

serve fund ; establishment and use ..234 53 Housing rehabilitation loan fund234 54 Housing rehabilitation loann p rogram capital re-

serve fund ,234 55 Housing rehabilitation loan program bond redemp-

tion fund,

234. . 0.323404

234 .05

234 .06

23407234 .08234 6923410234 . 1123412234 13234 14234 .15234 16

'234,11234 .1823419234202342123422

234.01 Definitions . In this chapter :(1) "Authority" means the Wisconsin hous-

ing finance authority :.(2) "Authority cost" means any costs in-

curred by the authority in carrying out andadministering any of its powers, duties andfunctions including, but not limited to, costs offinancing by the authority, service charges, in-surance premiums and administrative and oper-ating costs of the authority . .

(3) "Certified housing rehabilitation loan"means a negative interest of low interest housingrehabilitation loan as defined in s. 560.06 (1)(f), certified by the department of developmentunder s . 560.06 (2) (a) 2 .

(4) "Development costs" mean the costswhich have been approved by the authority asappropriate expenditures including but not lim-ited to :

(a) Payments for options to purchase proper-ties on the proposed housing project site, depos-its on contracts of purchase, or with the priorapproval of the authority, payments for theput-chase of such properties;

(b) Legal, organizational and marketing ex-penses includingg payment of attorneys' fees,project manager and clerical staff salaries ; of-fice rent and other incidental expenses ;

(c) Payment of fees and preliminary feasibil-ity studies and advances for planning, engineer-ing and architectural work ;

(d) Expenses for surveys as to need andmarket analyses;.

(e) Necessary application andd other fees tofederal and other, government agencies ; and

(f) Such other expenses incurred by theeligible sponsor as the authority deems appro-priate to effectuate the purposes of this chapter . .

(5) "Eligible sponsor" means any housingcorporation, limited-profit entity or nonprofitcorporation or any other entity meeting criteriaestablished by the authority and which is orga-nized to provide housing for persons and familiesof low and moderate income.

(6) "Housing corporation" means a corpora-tion organized under s . 182 004 and whose arti-cles of incorporation, in addition to other re-quirements of law, provide that :

(a) If the corporation receives any loan oradvance from the authority under this chapter,it may enter into an agreement with the author-ity providing for' regulation with respect to rents,profits, dividends and disposition of property orfranchises ; and

(b) If' the corporation receives a loan oradvance under this chapter, the chairperson of'the authority, acting with the prior approval of

234 0123402

Electronically scanned images of the published statutes.

the majority of the members of the authority,may, if' he or she determines that any such loanor advance is in jeopardy of not being repaid,that the proposed development for which suchloan or, advance was made is in ,jeopardy of notbeing constructed or that the corporation is notcarrying out the intent and purposes of thischapter, appoint to the board of directors of suchcorporation a number of new directors, whichnumber shall be sufficient to constitute amajor-ity of such board ;, notwithstanding any otherprovision of such articles of incorporation, or ofany other provision of law . .

(7) "Housing project" means a specific workor improvement within this state undertakenprimarily to provide dwelling accommodations,including land development and the acquisition,construction or rehabilitation of buildings andimprovements thereto, for residential housing,and such other nonhousing facilities as mayy bedetermined by the authority to be either neces-sary for- the economic viability thereof, requiredby law or by a master plan, or incidental orappurtenant thereto

(8) "Limited-profit entity" means any per-son or, gtrust which, in its articles of incorporationor comparable documents of organization, or bywritten : agreement with the author i ty, providesthat :

(a) As a condition of ' acceptance of a loan oradvance under this chapter ; the limited-profitentity shall enter into an agreement with theauthority providing for- limitations of rents,profits, dividends and disposition of property orfranchises ; and

(b) If the limited-profi t entity receives a loanor, advance under this chapter; the chairpersonof the authority, acting with the prior approvalof the majority of members of - the: authority,may, if he or she determines that any such loanof advance is in jeopardy of not being repaid,that the proposed development for wh ich suchloan or, advance was made is in jeopardy of notbeing constructed or that the limited- . profitt en-tity is otherwise not carrying out, the . intent andpurposes of this chapter, appoint to the board ofdirectors or other comparable controlling bodyof such limited profi t entity a number, of newdirectors or , persons, which number shall besufficient to constitute a voting majority of suchboard or controlling body, notwithstanding anyother provisions of the limited-profit entity'sarticles of incorporation or other documents oforganization, or, of any other provisions of law .

(9) "Nonprofit cor ' poration'' means(a) A nonprofit corporation incorporated

under ch 181 whose articles of incorporation, inaddition: to other : requirements of law, : providethat:

1 . The corporation has as its major purposethe providing of' housing facilities for personsand families of low and moderate income ;

2 : All income and earnings of ' the corporationshall be used exclusively for corporation pur-poses' and no part of the net income or netearnings of the corporation shall inure` to thebenefit or profit of any private person ;

3 . The corporation is in no manner controlledor under the direction or acting in the substan-tial interest of private persons seeking to deriveprofit or gain therefrom or seeking to eliminateor- minimize losses in any dealing or transactionstherewith

4 : If the corporation receives any loan oradvance from the authority, it shall enter into anagreement with the ` authority, providing for -limitations on rents, profits, dividends and dis-position of property or franchises; and

5 That if the corporation receives a loan oradvance unde r this chapter, the chairperson ofthe authority, acting w i th the prior approval ofthe majority of the member's of the authority,may,: ., on determination that any such loan oradvance is in jeopardy of not being repaid, thatthee proposed development for which such loanor advance was made is in jeopardy of not beingconstructed, that some pa r t of the net income ornet earnings of" the corporation is inuring to thebenefit of any private person, that the corpora-tion is in some manner controlled or under thedirection of of acting in the substantial interestof any private person seeking to derive benefit or,gain therefrom or seeking to eliminate or mini-mize losses many dealings or transactions there-with or , that the corporation is not carrying outthe intent and purposes of ' this chapter', appointto the board of directors of such corporation anumber ofnew di r ectors, which number shall besufficient to, constitute a majority of such board,notwithstanding any other, .provisions of sucharticles of incorporation or of any other provi-sions of law .

(b), Any authority established pursuant to s66,395 or 66 ;.40

(10) Persons and families of low and mod-erate`income " " means persons and families whocannot afford ` to pay the . amounts at whichprivate enterprise, without federally-aidedmortgages or loans from the authority, canprovide a substantial supply of decent, safe andsanitary housing and whoo fall withinn incomelimitationss set by the authority in its rules : Indetermining such income limitations the author-ty shall consider the amounts of the total in-come of such persons available for hous ingneeds, . the size of` the family, the cost andcondition of available housing facilities, stan-dards established for various federal programs

3669 HOUSING FINANCE AUTHORITY 234.01


employe of the authority shall not exceed themaximum of the executive salary group rangeestablished under s 20 . .923. (1) for positionssassigned to executive salary group 3 . The au-thority mayy delegate to its agentss or employesany of its powers or duties ..

(4) The authority shall continue in existenceuntil terminated by law, but no such law shalltake effect while the authority has obligationsoutstandingHistory : 1971 c 287; 1973 c. 12 ; 19'75 c. 221, 224 ; 1977 c .

196 s 131 ; 4977 c 325, 418; 1979 c 361 s .112The Housing Authority Act, except for 234 ,15 (4), Stats .

19'71, is constitutional . State ex tel. Warren v Nusbaum, 59W (2d) 391, 208 NW (2d) 780. -

234.03 Powerss of authority. The authorityshall have all the powers necessary or convenientto implement this chapter, including the follow-ing powerss in addition to all other powersgranted by, this chapter :

(1) To sue and be sued; to have a seal and toalter the same at pleasure; to have perpetualexistence; to make and execute contracts andother instruments necessary or convenient to theexercise of the powers of the authority ; and tomake, amend and repeal bylaws and rules .

(2) To accept gifts, loans or other aid,(2m) To issue notes and bonds in accordance

with ss. 234 .08, 234,40 and 234 ..50 ..(3) To agree and comply with any conditions

attached to federal financial assistance .(4) To employ such agents, employes and

special advisors as it findss necessary andd to fixtheir- compensation..

(5) To study and analyze housing needswithin thee statee and ways of meeting suchh needs,including data with respect to population anddfamily groups and the distribution thereof ac-cording to income groups, the amount and quali-ty of available housing and its distribution ac-'cording to rentals and sales prices, employment,wages and other factors affecting housing needsand the meeting thereof; to make the results ofsuch studies and analyses available to the publicand the housing and supply- industries ; and toengagee in research and disseminate informationon housing

(6) To survey and investigatee the housingconditions and needs, both rural and urban,throughout thee state and make recommenda-tions to the governor, and the legislature as tolegislation and other measures necessary or ad-visable to alleviate any existing housing shortagein the state .

(7) To encouragee research in, and demon-stration projects to develop, new and bettertechniquess and methodss for increasing thee sup-ply of housing for families and persons of lowand moderate income .

234 .02 Wisconsin housing finance au-thority: creation ; ' membership ; appoint-ment and tenure; meetings ; officers . (1)There is createdd a public body corporate andpolitic to be known as the "Wisconsin housingfinance authority" ; The members of the author-ity shall be the secretary of development, and 6public members nominated by the governor, andwith the advice and consent of the senate ap-pointed, for staggered 4-year` terms commencingon the dates their predecessors terms expire.. Atleast one such public member shall be a personrecommended by the commissioner of savingsand loan, at least one a person recommended bythe commissioner of banking, and at least one aperson recommended by the executive directorof the investment board :. In addition, thechairpersons of the assembly and senate com-mittees'dealing with local affairs shall serve asmembers of the authority. A member, of theauthority shall receive no compensation for set-vices' but shall be reimbursed for necessaryexpenses, including travel expenses, incurred inthe discharge of duties .: Subject to the bylaws ofthe - authority respecting resignations, eachmember shall hold office until a' successor hasbeen appointed and has qualified . A certificateof appointment 'or reappointment of any mem-ber shall be filed with the authority and thecertificate shall be conclusive evidence' of thedue and proper appointment .

(2) The powers of the authority shall bevested in the members thereof in office ., Amajority of the members of the authority consti-tutes aquorum: for the purpose of conducting itsbusiness and exercising its powers and for allotherr purposes, notwithstanding the existence ofany vacancies:. Action may be taken by theauthority upon a vote of a majority of themembers present, unlesss the bylaws of the au-thority require a larger number,, Meetings of'themembers of'the authority may be held anywhereewithin or without the state .

(3) The authority shall elect a chairpersonand nice chairperson.'- The authority shall em-ploy an executive director, legal and technicalexperts and such other officers, agents and em-pioyes permanent and temporary, as it mayrequire;: and shall determine their, qualifications,duties and compensation, all notwithstandingsubch dI of ch ., 230, except thatt s . 230,40 shallapply, and except that the compensation of any

234.01. HOUSING FINANCE AUTHORITY

and any other factors determined by the author-ity to be, appropriate in air iuing at such limita-tions . Among low- or moderate-income personsand families, preference shall be given to thosedisplaced by governmental action . .

History: 1971 c . 287 ; 1975 c .. 221, 421 ; 1977 c .. 418, 447 ;1979 c 361 ss 112, 113

3670


(8) To cooperate with and encourage co-operation among all federal, state and municipalagencie s, sponsors and local authorities in thepl anning for and financing and construction ofhousing f'or persons and families of low andmoderate income.

(9) To encourage community organizationsto assist i n initiating ,housing projects forpersonsand fam i l ie s of low , and moderate income asprovid e d in thi s chapter .

(10) To provide technical assistance in thedeve lopment of housing projects for persons andfamili es of low and moderate income, and - forprograms to improve the quality of rural andurban life for all the people of the state,

(11) T o collect fees and charges on mortgageloans for the, pui'pose of paying all or a portion ofauthority costs as the authority determine s arereasonable and as approved by the authority ,'

(12) To set sta ndards for, housing, projectswhich receive loans under, this chapter, and toprovide for in spect io ns to determine compliancewith such standards .

(13)' To, purchase and enter into commit-ments for the purchase of mortgages and securi -ties' f the authority shall first determine that the

; proceeds of th e sale of such mortgages anddsecurities to th e authority will be utilized for thepurpose of r e sidential housing for occupancy bypersons or fa milies of low and moderate incomeand to enter into agreements with eligible spon-sors, mortgagor s or issuers of securities for thepurpose of regulating the pla:nning, developmentand management of housing projects financed inwhole or i n part by the proceeds of the mort-gages or secu riti es purchased by the authority..

( 13m) To purchase and enter into commit-ment s for th e pu rchase of veterans housing loansmade purs uan t to s 45.79 .

(13s) To purchase and enter into commit-ments for the purchase of certified housinggrehabilit a ti on loans

(14) To sell mortgages and security interestsat publi c o r private sale, to modify or altermortgages a nd security inte r ests, to foreclose onany s u ch mortgage or security interest or Com-mence any action to protect or enforce any rightconferred upon it, by any law; mortgage, securityagreemen t, contract or other agreement, and tobid for and purchase property which was thesubject o f such mortgage or security interest, atany fo reclosure or at any other sale, to acquireand to take possession of any suchh property; andin su ch event the authority may complete, ad-minister, pay the principal and interest on anyobligations incurred in connection withh suchproperty, dispose of and otherwise deal with,

such property, in such manner as may be neces-sary or desirable to protect the interests of'theauthority therein .

(15) To acquire or contract to acquire fromanyy person, by giant,_ purchase,ar otherwise,leaseholds, real of personal property or anyinterest therein, only when the authority findsthat low- or- moderate-income housing cannot bedeveloped privately without an acquisition bythe autharity, or when the authority acquiresproperty by reason of default by an eligiblesponsor; to own, hold, clear, improve and reha-bilitate and to sell, assign, exchange, transfer,convey, lease,, mortgage or' otherwise dispose ofor encumber the same . Nothing in thiss chaptershall be deemed to impede the operation andeffect of local zoning,, building and housingordinances or, ordinances relating to subdivisioncontrol, land development, fire prevention orother ordinances having to do with housing `orhousing development. .

(1 6) To lease real or personal property andto accept federal funds for and participate insuch federal housing programs as are enacted onMay 4, 1976 or at any future time

( 17) To procure insurance against any loss inconnection with its property and other, assetsand to procure insurance on its debt obligations .

( 18) To invest any funds held in reserve orsinking funds or any moneys not required forimmediate use or disbursement at the discretionof the authority in such investments as may belawful for fiduciaries in the state, if at least 50%of any funds held in any reserve or sinking fundbe invested in obligations of the state oz oftheUnited States or• agencies or instrumentalities of'the United States of obligations, the principaland interest of which are guaranteed by theUnited States or agencies or instrumentalities ofthe United States,

(19) To consent, whenever it deems it neces-sary or desirable in the fulfillment of its corpo-rate purpose, to the modification of the rate ofinterest, time of payment or any instalment ofprincipal or interest, or any other term, of anymortgage loan, mortgage loan commitment,construction loan, temporary loan, contract or,agreement of any kind to whichh the authorityy isa party.

(20) To adopt such rules and set such stan-dards as ar'e necessary to effectuate its corporatepurpose with respect to mortgage lending, con-struction lending and temporary lending .

Hi story: 1971 c . 287 ; 1973c 208, .3.33; 1975c . 221 ; 1977c,ass.

234.04 Loans to eligible sponsors ofhousing projects and to or for persons andfamilies of low and moderate income. ( 1)The authority may make or participate in the

.3671 HOUSING FINANCE AUTHORITY 23 4.04


(b) Any moneys transferred by the authorityto the housing development fund from otherfunds or sources ; and

(c) Any other moneys which may be madeavailable to the authority for the purpose of'thehousing development fund from any othersource . .

Hi s tory : 1971 c . 287

234.06 Use of moneys :held in housingdevelopment fund ; temporary loans ;grants . (1) The authority may use the moneysheld in the housingg development fund to maketemporary loans to eligible sponsors, with orwithout interest, and with such security forrepayment; if any, as the authority determinesreasonably necessary.y and practicable, solelyfrom the housing development fund, to defraydevelopment costs fore the construction of pro-posed housing projects for occupancy by personsand families of low and moderate income .. Notemporary loan may bemade unless the author-ity :ma;y reasonably anticipate that satisfactoryfinancing may be obtained by the eligible spon-sor for the permanent financing of the housingproject.

(2) The proceeds of the temporary loan maybe used only to defray the development costs ofthe housing project :' Each temporary loan shallbe repaid in full by the eligible sponsor to theauthority concurrent with 'the receipt by theeligible sponsor of the proceeds of the perma-nent financing .

(3) The authority may use the moneys heldin the housing development fund to make giantsto counties, cities, villages and towns and eligi-ble'sponsors, in such amounts as the authoritydetermines, not to exceed the net costs, exclusiveof any federal aid or, assistance, as are incurredby the counties, cities, villages or towns oreligible sponsors in a plan of land and buildingacquisition, improvements, renewal ; relocation,or conservation, for the purpose of providinghousing or facilities reasonably : related to suchhousing,,

History : 1971 c ' 287

234.07 'Limited-profit ' entity; distribu-tions. A'limited-profit entity which receivesloans `from the authority may not make distribu-tions, other, than from funds contributed to thelimited-profit entity by stockholders, partners,members or holders of beneficial interest in thelimited-profit' entity, in any one year- with re-spect to a project financed by the authority inexcess of 6% of its equity in such project on acumulative basis The equity in a project shallconsist of the difference between the amount ofthe mortgage loan and the total project cost ..Total project cost shall include construction or

234 .05' ` Housing development fund; es-tablishment payments into fund . (1) Thereis established under the jurisdiction and controlof the authority a ievolying,fundto be known asthe "housing development fund" .

(2) There shall be paid into the housingdevelopment''fund :

(a)`Ariy moneys which the authority receivesas interest on 'or in, repayment of temporaryloans made from the housing development fund ;

234.04 HOUSING FINANCE AUTHORITY

making of ' construction loans to eligible sponsorsofhousing projects for the const r uction or reha-bilitation of housing for persons and families oflow and moderate income . Such loans shall bemade only uponthe determination by the au-thority that construction loans are not otherwiseavailable from private lenders upon reasonablyequivalent terms and conditions.

(2) The authority may make or participate inthe making and enter into commitments for themaking of long-term mortgage loans to eligiblesponsors of housing projects for occupancy bypersons and families of low and moderate in-come, or for the making of long-term mortgageof housing rehabilitation loans to persons andfamilies of low - and moderate ' income of othereligible beneficiaries as defined in s . 560 06 (1)(c) Such loans may be made only upon thedetermination by the authority that long-termmortgage or housing rehabilitation loans are nototherwise available from private lenders uponreasonably equivalent terms and conditions .The authority may employ, for such compensa-tion as it determines, the se r vices of any savingsand loan association, banking institution orcredit union in connection with any such long-term mortgage or housing rehabilitation loan .

(3) The authority may make of participate inthe making and enter into commitments for the

`making of loans to any banking institution,savings and loan association or credit unionorganized under the lawss of this or any otherstate o 'of the Uni ted Statess having an office inthis state , if the authority first determines thatthe proceeds of such loans will be utilized for thepurpose of making long-teem mortgage loans topersons or, families of low and moderate , income,or for the purpose of providing residential hous-ing for occupancy by persons or families of lowand moderate income, or for the purpose ofmaking housingg rehabilitation loans.

(4) A loan shall be secured in such manner'and be repaid in such a period, not exceeding 50

. ...,years, as mayy be determined by the aulhoi ity ;and shall bear interest at . .a rate determined bythe authority ,

History: 1971 c.. 287 ; 1975 c .: 221 ; 1977 c.. 418 ; 1979 c. .361s .. 113. .

3672


the purchase, redemption or payment of thebonds to be refunded,.

(3) Except as may otherwise be expresslyprovided by the authority, every,issue of its notesof bonds .shall be general obligations of theauthority payable out of any revenuess or moneysof the authority, subject only to any agreementswith the holders of particular notes or bondspledging any particular receipts or revenues . .

(4) All notes or, bonds shall be negotiableinvestment securities underr ch„ 408 .

History: 1971 c 287

234 .09. Same; authorization ; terms. Thenotes and bonds shall be authorized by resolu-tion of the members of the authority ; shall bearsuch date or dates, and shall mature at such timeof times, in the case of any note, or any renewalthereof, not exceeding. 5 years, from the date ofissue of'such original note, and in the case of anybond not exceeding 50 years from the date ofissue, as the resolution provides : The notes andbonds shall bear interest at such rate or rates, bein such denominations of $1,000 or more, be insuch form, either coupon or registered, carrysuch registration privileges ; be executed in :suchmanner, be payable in such medium of payment,at such place and be subject to such terms ofredemption as the resolution provides . Thebonds may be: issued as serial bonds payable .inannual' instalments or, as term bonds or as acombination thereof. The notes and bonds of'theauthority may be sold by the authority, at publicor private sale, at the price determined by theauthority .His tory: 1971 c, 287 .

234.10 Same ; resolution authorizing is-suance, contents . Any resolution authorizingany notes or bonds or any issue thereof maycontain, provisions, which shall : be a part of thecontract with the holders thereof, as to

(1) Pledging all or any part of the fees andcharges made or received by the authority, andall or, any part of the moneys receivedd in pay-ment of mortgage loanss andd interest thereon,and other moneys received of to be received, tosecure the payment of the notes or bonds or, ofany issue thereof, and subject to such agree-ments with bondholders or ~noteholders as maythen exist .

(2) Pledging all or any part, of the assets ofthe authority, including mortgagess and obliga-tions securing the same, to secure the paymentof the notes of bonds or of any issue of notes orbonds, subject to such agreements with note .holders or bondholderss as may then exist.

(3) Pledgingg of any loan, giant or contribu-tion'fr•om the federal or state government, anypolitical subdivision of the statee or source in aid

234.08 Notesand bonds;; issuance; sta-tus . (1) The authority may issue its negotiablenotes and bonds in such principal amount, as, inthe opinion of the authority, is necessary toprovide sufficient funds . for achievingg its corpo-rate purposes, including the purchase of certainmortgages and securities and the making ofsecured loans f'or, low- and moderate-incomehousing, for the rehabilitation of, existing struc-turesand for the construction of facilities .appur-tenant thereto as provided in this chapter ; for,the payment of interest on notes' and bonds ofthe authority during construction ; for the estab-lishment of reserves to secure such notes andbonds; for the provision of moneys for the hous-ing development fund in order to make tempo-rary loans to sponsors of housing projects asprovided in this chapter; and for all other ex-penditures of theauthority incident to and nec-essary or, convenient to carry out its corporatepurposes and powers.

(2) The author ity; may issue:. renewal notes,issue bonds to Pay notes and whenever it deemsrefunding expedient, refund any bonds by theissuancee of new bonds, whether the bonds to berefunded have or have not matured, and issuebonds partly to refund, bonds then outstandingand partly for any other purpose . The refundingbonds shall be sold and the proceeds ; applied to

3673

rehabilitation costs including ,job overhead and abuilder's and sponsor's profit and risk fee, archi-tectural, engineering, legall and accountingcosts, organizational expenses, land value, inter-est' and financing charges paid during construc-tion, the cost of landscaping and off-site im-provements, whether or not such costss have beenpaid in cash or in a form other than cash . . Withrespect to every project the authority shall,pursuant to rules adopted by it, establish theentity's equity at the time of making of the finalmortgage advance and, for purposes of thissection, that figure shall remain constant duringthe life of the authority's loan with respect - tosuch project ., Upon the dissolution of thelimited-profit entity any surplus in excess of thedistributions allowed: , by this section shall bepaid to the authority For this purpose surplusshalll not be deemed to include any inc rease innet worth of any limited-profit entity: by reasonof a reduction of mortgage indebtedness, byamortization or similar payments or by reasonof the sale or : disposition of anyy assetss of alimited profit entit y to the extent such surpluscan be attributed to any increase in market valueof any real or tangible personal p roperty accru-ing during the period the assets were owned andheld by the limited-profit entity ..

History : 1971 c . 28'1 .

HOUSING FINANCE AUTHORITY 234 .10


bonds or, be subject to any personal liability oraccountability by reason of the issuance thereof' .

History : 1971 c 287

234.13 Same ; purchase forr cancellation .The authority, subject to such agreements withnoteholders or bondholders as may then exist,shall have power, out of'• any funds availabletherefor, tto purchase notes or bonds of" the au-thority, which shall thereupon be canceled, at aprice not exceeding :

(1) If the notes or bonds are then redeem-able, the redemption price then applicable plusaccrued interest to the next interest paymentdate thereon ; or

(2);, If the notes or bonds are not then re-deemable, the redemption price applicable onthe first date after such purchase upon which thenotes orbonds .s become subject to redemptionplus accrued interest to such date ..History : 1971 c ` 287

234 .14 Same; li ability of state. The stateshall not be liable on notes or bonds of theauthority and such notes and bonds shall not bea debt of the state . All notes and bonds of theauthority, shall contain on the face thereof' astatement to such effect . '

History : 1971 c . 28'1 .

234 . 15 Capital reserve funds . (1) The au-thorny shall establish one or more special fundsto secure its bonds, referred to in this chapter ascapital reserve funds, and shall pay into eachsuch capital reserve fund any moneys appropri-ated and made available by the state for thepurposes of such fund,, any proceeds of` sale ofnotes or bonds, to the extent provided in theresolution of the authority authorizing the issu-ance thereof and any other moneys which aremade available to the authority for the purposeof such fund from any other, source.

(2) All moneys held in any capital reservefund, except, as otherwise specifically provided,shall be used, as required, solely for the .paymentof the principal of bonds of theauthor ity securedin whole or in part by such fund or of the sinkingfund payments mentioned in this section withrespect to such bonds, the purchase or redemp-tion of such bonds, the payment of interest onsuch bonds or the payment of any redemptionpremium. required to be paid when such bondsare r edeemed prior to maturity ; but, if moneys"insuch fund at any time are less than the capitalreserve fund, requirement established for -suchfund as provided in this section, the authorityshall:: not use such moneys for any optionalpurchase or optional redemption of such bonds .Any income or interest earned by, of increment

of such development as provided for in thischapter .

(4) The use and disposition of the grossincome from mortgages, owned by the authorityand payment of principal of mortgages ownedby the authority .

(5) The setting aside of reserves or sinkingfunds and the regulation and disposition (hereof .

(6) Limitations on the purpose to which theproceeds of sale of notes of bonds may be appliedand pledging such proceeds to secure the pay-ment of the notes or bonds or of any issuethereof'.

(7) Limitations on the issuance of additionalnotes or, bonds ; the terms upon which additionalnotes 'or bonds may be issued and secured ; therefunding of outstanding or other notes orbonds .

(8) The ptoceduce, if any, by which theterms of-any contract with noteholders or bond-holders may, be amended or abrogated, theamount of notes or bonds the :holders of whichmust consent thereto, and the manner in whichsuch consent may be given

(9) Vesting in a trustee such property, rights,powers and duties in trust as the authoritydetermines, which may include any or all of therights, powers .-and duties of the trustee ap-,pointed by the noteholders or bondholder's pur-suant to s . 234 :2U andlmiting or abrogating theright of the note holders or bondholders to ap-point a trustee under s. 234 .20 of limiting therights, powers and duties' of" such trustee, inwhich event s, 2;34„20 shall not apply .

(10) Any other matters, of like or differentcharacter, which in any way affect the securityor protection of the notes or-bonds

History : 1971 c 287

234 . 11 Same; valid ity and effect ofpledge. Any pledge made by the authority shallbe valid and binding from the time when thepledge is made; the moneys or property' sopledged And thereafter received by the authorityshall mmedately :besubject to the lien of suchpledge without any physical delivery thereof or`further act; and the lien of any such pledge shallbe valid and binding as against all parties havingclaims of any-kind in tort, contract or, otherwiseagainst' the authority, irrespective of whethersuch 'parties have notice thereof, Neither- -the,resolution, nor any other instrument by which apledge is t•eated need be recorded

History: 1971 c 287

234 .12 Same; personal liability of mem-bers of authority . Neither the members of theauthority not any person executing the notes orbonds shall be liable personally on thenotes or

234.10 HOUSING FINANCE AUTHORITY 3674


capital reserve fund requirement for any capitalreserve fund exceeds the amount of such capitalreserve fund, the chairperson of the authorityshall certify to the secretary of administration,the governor and the joint committee on financethe amount necessary to restore such capitalreserve fund to an amount equal to the capitalreserve fund requirement in respect thereto . Ifsuch certification is received by the secretary of'administration in an even-,numbered year, priorto the completion of the budget compilationunder s . 16 . .43, the secretary shall include thecertified amount in the budget compilation Inany case, the ,joint committee on finance shallintroduce in either house, in bill f'or'm, an appro-priation of the amount so certified to the appro-priate capital reserve fund of the authority .Recognizing its moral obligation to do so, thelegislature hereby expresses its expectation andaspiration that, if ever called upon to do so, itshall make such appropriation .

(5) In computing the amount of any capitalreserve fund for the purposes of this section,securities in which all or a portion of'such capitalreserve fund is invested shall be valued at par, orif'purchased at less than par, at their' cost to theauthority .

(6) Notwithstanding subs . (1) to (5), theauthority, subject to such agreements with note-holders or bondholders as may then exist, mayelect` not to secure any particular issue of itsbonds with a capital reserve fund : Such electionshall be made in the resolution authorizing suchissue. :' In this event, subs . (2) and (3) shall notapply to the bonds of such issue in that they shallnot be entitled to payment out of or be eligiblefor purchase by anyy such fund nor shall they betaken into account in computing or applying anycapital reserve fund requirement .

History: 1971 c . . 287; 1973 c 208 ; 1975 c. 221,

234.16 . General reservee funs!. The author-ity shall establish a special fund, referred to inthis, chapter as general reserve fund, and shallpay into such fund all fees and charges collectedby the authority and any moneys which theauthority transfers from the capital reservefund. Such moneys and any other moneys paidinto the general reserve fund, in the discretion ofthe authorityy but subject to agreements withbondholders and noteholders may be used bythe authority ;

(1) For the repayment of advances from thestate in accordancee withh the repayment agree-ments between the authority and the secretaryof administration ;

(2) To pay all costs, expenses and charges offinancing;, including fees and expenses of trust-ees and paying agents ;

(3) For transfers to the capital reserve fund ;

to, any capital reserve fund due to the invest-ment thereof may be transferred by the author-ity to other funds or accounts of " the authority tothe extent such transfer does not reduce theamount of such capital reserve fund below thecapital reserve fund requirement for such fund .

(3) The authority shall not at any time issuebonds, secured in whole or in part by a capitalreserve fund if upon the issuance of such bonds ;the amount in such capital reserve fund will beless than the capital reserve fund requirement ofsuch fund, unless the author ity, at the time ofissuance of such bonds, . deposits in such fundfromm the proceeds of the bonds to be issued, orfrom other sources, an amount which, togetherwith the amount then in such fund, will not beless' than the capital reserve fund requirementfor such fund.. Fore purposes of this section ,"capital reserve fundd requirement" means, as ofany particular date of computation , an amountof money, as provided in the resolutions of theauthority authorizingg the bonds with respect towhich such fund is established, which amountshall not exceed the maximum annual debtservice. . on the bonds of the authority for thatfiscal yearr or any future fiscal year of theauthority secured in whole or, in part by suchfund :. The annual debt service for any fiscal yearis the amount of money equal to the aggregate ofa) all interest payable during such fiscal year onall bonds secured in whole or in part by suchfundd outstanding on the date of computation ,plus b) the principal amountt of all such bondsoutstanding on said date of computation whichmature during - such fiscal year, plus c) allamounts specified in any resolution of the au-thority; authorizing any of such bonds as payableduring such fiscal year as a sinking fund pa ,y-ment .with respect to any of such bonds whichmature after such fiscal year, all calculated onthe assumption that such bonds will after suchdate of computation cease to be outstanding byreason, but only by reason, of the payment ofbonds when due; and - the . payment when due andapplication in accordance with the resolutionauthorizing those bonds, of all of such sinkingfund payments payable at or after such date ofcomputation :. However, in computing the an-nual debtt service for any fiscal year,, bondsdeemed to have been paid in accordance with thedefeasance provisions of the resolution of theauthority authorizing the issuance thereof shallnot be included in bonds outstanding on suchdate of computation :

(4) To assure the continued operation andsolvency of the authority for the carrying out ofthe public purposes of this chapter, the authorityshall accumulate in each capital reserve fund anamount equal to the capital reserve fund re-quirement for such fund . If at any time the



(4) For the payment of the principal of andinterest on notes or bonds issued by the authoritywhen the same become due whether at maturityor on call for- redemption and for the payment ofany redemption premium required to be paidwhere such, bonds or notes are redeemed prior totheir stated maturities, and to purchase notes orbonds; or

(5) For, such other corporate purposes of theauthority as' the authority in its discretiondetermines .

History: 1971 c . 28'7 .

234.17 Repayment to general fund. Theauthority shall repay the amounts appropriatedunder s .. 20,143 (1) ; (a), 19711 stats . ; to thegeneral fund from that portion of the authority'ssurplus; if any, as is determined by agreementbetween the authority and the secretary ofadministration .

History: 1971 c 28'7 ; 1975 c 39; 19'77 c . 418 :

234.18 Limit on amount of, outstandingbonds and notes. The authority shall not haveoutstanding at any one time notes and bonds forany of its corporate purposes in an aggregateprincipal amount exceeding $500,000,000, ex-cluding bonds and notes being issued to refundoutstanding notes and bonds . The authorityshall employ the state building commission as itsfinancial consultant to assist and coordinate theissuance of bonds and notes of the authority . .

History : 1971 c 287; 1975 c `200, 1977 a 108, 31'7 ;1979 c :,18

234.19 Notes and bonds; pledge andagreement of state.- The state pledges andagrees with the holders of any notes or bondsissued under this chapter, that the state will notlimit or alter the rights vested in the authority tofulfill the terms of any agreements made withthe holders thereof, or in any way impair therights and remedies of the holders until the notesor bonds, together with the :interest `thereon,with interest on any unpaid instalments of inter-est, and all costs and expenses in connection withany action or proceeding by or on behalf' of suchholders, are fully met and discharged Theauthority is authorized to include this pledgeand agreement,'of, the state in any agreementwith the holders of such'notes or bonds

History: 1971 c 287

234.2 Default; tru stee. ( 1) If the authoritydefaults in the payment of principal of orrinter-est on any: issue Of notes or bonds after the samebecome due, whether' at maturity or upon callfor redemption, and such default continues for a:period of .30 days or if the authority fails orrefuses to comply with this chapter or- defaults in

any agreement made with the holders of anyissue of notes or bonds, the holders of 25 % inaggregate principal amount of the notes orbonds of'such issue then outstanding, by instru-ment or instruments filed in the office of' theregister of deeds of Dane county and approvedor acknowledged in the same manner as a deedto be recorded, may appoint a trustee to repre-sent the holders of such notes or bonds for thepurposes otherwise specifically provided ..

(2) The Trustee may, and upon writtenrequest of the holders of 25% in principalamount of"such notes or bonds then outstandingshall, in his own name:

(a) By action or proceeding,, enforce allrights of'the noteholders or bondholder's, includ-ing the right to require the authority to collectfees and charges and interest and amortizationpayments on mortgage loans made by it ade-quate to carry out any agreement as to, or pledgeof'; such fees and charges and interest and amor-tization<payments on such mortgages, and otherproperties and to require the authority to carryout any other, agreements with the holders ofsuch notes: or bonds and to perform its dutiesunder this chapter;

(b) Bring suit upon such notes or bonds ;(c) By action, requirethe authority to ac-

count as if it were the trustee of an express trustfor the holders of such notes or bonds;

(d) By action, enjoin any acts of things whichmay be unlawful or in violation of the rights ofthe holders `of' such notes or bonds ; and

(e) Declare all such notes or bonds due andpayable, and ifall defaults shall be made good,then, with the consent of the holders of 25% ofthe principal amount of'such-notes or bonds thenoutstanding, to annul such declaration and itsconsequences .His tory : 197 .1 c. 287. _

234.21 Trustee ; additional powers. Thetrustee, in addition to the powers granted in s .234,20 shall have all of'the powers necessary orappropriate for the exercise of any functionsspecifically set forth in this chapter or incidentto the general representation of noteholders Of'bondholders in the enforcement and protectionof their tights :

Histor y: 1971 c . 287

234 .22 Venue. The venue of any action orproceeding by the trustee under ss' 234,19,234 20 and 2 .34 :21 shall' be in Dane county .History: 1971 c: 287

234 .23:- Notice before declaration thatnotes or bonds:are: due and payable. Beforedeclaring the principal of notes or bonds due andpayable, thee trustee shall first give' 30 days'

234. 16 HOUSING FINANCE AUTHORITY 3676


234.265 Records of the authority . Allrecords of the authority shall be opento thepublic, except those records relating to pendinghousing projects which, in the opinion `of' theauthority, must remain confidential to protectthe competitive nature of` any such housingproject

History: 1971 c 287

234.28 Notes and bonds ; exemption fromtaxation . The state covenants with the purchas-ers and all subsequent holders and transferees ofnotes . and bonds issued by the authority, inconsideration of the acceptance of any paymentfor the notes and bonds, that its fees, charges,gifts, grants, revenues, receipts and other,mon-eys received or to, be received, pledged to pay orsecure the payment of such notes or bonds shallat all times be free and exempt from all state,city, county of other taxation provided by thelaws, of the state

History : 1971 c 287 . .

234.29 Equality of occupancy and em-ployment. The authority shall require thatoccupancy of housing projects assisted underthis chapter be open to all regardless of sex, race,religion or creed, and that contractors and sub-contractors engaged in the construction of hous-ing projects, shall provide an equal opportunityfor employment, without discrimination as tosex; race, religion or creed :

Histor y: 1971 c . 287; 1975 c .. 94 .

234 .30 Cooperation. The heads of all de-partments, boards, councils, committees andcommissions in the administrative branch, andthe heads of the various divisions, sections anddepartments thereunder, shall extend their fulland unlimited cooperation, including but notlimited to the providing of personnel and facili-ties, to the authority

History: 1971 c, 287

234 .3:1 Construction of chapter. Thischapfer is necessary for the welfaree of this stateand its inhabitants; therefore, it shall be liber-ally: construed to effect its purpose .

History: 1971 c. . 287

234.32 Laws not applicable to ' author-ity. (1), Chapter 138 shall not apply to theauthority,,

(2) The authority may adopt by resolutionch„ 34, or any section, subsection, paragraph or

234.25 Annual report. . (1) The authorityshall submit to the governor, the chairman of'theJoint committee on finance, the senate commit-tee on housing and urban development,, theassembly committee on municipalities, suchother committees as the legislature by jointresolution may determine, and the secretary ofadministration within 6 months after the end ofits fiscal yearr a complete ..andd detailed reportsettingg forth :

(a) Its operations, accomplishments,, goalsandd objectives;

(b) A statement of income and expenses forsuch fiscal year in accordance with the catego-ries or classifications established by the author-ity for its operating and capital outlay purposes ;

(c) Its assets and liabilities at the end of itsfiscal ;year, including a schedule of its leases andmortgages and the status of reserve ; special orother funds; and

(d) A schedule of its bonds and notes out-standing at the end of its fiscal year, together'with a statement of the amounts redeemed andincurred during such fiscal year .

(2) The authority, annually on January 15,shall file with the department of administrationand the legislative council a complete and cur-rent listing of all forms, reports and papersrequired by the authority to be completed by anyperson,' other than a governmental body; as acondition of obtaining the approval of the au-thority or- fore any other reason The authorityshall attach a blank .copy of each such form,report or paper to the listing :History : 19'71 c -287; 1979 c 221

234.26 ' Notes and bonds as legal invest -menu. The state, the investment board ; allpublic officers, municipal corporations, politicalsubdivisions and public bodies ; all banks andbankers, savings and loan associations, creditunions, trust companies, savings banksand insti-tutions, investment companies, insurance tom-panics; insurance associations' and other personscarrying on a banking or insurance business, andall executors, administrators, guardians, tcust-ees and other fiduciaries may legally invest anysinking funds; moneys or other, funds belongingto them or within their control in any notes orbonds issued by the authority. Such notes and

3677

notice in writing to the governor, the authorityand the attorney general .

Hi story : 1971 c. 287

234.24 System of accounts. Subject toagreements with noteholder's and bondholders,thee authority shall prescribe a system ofaccounts .

History: 1971 c. 287 ; 1975 c 221


bonds shall be authorized security for all publicdeposits and shall be fully negotiable in thisstate . .

History: 1971 c . 287 .


subdivision of ch . .34. If' adopted by resolution ofthe authority, ch .. .34, or any section, subsection,paragraph or subdivision of ch 34 shall apply tothe authority .

History: 1975 c 221 ; 1977 c 320 .

234 .40 Bonds for veterans housing loansand other veterans assistance programs .(1) Thee authority shall issue its negotiablebonds in such principal amount and length ofmaturity as to provide sufficient funds for veter-ans housing loans to be made pursuant to s . .45 . .79 . .

(2) Bonds issued under the authority of thissection: are payable out of revenues or moneysreceived from the repayment of veterans hous-ing loans and related funds made available in ss .234.42 and 234.43 All assets and liabilitiescreated; through the issuance of bonds topurchase mortgage loans representing veteranshousing loans are to be separate from all otherassets and liabilities of the authority . No fundsof thee veterans housing loan program may becommingled with any other funds of theauthority.,

(3) It is the intent of the legislature that theauthority be used to finance the veterans hous-ing program . Nothing in this chapter shall beconstrued to supersede the powers vested bysubch . II ofch : 45 in .the department of'veteransaffairs for carrying out program responsibilitiesfor which debt has` been incurred by theauthority.

(4) The limitations established in s, . 234 .18or, 2234,50 are not applicable to bonds issuedunder the authority of this section . The author-ity may not have outstanding at any one timebonds for, veterans housing loans in an aggregateprincipal amount exceeding $61,945,000, ex-cluding bonds being issued to refund outstand-ing bonds .

History: 197.3 c 208, 333 ; 1975 c : 26 ; 1977 c . 418 ; 1979 c .102,

234 .41 Veterans housing loan fund ; es-tablishment and use . . (1) There is establishedunder the jurisdiction of the authority a veteranshousing loan fund . . All moneys resulting fromthe sale of bonds for the purpose of veteranshousing pursuant to s, 45,79, unless credited to.the . ; veterans .s capital r'eser'vee fund,, shall becredited to the fund .

(2) The authority shall- use moneys in thefund for the purpose of purchasing loans repre-senting veterans housing loans pursuant to s .4539. , All disbursements of funds under thissection for purchasing mortgage loans shall bemade payable to authorized renders as definedin s . 45 . :71 (2) and eligible persons as defined in

(3) Moneys of the veterans housing loanfund may be invested as provided in s . 2.34 . .03(18) All such investments shall be the exclu-sive'property of the fund All earnings on orincome from such investments shall be creditedto the fund and, subject to agreementt withbondholders, be paid over upon request to theboard of the department of veterans affairs f'or,deposit in the veterans trust fund after paymentor repayment of any deficits arising in theveterans capital reserve fund and after paymentof expenses contained in sub .. (4) .

(4) The authority may use moneys in thefund to cover actual and necessary expensesincurred in the sale and investment of bonds andbond revenues .:

(5) Any moneys remaining in the veteranshousing loan fund and not needed for purposesof'' the veterans capital reserve fund shall betransferred to the veterans housing bond re-demption fund .

Hi s tory: 19'73 c . 208, 333, 336..

234.4fi Veterans capitall reserve fund. (1)The authority shall establish the veterans capi-tal reserve fund to secure the veterans housingbonds sold pursuant to s : 234. .40, and shall payinto the veterans capital reserve fund any mon-eys appropriated and made available, by thestate for the purposes of such fund, any proceedsof'sale of bonds, to the extent provided in theresolution of the authority authorizing the issu-ance thereof and any other moneys . which aremade available to the authority f"or, the purposeof such fund from-any. other source .

(2) All moneys held in the veterans capitalreserve fund, except as otherwise specificallyprovided, shall be used solely for the payment of'the principal of veterans housing bonds of theauthority as the same mature, the, making ofsinking fund payments with respect to veteranshousing bonds of" the .authority, the purchase ofveterans housing bonds ; of' the authority, thepayment of interest on veterans housing bondsof the authority or the payment of any redemp-tion premium required to be paid when veteranshousing bonds are redeemed: prior to maturity, .Except for the purpose of paying principal ofand interest' on veterans housing bonds of theauthority maturing and becoming duee and forthe payment of which other moneys of theauthority are not available, and except for mak-ing sinking fund payments with respect to veter-ans housing bonds of the authority and for thepayment of which other moneys of the authorityare not available, moneys in the veterans capitalreserve fund shall not be withdrawn at any timein such, amount as would reduce the fund to lessthan an amount, called in this section "veteranscapital reserve fund requirement", equal to the

234.32 HOUSING FINANCE AUTHORITY 3678


.3679

maximum amount, in any succeeding year, ofprincipal and interest, other , than principal andinterest for which sinking fund payments arespecified in any resolution of the authority au-thorizing veterans housing bonds of the author-ity then outstanding, maturing and becomingdue in such year on all veteranss housing bonds ofthe authority then outstanding (other than vet-erans housingg bonds due in such year issued toprovide funds for mortgage loans through thepurchase of mortgages or mortgage-backed se-curities guaranteed by the United States or anagency o r instrumentality of the United States)plus all amounts specified, in any resolution of'thee authority authorizing- veterans housingbonds of the authority then outstanding, aspayable as a sinking fund payment i n such yearAny income or interest earned by, or incrementto, the veterans capital reservee fund due to theinvestment thereoff may be transferred by theauthority to the veterans housing bond redemp-tion fund to the ex tent it does not reduce theamount of the veterans capital reserve fundbelow the veterans >capital< reserve fundrequirement .

(3) The authority shall not issue bonds atany time, other, than bonds issued to providefunds for mortgage loans through the purchaseof mortgages of mortgage-backed securitiesguaranteed by the United States or an agency orinstrumentality of the United States, if thevete r ans capital r eserve fund requirement, aftersuch issuance, will exceed the amount of theveterans capital reserve fund at' the time ofissuance unless the authority, at the time ofissuance of such bonds, shall deposit in thecapital reserve fund from the proceeds: of thebonds so to be issued, or fr om another availablesource, an amount which, together with theamountt then in thee veterans capital reservefund, will be not less than the veterans capitalreserve fund requirement after such issuance

(4) To assure the continued ` operation andsolvency of the authority for the carrying out ofthe veterans housing loan prog ram of this chap-ter, the authority shall accumulate in the veter-ans capital reserve fund an amount equal to theveterans capital reserve fund requirement : I f atany time the veterans capital reserve fund re-quirement exceeds the amount of the veteranscapital reserve fund, the chairperson of theauthor ity shall certify to the secretary of adtnin-strafion , the governor and the joint committeeon finance, the amount necessary to restore theveterans capital reserve fund to an amount equalto the veterans capital reserve fund requirement.If such certification is received by the secretaryof administration in an even-numbered yearprior to the completion : of the budget compila-tion under s . 16::43, the secretary shall include

the certified amount in the budget compilation . .In any case, the joint committee on finance shallintroduce in either' house, in bill form, an appro-priation of the amount so certified to the veter-ans capital reserve fund of the authority .-Recog-nizing its moral obligation to do so, thelegislaturee hereby expresses its expectation andaspiration that, if ever called upon to do so, itshall make such appropriation .

(5) In computingg the amount of the veteranscapital reserve fund' for the purposes of thissection, securities in which all of a portion of theveterans capital reserve fund is invested shall bevalued at par, or if purchased at less than par, attheir cost to the authority .

History : 1973 c 208; 1977 c 418 s 924 (22)

234.43 Veterans housing bond redemp-tion fund . (1) The authority shall establish theveterans housing bond redemption fund . . Allmortgages purchased with moneys from theveterans housing loan fund shall be the exclusiveproperty of the bond redemption fund : Allmoneys received by the authority from the re-payment of veterans housing loans shall bedeposited into such fund' to be used for therepayment of veterans housing bonds issuedpursuant to s 234 40 .

(2) < Subject to agreements with bondholders,disbursements shall be made:

(a) For the payment of-the principal of andinterest on bonds issued by the authority whenthe same become due whether at maturity or oncall for- redemption and for the payment of anyredemption premium required to be paid wheresuch bonds are redeemed prior to theirr statedmatuiities, and to purchase bonds ;

(b) To pay, administrative costs, expensesand charges to service outstanding bonds, includ-ing fees and expenses of trustees and payingagents ;

(c) For repayment of'advances from the statemade through s. 20;485 (3) (b) ;

(d) For transfer to the veterans capital re-serve fund ; and

(e) Any surplus remaining after satisfactionof all obligations of pats : (a) to (d) shall be paidover, upon request of the board of the depart-ment of veterans affairs for deposit in the veter-ans trust fund :

History: 1973 c, 208 ; 1975 c 200 ; 1979 c 34

234.44 -Validation of certain obligationsandd proceedings. Notwithstanding-any provi-sion of this chapter or' any other law, in theabsence of fraud, all obligations issued prior toMay 4, 1976 purportedly put suantto this chap-ter, and all proceedings prior to such time takenpurportedly pursuant' to this chapter for theauthorization and issuance of such obligations



(4) The limitations established in s. 234.18or 23440 are not applicable to bonds issuedunder the authority of this section .. The author-ity may not have outstanding at any one timebonds for certified housing rehabilitation loansin an aggregate principal amount exceeding$25,000,000, excluding bonds being issued torefund outstanding bonds .. . The authority shallconsult with and coordinate the issuance ofbonds with the state building commission priorto the issuance of bonds . .

(5) No bonds' mayy be issued under theauthority of this section after June .30, 1981, or .the effective date of the 1981 biennial budget,act, whichever is later, excluding bonds beingissued to refund outstanding bonds The applica-tion of this subsection does not affect the validityand continuance of the pledge and agreement ofthe state under s 2 .3419

.. .. :History : 1977 c : 418; 1979 c 361 Ss 112, 113

234 .51 Housing rehabi litation loan pro-gram administration fund; establishmentand use. (1) There is establishedd under the .jurisdiction of the authority a housing rehabili-tation loan program administration #'und . Thereshall be paid into such fund the amounts appro-priated under s . 20,490 (2) (a), the amountsprovided in s 234,55, any amounts transferredby the authority to such fund from other fundsor sources and any other moneys which maybeavailable to the authority for the purpose of suchfund from any other source,

(2) Subject to agreements with bondholders,the authority shall use moneys in the fund solely :

(a) To pay all administrative costs, expensesand charges, including origination fees and sec-vicing fees, incurred in conducting the housing : : :rehabilitation loan program other than thosedescribed in ss .. 234 .53 (4) and 234,55 (2) (b)of

(b) For transfer, upon request, to the secre-tary of administration for deposit in the state .general fund, to the extent that the chairperson=of the authority certifies,that=such funds ace nolonger required :forr the program .

(3) Moneys of the<f'und may be invested as,pi ovided'in s . 234 .03 (18),. All such . investments,shall be the exclusive property of the fund . All, ,earnings on or incomee from . such investmentssshall be credited to the fund,History: 19'77 c . 418

234.52. Housing . rehabili ta tion loan pro-gram loan -loss reserve fund; establish-ment and use , (1 )' There is established under 'the jurisdiction of the authority a housing reha-bilitation loan program loan loss reserve fund :.'There shall be paid into such fund the amountsappropriated underr s . 20„490'(2) (q), the

234.50 - Bonds for housing rehabilitationloans ; ; issuance ; status,. .(I) The authoritymay issue its negotiable bonds in such principalamount and of' such length of maturity as, in theopini on of the - authority, is necessary to providesufficient funds . foc purchasing certified housingrehabilitation loans or for, funding commitmentsfor loans to lenders for certified housing rehabil-itation loans; for the establishment of reserves tosecure such bonds ; and for all other expendituresof the authority incident to or necessary andconvenient in connection therewith . The au-thority may, whenever it deems refunding expe-dient, refund any bonds by the issuance of newbonds whether the bonds to . be refunded have orhave not matured, and ; issue bonds partlyy torefund bo nd s then outstanding and partly for thepurpose authorized by thi s section

(2) Bonds issued under , the authority of thissection shall be special obligations of the author-ity payable solely outt of revenues, moneys orothez property received in connection withthehousing r•ehabilitationloan program; including,without limitation, repayments of certifiedhousing rehabilitation loans, federal insuranceof guarantee payments ; the proceeds of bondsissued under the authority of this section, andthe amounts made available under ss . 234 :54and 234 55, All assets and liabilities createdth rough t he issuance ofbonds to purchase certi-fi ed housing rehabilitation loans shall be sepa-rate from a ll otherassets and liabilities of theauthority No funds of the housing rehabilita-tionloapprogram may be commingled with anyothe r funds of 'theauthority .- ~ (3) ; It i s the intent of the legislature that, theauthority b e used to finance the housing rehabil-

`_` ita tion -loan . program . Nothing in th is chaptershall be construed to supersede` the powersvested in the department of development under

` s ' 560 .. 06 ' for the purpose of `, carrying out allprogram responsibilities for which debt has beenincurred by the authority under this section .

234.44 HOUSING FINANCE AUTHORITY

or of obligations not yet issued, : and the> sale,execution and delivery of'such obligations issuedprior to May 4, 1976, are herebyy validated,ratified, approved and confirmed, notwithstand-ing .any lack of power, however patent, otherthan constitutional, of the issuing authority orthe governing body or officer thereof, to autho-rize such obligations, or to sell, execute, deliverthe same, and notwithstanding any defects ofirregularities, however patent, other than consti-tutional, in such proceeding or in such sale,execution or delivery of such obligations Allsuch obligations issued prior to .May 4,, 1976 arebinding, legal obligations in accordance withtheir termsHis tory : 1975 c 221'

3680


234 .54 . Housing rehabilitation loan pro-gram capital reserve fund . (1) The authorityshall establish the housing rehabilitation loanprogram capital reserve fund to secure the bondsissuedd under the authority of s . 2 .34 ..50, and shallpay into such fund any moneys appropriated andmade available by. the state for the purposes ofsuch fund, any proceeds of sale of housingrehabilitation bonds to the extent provided inthe resolution of thee authority authorizing theissuance thereof and any other moneys whichare made available to the authority for, thepurpose of such fund from any other source .

(2) All moneys held in the housing rehabili-tation loan program capital reserve fund, exceptas otherwise specifically provided, shall be used,as required, solely for the payment of the princi-pal of bonds of`the authority secured in whole orin part by such fund or of sinking fund paymentswith respect to such bonds, the purchase orredemption of'sueh bonds, the payment of inter-est on such bonds or the payment of any redemp-tion premium required to be paid when suchbonds are redeemed prior to maturity; but, ifmoneys in such fund at any time are less than thecapital reserve fund requirement established forsuch fund as provided in this section, the author-ity shall not use such moneys for any optionalpurchase or optional redemption of such bonds.Any income or interest earned by, or- incrementto, the capital reserve fund due to the investmentthereof may be transferred by the authority toother housing rehabilitation loann program fundsor accounts of the authority to the extent suchtransfer does not reduce the amount of thecapitall reserve fund below the capital reservefund requirement for the fund .

(3) The authority may not issue bonds, se-cured in whole or in part by the capital reservefund if upon the issuance of such bonds, theamount in such capital reserve fund will be lessthan the capital reserve fund requirement ofsuch fund; unless the authority, forthwith uponthe issuance of'such bonds, deposits in such fundfrom the proceeds of the bonds to be issued, offrom other' sources, an amount which, together,with the amount then in such fund, will not beless than the capital reserve fund requirementfor- such fund :' For purposes of this section,"Capital reserve fund requirement" means, asof any particular date of computation, anamount of money; as provided in the resolutionsof the authority authorizing the bonds withrespect to which such fund is established ; whichamount may not exceed the maximum annualdebt service on the bonds of the authority for-that calendar year oz any future calendar yearsecured in whole or, in part by suchh fund . Theannual debt service for- anyy calendar year is the

amounts provided under s. 234 . .55, any amountstransferred by the authority to such fund fromother funds or, sources and any other moneyswhich may be available to the authority for thepurposes of such fund from any other source . .

(2) Subject to agreements with bondholders,the authority shall use moneys in the fund solelyfor transfer to the housing rehabilitation loanprogram bond redemption fund in amountsequal to losses on certified housing rehabilita-tion loans owned by that fund which are notmade good by federal insurance or guaranteepayments, and solely for the purposes describedin s . . 234 . .55 (2) (a). Any balance remainingafter' payment or due provision for payment ofall outstanding bonds issued under the authorityof's 234 ..50 shall be transferred to the housingrehabilitation loan program administrationfund only for the purpose of deposit in thee stategeneral fund .

(3) Moneys of the fund may be invested asprovided in s . 234 03 (18) . All such investmentsshall be the exclusive property of the fund . Allearnings on or income from such investmentsshall be credited to the fund ..His tor y : 19'77 c . 418

234 .53 Housing rehabilitat ion loan fund .(1) The authority shall establish the housingrehabilitation loan fund . . All moneys resultingfrom the sale of bonds issued under the authorityof s 2 .34 .50, not including bonds issued to refundoutstanding bonds, and unless credited to thehousing rehabilitation loan program capital re-serve or bond redemption funds, shall becredited to such fund .

(2) The authority shall use moneys in thefund' for the purpose of purchasing certifiedhousing rehabilitation loans or for funding com-mitments for loans to lender's for certified hous-ing rehabilitation loans .' All disbursements offunds under this section for purchasing suchloans shall be made payable to an authorizedlender as defined ins 560,06 (1) (b) or a dulyauthorized' agent thereof.

(3) Moneys bf the fund may be invested asprovided in s 234,03 (18) . All such investmentsshall be the exclusive property of the fund Allearnings on or income from such investmentsshall be credited to the fund ..

(4) The authority may usee moneys in thefund to cover actual and necessary expensesincurred in the . sale of housing rehabilitationbonds and investment of the 'proceeds thereof:.

(5) Any moneys not needed for the purposesof the fund shall be transferred to the housingrehabilitation loan program bond redemptionfund

History: 1977 c. 418; 1979 9 c, 361 s.. 113 .



amount of money equal to the aggregate of a) allinterest payable during such calendar year on allbonds secured in whole or in part by such fundoutstanding on the date of'computation ; and b)the principal amount of all such bonds outstand-ing on said date of computation which matureduring such calendar year ; and c) all amountsspecified in any resolution of the autho r ity au-thorizing any of such bonds as payable duringsuch calendar , year as a sinking fund paymentwith respect to any of such bonds which matureafter such calendar year, all calculated on theassumption that such bonds will after such dateof computation cease to be outstandingg by rea-son; but only by reason,, of the payment of bondswhen due, and the payment when due andapplication in accordance with the resolutionauthorizing those bonds, of all of such sinkingfund payments payable at or after such date ofcomputation .. However., in computing the an-nual debt service for, any calendar year-, bondsdeemed to have been paid in accordance with thedefeasance provisions of the resolution of ' : theauthority authorizing the issuance thereof maynot be included in bonds outstanding on suchdate of computation,:

(4) To assure the continued operation andsolvency of the authority for the carrying out ofthe public purposes of this chapter, the authorityshall accumulate ' in the capital reserve fund anamount equal : to the capital reserve fund re-quirement for such fund If at any time thecapital reserve fund requirement for the capitalreserve fund exceeds the amount of such capitalreserve fund, the chairperson of the authorityshall certify to the secretary of administration,the governor and the joint committee on financethe amount necessary to restore such capitalreserve fund to an amount equal to the capitalreserve fund requi rement in respect thereto .. Ifsuch certification is received by the secretary ofadministration inan even-numbered year priorto the completion of, the budget compilationunder s : 16 . 43, the secretary shall include thecertified amount in the budget compilation ,. Inany case, the , joint committee on finance shallintroduce in either house, in bill form, an appro-priation of the amount so certified to the capitalreserve fund Recognizing itss morall obligationto do so, the legislature hereby expr esses itsexpectation and aspiration that, if ever calledupon to do so, it shall make such appropriation .

(5) In computing the amount of the capitalreserve fund for the purposes of this section,securities in which all or, a portion of' such capitalreserve fund is invested shall be valued at par, orif purchased at less than par, at their cost to theauthority, adjusted to reflect the amortization ofdiscount or, premium paid upon their purchase .

(6) Notwithstanding subs . . (1) to (5), theauthority, subject to such agreements withbondholders as may then exist, may elect not tosecure any particular issue or series of its bondswith the capital reserve fund . Such electionshall be made in the resolution authorizing suchissue or series . In this event, subs . (2) and (3)shall not apply to the bonds of such issue orseries in that they shall not be entitled to pay-ment out of or be eligible for purchasee by suchfund nor, may they be taken into account incomputing or applying any capital reserve fundrequirement .

Histo ry : 1977 c 418 .

234 .55 Housing rehabilitation loan pro -gram bond redemption fund . (1) The au-thority shall establish the housing rehabilitationloan program bond redemption fund . All certi-fied housing rehabilitation loans purchased withmoneys from the housing rehabilitation loanfund or notes evidencing loans to lenders fromsuchh fund for certified housing rehabilitationloans shall be the exclusive property of suchredemption fund, All moneys received from therepayment of such loans, any amounts trans-ferred by the authority to such fund pursuant tos . 234,52 or from other funds or sources, anyfederal insurancee or guarantee payments withrespect to such loans, all moneys resulting fromthe sale of bonds for the purpose of refundingoutstanding housing rehabilitation bonds unlesscredited to the housing rehabilitation loan pro-gram capital reserve fund, and any other moneyswhich may be available to the authority for thepurpose of such fund, shall be deposited intosuch fund to, be used for the repayment ofhousing rehailitation bonds issued under theauthority of s 234 50 .

(2) Subject to agreements with bondholdersand except as provided in sub .. (3), the authoritymay use moneys in thefund solely :

(a) For the payment of the principal of andinterest on housing rehabilitation bonds of theauthority when the same become due whether atmaturity or on call for redemption and for thepayment of any redemption premium requiredto be paid when suchh bonds are redeemed priorto their, stated maturities, and to purchase suchbonds ;

(b) To pay actual and necessary expensesincurred to service and administer outstandinghousing rehabilitation bonds, including fees andexpenses of trustees and paying agents, and tocollect certified housing rehabilitation loans ;

(c) For transfer to the housing rehabilitationloan program loan loss reserve fund ; or

(d) For transfer to the housing rehabilitationloan fund .

234.54 HOUSING FINANCE`AUTHORITY 3682


3683 HOUSING FINANCE AUTHORITY 234 .55

(3) Any balance remaining after satisfaction shall be the exclusive property of the fund . . Allof all obligations under sub . . (2) shall be traps- earnings on or income from such investmentsferred to the housing rehabilitation loan pro- shall be credited to the fund . .gram administration fund only for the purpose History: 197 c ais8of deposit in the state general fund ..

(4) Moneys of the fund may be invested asprovided ins, 2 .34 . .0 .3 (18) .. All such investments


chapter. 234(5) to study and analyze housing needs within thee statee and ways of meeting suchh...

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