Adm 92.92(4)(a)
(a)
General. An agency shall pay a displaced person for the increased interest expense and other debt service costs incurred in financing the purchase of a replacement business or farm operation, provided:
Adm 92.92(4)(a)1.
1. The acquired business or farm operation property was encumbered by a bona fide mortgage or land contract;
Adm 92.92(4)(a)2.
2. The mortgage or land contract was executed in good faith not less than one year before initiation of negotiations to purchase the property;
Adm 92.92(4)(a)3.
3. All bona fide mortgages or land contracts that were valid liens on the displacement property for at least one year before initiation of negotiations on the acquired property shall be used to compute the increased interest payment.
Adm 92.92(4)(b)
(b)
Payment computation. The increased interest payment shall be computed as follows:
Adm 92.92(4)(b)1.
1. The interest payment difference shall be an amount which will reduce the mortgage balance on the replacement property to an amount which could be amortized with the same monthly payment for principal and interest as that for the mortgage or mortgages on the displacement property, except that the payment for a person obtaining a mortgage that is less than the mortgage balance computed in the buydown determination, shall be prorated and reduced accordingly.
Adm 92.92(4)(b)2.
2. The amount paid by a person as points, loan origination or assumption fees, but not seller's points, shall be based on the amount refinanced, not exceeding the amount which would have been paid had the original mortgage balance been refinanced, and shall be added to an amount as specified under subd.
1. The origination or assumption fee shall be limited to the fee normal for real estate transactions in the area.
Adm 92.92(4)(c)
(c)
Interest rate on replacement mortgage. The interest rate on the mortgage for a replacement business or farm operation used in the computation may not exceed the rate typically charged by mortgage lenders in the area.
Adm 92.92(4)(d)
(d)
Mortgage term. The payment shall be based on the remaining term of the mortgage(s) on the displacement dwelling regardless of the term on the new mortgage.
Adm 92.92(4)(e)1.1. Larger than typical size lot. The interest payment shall be reduced to the percentage ratio that the value of the typical and necessary part is to the value of the entire property before acquisition, when a property is located on a lot larger than typical and necessary for the type of business or farm operation being operated.
Adm 92.92(4)(e)2.
2. Multi-use property. The interest payment on multi-use property shall be reduced to the percentage ratio that the business or farm operation value of the multi-use property is to the value of the entire property before acquisition.
Adm 92.92(4)(e)3.
3. Business or farm on land with higher and better use. An agency shall compute an interest payment under par.
(b), when a business or farm operation is located on land where the fair market value is established on a higher and better use, and when the mortgage is based on business or farm operation value. The interest payment shall be reduced to the percentage ratio that the estimated business or farm operation value of the parcel is to the value of the entire property before acquisition, when the mortgage is based on the higher use.
Adm 92.92(4)(f)
(f)
Prompt payment. An agency shall advise a displaced person of the approximate amount of a refinancing payment as soon as the facts relative to a person's mortgages are known. If requested by the displaced person, the refinancing payment shall be made available at or near the time of closing on the replacement to permit reduction of the new mortgage amount.
Adm 92.92(5)
(5) Incidental expense payment. An agency shall pay a person for actual and reasonable expense incurred incidental to the purchase of a replacement business or farm operation. The payment shall include the following:
Adm 92.92(5)(a)
(a) Legal, closing and related cost including title research, preparing conveyance contracts, notary fees, surveys, preparing drawings or plats and recording fees;
Adm 92.92(5)(b)
(b) Lender, appraisal or application fees, and loan origination or assumption fees that do not represent prepaid interest;
Adm 92.92(5)(e)
(e) Owner or mortgagee title insurance policy or abstract of title;
Adm 92.92 Note
Note: The payment may not include a prepaid expense such as taxes, water, or fuel costs, or a fee, cost, charge or expense which is part of a debt service or finance charge.
Adm 92.92(6)
(6) Owner retention. An owner-occupant may purchase the property back from an agency and move it to another location following receipt of the payment for the acquired property, and when not inconsistent with project development. The replacement payment shall be determined as follows:
Adm 92.92(6)(a)
(a)
Amount payable. The payment shall be the amount, if any, between the acquisition price and the cost to relocate. The cost to relocate shall include the purchase-back price, the cost to acquire and develop a new site, or when moved to retained land, the market value of the site, installing utility service, constructing a foundation, moving the property, restoring it to comparable standards and other moving costs.
Adm 92.92(6)(b)
(b)
Limitation. The differential payment computed under this section may not exceed the amount necessary to purchase a comparable replacement under sub.
(2) plus any increased interest or incidental expense payment due under subs.
(4) and
(5).
Adm 92.92(7)
(7) Replacement payment conversion. An agency shall pay a person as specified under this section. A replacement payment for a prior move to a rental property shall be deducted from the amount payable under this section. The combined payment may not exceed $50,000.
Adm 92.92 History
History: Cr.
Register, March, 1986, No. 363, eff. 4-1-86; am. (4) (a) (intro.) and 3., (b) and (5) (b), r. and recr. (4) (d), cr. (4) (f),
Register, November, 1989, No. 407, eff. 12-1-89.
Adm 92.94
Adm 92.94
Owner-occupant who rents. Adm 92.94(1)(1)
General. An agency shall pay an owner-occupant who rents a replacement business or farm operation, a rental assistance payment not to exceed $30,000 for 4 years, or the amount the person is eligible for as an owner under s.
Adm 92.92, whichever is less.
Adm 92.94(2)
(2) Computation of payment. The payment shall be computed as specified under s.
Adm 92.96, except that the economic rent of the acquired property shall be used to compute the payment.
Adm 92.94 History
History: Cr.
Register, March, 1986, No. 363, eff. 4-1-86; corrections made under s. 13.93 (2m) (b) 7., Stats.,
Register, April, 1996, No. 484; correction in (1), (2) made under s. 13.92 (4) (b) 7., Stats.,
Register December 2011 No. 672.
Adm 92.96
Adm 92.96
Tenant-occupant who rents. An agency shall pay a tenant-occupant of a business or farm operation, a rental assistance payment, not to exceed $30,000, for the increased cost to rent or lease a replacement business or farm operation. The payment shall be computed as specified under this section.
Adm 92.96(1)
(1) Rent differential payment. An agency shall pay a person who rents a replacement business or farm operation, a payment equal to the difference for 48 months, if any, between the monthly rent for the displacement unit and the lesser of the monthly rent for a comparable business or farm operation, or the actual replacement.
Adm 92.96(2)
(2) Preferred replacement tenure. An agency shall assist a person to relocate to original tenancy status or, at a person's option, purchase a replacement using the downpayment assistance provisions under s.
Adm 92.98.
Adm 92.96(3)
(3) Payment computation. To compute a payment, an agency shall determine the base monthly rent, the rent of a comparable replacement, and the rent paid for the replacement property as follows:
Adm 92.96(3)(a)
(a)
Base monthly rent. The base monthly rent shall be either:
Adm 92.96(3)(a)1.
1. The average monthly rent and utilities paid by the tenant-occupant for the 12-month period before initiation of negotiations, or a more representative period; or
Adm 92.96(3)(a)2.
2. The economic rent when the actual rent is insignificant in relation to market rents for similar property in the area.
Adm 92.96(3)(b)
(b)
Determine rent of a comparable replacement. The agency shall determine the rent of a comparable replacement business or farm operation using the selection procedures under s.
Adm 92.92 (2) and
(3) except:
Adm 92.96(3)(b)1.
1. An agency shall increase the rent by the additional amount the owner would charge if required to make modifications necessary to bring a property up to comparable standards, or
Adm 92.96(3)(b)2.
2. An agency shall pay a person who rents a replacement business or farm operation requiring modifications to meet comparable standards, the actual cost of these modifications if incurred by the person. The amount shall be included in the rent differential payment.
Adm 92.96(4)
(4) Comparability of rent factors. Rent factors such as utilities, furnishings, parking and others, shall be the same for the displacement property and the comparable or replacement property. However, rent factors in the comparable property which must be paid by the displaced person shall be included in the payment regardless of whether they existed in the displacement property.
Adm 92.96(5)
(5) Change of occupancy. A person, after moving to a replacement business or farm operation, moves to a higher rent property within a 2 year period, may be eligible for an amount in excess of the original claim but not to exceed the amount necessary to rent a comparable replacement.
Adm 92.96 History
History: Cr.
Register, March, 1986, No. 363, eff. 4-1-86; am. (1), (3) and (4),
Register, November, 1989, No. 407, eff. 12-1-89; correction in (2) and (3) (b) made under s. 13.93 (2m) (b) 7., Stats.,
Register, April, 1996, No. 484; correction in (2), (3) (b) (intro.) made under s. 13.92 (4) (b) 7., Stats.,
Register December 2011 No. 672.
Adm 92.98
Adm 92.98
Tenant-occupant who purchases. Adm 92.98(1)(1)
General. An agency shall pay a person otherwise eligible under s.
Adm 92.96, an amount up to $30,000 for a downpayment on the purchase of a replacement, and reimbursement for actual expenses incidental to the purchase. The payment may not exceed the amount necessary to rent a comparable replacement as specified under s.
Adm 92.96.
Adm 92.98(2)
(2) Computation of downpayment and incidental cost. Adm 92.98(2)(a)(a) The agency shall pay a person the amount the person is entitled to receive for a rental replacement payment as specified under s.
Adm 92.96.
Adm 92.98(2)(b)
(b) An agency shall pay the amount calculated under s.
Adm 92.96 to a tenant-occupant who purchases a replacement business or farm operation within 2 years after the person moves from the displacement property.
Adm 92.98(2)(d)
(d) An agency may require that the full amount of the downpayment assistance payment be applied to the purchase price of the replacement property and related incidental expenses. An agency may pay the amount directly to a displaced person upon reasonable assurance that the displaced person will apply the payment toward business or farm reestablishment costs.
Adm 92.98(2)(e)
(e) An owner eligible for a payment under s.
Adm 92.92 is ineligible for a downpayment assistance payment under this section.
Adm 92.98 History
History: Cr.
Register, March, 1986, No. 363, eff. 4-1-86; am., cr. (2) (e),
Register, November, 1989, No. 407, eff. 12-1-89; corrections made under s. 13.93 (2m) (b) 7., Stats.,
Register, April, 1996, No. 484; correction in (1), (2) (a), (b), (c), (e) made under s. 13.92 (4) (b) 7., Stats.,
Register December 2011 No. 672.
Adm 92.99 History
History: Cr.
Register, March, 1986, No. 363, eff. 4-1-86; corrections made under s. 13.93 (2m) (b) 7., Stats.,
Register, April, 1996, No. 484; correction in (intro.), (1) to (9) made under s. 13.92 (4) (b) 6., 7., Stats.,
Register December 2011 No. 672.
