Chapter 234

234.626(4) (4) The authority may adopt rules that restrict eligibility in addition to the requirements of s. 234.623 or require the provision of additional security if, in the executive director’s judgment, the rules or security are required for the satisfactory issuance of bonds or notes.

234.626(5) (5) Bonds or notes issued for loans under this section shall not exceed $10,000,000 in principal amount, excluding obligations issued to refund outstanding bonds or notes.

234.626(6) (6) Unless otherwise expressly provided in resolutions authorizing the issuance of bonds or notes or in other agreements with the holders of bonds or notes, each bond or note issued shall be on a parity with every other bond or note issued for the funding of loans under ss. 234.621 to 234.626.

234.626(7) (7) Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called to do so, it shall make an appropriation to make the authority whole for defaults on loans issued under ss. 234.621 to 234.626.

234.626 History History: 1981 c. 20; 1983 a. 36 s. 96 (3); 1985 a. 29; 1991 a. 269 ss. 510ui to 510up; Stats. 1991 s. 16.997; 1993 a. 16 ss. 130z, 3051p; Stats. 1993 s. 234.626; 1993 a. 490.

234.65 234.65 Economic development.

234.65(1) (1) 

234.65(1)(a) (a) The authority may issue its negotiable bonds and notes to finance its economic development activities authorized or required under this chapter, including financing economic development loans.

234.65(1)(b) (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.

234.65(1)(c) (c)

234.65(1)(c)1. 1. The authority may issue not more than $150,000,000 in aggregate principal amount of bonds and notes under this section, excluding bonds and notes issued to refund outstanding bonds or notes issued under this section, in each of the 3 consecutive fiscal years beginning after April 20, 2012, and, except as provided in subd. 2., may not issue bonds and notes under this section after the last day of the 3rd fiscal year that begins after April 20, 2012.

234.65(1)(c)2. 2. If, 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.

234.65(1)(d) (d) Section 234.15 does not apply to bonds or notes issued under this section, and any bond or note issued under this section shall contain on its face a statement to that effect.

234.65(1)(dm) (dm) The authority has no moral or legal obligation or liability to any borrower under this section except as expressly provided by written contract.

234.65(1)(g) (g) In granting loans under this section the authority shall give preference to businesses which are more than 50 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.

234.65(1m) (1m) The authority shall adopt procedures to implement sub. (3).

234.65(2) (2) 

234.65(2)(a) (a) The authority may finance an economic development loan only after considering all of the following:

234.65(2)(a)1. 1. The extent to which an economic development project will maintain or increase employment in this state.

234.65(2)(a)3. 3. Whether an economic development project will be located in an area of high unemployment or low average income.

234.65(2)(a)4. 4. The number of financial institutions participating in the economic development project.

234.65(2)(a)5. 5. The extent to which the activities constituting the economic development project otherwise would not occur.

234.65(2)(b) (b) Paragraph (a) does not apply to an economic development loan to finance an economic development project described under s. 234.01 (4n) (c).

234.65(3) (3) The authority may finance an economic development loan only if all of the following conditions are met:

234.65(3)(am) (am) The authority has estimated whether the project that the authority would finance under the loan is expected to eliminate, create, or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created, or maintained as a result of the project.

234.65(3)(bm) (bm) One or more other financial institutions participate in the economic development project.

234.65(3)(c) (c) The economic development project is or will be located in this state.

234.65(3)(dg) (dg) The authority shall not assume unsecured or uncollateralized risk for any economic development loan.

234.65(3)(e) (e) The economic development loan will not be used to refinance existing debt, unless it is in conjunction with an expansion of the business or job creation. This paragraph does not apply to an economic development loan to finance an economic development project described under s. 234.01 (4n) (c).

234.65(3)(f) (f) The name of the person receiving the loan does not appear on the statewide support lien docket under s. 49.854 (2) (b) or, if the person’s name appears on that docket, the person provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

234.65(3g) (3g) 

234.65(3g)(a) (a) Nothing in sub. (3) (am) may be considered to require a business signing a loan contract to satisfy an estimate under sub. (3) (am).

234.65(3g)(b) (b) Paragraph (a) and sub. (3) (am) do not apply to a person engaged in the business of operating a railroad or to an economic development loan to finance an economic development project described under s. 234.01 (4n) (c).

234.65(3m) (3m) An economic development loan may not be made unless the authority complies with sub. (1m) and certifies that each loan complies with sub. (3).

234.65(3r) (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).

234.65(4) (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:

234.65(4)(a) (a) A statement of the authority’s operations, accomplishments, goals and objectives.

234.65(4)(b) (b) A financial statement showing income and expenses, assets and liabilities and a schedule of its bonds and notes outstanding and the amounts redeemed and issued.

234.65(4)(c) (c) The effects of lending under this section in the following areas:

234.65(4)(c)1. 1. Maintaining or increasing employment in this state.

234.65(4)(c)2. 2. Locating economic development projects in areas of high unemployment or low average income.

234.65(4)(c)3. 3. Obtaining the participation of a large number of financial institutions in the lending.

234.65(4)(c)4. 4. The geographical distribution of lending in this state.

234.65 History 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.

234.65 Note NOTE: This section was created by 1983 Wisconsin Act 83. Section 1 of that act is entitled “Legislative Declaration.”

234.66 234.66 Residential housing infrastructure revolving loan fund and program.

234.66(1) (1) Definitions. In this section:

234.66(1)(a) (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.

234.66(1)(b) (b) “Developer” means a person other than a governmental unit that constructs or creates residential housing.

234.66(1)(c) (c) “Eligible governmental unit” means the governmental unit having jurisdiction over an eligible project, as determined by the authority.

234.66(1)(d) (d) “Eligible project” means a project for housing infrastructure for workforce housing or senior housing.

234.66(1)(dd) (dd) “Governmental unit” means a city, village, town, county, or federally recognized American Indian tribe or band in this state.

234.66(1)(e) (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.

234.66(1)(f) (f) “Public infrastructure” means any of the following that is or will be owned, maintained, or provided to or by a governmental unit:

234.66(1)(f)1. 1. A water distribution system.

234.66(1)(f)2. 2. A water treatment plant.

234.66(1)(f)3. 3. A wastewater treatment plant.

234.66(1)(f)4. 4. A sanitary sewer system.

234.66(1)(f)5. 5. A storm sewer system.

234.66(1)(f)6. 6. A stormwater retention pond.

234.66(1)(f)7. 7. A lift or pump station.

234.66(1)(f)8. 8. A street, road, alley, or bridge.

234.66(1)(f)9. 9. A curb, gutter, or sidewalk.

234.66(1)(f)10. 10. A traffic device.

234.66(1)(f)11. 11. A street light.

234.66(1)(f)12. 12. An electric or gas distribution line.

234.66(1)(g) (g) “Residential housing” means new single-family or multifamily housing for rent or sale that satisfies all of the following:

234.66(1)(g)1. 1. Is subject to taxation under ch. 70.

234.66(1)(g)2. 2. Has not been the subject of a claim for a state or federal historic rehabilitation tax credit, as determined by the authority.

234.66(1)(g)3. 3. Has not received financial assistance from tax increments generated by an active tax incremental district.

234.66(1)(h) (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.

234.66(1)(i) (i) “Workforce housing” means residential housing that satisfies all of the following, as determined by the authority:

234.66(1)(i)1. 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.

234.66(1)(i)2. 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).

234.66(1)(i)3. 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.

234.66(1)(i)4. 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.

234.66(2) (2) Establishment of fund.

234.66(2)(a) (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:

234.66(2)(a)1. 1. All moneys appropriated to the authority for the fund.

234.66(2)(a)2. 2. All moneys received from the repayment of loans under sub. (3).

234.66(2)(am) (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:

234.66(2)(am)1. 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.

234.66(2)(am)2. 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.

234.66(2)(am)3. 3. A certificate of deposit.

234.66(2)(am)4. 4. The state investment fund.

234.66(2)(am)5. 5. A money market mutual fund restricted to one or more investments as provided in subd. 1., 2., 3., or 4.

234.66(2)(an) (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.

234.66(2)(b) (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.

234.66(2)(c) (c) No moneys in the fund may be invested under s. 234.03 (18).