Emergency heating assistance loan guarantees

1) The total principal amount of all guaranteed loans to the individual under the program does not exceed $2,500, unless a different amount is requested by WHEDA and approved by the Joint Committee on Finance (JFC).

2) The interest rate on the loan does not exceed a rate determined by WHEDA.

3) If the loan is obtained to pay a supplier, the participating lender pays the supplier directly.

4) The initial term of the loan is not more than two years. The term of the loan may be extended but may not exceed a total of three years.

5) The individual's household income is no more than 200 percent of the median household income in the county in which the individual resides.

6) In the judgment of the participating lender, the loan is necessary for the individual to pay heating costs related to the declared state of emergency; it is reasonably likely that the individual will be able to repay the loan in full with interest; the individual is not eligible for conventional financing on reasonably equivalent terms and conditions; and that under normal market conditions the individual's income and assets would be sufficient for the individual to pay his or her heating costs.

In general, WHEDA may only guarantee emergency heating assistance loans if the governor declares a state of emergency related to heating costs or the availability of heating fuels and JFC approves WHEDA's plan for guaranteeing emergency heating assistance loans in response to the declared state of emergency.

If the plan is approved, WHEDA may guarantee emergency heating assistance loans for a period of 120 days following the date the plan is approved, except that WHEDA may request one additional 120-day extension from JFC. The bill, however, provides that WHEDA may guarantee emergency heating assistance loans related to the state of emergency declared in Executive Order No. 130 relating to severe winter weather and a propane shortage for 120 days following the effective date of this bill without JFC approval.

Finally, the bill directs WHEDA to immediately transfer $2,000,000 from the housing rehabilitation loan program administration fund to the Wisconsin development reserve fund. The bill also requires WHEDA to allocate at least $2,000,000 in the Wisconsin development reserve fund to the emergency heating assistance loan guarantee program for 120 days following the effective date of the bill.