WHEDA Dividends Plan Hearing

WHEDA is holding public hearings to give people an opportunity to comment on the 2010 Dividends Plan. The hearings will be held at:

DATE: Monday, July 27
TIME: 10:00 a.m.
LOCATION: WHEDA Suite 700
201 West Washington Avenue
Madison

DATE: Tuesday, July 28
TIME: 10:00 a.m.
LOCATION: Green Bay City Hall
Room 400
100 N. Jefferson
Green Bay

DATE: Tuesday, July 28
TIME: 10:00 a.m.
LOCATION: WHEDA, Suite 200
140 South 1st Street
Milwaukee

Below is a background summary of the Dividends Plan. At this time, they do not yet know the size of the unrestricted reserve fund, but anticipate it being smaller than previous years. Please take advantage of this opportunity to provide feedback to WHEDA on what the priorities should be.

WHEDA ANNUAL DIVIDENDS PLAN

WHEDA was established by the Wisconsin Legislature in 1972 to help meet the housing needs of Wisconsin's low and moderate income citizens. In the early 1980s, WHEDA's statutes were expanded to include financing for farmers and economic development projects.

WHEDA finances most of its programs through the sale of federally tax-exempt bonds. Working through participating lenders and sponsors, WHEDA provides low-cost financing, federal tax credits and loan guarantees for housing and business development. WHEDA also uses a portion of its earnings to make grants to support special needs housing for persons-in-crisis.

WHEDA receives no state tax dollars for its bond-supported programs. Its income is derived from interest on loans and investments, and from loan origination and service fees.

Annually, as required by statutes, WHEDA develops a plan for the use of its unrestricted reserve funds.

This Dividends Plan is developed based on three priorities. The first priority is bonded program support. WHEDA’s most important tool to successfully fulfill its affordable housing mission is low cost financing provided by federally tax exempt mortgage revenue bonds. WHEDA satisfies rating agency requirements by making contributions to new bond issues. The bonds that we issue make the financing available to home buyers and multifamily housing developments
more affordable.

The second priority is special initiatives. The WHEDA Foundation Grant Program provides needed assistance to Wisconsin housing organizations for the creation and/or improvement of special needs housing. WHEDA also provides loans to elderly homeowners through the Property Tax Deferral Loan Program.

The third priority is new initiatives. WHEDA is exploring new and innovative initiatives that may be developed using unencumbered general reserve funds, as dictated by the size of the plan each year. Past programs have included the Easy Close closing cost assistance program, manufactured housing design for persons with disabilities, business development interest rate subsidies for women and minorities, and others.