(1) DEFINITIONS. In this section: (a) “Authorized lender” means a bank, savings bank, savings and loan association, credit union or mortgage banker. (d) “Eligible property” means any of the following: 1. A residential structure having a single dwelling unit, if the structure is or will be the principal residence of an applicant. 2. A residential structure having no more than 4 dwelling units, if one of the units is or will be the principal residence of an applicant and the structure is an existing dwelling first occupied at least 5 years before execution of a homeownership mortgage loan secured by the dwelling. 3. A dwelling unit in a condominium, a cooperative, or an unincorporated cooperative association, together with an interest in common areas, if the unit is or will be the principal residence of an applicant. 4. A residential structure having 2 dwelling units, if one of the units will be the principal residence of an applicant. (e) “Existing dwelling” means a previously occupied dwelling. (f) “Homeownership mortgage loan” means a loan to finance the construction, long-term financing or qualified rehabilitation of an eligible property by an applicant. (h) “Mortgage banker” means a mortgage banker licensed under s. 224.72, but does not include a person licensed under s. 138.09. (i) “New dwelling” means a dwelling which has never been occupied. (j) “Principal residence” means residential real property in this state that an applicant maintains as a full-time residence, but does not use as a vacation home or for trade or business purposes. (k) “Targeted area residence” has the meaning given in 26 CFR 6a.103A-2 (b) (3). (2) POWERS AND DUTIES OF THE AUTHORITY. The authority shall establish and administer a homeownership mortgage loan program to encourage homeownership and to facilitate the acquisition or rehabilitation of eligible property by applicants. To implement the program, the authority: (a) May enter into contracts permitting an authorized lender to make or service homeownership mortgage loans or both. (c) Shall maintain a current list of authorized lenders. (e) May enter into agreements to insure or provide additional security for homeownership mortgage loans or bonds or notes issued under s. 234.60. (f) May make a loan to a veteran, as defined in 38 USC 101 (2), who has not previously received a homeownership mortgage loan financed by bonds or notes issued under s. 234.60. (3) LOAN CONDITIONS. (bd) 1. To the extent required as a condition to maintaining the exclusion from gross income for federal income tax purposes of interest on bonds, notes, or other evidences of indebtedness issued by or on behalf of the authority, a homeownership mortgage loan under this section shall be made to an applicant whose income does not exceed the applicable level specified under 26 USC 143 (f). The authority shall determine an applicant’s income in the manner specified under 26 USC 143 (f) and applicable rulings of the Internal Revenue Service. 2. Nothing under this section precludes the authority from imposing income limitations that are more restrictive than the income level determined in the manner specified under 26 USC 143 (f) and applicable rulings of the Internal Revenue Service. (c) The authority shall notify an authorized lender if a person’s name appears on the statewide support lien docket under s. 49.854 (2) (b). An authorized lender may not make a loan to an applicant if it receives notification under this paragraph concerning the applicant, unless the applicant provides to the lender 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). (d) The authority may not make, buy, or assume a home ownership mortgage loan for an individual who does not have a social security number. (e) A homeownership mortgage loan may not be made to finance the acquisition or replacement of an existing mortgage given by an applicant. This paragraph does not apply to any of the following: 1. A construction loan. 2. Temporary initial financing. 3. A loan made to finance a rehabilitation. 3m. A homeownership mortgage loan made in part to finance the acquisition or replacement of an existing mortgage given by an applicant if all of the following apply: a. The eligible property is located in an area in a 1st class city in which the authority determines there is a high concentration of persons and families of low and moderate income. b. As determined by the authority, the total amount the applicant owes on the existing mortgage, including principal and interest, plus the amount required for repairs to the eligible property, exceeds the maximum amount the applicant is able to borrow from other lenders given the lenders’ loan-to-value ratio requirements. c. A portion of the loan under this subdivision is used to finance qualified rehabilitation of the eligible property. 4. A loan made to pay off a loan funded or serviced by the authority.
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