Property Tax Deferral Loan Program

State

Wisconsin

Year

2007

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

Eligible participants may annually apply to the Wisconsin Housing and Economic Development Authority (WHEDA) for a loan equal to the amount of property taxes and special assessments levied on the home. The maximum annual amount that may be borrowed is $2,500. Loans may be used to pay all or a portion of current property taxes and special assessments due and may include any interest or penalties on delinquent property taxes.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Other Criteria

Description of Eligibility Criteria

The applicant must be a homeowner at least 65 years of age, have an income at or below $20,000, and have lived in the dwelling unit for at least 6 months during the preceding year. The owner must own the dwelling free and clear and total outstanding liens, judgments, mortgages and delinquent property taxes may not exceed 33% of the value of the housing unit, as determined by the most recent property tax assessment.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state provides the loan directly to the property owner.

Enrollment Data

In fiscal year 2007, 81 individuals received $173,500 in loans. The average value of a loan was $2,142.

Record ID

WI102_RR07

Footnotes

Loans will bear an interest at a rate equal to the prime lending rate at the time the rate is set plus 1%, as reported by the federal reserve board in federal reserve statistical release H. 15. Any previous loans under this program and loans under the housing rehabilitation loan program, also administered by WHEDA, are excluded from this limitation. In 2007, the interest rate on loans increased to 9.25% from 7.75% in 2006.

Sources

Wis. Stat. § 234.621 ~ § 234.626 (in effect for 2007)
Property Tax Deferral Loan Program (2009), Wisconsin Legislative Fiscal Bureau, p. 5 [http://www.legis.state.wi.us/lfb/informationalpapers/26_property%20tax%20deferral%20loan%20program.pdf Accessed 05/07/2010] View Archived Source

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