234.94 Definitions. - Wisconsin Statutes

234.94

SUBCHAPTER III
COMMUNITY DEVELOPMENT FINANCE COMPANY
234.94 Definitions. In this subchapter:

234.94(1)

(1) "Capital participation instrument" means:

234.94(1)(a)

(a) Any of the following or an option or other right to acquire any of the following:

234.94(1)(a)1.

1. Common or preferred capital stock.

234.94(1)(a)2.

2. Convertible securities.

234.94(1)(a)3.

3. Evidences of long-term or short-term indebtedness.

234.94(1)(a)4.

4. Warrants.

234.94(1)(a)5.

5. Subscriptions.

234.94(1)(b)

(b) Royalties or other lawful derivations of a capital participation instrument listed under par. (a).

234.94(2)

(2) "Community development corporation" means any of the following:

234.94(2)(a)

(a) Any Native American tribal governing body or any business created by the governing body.

234.94(2)(b)

(b) A corporation organized under ch. 181 that satisfies all of the following requirements:

234.94(2)(b)1.

1. The corporation is organized to operate within specific geographic boundaries.

234.94(2)(b)2.

2. The corporation permits all adults residing in the area of operation to become members of the corporation and limits voting membership of persons not residing in the area to not more than 10% of the total membership.

234.94(2)(b)2m.

2m. The corporation is a nonprofit corporation, as defined in s. 181.0103 (17).

234.94(2)(b)3.

3. The corporation has a board of directors, a majority of whom reside in a target area or are members of a target group.

234.94(2)(b)4.

4. The corporation makes a demonstrable effort to hire low-income or underemployed residents of the operating area.

234.94(2)(b)5.

5. The corporation's purpose is to promote the employment of members of a target group through projects that meet the conditions specified in s. 234.96 (1) (a) to (d).

234.94(2)(b)6.

6. The corporation demonstrates a commitment to involving residents of target areas or members of target groups in projects.

234.94(2)(b)7.

7. The corporation petitions the authority for designation as a community development corporation.

234.94(3)

(3) "Community development finance company" means a corporation or a limited partnership organized for profit under s. 234.95.

234.94(4)

(4) "Cost of a project" means costs associated with the design, planning and implementation of a project that, in accordance with sound business and financial practices, are appropriate charges to the project. The costs may include, but are not limited to, the costs of planning and design, options to buy land, feasibility or other studies, seed money, construction, working capital and any other costs determined by the company to be necessary to the purposes of this chapter.

234.94(5)

(5) "Primary employment" means work which pays at least the minimum wage as established under ch. 104 or under federal law, whichever is greater, offers adequate fringe benefits, including health insurance, and is not seasonal or part time.

234.94(6)

(6) "Project" means a commercial, industrial or real estate business or other economic activity that is located in a target area or directed toward a target group and that has the purpose to create or preserve jobs for low-income people.

234.94(7)

(7) "Target area" means a contiguous geographic area in which 50% or more of the households have income that is less than 80% of the statewide median household income.

234.94(8)

(8) "Target group" means a population group for which the unemployment level is at least 25% higher than the statewide unemployment level, or a population group for which the average wage received is less than 1.2 times the minimum wage as established under ch. 104 or under federal law, whichever is greater. No population group is required to be located within a contiguous geographic area to be considered a target group.

234.94 - ANNOT.

History: 1981 c. 371; 1983 a. 106, 538; 1987 a. 399 ss. 419, 420g, 421, 422, 441, 441m; Stats. 1987 s. 234.94; 1997 a. 27, 79; 1999 a. 85.